Kid Couture

As parents spend more and more money to dress up their bundles of joy, children are beginning to look increasingly like stylish, miniature adults.

Sales of children's clothing -- which includes infant, toddler and preschool apparel -- is expected to approach $17 billion by the end of 2007 and could hit $20 billion by 2010, according to Packaged Facts, a division of MarketResearch.com.

Companies such as Lacoste, Adidas (ADDYY Quote) and Ralph Lauren (RL Quote) have recognized the vast potential in this expanding retail market and have established extensive lines solely for children.

Adidas sports a matching jogging set ($32) for children that is similar to the slick adult version; Ralph Lauren's offerings feature sporty mesh shirts ($40), the iconic long-sleeve polos (around $45) and classic cashmere sweaters ($225).

Designers have even created shoes for infants. Sure, they may not be able to walk -- but they can still dazzle with tiny takes on Van's popular crib slip-on shoes ($20) to Ugg's furry booties ($50). Upscale retailers such as Barney's and Nordstom make it easy, with online sections devoted solely to chic selections of young children's shoes and apparel.

As the winter drags on, resort-hopping parents are looking for swimsuits that will make their baby stand out in the crowd.

Lilly Pulitzer has a bathing suit with a beautiful floral print and spaghetti straps that retails for $70 to $72 (machine washable), as well as a perfectly matched terrycloth cover-up ($78-$82). Saks Fifth Avenue has several adorable mini maillots ($60-$68) to choose from, as well.

Bloomingdale's even features popular designer brand Juicy Couture reconfigured for investment-worthy tots -- high-end soft hoodie sweatshirts and sweatpants ($48-$72) so kids can impress on every playdate.

Children's clothing has made the upscale leap thanks in part to designers such Dolce and Gabbana, the luxury Italian brand that saw the demand and introduced a children's line, D&G Junior, about seven years ago. Its Web site is even designed to be navigated by children.

And just because it's small doesn't mean it will be inexpensive -- one Dolce and Gabbana cotton tank top retails for $95.