indian MENSWEAR INNERWEAR market scope

1. 1
SCOPE | mens innerwear
SCOPE: 1
MENSWEAR INNERWEAR
The domesticapparel market,whichwasworthINR207,400 crore (~USD 38 billion) asof 2012, The
Indianapparel industryisslatedtogrowat a CAGR of 10.6% during2010-2020E. Indianapparel market
to grow at a CAGR of 10.6% to | 4,700 bn by 2020E. The organized apparel segmentisexpectedtogrow
at a CAGRof 21.3% duringthe same periodasrapid growthand rising urbanization have spawnedanew
classof consumerswithmore moneyto spend,anda growingpassionforfashion
THE MENSWEAR MARKET
Witha marketsize of INR87,500 crore (USD 16 billion) in2012.
Market Size and Growth Projections
The menswearmarketcan be dividedintovariouscategories includingwovenshirts,trousers,denims,
winterwear,innerwear,T-shirts,suits, active wear,ethnicwearand dailywear.The menswearmarketis
expectedtogrowat a CAGR of 8.5% overthe nextfive yearstoreach INR131,000 crore (USD 24 billion)
by 2017.
High Growth Categories
Highgrowth categoriesinmen'smarketinclude active wear,t-shirts,innerwearandshirts.
Denim, active wearandT-shirtsare highgrowthcategorieswithinmenswearsegmentwithCAGRsof
16%, 14%, 9% and 12% respectively.Despite the notsooptimisticeconomicscenarioof 2012, the
demandfordenimisgrowing amongmen,especiallywiththe youngergeneration.
The active wearcategory primarilyconstitutesof sportswear, gymwear,andswimwear.Increasing
87500
131250
196875
295312.5
2012 2017 2022 2027
AxisTitle
Source: Images F&R Research, ICICIdirect.com
Research
Menswear Market in India (INR cr)
CAGRA 12.5%
Series1
42%
38%
20% menswear
womenswear
kidswear

2. 2
SCOPE | mens innerwear
Healthconsciousnesshasmade sports,gym, jogging,swimming,yoga,etc.anessentialpartof modern
life, especiallyinmetros,asaresultof whichthe demandfor active wearis on the rise withinIndian
menswearmarket.
Emerginginnerwearmarket
The Indianinnerwearmarketiscurrentlyvaluedat 14,000 crore andis expectedtogrow at a CAGR of
13% during2010-2020E. Of the 14,000 crore innerwearmarket,the men’sinnerwearmarketaccounts
for 5,800 crore and the women’smarketsize iscurrently8,500 crore. The estimatedvalue of the Indian
innerwearmarketisexpectedtotouch44,000 crore by2020E.
20550
16720
5110 4790
4200 3910 3900 3500
1380 1300 940
8%
6%
9%
11%
3%
12%
16%
7%
9%
14%
6%
0%
2%
4%
6%
8%
10%
12%
14%
16%
18%
0
5000
10000
15000
20000
25000
Shirts
Trousers
Winterwear
Innerwear
Suits
T-Shirts
Denim
Others
Ethnic
Activewear
Sleepwear
CGRA%
INRCr
Source: Images F&R Research, ICICIdirect.com Research
Highgrowthcategories inmen's market

3. 3
SCOPE | mens innerwear
During2006-2009, the men’sinnerwearsegmentgrew 13.9%,mainlyledbygrowthinthe medium,
premiumandsuperpremiumcategories.The growingper capitaincome andthe consequentincrease in
disposable incomesledtoa fastergrowthof the premiumandsuperpremiumcategories(22.0% and
26.4% CAGR during2006-09). Overa spanof fouryears,boththese segmentshave doubledinsize.Also,
the entryof internationalbrands,growthof modernretail formatsandavailabilityof more choiceshave
ledto the growthof thissegment.
The share of premiumandsuper-premiumsegmentstaken togetherhasincreasedfrom28.1% in2006
to 35.0% in2009
371
901
684
663
100
386
993
821
892
136
402
1061
892
983
160
428
1174
1008
1204
202
L O W EC O N O MY MED I U M P R EMI U M S U P ER P R EMI UM
INRCR
MENS UNDERWEAR PRODUCT RANGE
MEN’S INNERWEAR MARKET SIZE (CATEGORY -WISE)
11250 12698 14339
23428
43721
2009 2010 2011 2015 2020E
INRCr
Source: Images F&R Research, ICICIdirect.com Research
Mens Innerwear Projection

