China's kids wear industry has already entered a period of rapid development and the industry competition will become increasingly fierce with more and more enterprises entering the kids wear industry. In fact, the domestic high-end kids wear enterprises are mainly small and medium sized enterprises. In 2011, the small and medium sized enterprises accounted for more than 99% of the high-end kids wear enterprises; their assets accounted for 75% of the total assets of the kids wear industry; their sales revenue accounted for 86.08% of the total sales revenue of the kids wear industry. These data show us that the proportion of the number of enterprises is much higher than the proportion of assets and sales revenue.

From the aspects of enterprises' scales and business conditions, China's high-end kids wear industry will be in a long period of powerful rivalries in the near future. All enterprises even those companies without the background of clothes manufacturing are trying to take a share of the profits or spoils from the kids wear industry.

The statistics of China Textile Information Center and National Bureau of Statistics of the People's Republic of China show that there was a upward trend of kids clothes' supply from 2006 to 2010, although the whole national economy suffered from the financial crisis. The supply reached 1.2 billion in 2006 and the output reached 4.7 billion in 2010. With the global economic recovery and domestic economic development, the sales of China's kids wear also had a rapid recovery, which reached 2.5 billion in 2010.

At present, there are about 300 million children between 0 year and 16 years in China. Since kids wear market has a large space of development in the next few years, some domestic and foreign enterprises generally are optimistic about the development and prospect of the kids wear market and they began to get involved in the businesses of kids wear. In the next few years, the consumption in kids wear market will maintain an annual growth of more than 12%, and become one of the growing rapidly consumer markets. However, due to the low scientific and technological content of China's kids wear industry, the thresholds for enterprises to enter the market are low and the marketing model as well as the product development are easy to be imitated. In order to expand the market shares, more kids wear enterprises will participate in the high-end market or mid-end market competition according to their business positioning and based on the different marketing strategies.