Intimate Apparel- A brief overview

The Intimate Apparel Industry

Globally

Source: Google Search. *Based on sample size of 175,000

 

Designers and retailers

A number of major designer labels are renowned for their underwear collections, including Calvin Klein and Dolce & Gabbana. Likewise, specialist underwear brands such as 2(x)ist, C-IN2,  Ginch Gonch, Lord and Obviously are constantly emerging.

Specialist retailers of underwear include high street stores La Senza (Canada), Agent Provocateur (UK), Victoria's Secret (USA), and GapBody, the lingerie division of the Gap established in 1998 (USA). In 2008 Abercrombie & Fitch opened a new chain of stores, Gilly Hicks, to compete with other underwear retailers

Domestically

Overview

For years, purchasing of undergarments has been very standardized and behind closed doors with not much emphasis on fashion unlike west. Demand for mute colors eg White, black, skin and grey have been bought without any second thought.

Having said, the intimate apparel business in India off lately, has been witnessing demands for stylized offerings. Though still in a very nascent stage as far as style statement in intimate apparel is concerned, age old brands like VIP, Amul, Lux to name a few have positioned themselves categorically in the lower income segment of our society. The mid premium and premium grids are taken care by brands like Jockey, Hanes, Fruit of the Loom, Levis, Calvin Klein, Playboy, Under Colors from Benetton etc. The first three cater to the mid premium, what follows later, cater to the super elite.

Retailing in India is still considered to be driven from unorganized sector which is expected to control approximately 96% of the market. The remaining comes from the organized sector which is primarily operated by players like Shoppers Stop, Lifestyle, Westside, Debenhams and Central-Future Group. 

The major difference between the two is, the unorganized functions on outright basis i.e sale and purchase whereas the organized functions predominantly on consignment i.e sale and return; note: this may be variable depending on the brand, its volume generation etc.

A very accepted observation to which I too abide, Indian economy is like a glass of Champagne where the brim is fizzing out with prosperity and the base depreciates further deepening the financial crisis. The brim symbolizes the rich and the base symbolizes the poor. Interestingly, the chord symbolizes the middle class who are majors’ in middle-lower and upper-middle category. It is this section of the society that the companies like to focus since they are the real drivers of our economy and by far the potential consumer base for any brand.

Business

In the mid premium segment, jockey has categorically established itself as the most acceptable and recognized brand. It enjoys maximum brand loyalty both at consumption and distribution level. Other players in the same grid are Hanes and newly launched Fruit of the Loom, both of these brands hail from America and are recognized global

Jockey being present into India since 90’s always had the first movers’ advantage. Having a larger share of the men’s wear market it now plans to spread its wings to tier II and III cities. In this sphere jockey faces competition from its global competitor’s i.e. Hanes and Fruit.

In the women’s wear jockey shares space with brands like Lovable, Triumph and Enamor who have an expertise in catering to female demands and cater to mid premium and premium segment.

Jockey currently is present in 1600 stores across 1100 cities, a number which is surely envious and at the same time desirable for others.

For new entrants and recent brands business generation is not easy since it is such a kind of a commodity which one would not like to readily experiment with. Hence brands usually try to excite the distribution rather than the consumption lines by offering greater margins and promotional schemes. Such kind of business model is likely to grow in future as well creating a win-win situation for both the distributors and consumers with the option of multi brands. As for the new entrants, they get an equal opportunity to rub their shoulder with the more established brands.

The premium segment is disintegrated into many names, substantial numbers amongst them going to Levis because of its huge brand name.

Trends

Off lately, there has been a paradigm shift in taste and preferences of the consumer which earlier was quite standardized, now looks for vibrancy in offerings.

Earlier purchasing of undergarments was more of a quiet affair but with the surfacing of departmental stores it has become more experimental. The reason is being, modern point of sales offer affable shopping environment and flaunt western taste which always was extrovert.

To top it all, domestically we follow west and as the exodus of brains continue, more they get exposed to global tastes.

The same bug has affected the buying behavior for intimates as well. More often now brands come out with various stylized offerings to attract youngsters. India being a young nation has also spurred off such a shift in preference an d it cuts across all product grids, be it from innerwear to outerwear, household items and you name anything.

To conclude, buying patterns are changing considerably with brands moving into the groove to satisfy the demands.