4. 4
SCOPE | mens innerwear
The men’sinnerwearsegmenthasproductofferingsrangingfrom40/- a piece to450/- a piece today.
While Average sellingprice (ASP)forthe low, economyandmediumsegmenthave remainedflatduring
2006-2009, the premiumandsuperpremiumsegmentshave witnessedanincrease. ASPsinthe
premiumsegmenthave increasedfrom| 128 perpiece in 2009 to | 250 in2015. Similarly,ASPsinthe
super-premiumsegmenthave witnessed13.6% CAGR to reach | 475 perpiece in2015 (from| 208 in
2009). This clearly demonstratesthe abilityof playersinthe premium andsuper-premiumsegmentto
pass onprice hikes,withoutaffecting volumesatlarge.
0
5
10
15
20
25
30
35
40
Low Economy Medium Premium Super premium Total
(Nos.inlakhs)
Source: Images F&R Research, ICICIdirect.com Research
Men’s innerwear volume growth
33 45 50 60
80
43
65 75
95
125
80 89 85
125
200
128
155 170
250
360
208
250
325
475
800
2009 2010 2011 2015 2020E
inr
Average selling price Projection
Low Economy Medium Premium Super premium

5. 5
SCOPE | mens innerwear
The Indianinnerwearsegment,whichwaspredominantly operatedby local Indianstores,witnessed
some positive changesafterthe entryof foreignplayers.Innerwear companieshave now started
spreadingproductawareness throughadvertisements(more openly),fashionshowsetc., toreachout to
consumers.Also,withanincreasing presence of modernretail,innerwearproductsare displayed
throughexclusivebrandoutletsandalsoinmalls, etc.vis-à-visbeingsoldinlocal storeswithminimal
display.
Year Brand Mode
1995 Jockey Brand Licensing
1996 Lovable Boughtout brand inDecember,2000
2002 TriumphInternational Exclusive outletsthroughthe franchisemodel
2003 Enamor JV betweenGokaldasImage andFrenchlingerie company,Barbara
2006 La Senza Franchise withFashionBrandsIndiaPvt.Ltd
2007 Etam Equal JV with Pantaloons’ Retail
2007 Amanté Wholesale route of shop-in-shop
2007 Undercolors UnitedColorsof Benetton'slingerie brand
2007 Espirit Introducedlingerie line
2007 CalvinKlein Brand Licensing
2007 La Perla Partnershipwiththe Murjani Group
2009 Fruitof the loom
Source:Franchise India,ICICIdirect.comResearch
Conclusion
In boththe menswearandwomenswearsegment,innerwearhasmade itspresence felt.The growing
demandforinnerwearhasmade consumers,andespeciallyyouth,spendonthese productswithout
givinga secondthoughttoits price.Itis nolongertreatedasmerelyanundergarmentbutiswornas a
fashionablearticle of clothingthatcanbe flaunted.Innerwearhasmovedoutof the ‘basicnecessity’
bracketand isnow associatedwithafeel goodfactor.Indianconsumershave come outof the shyness
cocoon andare willingtoexperimentwithnew varieties,styles,coloursandbrands.Thisgrowthin
demandhascarved outa potential marketforinnerwearinIndia.Aswomen’sinnerwearisexpectedto
grow faster,brandsshouldwidentheirshare thereof.Theyalsohave tovarytheirproductofferingsand
heightenthe fashionquotient.Existingbrandshave the opportunityof expandingbeyondjust
innerwear.Activewear,comfortwearandsleepwearare some natural extensionsandpromising
categories.A smartpricingstrategymustbe employedinordertoattract consumersandboostbrand
preference.Also,productsneedtobe made available forkidsandteensaswell tointroduce brand
comfortand loyaltyfroma lowerage.Furtherforbrandsand retailers,there isanopportunityto
identifyandincrease theirfocusacrosskeyconsumptioncitiesaswell asa mix of formats.Thus,inorder

6. 6
SCOPE | mens innerwear
to be successful,brandsmusttake the initiative tocreate adifferentiatingfactor;onlythencanthey
establishaloyal customerbase in thispromisingbutdevelopingsegment.