POLES BUY MORE ARTICLES FOR THEIR CHILDREN
- Child benefit fills household budgets
- Half of spending is on clothing
Demand for children's needs in Poland is expected to increase by 4% to 5% annually in the medium term. The child benefit introduced in 2016 and the good economy are boosting spending on the offspring. Clothing, including shoes, gets the biggest part. There is also a considerable domestic production of hygiene and personal care products as well as food. There is an increasing emphasis on organic products, which also opens up supplier opportunities for German suppliers.
Demand for basic children's items, such as clothing, toys, personal care and food, is expected to increase by 4% to 5% annually in Poland in the medium term. This accelerates growth over the period 2011-2015, as the market research firm PMR (http://www.pmrpublications.com) expects in its market analysis on children's products 2015 and forecast 2015-2020. In 2015, such articles were sold for PLN 9.4 billion (about EUR 2.2 billion, EUR 1 = 4,1841, average price in 2015) compared to EUR 8.5 billion in 2011.
The economic recovery and falling unemployment increase the general propensity to consume. This is additionally stimulated by the child allowance paid since spring 2016, which gives households more than ZI 20 billion annually; in 2017 alone some ZI 23 billion.
So the number of births rose again after years of decline in 2016. 382,500 were born in Poland, around 13,000 more than in 2015. Nevertheless, the birth rate, the number of births per woman be-tween the ages of 15 and 49, is just over 1.3 children per woman only. A sufficient quota for main-taining the population was found last time in 1991.
Birth rate in Poland (number of births per woman between the ages of 15 and 49)
By the end of February 2017, more than 3.82 million children up to the age of 18 years were covered by the child benefit program, which re-ceive ZI 500 per month. As a result, more than 2.57 million families have received a total of nearly ZI 21 billion in state resources by that time. Nationwide 55% of all children under the age of 18 years benefit from the program. In the countryside, this percentage reaches as much as 63%, compared with only 49% in cities. Single kids of well-situated families are not included.
Largest demand potential in Mazovia
Most of the beneficiary children live in the capital region, the Mazowieckie voivodship (Mazovia, al-most 554,000), followed by Slaskie (Upper Silesia, 383,800) and Wielkopolskie (Greater Poland, 379,600). In Pomorskie (Pommern) 25,860 children were born in 2016, so that 11.2 babies were born per 1,000 inhabitants. This was the highest proportion nationwide closely followed by Ma-zowieckie (11.1) and Wielkopolskie (11.0).
However, spending on the next generation is not only geared to the number of children, but the individual children are given more gifts or receive additional or higherquality clothing and others. Natu-ral and ecological products have a high priority, which can also benefit German suppliers.
In addition to namedays, birthdays, Christmas and Easter, the day of the child on June 1st of each year, is an important occasion for gifts. According to a survey by the price comparison portal Ceneo (http://www.ceneo.pl), 35.0% of those who were surveyed have planned for the June 1st 2017 from ZI 101 to 300 and 31.4% from ZI 51 to 100. Each half of the rest looked approximately each half to higher or lower expenses.
Industry experts estimate the annual sales of toys at about ZI1 billion. The strongest positions here have international companies such as Lego, Hasbro and Mattel. But, also domestic manufacturers such as Cobi S.A. (http://www.cobi.pl) and Trefl S.A. (http://www.trefl.com) benefit from the growing demand.
Cobi produces building blocks and imports and sells a wide range of other toys. The predominant products of Trefl are board games and puzzles that are being also heavily exported. Anna Skorzynska was able to place her stuffed animals, which create a sleep sound, successfully on the market. (http://szumisie.pl). Other manufacturers are Wader (http://www.wader-zabawki.pl), Hemar (http://hemar.com.pl) and St. Majewski (http://www.st-majewski.pl).
Robust eco-fashion on the rise
For children's clothing, the importance of locally sewn items is increasing. Popular brands include "Ekoubranka" (http://www.ekoubranka.pl, durable and ecological clothing) and "Pampicio" (http://www.pampicio.pl) from Sieradz.
While such smaller brands are mainly sold online, large ones such as "5-10-15" (http://www.51015kids.eu) of Komex S.A. also offered in its own chain of over 220 conventional stores.
Other children's clothing retailers include Coccodrillo (http://www.coccodrillo.eu) with 187 stores and Wojcik Fashion (https://wojcikfashion.com). The big children's toy chain Smyk (Bengel, http://www.smyk.com) also sells clothing, including its own brands "Cool Club" and "Smiki". Apparel and footwear account for the largest share of spending for children, which, according to PMR, to-taled almost ZI 5 billion, including apparel estimated at ZI 3,517 billion and shoes at Zl 1,419 billion in 2016.
The sales of food for babies and children is estimated at around ZI 1 billion per annum. Here, the market research firm PLM expects higher increases in the future than for food in total. Leading here are the French group Danone and the Swiss Nestle Group. The at Danone Nutricia Zaklady Produkcyjne (http://www.nutricia.com.pl) belonging company has large factories in Opole and Krotoszyn.
Among others Nestle produces in Kalisz (Kalisch) and in Rzeszow the brands "Nestle Nutrition" and "Gerber". Major domestic manufacturers include Geo-Poland (https://geo-poland.com/pl), Helpa (http://www.helpa.pl), Maspex (https://maspex.com, juices and the like), Wosana (http://www.wosana.pl, fruit juices) and Dary Natury (http://www.darynatury.pl, tea).