Kiddie fashion market maturing?
There is little potential for children's retail on the local market, say analysts. Yet Poland's newest global arrivals in retail fashion have specifically targeted 'the young family.' Meanwhile, the one local entreprenuer which has managed to make a name for itself in this retail sector has not only turned down capital inputs from private equity firms, but is now expanding into the 'old' EU and also the USA.
Apart from veteran children's retailer Smyk, there are only two locally-owned retailers on the domestic market for children's clothes of a size worth mentioning. This is, according to local analysts, because there is simply no market. One of the two is LPP, owner of the fashion brand Reserved, which has a small children's division. But the company is not, according to Arkadiusz Chojacki, an analyst at DM Bank Handlowy, planning to develop the section on the grounds that the birth rate is falling.
"There used to be about 6,000 children born each year," he says, "whereas now there are around 3,000 - which means there's no demand," he says, dismissing the argument that less children born means more money for parents to spend on them.
Yet the most recent multinational arrivals, at least, are optimistic. Though C&A Germany's policy is to take consumers - literally - 'from the cradle to the grave,' C&A Polska, which set up shop in Warsaw last year, has dropped the lines for older consumers. They are banking on the theory that in Poland not only do young families have the most disposable income, but the elderly, conventionally thought to not spend much on themselves, will nevertheless spend on their grandchildren. C&A Polska is, therefore, concentrating on the 'young family' concept, as is H&M Polska, which opened in the capital last Autumn. A press spokesperson for H&M Polska, though unwilling either to elaborate or supply figures, claims - for what it's worth - that its children's division sales have been 'very successful.' Meanwhile, Jerry Cole, divisional director for Mothercare International, says, "We think the market has a lot of potential, particularly as the number of shopping centers continues to rise," before going on to add that the company plans to open another 15 retail stores in major cities over the next few years.
"EU accession has boosted the Polish market's potential for us," he says, "since EU-wide standards are now fully recognized."
Jacek Siwicki, managing partner at Central European private equity firm Enterprise Investors, is also bullish.
"Why there aren't more local chains, I don't know," he says, "All the evidence shows that people who won't spend on themselves will spend on their children."
Funnily enough, the only other locally-owned retail chain of any significance in the domestic children's clothing sector, Endo, rejected propositions of a capital injection by Enterprise Investors two years ago on the basis that financial independence was preferable for fast growth.
Endo, which defines itself by rejecting the ubiquitous sugary pinks and blues of current children's fashion for stoney, offbeat 'Anti-Barbie' shades, has a total of 15 outlets on the domestic market. The company, which sells clothing exclusively under its company brandname 'Endo,' intends to begin expansion through franchise shops throughout the 'old' EU, beginning in France and Germany. Simultaneously, Endo is initiating catalog-based distribution in the USA. The firm was, however, unwilling to reveal any financial data; it's owner spoke to us on condition of anonymity.
Apart from veteran children's retailer Smyk, there are only two locally-owned retailers on the domestic market for children's clothes of a size worth mentioning. This is, according to local analysts, because there is simply no market. One of the two is LPP, owner of the fashion brand Reserved, which has a small children's division. But the company is not, according to Arkadiusz Chojacki, an analyst at DM Bank Handlowy, planning to develop the section on the grounds that the birth rate is falling.
"There used to be about 6,000 children born each year," he says, "whereas now there are around 3,000 - which means there's no demand," he says, dismissing the argument that less children born means more money for parents to spend on them.
Yet the most recent multinational arrivals, at least, are optimistic. Though C&A Germany's policy is to take consumers - literally - 'from the cradle to the grave,' C&A Polska, which set up shop in Warsaw last year, has dropped the lines for older consumers. They are banking on the theory that in Poland not only do young families have the most disposable income, but the elderly, conventionally thought to not spend much on themselves, will nevertheless spend on their grandchildren. C&A Polska is, therefore, concentrating on the 'young family' concept, as is H&M Polska, which opened in the capital last Autumn. A press spokesperson for H&M Polska, though unwilling either to elaborate or supply figures, claims - for what it's worth - that its children's division sales have been 'very successful.' Meanwhile, Jerry Cole, divisional director for Mothercare International, says, "We think the market has a lot of potential, particularly as the number of shopping centers continues to rise," before going on to add that the company plans to open another 15 retail stores in major cities over the next few years.
"EU accession has boosted the Polish market's potential for us," he says, "since EU-wide standards are now fully recognized."
Jacek Siwicki, managing partner at Central European private equity firm Enterprise Investors, is also bullish.
"Why there aren't more local chains, I don't know," he says, "All the evidence shows that people who won't spend on themselves will spend on their children."
Funnily enough, the only other locally-owned retail chain of any significance in the domestic children's clothing sector, Endo, rejected propositions of a capital injection by Enterprise Investors two years ago on the basis that financial independence was preferable for fast growth.
Endo, which defines itself by rejecting the ubiquitous sugary pinks and blues of current children's fashion for stoney, offbeat 'Anti-Barbie' shades, has a total of 15 outlets on the domestic market. The company, which sells clothing exclusively under its company brandname 'Endo,' intends to begin expansion through franchise shops throughout the 'old' EU, beginning in France and Germany. Simultaneously, Endo is initiating catalog-based distribution in the USA. The firm was, however, unwilling to reveal any financial data; it's owner spoke to us on condition of anonymity.
