THE IN­DIAN INNERWEAR MAR­KET: A RE­SEARCH ANAL­Y­SIS

A RE­SEARCH ANAL­Y­SIS

Business of Fashion - - Contents -

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.

GROWTH DRIV­ERS

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.

CON­CLU­SION

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)

Source: Technopak Anal­y­sis

SHARE OF INNERWEAR CAT­E­GORY WITHIN AP­PAREL CAT­E­GORY (2017)

WOMEN’S INNERWEAR MAR­KET (INR CR)

Source: Technopak Anal­y­sis

MEN’S INNERWEAR MAR­KET (INR CR)

Source: Technopak Anal­y­sis

KIDS INNERWEAR MAR­KET (INR CR)

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