Innerwear Market free essay sample

INNERWEAR MARKET IN INDIA- MARKETERS’ AND CONSUMERS’ PERSPECTIVE Jyoti Aggarwa (lecturer)l and Dr. Charu Gupta(Reader) Department of Textiles and Clothing Institute of Home Economics, University of Delhi, India E-mail- [emailprotected] com ABSTRACT The innerwear market in India is currently valued at Rs. 5160 crore in value terms and 80. 16 crore units in volume terms The Indian lingerie industry is poised for a great leap ahead due to the growing domestic demand coupled with huge export potential. There are more than 1000 Indian brands present, but only 200 are active nation wide. The remaining cater to markets in the vicinity of their manufacture. The Last decade has witnessed inflow of many multinational brands in the Indian innerwear market. Many foreign companies have already set up or are in the process of setting up their manufacturing units in India in collaboration with local players. India’s vast resources, skilled manpower and infrastructure attracts a lot of foreign investment in the field of innerwear. We will write a custom essay sample on Innerwear Market or any similar topic specifically for you Do Not WasteYour Time HIRE WRITER Only 13.90 / page This paper brings to light the product offerings of Indian manufacturers and their comparison with multinational brands. Leading brands present in Indian lingerie market have been studied under the heads of year of establishment, retail presence, styles of products offered, price range and the best selling categories. The data has been gathered by personal interviews of twenty lingerie manufacturers. Two hundred Indian consumers have also been surveyed to collect information regarding popularity of brands and consumer preferences. Analysis of data brings out comparison of the product mix of Indian and multinational brands. It also highlights consumer preferences and gaps to be filled between demand and supply. The paper would benefit that segment of the industry that plan to set up their business in India, in terms of market segmentation and consumer preferences. INTRODUCTION Many multinational manufacturers offering multitude of products consider India as a destination market. Potential of this huge market is reflected through the demographic picture (as of July 2003 estimates): †¢1. 059 billion population †¢319 million females between 15-64 years †¢30 percent of 95 million of that are considered middle class with enough disposable income to be defined as â€Å"real consumers†. Figure: 1), Source: Images Business of Fashion, August 2005, Vol. VI No. VIII Analysing the growth of Indian apparel market, brings out the fact that innerwear segment is growing at a much faster rate than the other segments (Fig. 1). The innerwear market in the country for the year 2004 is valued at Rs. 5,160 crore in value terms, registering a growth rate of 13. 91% over 2003, when it stood at Rs. 4,530 crore. The volume appreciated about 5. 72% at 80. 16 crore units in 2004 as compared to about 75. 82 crore units sold in 2003. On the overall basis, volume as well as value growth in the innerwear market was marginally higher in 2004 as compared to 2003. However, the (Figure: 2), Source: Images Business of Fashion, August 2005, Vol. VI No. VIII value growth in both men’s undergarments and women’s lingerie segments was more than double the growth in volumes. The growth in volume was 7% while value went up by nearly 17% (Fig. : 2). Market Players The innerwear market is flooded with the best of Indian as well as international brands. The inside story got its first stylish boost when Associated Apparels Pvt. Ltd. akers of Liberty shirts, launched the world famous Maiden Form bras, Jockey men’s underwear and swimwear in 1962 in India. The brands were an instant success with their style and quality. Because of the change in government policies the company gave the overseas tie-up and changed the names to Libertina for lingerie and Liberty for men’s underwear in the late 70s. With the s uccess of Libertina and Liberty other Indian companies moved into lingerie bandwagon. Peter Pan from Dawn Mills in the 70s entered the market. The brand was one of the favorites with the Indian women, but two decades later it vanished from the market. VIP a major player in men’s segment launched Petals, a lycra moulded cup bra with motifs, which was considered ahead of its time and was discontinued. But its Lovable launch in 1996 proved a success when they brought in a foreign brand but made in India. Lovable was followed by Feelings, a domestic offering of VIP along with Daisy Dee. Vanity Fair was launched in 2004 and finally a Korean brand Try for men and women in 2004. Another