Don’t let the tiny booties and on-trend onesies fool you – competing in the baby and kids retail category is not for the faint-hearted.

In this interview, Cotton On Kids general manager Darren Fox explains how the retailer stays ahead of the pack.

Jo-Anne Hui-Miller: How would you describe the Cotton On Kids customer experience?

Darren Fox: We aspire to offer a customer-centric experience both in-store and online. Although we operate in a highly competitive market, we are acutely aware of what our customer wants. Our ability to provide one-on-one advice in a fun and relaxed store environment sets us apart from some our competition and makes Cotton On Kids a fun, engaging and supportive environment for first-time parents as well as repeat visitors.

When you visit one of our stores, you can sense the attachment our team members have to the customer and brand and that makes it a great place to shop.

Our newer stores provide heightened engagement and fun at every touch point. For instance, our 500sqm store at Warringah is reminiscent of a playground taking inspiration from children’s equipment such as treehouses and merry-go-rounds.

Every detail has been designed with the customer in mind, from the interactive kids’ zones featuring Etch-a-Sketches and colouring stations to magnetic walls and seating nooks. It’s a place for the whole family to enjoy.

JHM: How would you describe the Cotton On Kids style?

DF: Cotton On Kids has always been a destination for on-trend, effortless and relaxed fashion and our customers tell us they love the position we hold in the market. Applying an unexpected twist to everyday items is what we love to do and keeps us fresh and exciting.

JHM: What’s it like operating in the baby and kids’ category right now?

DF: Competition has definitely grown in the last few years but our business has continued to grow and prosper.

We are a competitive bunch and love the challenge of staying ahead of the pack and offering our customers items they can’t get from some of the large discounters. When you combine that with the most on-trend looks for each season, we think it’s a winning formula that will ensure we continue our global growth.

Our price proposition has us sitting in the comfortable mid-market, which allows us to compete aggressively with both the large department stores as well the smaller fashion brands. This keeps us close to new trends and our customers appreciate that stance.

Our customers are also appreciative of our ability to operate in both hemispheres. Unlike many southern hemisphere brands, we have a successful Asian and North American business and the alternate seasonality allows us to test and refine ranges well in advance of the Australian market. We see this as one of our key competitive advantages as well as a huge growth opportunity in the medium term.

JHM: How has the baby/kids category changed over the years?

DF: Kids fashion and trends are constantly evolving, although our winning formula hasn’t really changed since the brand’s beginnings over a decade ago.

Each season is definitely an evolution of the last, primarily as a result of what our customers tell us what they want, combined with skilled trend and fashion forecasting. We pride ourselves on sensing what the customer wants and reacting and adapting quickly.

Our customers have grown to know us for our must-have items and we supply these in volume at an accessible price point. We invest heavily in evolving the design and construction elements of our ranges to ensure they stay relevant and on-trend. Confident statements of everyday items is what our brand is based on. The mix of pure fashion items definitely flexes up and down depending on trends and we apply that across the baby, kids and tween categories.

JHM: What plans do you have for Cotton On Kids in the year ahead?

DF: Further expansion of our already strong ecommerce channel is a big priority for the next few years along with strategic partnerships with global online players.

We also see increasing our footprint in the US market as a massive opportunity and one we’re excited to pursue aggressively.

The upcoming global launch of our Cotton On & Co Perks loyalty program will help us to further understand shopping behaviours, improve our offer and give our customers more of what they love.

This story appeared in the May issue of Inside Retail’s quarterly magazine. Subscribe here to read more.