Kids apparel market in India to witness growth from the current level of Rs 72,000 crore to Rs 95,000 crore by 2016, according to a study conducted by industry body Assocham. It shows that the country's kids apparel market has been growing at a compounded annual growth rate ( CAGR) of about 20 per annum, and this trend is likely to continue at least till 2016.

The main driver for the growth in kids apparel market is the higher disposable income of the parents, peer pressure and brand consciousness among children.

According to Assocham Secretary General D S Rawat, children have become brand conscious, parents have more money and peer pressure is growing. This is the only segment which has not been impacted by the economic slowdown and is poised for significant growth.

Moreover, online shopping websites have also been selling branded kids wear and accessories for the age group between 2-16 years.

It is found that fashion consciousness in children has entered even down to Tier-II and Tier-III cities like Dehradun, Ludhiana, Pune, Nashik, Indore, Varanasi, etc.

Certain brands like Weekender have made an agreement with Walt Disney and Warner Bros., to make use of some of their famous cartoon characters characters like Mickey and Minnie Mouse as well as Tom and Jerry in the new line of children's clothing in their apparel.

Pantaloon and Gini and Jony have entered into a joint venture to set up a chain of retail stores for children's apparel. Raymond has launched its first store for kids' apparel 'Zapp!'. DS Corporation, which owns the Ruff Kids brand of kids' garments, is planning to expand.

Generally in India, the trend was that most of the people preferred buying functional kids' apparel rather than branded ones. Children's garments were usually purchased from small stores and from street shops, while branded garments were only bought by the very high status families. This trend is gradually changing and there is an increasing preference for branded apparel in the market is growing rapidly today as trends in the market are fast changing.

The kids' wear market is growing at the rate of 10% per annum, which makes it one of the fastest growing markets.