Children's wear industry is extremely profitable "average gross margin of 60%"

As China has entered its peak period of childbirth since 2005, Orient Securities expects that from 2011 to 2015, the average annual compound growth rate of children's wear will reach 10.06%.

At the same time, it is expected that by 2015, the market scale will reach 157.8 billion yuan.

Liu Yang, an analyst at the Baby and Child Industry Research Center, said that apart from the participation of mother and baby brands in children's wear, almost all sporting goods companies have opened children's clothing business.

The high gross profit, large market, and competitive landscape have not yet been finalized, which is an important reason for attracting many companies into the children's wear market.

“60% is only the average gross margin of the industry, and the gross profit margin of some authorized international children’s wear brands is 200% or even 300%,” said Liu Yang.

Liu Yang also expects that the current time of warlords will not last long, and some companies may soon be eliminated.