THE INDIAN INNERWEAR MARKET: A RESEARCH ANALYSIS
A RESEARCH ANALYSIS
Amit Gugnani, Senior Vice President Fashion, Technopak, analyses the market size and trends across all segments of innerwear, a category that holds immense growth potential in India.
The innerwear category has broadened from basic requirement of commodity wear to designer wear with emphasis on styling and comfort. The Indian innerwear market holds immense growth potential and is slated to grow phenomenally over the next 5 years. Amit Gugnani, Senior Vice President - Fashion, Technopak, analyses the market size and trends in the segment for men, women and kids.
Indian Fashion Retail which is currently estimated at ` 3,22,209 crore is expected to grow at a CAGR of 7.7 percent over the next decade to reach ` 6,74,037 crore by 2027. Among all the fashion categories, innerwear has emerged as one of the fastest growing categories in last few decades. A commodity which was earlier depicted as a day-to-day essential has transformed itself into fashion wear with more emphasis on styling and comfort. Traditionally, the innerwear market was largely fragmented and unorganised. But, in last few years the organised innerwear segment has shown promising growth in both men’s and women’s categories.
The innerwear category, currently estimated to be worth `28,781 crore, accounts for 10 percent of the total apparel market in 2017.
In recent years, the women’s innerwear segment has grown consistently and was estimated to be worth `18,454 crore in 2017. It is expected to grow at an impressive CAGR of 12 percent over the next decade to reach `56,364 crore by 2027.
The men’s innerwear market, which is estimated to be worth `9,477 crore in the year 2017, is estimated to grow at a CAGR of 7 percent to reach `17,894 crore by 2027.
Kid’s innerwear market was worth `850 crore in 2017 and is expected to grow at a CAGR of 12 percent to reach `2,640 crore by 2027.
The Indian innerwear market is primarily segmented into men’s innerwear and women’s innerwear. Currently, the women’s segment dominates the innerwear category by constituting 64 percent of the total innerwear market. Men’s segment is 33 percent and kids 3 percent of the total innerwear market.
WOMEN’S INNERWEAR MARKET
The Indian innerwear market is primarily dominated by women’s innerwear which accounts for 64 percent of the total innerwear market and it accounts for 15 percent of the total women’s apparel market. Various product categories in women’s innerwear are - brassieres, camisoles, panties, tees, nighties, shorts, etc. Brassieres and panties contribute 85 percent of the total women’s innerwear segment.
Women’s innerwear segment is poised to grow at an impressive growth rate of 12 percent over the next decade to reach `56,364 crore by 2027 from current market size of ` 18,454 crore.
Branded innerwear contributes 38-42 percent of the total women’s innerwear market and this share is expected to grow to 45-48 percent of the total women’s market by 2022.
Women are conscious about the brands and styles for their intimate wear. The trend is not restricted to just metros but can be witnessed spreading in tier I, II and III cities. This adoption of branded lingerie has led to influx of international and domestic innerwear brands.
MEN’S INNERWEAR MARKET
The men’s innerwear market is currently valued at ` 9,477 crore and is expected to grow at a CAGR of 7 percent over the next decade to reach ` 17,894 crore by 2027. It contributes 7 percent of the total men’s apparel market.
The market is dominated by a large number of small-scale players making ~60-65 percent of the market fragmented and unorganised. However, the market segment is evolving gradually and moving towards organised retail.
KIDS INNERWEAR MARKET
The kids segment in the innerwear category is a highly unorganised and fragmented category. Local MBOs and regional players are known for catering to kids’ segment of the innerwear market. Although there are some brands for teens’ innerwear, they don’t have a large assortment. Kids innerwear is estimated to be worth ` 850 crore in 2017 and is expected to grow at a promising CAGR of 12 percent over the next decade to reach `2,640 crore by 2027.
Till recently, there had been no specialisation in kids’ innerwear category. The same players that were manufacturing men’s and women’s innerwear had extended lines for kids innerwear. But, things are changing and there are specific innerwear brands for kids who are giving plethora of options in kids innerwear segment. Yet, the category holds unexploited potential which gives innerwear brands huge opportunities to tap this segment.
The present market trends show an inclination amongst Indian consumers to spend more on innerwear, leading to aggressive growth of this category especially in premium and luxury price segments. The recent mode of retailing through online channels has permeated into the innerwear category as well giving it much exposure to the consumers.
It is evident that Indian innerwear industry has come a long way in last decade and perception of today’s consumer towards innerwear has changed. The category is no more considered a basic necessity but a fashion indulgence which gives confidence and feel good factor.
Currently, the women’s segment dominates the innerwear category by constituting 64 percent of the total innerwear market. Men’s segment is 33 percent and kids 3 percent of the total innerwear market.
Growing Indian middle class- moving up ladder
Rising disposable income, economic growth and dual income households has led in the emergence of a middle class which is ready to spend and experiment with fashion and style.With more income to spend the middle class has become more brand conscious. This has led to higher value and volume.
Change from need driven to aspiration driven buying
The recent consumer trends show that price is not the most important criteria anymore for this segment. For evolving consumers, looking good has become an important aspect of life. Therefore, spending on apparel, personal care and grooming is on the rise.
Occasion specific products like seamless bras, strapless bras, padded bras, bralettes, etc. are being sought. There has been a rising demand for functionality based women’s innerwear like shapewear, tummy tuckers, etc. for women desiring a slimmer look; non-wired brassieres for woman facing comfort issues after prolonged use of wired ones; and sports bras suitable for physically active women.
Emergence of online retail channels
The emergence of online retail channels has bolstered sales of premium innerwear among the youth. The fashion conscious women residing in tier I, II cities with limited access to brick and mortar stores are most benefitted through the emergence of online retail in innerwear segment. It has been witnessed that women are the key buyers of innerwear available on online channels.
The current innerwear market is poised to grow at impressive pace in near future. The changing demographics, growing youth population ready to experiment with colours, fashion and trends etc. therefore, there are plethora of growth prospects for both international and domestic innerwear brands to expand their current product portfolio and experiment with their offerings.
The women’s innerwear segment is poised to grow at an impressive growth rate of 12 percent over the next decade to reach `56,364 crore by 2027 from current market size of `18,454 crore.
INDIAN INNERWEAR MARKET (INR CR)
SHARE OF INNERWEAR CATEGORY WITHIN APPAREL CATEGORY (2017)
WOMEN’S INNERWEAR MARKET (INR CR)
MEN’S INNERWEAR MARKET (INR CR)
KIDS INNERWEAR MARKET (INR CR)