Indian Fashion Retail which is currently estimated at Rs 3,61,000 crore is expected to grow at a CAGR of 8.1 percent over next decade to reach Rs 7,88,500 crore by 2028. 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. In the last few years, the growing middle class income with increasing purchasing power, change of innerwear from need based to aspiration based clothing; increasing fashion consciousness among millennials, etc., has resulted in increased demand of innerwear in domestic market.
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. Lately, the premium innerwear market in India has been experiencing increasing entry of global brands, mostly through partnerships and tie-ups with home-grown brands.
The Indian innerwear market currently estimated to be worth Rs 32,000 crore accounts for ~9 percent of the total domestic fashion retail market.
In recent years, the women’s innerwear segment has grown consistently and estimated to be worth Rs 21,000 crore in 2018, expected to grow at an impressive CAGR of 12.5 percent over the next decade to reach Rs 68,000 crore by 2028.
The men’s innerwear market, which is estimated to be worth Rs 11,000 crore in the year 2018, is estimated to grow at a CAGR of 7 percent to reach Rs 21,800 crore by 2028.
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 16 percent of the total women 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 12.5 percent over the next decade to reach Rs 68,000 crore by 2028 from current market size of Rs 21,000 crore.
Branded innerwear in women’s segment contributes 38-42 percent of the total women’s innerwear market and this share will is expected to grow to 45-48 percent of the total market by 2023.
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 shapewears, 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 woman. 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 Rs 11,000 crore and is expected to grow at a CAGR of 7 percent over the next decade to reach Rs 21,800 crore by 2028. It contributes 7 percent of the total men’s apparel market.
The men’s innerwear has the number of sub categories such as briefs, vests, underwear, pyjamas, boxers and shorts, etc.
The market is dominated by 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.
GROWTH DRIVERS OF INDIAN INNERWEAR MARKET
The growth of the innerwear segment in India can be attributed to the introduction of various international brands and the organised players. The evolution of branded innerwear is mainly rooted in urban India. But, recent influx of international brands into Tier I and II cities have resulted in providing a huge untapped market for organised players. With attention towards western outfits and an increasing demand for occasion and output based innerwear, the market has seen a holistic boom. Today, people look for innerwear with optimum functionality and comfort.
The rising purchasing power of among customers and increasing working women are other factors that have boosted the 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.
GROWTH OF PRIVATE LABELS:
Private labels have made tremendous inroads over past decade. Better margins and economies of scale are driving India’s big retailers to stock shelves with their own labels. The rich customer insights translates to a significant advantage for retailer’s private labels to create products that incorporate the minute but important details – what prices Indian shoppers are looking for, what value they seek in that price range and what trends they desire.
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, fashion quotient has become an important aspect of life. Therefore, spending on apparel, personal care and grooming is on the rise.
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 and 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.