Downsizing Style

By Kate Betts

Walk into Marc Jacobs' newest retail outpost in Manhattan's West Village, and you're likely to see eager shoppers snapping up his signature thermal-style cashmere sweaters, brass-buttoned military jackets and floral-print peasant blouses. As for the must-have accessories? They might pick up a few stuffed animals or a baby blanket or two. These days Jacobs' trendy customers are as aware of the fashion image of their offspring as they are of their own. Thus they are flocking to the hip designer's Little Marc boutique, which opened in November.

Like many high-end European and American designers, Jacobs is cashing in on the growing demand for chic clothing for the stroller and grade-school sets. The concurrent trends of older moms and dads and an increase in dual-income families mean that many boomer parents are not only richer but also ready to spend lavishly on their little darlings. The same people who casually shell out $800 for a Bugaboo stroller don't flinch at a $300 Little Marc cashmere sweater. As a result, sales of infant and toddler clothing have soared. In 2006 they spiked to $33.3 billion, 8.4% over the previous year--outpacing the adult-apparel market--according to the NPD Group, a market-research firm based in Port Washington, N.Y. And for 2007, sales are expected to increase to $44 billion.

The concept of designer clothing for children is not entirely new. More traditional brands like Polo Ralph Lauren and Tommy Hilfiger have been in the business for years. But more recently, fashion-forward labels, better known for their $2,000 handbags and red-carpet-worthy frocks, are starting to take a closer look at the kindergarten crowd. "So many of our friends started having babies, and they asked us for thermal cashmere sweaters for their kids," says Robert Duffy, president of Marc Jacobs International. "We started making a few items and selling them in our stores." The items became so popular that Duffy signed a licensing deal with French children's-wear manufacturer Zannier Group and last spring launched a full line, including hoody sweatshirts, graphic Ts, jeans and sweaters for kids ages 0 to 12. Jacobs and Duffy plan to open Little Marc stores this year in Los Angeles and Las Vegas.

European high-fashion brands like Dolce & Gabbana, Chloe, Missoni and Marni all sell miniature versions of their adult ready-to-wear pieces. Come summer, Alberta Ferretti, known for her flirty chiffon dresses, will launch Alberta Ferretti Girls through a licensing deal with Grant SpA, a manufacturer that also produces Moschino's children's line. Meanwhile, bad-boy British designer John Galliano has teamed up with Italian manufacturer Diesel to launch a pint-size collection next fall. Premium denim brands are rushing into this market too. High-end department stores like Barneys and specialty shops like Fred Segal sell $150 Antik Denim, 7 for All Mankind and Rock & Republic jeans for toddlers, who will presumably outgrow them in a matter of months.

Marshal Cohen of NPD Group says two factors are pushing the market up: parents are expressing their own status by outfitting their kids, and today's kids, raised in a culture in which tweens dream of dressing like the fashionistas on Gossip Girl, are more clothes-conscious than ever and influence their parents' purchasing decisions. "As early as age 6, kids are getting more and more involved in choosing the products, including what they wear," says Cohen. "And the fact that you can't tell them what to wear is really driving the market."

"Kids are more sophisticated about fashion now," says Gela Nash-Taylor, who along with Pamela Skaist-Levy launched Juicy Couture Kids in the spring of 2002. "Fashion is a major part of how they express themselves. It's a huge part of their culture, and boomer moms definitely want the very best for their kids."

Celebrity moms want the best for their kids too, and the fact that Shiloh Jolie-Pitt and Suri Cruise turn up in paparazzi photos sporting the latest Lit'l Ernie jeans or Burberry dresses can only boost the trend. The next growth spurt? Get ready for celebrity-designed children's wear to jump into the playpen.