big brand in the lingerie market is Rupa Co. started in 1985. Its range of men’s, women’s and children’s underwear makes it India’s largest manufacturer and seller of innerwear. Other brands that are making their presence felt in the Indian innerwear market are Amul, Lux Cozi and Dollar catering to a particular segment of men’s innerwear market while the lingerie segment has its own local brands like Neva, Bodycare, Softy, Lady Care, Little Lacy, Red Rose, Sonari and many more. Trickle of foreign brands started in 90s with the advent of Jockey re-entering the Indian market followed by Calida and liberty Blu. Then the very high fashion Gossard came for a limited period. The entry of the Marks and Spencer chain stores created a stir. Another big entry was Triumph. Enamor, another foreign brand entered through Gokaldas Exports and very chic French brand Aubade opened its only outlet in Mumbai. LaSenza and Hanes are other brand in the scene. Though innerwear includes garments for men, women and kids , it’s the women segment called lingerie, that draws the maximum attention. Lingerie is considered an important value added segment. The range of items available as innerwear is enormous. But for an average Indian woman innerwear is limited to just a couple of items, mainly bras and panties. Out of these two, also brassiere is more complex an item to ensure the comfort and fit. A number of styles are available in this basic garment like full cup, push up, sports, strapless and under wired bras. In India, brassieres are constructed using 100 percent cotton fabrics, either knitted or woven. Sometimes, 3-10 percent Lycra is also added to get stretch effect and to provide a better fit. Panties are generally made of 100% cotton sinkers, ribs and interlock fabrics. Polyester cotton jacquard knits are mainly used for achieving comfort and aesthetics. Other components include range of elastics for different areas of the garment, underwires for support, eye hooks and ring fastners. Laces are also used extensively, with both knit and woven fabrics. Linings are used in the cup area for support and strength, while pipings are used at the cup and side seems to give fullness and strength. As inner wear comes in direct contact with the skin, primary requirement for users is comfort, followed by elegance. There is a need for a good combination of technology and quality components as raw materials, to succeed in producing a standard product. Export Scenario Despite the domestic growth, the roughly $ 400-million Indian industry contributes a small percentage to the global lingerie, hosiery and innerwear market. India gets only a small share of the export manufacturing pie. However the situation has improved in the last decade. Leading buyers are planning to start sourcing from India in the near future. The Bagalore based Gokaldas Images is one of the oldest manufacturer that has tied up with Sara Lee Courtaulds for manufacturing foundation garments. MAS Holdings Sri Lanka has set up a 50:50 joint venture arrangement called Intimate Clothing Private Ltd. n Bagalore to produce Lingerie. The unit is a 100% export oriented unit. Leading international buyers like V F Corporation, selling under the brand name Vanity Fair also plans to start sourcing from India in coming times. Triumph International, the German company selling foundation wear in India plans to set up its own manufacturing unit in Chennai within a year for both export to Europe and selling in the Indian market. At present Triumph is a one third partner in Intimate Fashion India Private Ltd. , Chennai, a manufacturing unit also supplying to Victoria’s Secret, U. S. Primero Intimates, a newly launched venture of premier Group in Coimbatore is supplying fashion lingerie to high-end brands in Europe. Other leading buyers are Jockey International, Warnaco, Eveden, Shirley of Hollywood, Victoria’s Secret, Etam Way, La Serza, Harrogate Lingerie and swimwear, La Perla with ‘Black Label’ brand, Wacoal, Palmers and Panache lingerie to name a few. Celebrity brands like Jennifer Lopez and Pamela Anderson are also sourcing from India. RATIONALE OF THE STUDY This work has been undertaken to study the innerwear market in India. An in-depth information has been gathered regarding its size, current scenario, prevalent practices and potential with special reference to lingerie segment. Efforts have also been made to collect first hand data from the leading innerwear manufacturers to study their product offerings. Indian consumers have also been studied to gather information about their preferences. METHODOLOGY Secondary data regarding the structure of Indian lingerie industry has been collected from various