Indian Lingerie Industry: Unleashing the Growth Potential by Ritu Sharma, Research Editor, Koncept Analytics The lingerie industry has covered a long distance from its initial days where the purpose of intimate apparel was totally different from what it is today. The credit of this metamorphosis of the entire industry indeed goes to technology and innovations. At present, lingerie as a product category has a wide product base to offer, while innovative developments serving as its backbone. Modern consumers have an array of products to choose from that cover all possible aspects of fashion and styling to fabric and high finishing. The fact that women’s dresses have always reflected the dynamic changes in society can not be negated easily. And as the Indian women are coming of age, the statement holds special significance when talking of their attire. Financial freedom is one of the top priorities of Indian women, especially in the urban cities and with financial freedom comes the choice of leading a lifestyle that suits ones tastes and preferences. Women like to wear expensive jewellery, carry high-end gadgets and buy apparel and footwear that make them look good, feel comfortable and also exude their style statement in a subtle way. When it comes to enquire about innerwear or lingerie, the faces that use to give a shy and ‘do not cross your limit’ looks have turned less aggressive and more argumentative. Like all Indians who love to argue on any issue, as Amartya Sen says in his book “The Argumentative Indian,” Indian women now prefer to talk about their innerwear to people who can help offer them the products they are looking for. However, the scene was extremely different few years back when women were in the sole discretion of salesmen who used to decide about the piece of lingerie – size, fit and brand that are suitable for them. “Indian women consumers are still very shy when it comes to the purchase of lingerie. But slowly and steadily, they are getting bolder in terms of selection of their lingerie and as a result they have started demanding lingerie of their choice, which is in effect helping the growth of branded lingerie in India,” according to Mr. Rajnish Bansal who owns two exclusive lingerie shop in Ghaziabad and who has already found a place of honor in the Indian Limca Book of World Records for a whopping collection of 22,300 undergarment items. Times have changed now and for the good. With factors like growing number of working women, changing fashion trends, rising information level and media exposure, and the foray of famous foreign brands in the Indian market, Indian women have become more conscious about the range of brands that should fill their wardrobes. The old practice of stacking lingerie in a corner of wardrobe no longer exists in the modern age. Rather, the taste of women related to their undergarments has reached new heights and it will not be a hyperbole to say that it has become a fashion statement. An investigation of the reasons behind this metamorphosis signals towards the following trends, the main among them being the changing attitude of women towards their innerwear: • First, the outerwear for women have undergone a tremendous change in the recent past –   from salwar-kameez and saris to denims and t-shirts and feminine tops, especially in the   urban areas. • An increasing number of female demography is entering professional lives where they need   different outerwear for office, parties and recreation, as a result of which, they opt for   innerwear that matches the outerwear. • Third, women are getting more conscious of their health and physique – a phenomenon   increasingly witnessed with the sprawling gymnasiums in the neighborhood basements. It is   the fitness factor which has given rise to the sales of 1 www.techexchange.com

sports brassieres and briefs that suit the   sporting activities of women. • Last, but not the least, special occasions like a marriage ceremony or social gathering calls   for a different outerwear and a matching innerwear. Size and growth of Indian lingerie industry All the mentioned factors have increased the growth rate of the Indian lingerie industry in the last five years. From being a market worth Rs. 870 crores (US$196 million) in 2003, the organized lingerie market has almost doubled to Rs. 1645 crore  (US$370.3 million) bustling business in the last five years, according to the findings of the report titled “Indian Lingerie Industry: Trends and Opportunities” by Koncept Analytics, a research and consulting firm. Figure 1: Value of lingerie market in India: 2003-2007

Source: Koncept Analytics

Trade analysts and industry insiders are of the view that the notable rate at which the overall industry is growing results from the beyond recognition improvement of the Indian market during the last five years after the advent of multinational brands in the country and the growth of organized retail. Perhaps this is the reason why the premium and super-premium segment of the lingerie industry, with brassieres priced above Rs. 200 (US$5) and mostly characterized by the presence of international brands, are witnessing higher growth compared to mid-market and low/economy segments. The current situation of the Indian market signals towards the premium and super-premium segments of the industry as the major growth segments. Despite of being the smallest segment in the overall lingerie industry, the premium segment has been growing at a compound annual growth rate (CAGR) of 35% in the last five years and is advancing following a consumer shift from economy and mid-market segments to the premium segment. The low and economy segment, however, is growing in terms of volume and value from the industry being more organized. The premium segment is characterized either by international brands or joint venture of Indian manufacturers with international companies. Brands like Lovable, Enamor and Triumph have successfully made place for themselves in the premium lingerie segments, while other premium lingerie brands like Etam, Benetton, La Perla and About U are on an expansion spree. Indian women: Looking for a perfect shopping ambience Growth of the organized retail sector has fueled growth of the lingerie industry as the share of the former has increased 2 www.techexchange.com

