In the first part of the global intimate apparel industry documented the scope of the growth of the industry, the overall market segmentation and the future of the lingerie market globally. In part two of the study, we touch upon each segment of lingerie, the advancements in technologies that are driving and impacting the segment and the consumer behaviour defining the growth in this industry, among other things.
Factors impacting the industry
According to Mr Karan Chechi, Research Director with TechSci Research, a research based global management consulting firm, “Technical advancements in lingerie manufacturing, with a number of manufacturers using luxurious, delicate fabrics and designs such as mesh and lace, is expected to drive global lingerie market.
Additionally, several manufacturers are patenting innovative technologies and claiming benefits of their lingerie products such as cellulite reduction, weight loss and improved muscle tone. These factors, in addition to rising demand for premium brands, increasing penetration in rural areas and aggressive marketing and promotional strategies, are expected to positively influence global lingerie market in coming years.”
As far as region-wise dominance is concerned, in 2017, Asia-Pacific dominated the global lingerie market and is expected to maintain its leading position in coming years as well. This is owing to a large population base, rapid urbanisation and rising disposable income in the region.
Fitness, a contributor
Another reason for the growing demand in intimates is due to the fact that women across the globe are taking up various fitness activities to look and feel naturally beautiful. Hence, various retail and clothing brands is creating bras, panties, shapewear, and loungewear for various age groups. Hence, the demand for aesthetic looking and athletic lingerie is predicted to rise greatly. Also, a growing demand in bridal lingerie is adding to the availability of a new range.
Moreover, the widespread presence of e-commerce companies too, augment the sale of lingerie. Apparently, online sales contribute to around 10 per cent of the total sales, according to TechSci Research.
According to Analytical Research Cognizance, the online lingerie market across the world has grown greatly with an average growth rate of 12.48 per cent. Men and women both use the online space for buying lingerie and over the next five years the online lingerie segment in revenue terms, is slated to register a 13.7 per cent CAGR. In effect, by 2024, the global market size would hit US$ 721 million from US$ 334 million in 2019.
In fact, the presence of these online channels in emerging economies has led to the commercialisation of premium lingerie brands.
While almost instinctively, lingerie conjures up images of bra and panties, it is not limited to satisfying the basic need of inner wear, but a concept known as intimate wear that makes one feel confident and comfortable. And, each segment contributes a significant share in the lingerie market.
Bras hold more than 40 per cent, followed by knickers and panty contributing around 32 per cent. While the lounge wear has acquired around 10 per cent followed by shape wear constitutes around 8 per cent, according to Mr Chechi.
Another factor for growth in the lingerie market are the technological advancements that has fuelled the sales. Explains Mr Chechi, “Technological advancements such as laser-cutting and bonding have eliminated the problems related to bulky fastenings, seams, hems, etc., all of which prevent a streamlined silhouette. New fabrics are designed that are more breathable and softer, having sculpting properties along with special shaping areas to target specific problems.” Moreover, lingerie manufacturers too opt for luxurious, delicate fabrics and designs such as mesh and lace to cater to the rising demand of lingerie products across the world.]
Also, now, manufacturers are patenting innovative technologies and claiming benefits of their lingerie products such as cellulite reduction, weight loss, improved muscle tone, organic, chemical free, etc. Besides, lingerie products with thermal properties and which contain caffeine, bio-crystals and other such innovations too are being introduced.
These products are marketed using semi-medical descriptions stating how their high-tech fabric works and are often targeted towards women who wish to reduce weight or improve their body structure and skin features without going under the knife.
Youngsters and rising urban population
Besides, the demand for lingerie is rising globally due to the rising population. Manufacturers have quite a few opportunities to cater to this rising for lingerie globally. Also, the growth in demand for branded lingerie products from developing countries has taken the developed nations by storm. This demand comes majorly from regions where income and consumer awareness are generally higher and has transitioned from only urban to rural and is expected to grow in the coming years. Besides, women are purchasing shapewear to enhance their look and female celebrities, especially pop stars, are seen using shapewear as outerwear; or, it’s even visible beneath transparent attire.
The young generation too was a great contributor in the increasing demand of lingerie and market trends for 2019 pointed out to this largely.
Besides, the millennials were quite dynamic with changing preferences that can be partly attributed to today’s trends. This generation is quite active on the digital space and has a strong focus on women’s health and hygiene in the family. A rise in incomes coupled with a sedentary lifestyle drives shopping for products online. Hence, there’s a shift in shopping patterns favouring the e-commerce space moving from conventional shopping formats. Also, companies expect most of the potential growth in sales of higher priced products from youngsters, so they inventing new designs and coming up with innovative products to target this untapped market with a great potential.
Zion Market Research has published a new report titled ‘Lingerie Market by Product’ and as per this, the global lingerie market is set to garner revenue of about USD 59.15 billion by the end of 2024. Between 2018 and 2024, it is growing at a CAGR of about 6.45 per cent.
According to TechSci Research, the global lingerie market grew at a CAGR of 2.80 per cent from the period 2013-2017 and apparently the share of tights and active wear, which comes under other segment, is forecasted to increase during the forecast period.
As bras are considered to be bare essentials, across the world, their demand is set to only rise amongst women. According to Transparency Market Research, in the year 2015, the bra segment was leading in the lingerie space globally and is estimated to lead hitting 36.0 per cent, by the end of 2024, which is a sizeable percentage.
Moreover, as forecasted by Maximize Market Research Pvt. Ltd., in 2017, the lingerie market worldwide was valued at US$ 37.9 billion and by the year 2026, it is estimated to hit US$ 59.15 billion at a CAGR of 6.45 per cent.
To wrap up, the global lingerie market can be broadly categorised into bra, knickers and panties, lounge wear, shape wear and others. The bra segment accounts for the largest demand share, globally. Organised retail sector is rapidly growing across the globe, which in turn is resulting in the increased availability of lingerie wear.
Modern retail outlets offer a wide range of products under one roof. The growing organised retail sector coupled with increasing brand awareness is boosting the demand for different types of lingerie wear through e-retail channels, globally.