magazines, journals, Newspaper articles, Internet sites etc. Primary data has been obtained from manufacturers and consumers of lingerie in India. Sample Selection: leading manufacturers of innerwear had been contacted to gather information about the product line offered by them in terms of style, designs, fit, colours, etc. Out of the total of twenty manufacturers surveyed, six manufacturers based at Delhi were contacted at their offices. Manufacturers having their units outside Delhi, mainly in Mumbai, Tirupur and Bangalore were contacted at annual lingerie fair, â€Å"Bodywear†. The sample of consumers comprises women from high or upper middle class socio-economic strata, as the group is better informed. 200 consumers were surveyed to gather information regarding their preferences for lingerie. Consumers were contacted mainly at lingerie outlets to study their complete buying process. Leading lingerie stores of Delhi were selected for this purpose. Composite manufacturing units situated in and around Delhi have also been surveyed to study the raw materials used, manufacturing procedures, assembly line operations and the quality control systems followed. Tools for Data Collection: Data has been collected through questionnaire and observation techniques. Separate questionnaires have been formulated for manufacturers and consumers. The questionnaires have been personally administered to the respondents in order to clarify doubts if any. Observations have been made simultaneously to collect intricate details. RESULTS AND DISCUSSION Innerwear today has achieved new dimensions. An unending list of brands present in the Indian lingerie market is the proof of the great potential of the market in India. The strong Indian middle class is still growing and attracts even the foreign lingerie manufacturers to latch on the Indian bandwagon. Women in developed nations have less and less time to shop, so the industry is spending more time looking for new markets such as China and India. Where women have more time on their hands as well as growing disposable income. In the present scenario it is important to analyse the innerwear market in India. SWOT ANALYSIS Strengths †¢A market with large hidden strength. †¢Current growth rate of 14%. †¢Industry with never declining demand. Also the class of its consumers will always grow with the growing population and specific consumer preferences and awareness. †¢Product has unsubstitutable demand. Weaknesses †¢A large segment of the market is in the unorganized sector. †¢Lack of awareness in society. †¢Low degree of brand loyalty. †¢High degree of price-sensitiveness. †¢Poor perception of quality of Indian lingerie. Opportunities †¢Changing perceptions about the product from a marginal item of clothing it is now slowly being perceived as a part of one’s wardrobe. †¢Projected future growth rate of about 15% for the Rs. ,500 crore industry. †¢Explosion potential for the unorganiz sector to grow by making inroads into the share of the unorganized sector. †¢The impact of better educating advertisements are making the consumers, look at factors like comfort, quality and brand name and not only price. Threats More and more players entering the market competing sever ely with each other but sharing the same small pie instead of battling against the unorgainsed sector. The future of the Indian lingerie industry is not very grim. The Indian consumer is gradually opening up. Factors like quality of the material, durability are also given due importance now a days by the customers. The customers are becoming more and more selective and specific about their requirements. A certain amount of openness has been exhibited by the customers. As the consumer awareness is increasing, buying practices are changing dramatically forcing the manufactures to gear up and improve their product to compete in the Indian innerwear market. Survey done for innerwear manufactures and consumers has highlighted some very interesting points, summarized here. Survey of Innerwear Manufacturers Twenty lingerie manufacturers based in various parts of India were contacted to collect information regarding the products offered by them. Information regarding lingerie was collected in detail and following results were obtained: Price Range:- Price range of the products offered by various manufacturers varies from Rs. 50- Rs. 1000 depending on the fabric used, style and also brand equity. Basic styles are sold at a lower price as compared to the fancy styles. Development of Styles:- For development of new styles of bras generally latest fabric and lace designs are used as inspiration. The designers develop designs in accordance of latest