You have a children's clothing line. But what distinguishes it from the litany of other ones? Age/sex-boy-girl-androgynous/fashion sense/socioeconomic level/type of parents/etc.? Can you or have you defined these in a compelling, distinctive way -- without using trite formulations or platitudes of any kind?
There was a reason, for example, that Daymond John hit it out of the park with FUBU; or why Joe Boxer sold hundreds of millions of dollars in boxers; or why Tommy Bahama (what would Tommy Bahama do?) was ridiculously successful. You have to do the same. Look at the kids' brands that Nordstrom lists: http://shop.nordstrom.com/c/kids-brands. Quite a lot. So why are you really, really, really different?
And once you know that and your distinction is so memorable, so compelling that it would be impossible to forget -- have you forged that into a name, a look, a lifestyle? Because a logo can't really come first either. A logo has to evoke the attributes of the brand. It's the visual representation of all you stand for. Being in such a competitive market, you have no choice but to do something amazing and, in its own way, outrageous.
Controversial can be good, too -- what I like to call "rationally" controversial. It's easy to argue Benetton went over the line with some of their advertisements years ago, and so it's questionable whether that approach was rational, especially since it essentially destroyed the brand! Abercrombie & Fitch failed to keep up with the times, even though they once were, for their target market, the epitome of cool. You needn't insult anyone to get noticed, but you need to do something so it's impossible for your target market not to notice you.
None of this is easy. But it's the core of your brand and your brand story. Outsourcing branding until you've got this nailed is not a good idea. Working with someone who can help you establish the essence of your brand -- or validate what you already have -- could, on the other hand, have merit. Funding branding for what is not distinctive -- and you can find plenty of firms that will "execute" on anything, great, good or bad -- is, on the other hand, precisely what you want to stay away from.
Good luck to you. Of course it's not easy, but nothing truly rewarding ever is!