28 November 2023, Mumbai
The global innerwear industry is experiencing a remarkable surge, fueled by the rising spending power of a style-conscious youth demographic. Innerwear, once a hidden segment, is now taking center stage as a global fashion trend. India's innerwear sector has witnessed impressive growth, particularly post-pandemic, driven by the pervasive influence of social media.
Industry Dynamics:
- Innerwear companies are strategically pursuing revenue and profit growth to optimize earnings.
- The youth segment, with its immense sales and expansion potential, is a key target market.
- A recent Textile Value Chain (TVC) report reveals the innerwear market segmentation:
- Men's wear: 82%
- Women's wear: 15%
- Kids' wear: 3%
- Analysts anticipate significant growth in the men's innerwear segment from 2020 to 2025.
Market Trends:
- The overall innerwear market valuation stood at $1.9 billion in FY20, projected to reach $3.1 billion by FY25, with a CAGR of 10.3%.
- The women's innerwear segment, worth $4.4 billion in FY20, is estimated to grow at a CAGR of 14%, reaching $8.5 billion by FY25.
- Kids' wear, valued at $14 billion, is expected to grow at a CAGR of 10.5%, reaching $23 billion by FY25.
These figures underscore the promising outlook and substantial growth potential across various innerwear segments.
Competitive Landscape:
- Major players like Jockey, Zivame, Van Heusen, Rupa, Dollar, Enamor, Clovia, Marks & Spencer, Nykaa, and Amante are fiercely competing in the Indian innerwear market.
- New entrants like Reliance Retail and Nykaa are making their mark, leveraging their strong online presence.
- The landscape is complex, with Reliance Retail holding a dominant position in the men's wear segment, while Zivame and Clovia lead in the women's wear segment.
Key Factors Driving Growth:
- Rising disposable income, particularly among the youth
- Increased awareness of fashion and style
- Growing focus on comfort and quality
- Proliferation of e-commerce platforms
- Expansion into smaller cities and towns
The Indian innerwear industry is poised for continued growth, driven by these factors and the increasing demand for stylish and comfortable innerwear.
