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Major Fashion Houses Branching out into Kid?s Market

The clothing market is highly competitive, with the success of a company largely dependent on the trends of today. Several large fashion houses these days are looking to branch out into another segment of the market, in the hope of starting new trends for their consumers of tomorrow ? the kid?s clothing market. Companies such as Hugo Boss and Escada have already announced their plans to design a new range of children?s clothing and sign on new partners.

In 2004, Hugo Boss?s rival, Escada announced their decision to design a collection for young girls up to age 16. The company recently announced that it had signed a new partner for the design of these clothes. Last week, Bruno Saelzer, Chief Executive of the fashion house Hugo Boss, announced to the Germany weekly, Die Zeit that his company was considering branching out into the children?s clothing market ? focusing on the 2-12 year olds. With the announcement, stocks for the company hit an all time high, rising by 4% to 38 Euros a share. This plan, say investors, is sure to drive the company?s share prices even higher and offers it great growth potential.

In the interview to Die Zeit, Bruno Saelzer also spoke about the potential of the Chinese market and predicted that it would be the next nation to conquer the fashion world and that today?s trends are heavily influenced by Far East design. He warned consumers not to brush off the Asian level of quality and praised the Chinese for the ability to provide high quality goods if such were the demands of the market.