Lingerie Industry Sizzles with Organized / Modern Trade

The Indian Lingerie industry is witnessing a robust growth on the back of Strong Brand introductions and choices for the consumer, especially the Indian Women.

In volume terms, men’s innerwear market constitutes 48% of the total innerwear market in India while the women lingerie segment holds a 52% share. In value terms, women lingerie segment enjoys 66% share of the total lingerie market, thereby enjoying a higher Average Selling Price (ASP) compared to the men’s innerwear market.

In value terms, the lingerie industry in India was valued at ~78.9bn in CY09 growing at a robust 16.8% over the last four years (2006-09). The growth can be attributed to the rising disposable income and growing preference for lifestyle products.

The lingerie market grew at a faster pace in terms of value as compared to volumes during 2006-2009. This signifies a jump in the average selling price which grew from INR100 in 2006 to INR121 in 2009.

The lingerie market in India can be classified in super-premium, premium, mid-market and economy & mass market segment. Approximately, 75% of the market share is held by the mid-market and economy segment, in both, value and volume terms. The super-premium and premium segments are relatively smaller but fast-growing segments. The super-premium and premium segments grew at a CAGR of 18.9% and 16.6%, respectively.

Overall the lingerie industry in India is expected to grow at a CAGR of 18.3% over the period 2009-2014. It is currently estimated at INR79bn and is expected to be worth INR183bn in 2014.

The super-premium and premium segment contributed 15.8% to the total lingerie market in 2009 and is expected to grow to 28% by 2014. Lovable commands 20% market share in
the super premium category, led by other leading brands like Enamor, Triumph, Juliet, etc.

As the concept changes in Tier III Cities / Smaller Towns about Lifestyle Lingerie being an essential part of Wardrobe, Retailers in this segment can laugh their way to the Banks. What say ?