(HKTDC – 22/05/2009). Spanish companies have been able to develop a niche in creating children's brands internationally, partly due to moving production to lower cost platforms, while consolidating management of design, brand image and communication.
Spain's Tuc Tuc is among companies riding the buoyant kids' clothing sector and has met Hong Kong suppliers such as Vax HK Limited and Chogband Group with a view to source through the territory, aiming for consignments which combine quality and better wholesale prices.
Other top names in the children's products sector such as Mayoral, BÓBOLI, Agatha Ruiz de la Prada, Pili Carrera and Tutto Piccolo are also expected to source through the territory and the Chinese mainland at a time when stricter EU safety regulations have raised production costs.
Large chains are leveraging their children's specialty offerings. Inditex has been developing kids' lines for over 10 years with its Kiddy's Class brand and is believed to be ready to increase clothing volumes through 136 stores throughout the world.
Inditex decided to change its commercial strategy in May 2008 and integrate Kiddy's Class with its youth chain Zara, making invoicing savings in global sourcing. The holding company has underlined its children's goods by changing the names of some retail outlets to Zara Kids.
Ironically, Kiddy's Class has not been a big earner for Inditex over recent years, with the brand available only in Spain, Portugal, France, Italy and Greece.
Another major store chain, Cortefiel, has penetrated the kids' market, designing clothes for little girls under the brand Women'secret, which also trades in lingerie and bath items.
Prêt-à-porter designers such as Adolfo Domínguez, Totón Comella and Vittorio & Luchino which are additionally creating new collections for children with remarkable success.
Sector forecast to grow 6%
The Spanish Manufacturers Association of Children's Products (ASEPRI) has over 200 members representing more than 350 brands and sees the sector as very positive despite the economic downturn, which has decimated sales in other categories.
Annual growth for the sector in 2009 is forecast at 6%, while companies are expected to upgrade brands by opening new stores and create franchise operations, including expanding overseas operations.
There's been a trend towards diversification for children's clothing outside EU markets, although the biggest consumers are Italy (with 26%), Portugal (with 18%) and France (with 10%).
Spanish companies have been able to develop a niche in creating children's brands internationally, partly due to moving production to lower cost platforms, while consolidating management of design, brand image and communication.
There's been a big change in distribution, with manufacturers opening up their own stores or franchises in which they not only consolidate brand strength but also expand offerings with complementary products.
Variety the secret of success
Tuc Tuc is a company which has made a success of producing and presenting a huge variety of children's lines.
The company was established in 1994 as the brainchild of Head of Design Marisa Sotés and General Manager, Miguel Cadarso. It started selling children's fashion and garments for babies in a small 30 sqm shop.
It now has its own facility of 6,500 sqm in the Lardero industrial zone near Logroño. There's an avant-garde high-tech warehouse in the industrial zone.
Tuc Tuc became a celebrated brand in 1995, when it first attended the International Children's and Young People's Fashion Fair (FIMI) in Valencia.
In 2004, Tuc Tuc collections were shown in the international market when they started appearing at fairs such as Pitti Immagine Bimbo in Florence and Collection Premiére Moscow in Moscow.
The quality of Tuc Tuc goods is guaranteed by SGS, an inspection and quality control firm that guarantees quality to accommodate ISO 9001:2000 as well as its environmental management system, ISO 14001:2004.
Several annual follow-up audits have been established to ensure quality as well as a certification audit and a plan for continuous quality control. In addition, controls are carried out by the Toys Technological Institute (AIJU) for baby care products.
Last year, Tuc Tuc initiated its expansion programme with the opening of four stores in several Spanish cities. Earlier this year it opened two more stores in Barcelona and Madrid.
Tuc Tuc prides itself on retail design, which is reminiscent of pieces of a puzzle, creating an exciting shopping experience.
The company has a profoundly international perspective, being present in 50 countries and with 3,000 sales points through specialised stores, multi-brand shops, chains and through sections within larger stores.
Tuc Tuc has developed successfully in the UAE, Saudi Arabia, Bahrain and Qatar with a business plan based on the opening of exclusive stores.
The company has so opened 15 stores in the region up to now, and plans are to open new stores in the premier shopping centres in each city.
New international objectives for the brand are to target countries in which Tuc Tuc has a negligible market share and it has planned an ambitious commercial policy.
Germany, the UK, Ireland and Greece are just some locations where the children's brand has already begun its process of expansion.
China is considered by directors as a very interesting market, although it doesn't plan to make any moves near term.
Says Sonia Olano, Marketing Director of Tuc Tuc: "the secret for success is based on the fact that we offer a huge range of proposals both as regards fashion and different complements as well as brands that are always at the forefront of trends."
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22/05/2009