fabrics. Many a times owners of the firm themselves act as designers and develop new design from their experience. A team of experts scrutinizes various designs thus made. Samples of selected designs are developed thereafter. The samples are evaluated by trials on dummies and very rarely on human models. After the trials required changes are made in the original designs and finally the product is produced on mass scale. Final designs are generally 10% of the original line in number. Product Categorization: It was noted that none of the manufacturers is offering special product line for different age groups. Generally fancy and low cut designs are constructed in smaller sizes, meant for teenagers. Designs with fuller cups are constructed in bigger sizes meant for older women. Very few manufacturers offer fancy and comfortable styles for women with bigger sizes. No specific product is offered even for varying seasons. Value Addition: No special finishing is given to the fabric used or the final product before marketing. Finishes meant for innerwear like antibacterial and perfume finish etc. are also not used on an average as it increases the cost and also lack demand. Very few brands use these special finishes for premium range. Research and Development: It was found during the course of study that there is no direct system of consumer feedback followed by manufacturers to improve upon their product. 90% of manufacturers depend upon the comments of retailers to work upon their future product range (Fig. :3). Figure: 3 Styles Of Brassieres: Full cup bra is the most popular style offered by most of the manufacturers. Strapless and Padded bras are second in popularity offered by 80% of manufacturers each. Only 50% of manufacturers are making under wired bras while sports bra (vest, not technically a sports bra) used by beginners or at the time of exercising are offered by 55% of manufacturers (Fig. : 4). Sizes offered: Brassieres are available in the sizes ranging from 28-46 inches. But majority of products are offered in the size range of 30-38 inches. Very few sizes are offered in extreme sizes. It also emerged out of the survey that only 30% of the manufacturers are offering their products in various cup sizes i. . A, B, C, D. Majority of them i. e. 70% are offering their products only in one cup size, generally B. For the product to fit well on the body it is very important to make various cup sizes available. Figure: 4 Colour Range Offered: White colour is found to be an important part of the product basket of manufacturers, offered by all the respondents. 90% of manufacturers offer Black b ras while Beige colour in bras is offered by 75% of manufacturers. Lingerie manufacturers offering more of bra-panty sets use colours like Plum, Pink, Peach, Grey, etc (Fig. : 5). Figure: 5 Raw Materials Used Fabric: Pure cotton is used by 90% of manufacturers to construct bras. The cotton fabric used is mainly knitted fabric. Woven cotton fabrics generally used are voile and terycot. Poplin and cambric is used to line the main fabric. After pure cotton, cotton lycra is most sought after fabric used by 80% of manufacturers. Lace lycra used by 65% of manufacturers finds its use in fancy designs (Fig. : 6). Figure: 6 Trims and Accessories: When enquired about various accessories used for construction of bras it was found that all the manufacturers are offering their products with narrow elastic bands as shoulder straps. 0% manufacturers offer string straps and only 25% of them are offering transparent straps for support at shoulder (Fig. : 7). For back strap elastic band with double hook is used most widely as offered by all the manufacturers, while narrow elastic band with single hook is offered by only half of them. Front opening is generally provided in lactation bras and very rarely o therwise. Edges of the bras are finished with ordinary cotton bindings and elastic is used to provide a snug fit. Only one or two manufacturers are using latest technology mobilon tapes to finish edges and provide good fit at the same time. Plastic, as well as metallic ring adjusters and sliders are used in the industry (Fig. : 8). Thus it has been seen that lot of work needs to be done in the direction of improving product quality so that consumers can get value for the money paid. Efforts should also be made to tap the different segments of market with product differentiation. But at the same time it is also very important to educate the consumer so that she can specify her requirements and demand a quality product that is worth its price. Survey done on consumers has helped to understand the consumer psyche and her awareness level. Figure: 7 Figure: 8