from 3% in 2004 to 5.9 percent in 2007 in the Indian market. The South India-based lingerie manufacturers gained more in this scenario as organized retail has existed in the region for a long period of time compared to other regions. “The deep penetration of branded regional players like Angelform and Naidu Hall in the South is mostly because of the fact that the retail sector has been more organized there,” according to Mr. Sachin Gupta, Director, BodyCare International. Besides a strong preference for the premium lingerie brands, especially by the upper middle class and higher class women, the majority of women look for specific features in an outlet where they can comfortably shop for their innerwear. Among the common set of features that women in the urban centers look for in a lingerie shop include: • Availability of multiple brands under one roof • Convenience of shopping for female consumers • Trial rooms • Comparison of different brands in terms of price, quality and fitting • More choices of colors, fits and prices • Personalized shopping experience With technology driving each industry today, a category like lingerie can not be far behind in delving into the latest trends and innovations that meet the needs and desire of a woman. Innovative fabrics providing comfort and fit Gone are the days when lingerie came in simple and plain forms of cotton. A pure luxury like lingerie is the endproduct of a number of fabrics and embellishments woven together to create that marvelous effect, be it the fabric, the linen, the thread, the foam, the moulds or the elastic. In the current market place, there are several technically developed fabrics that include lycra, satin, hosiery, net, etc. Viscose fiber is one of the main achievements of the lingerie industry in developing a fabric which offers great comfort and perfect fit. In India, the cities of Mumbai, Bangalore, Delhi and Tripur house the majority of manufacturing units for lingerie/underwear with multinational units having their manufacturing base at Bangalore and Mumbai. • The foreign brands like Enamor (joint venture with Gokaldas Images) and Jockey (licensed   by Page Industries) have established their manufacturing facilities in Bangalore. • Lovable, a lingerie brand bought by Maxwell Industries from Sara Lee, also has its   operations in Bangalore. • Groversons and BodyCare are based in Delhi whereas Maxwell Industries (Vanity Fair,   Daisy Dee and other brands) is based in Mumbai and has units at Bangalore and   Coimbatore. These manufacturers generally source lingerie fabric from South East Asian countries like China and Thailand or European countries. Chinese imports are cost effective for Indian manufacturers as Chinese imports are 30%-40% cheaper compared to European imports, but it requires the Indian companies to compromise in terms of quality and creativity. It is also marred by damaged or defective fabric. High-quality fabric for lingerie and innerwear in India comes from European countries. European companies like the Italian firm Carvico SpA is known for its warp knit fabrics whereas Jersey Lomalina, another Italian company, is one of the best producers of circular knit fabrics. Similarly Simplex Knitting, a UK-based company is one of the world’s 3 www.techexchange.com

largest producers of simplex fabrics and Wiley Hermann, an Austrian company is known for manufacturing circular knit fabrics. Accessories gaining significance Likewise, the accessories used in the manufacturing of this highly sensitive piece of women’s clothing have also witnessed a tremendous change in the recent past. Earlier in 1952, there was no elastic used in lingerie in India, but a hard non-stretch material acted as straps. However, the invention of rubber provided an alternative to the traditional strap in the form of the elasticity it offers. Lingerie no more remains the same plain thing it used to be years ago. Now, it comes infused with technically developed accessories that include plastic and metal rings & slides, cutting, underwire, side bones, hook and eye tapes, lyrca elastics and laces, knitted fabric, crochet elastics, velvet ribbons, transparent straps etc. Another factor adding to the business is that of the prints and patterns lingerie comes in. From the age old fashion of plain lingerie, manufacturers have come to offer lingerie in different patterns like camouflage, polka dots, floral, checks, and several other patterns that appeal the modern consumers, decked with laces, bows, beads and jeweled embellishments, in some cases. Embroidery machines adding glamour quotient One of the main innovations in the field of lingerie manufacturing is of embroidered lingerie. As embroidered lingerie came into the limelight, manufacturers realized the need to develop the kind of technology which not only serves the purpose of decorating the product but which is capable of avoiding puckering and pulling of the delicate fabric of a lingerie piece. The R&D efforts resulted in the development of shuttle embroidery machines (like the ones developed by Schifflis, Tajima, Saurer and Lasser). These multi-head embroidery machines offer automatic multi-color embroidery and achieve the highest degree of precision and performance.  Following the highly developed embroidery machines, another technology which has undergone development is the steam press system. The machines work on the lingerie, pressing, steaming and heating them so as to create a fine finish that will leave an impression on the end user. Rivet machines have also become popular in India due to their innovative technology and unbeatable performance. These machines are virtually noise free as they do not make use of a motor or compressor and the equipment includes and inbuilt device that ensures safety of the persons operating the machines. Steam boilers represent another age of technically developed machinery that offer the highest quality of pressure and operating switches. Such machines are made of stainless steel and in turn minimize corrosion and reduce the need for maintenance, while also being insulated with ceramic wool contributing towards saving energy. Fusing machines have also garnered much praise and demand in the lingerie industry for offering high quality finishing. Apart from all this, the market also registers the presence of computerized and production-enhancing features in machines, like automatic color change and thread trimming. Frames too have been developed to handle almost every type of embroidered item. The continuous thirst for innovation has driven the industry to discover more; do the unimaginable and invest heavily in research and development. As a matter of fact, if successful, the technology receives grand welcome from the entire industry. 4 www.techexchange.com

October 2008

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