How is Indian Women Shopping For Her Lingerie?

September 12, 2016 written by
Nischal Puri

To give our readers a new flavour regarding the realities of the Indian Lingerie market, we have started a column direct from the expert’s pen. With an experience of more than 20 years up his sleeves, Nischal Puri a veteran in the apparel and retail industry today,  has begun his own consultancy firm, Horizon India.

After seeing many notable lingerie brands to their glorious present, Puri has now decided to add another feather to his cap and an intent to spread his extensive knowledge and understanding with the industry, he has taken up to penning down the same for us. He is a successful entrepreneur and an established thought leader and consultant. He can be reached at npuri@horizonconsultingindia.com

This article marks the first chapter of his long exclusive, informative series: ‘How is Indian Women Shopping for her Lingerie?’ This 6 article series will capture the insights of the Indian lingerie market and consumer trends besides noting the dynamics witnessed in this category – as a result of nation wide research by Horizon Consulting India.understand what products and what price points are best suited to grab her attention and her share of the wallet.

 

lacenlingerie_shutterstock_297267716

How is Indian Women Shopping For Her Lingerie?

The recent study conducted by Horizon Consulting India spread across 7 cities and 150 retailers and 13 brands is out with some thought provoking insights.

Mr. Nischal Puri, MD, Horizon Consulting India mentions, “ The lingerie industry in India has more than 150 labels today,   in the range of 5 – 10 crore and almost 400 economy segment offerings with turnovers in the range of 2 – 5 crores each. These labels with a reach of more than 20 cities accounts for around 1500 crore sale and there are more than 70 such labels in the industry as a whole . The top 12 brands among them contribute cumulatively to about 900 crore sales of the segment. Still a substantial value contributor is the sub economy segment where in the bra is sold at the retail shelf at a skimpy price of INR 30- 40 per piece.”

This extremely fragmented lingerie segment is a challenge for the marketers, who have to work within this segment to carve out a winning strategy. What segments should they cater to, what products they should launch for that segment? Should they focus on basic styles or fashion styles? Should they focus on with seam bra or padded and in what proportions? These are some of the tough questions that the marketers and the new brands have to get answered for before they start off in the market space. Unfortunately the poor research and consumer analysis capabilities in the Indian ecosystem does not offer much help.

“A general survey in the wholesale markets of India like Sadar in Delhi or Chakla in Mumbai proves the strength of the price advantage, the business in these markets for lingerie is not only brisk but also showcases the power of economic ranges. The product differentiation is absolutely nil in this segment and the only differentiation therefore is the retail margin and the product availability. This whole sale market accounts for almost 45% of the total lingerie market in India.” elaborates Mr. Puri.

If the sub economic and economic segment is registering an annual growth of 12% per annum then the middle segment ( bra prices: INR 125- 245) is registering a healthy 15% growth. However the middle segment is witnessing the maximum competition with labels and brands having mastered the art of right packaging and impressive brochure making, and eventually most of the economic brands are entering the prestigious middle segments.

lacenlingerie_article-2100508-11B6FE53000005DC-84_468x340

The premium segment of lingerie ( bra prices: INR 245 – 325) is witnessing great churning. Detailed survey of  the top 50 markets in 7 cities demonstrates that the hosiery stores and the MBOs are keen to retail the premium lingerie, which results into better earning because of higher ASP (average selling price) and the trust of the consumers in the retail stores are the key reasons for this movement. Retailers boast of a loyal clientele and 65% of the retailer respondents claim that they have the capacity to influence the purchase decision towards one brand of their preference. Brands are sensitive of this reality and hence they have been persuading the retailer with better margins. the margins in some of the brands has touched 40% and the retailers claim that sales schemes to the extent of 5 – 10% is also offered by many brands.

Amidst the war between labels and brands to get the attention of the consumers, the manufacturers in the value chain seems to be enjoying the attention. While almost all the top brands have in house manufacturing, most of the economy and middle segment brands enter the segment with outsourcing model and once they establish turnovers of more than 30000 pieces/month they progress towards setting up their own manufacturing set up.

This is definitely good news for the professionals in the lingerie manufacturing segment, as the same ensures product managers and pattern makers to remain in high demand. The consumers too have an extensive choice at their disposal with brands and labels demanding their attention offering lower prices, extensive advertising and amazing offers. The consumers today are continuously evolving their fashion quotient too. The growth of the padded bra in the last 5 years have witnessed drastic fall at the entry level within the price bracket of INR 245-350.

With the sudden up splurge of the online commerce segment, lingerie sales have picked up many unheard labels and offerings who otherwise does not have any offline existence. Fate and future of such labels/ brands is still to be ascertained, the key trend that these labels have initiated is the launch of the fashion lingerie. In the comfort of their homes the consumer is now experimenting with more innovative and appealing lingerie with higher fashion quotient. Lingerie is contributing to almost 15% in the women apparel segment for some of the multi category e-commerce portals too.

Overall these are perhaps one of the most path defining times for the Indian lingerie industry. Multiple factors interplay, has ensured that the excitement within the segment is high and while the segment still awaits a large consolidator player with many contenders, the next decade will indeed be an interesting battle field

lacenlingerie_lingerie_shop_20040419

Share on FacebookShare on Google+Pin on PinterestTweet about this on TwitterShare on LinkedIn
Article Categories:
Articles
banner

Leave a Comment

Your email address will not be published. Required fields are marked *

Lace-n-Lingerie