NPD Fashionworld. Market Insights: Panties and Underwear Bottoms

NPD Fashionworld® Market Insights: Panties and Underwear Bottoms February 2005 Table of Contents Market Insights: Panties and Underwear Bottoms 200...
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NPD Fashionworld®

Market Insights: Panties and Underwear Bottoms February 2005

Table of Contents Market Insights: Panties and Underwear Bottoms 2004

Page Background & Methodology

4

Executive Summary

5

Men’s/Boys’ Underwear Bottoms Market Overview • Market Performance • Wal-Mart Underwear Bottoms Gap Analysis • Channel Trends - Stores Shopped for Underwear Bottoms

9

Category Dynamics • Consumer Attitudes Toward Shopping For Underwear Bottoms • Fabric Preference • Packaging Preference - ‘Single Pairs Vs. Packages’ • Underwear Bottoms Purchase Frequency

18

Aided Brand Awareness • Top Brands for Men’s Underwear Bottoms • Top Brands for Boys’ Underwear Bottoms

31

Key Insights about Underwear Bottom Styles • Styles Purchased in Past 3 Months/Styles Ever Worn • Colors Worn by Style • Preferred Styles Worn by Activity/Occasion

34

Future Purchase Plans for Underwear Bottom Styles and Colors

42

Women’s/Girls’ Panties Market Overview • Market Performance • Wal-Mart Panties Gap Analysis • Channel Trends - Stores Shopped for Panties

48

Category Dynamics • Consumer Attitudes Toward Shopping For Panties • Fabric Preference • Packaging Preference - ‘Single Pairs Vs. Packages’ • Panties Purchase Frequency

2

57

Table of Contents Market Insights: Panties and Underwear Bottoms 2004

Page Women’s/Girls’ Panties, Continued Aided Brand Awareness • Top Brands for Women’s Panties • Top Brands for Girls’ Panties

73

Key Insights about Panties Styles • Styles Purchased in Past 3 Months/Styles Ever Worn • Colors Worn by Style • Preferred Styles Worn by Activity/Occasion

76

Future Purchase Plans for Panty Styles and Colors

84

Appendices A. Questionnaire B. About The NPD Group and NPDFashionworld

90 109

3

Background & Methodology Market Insights: Panties and Underwear Bottoms 2004

Background Even though the economy is supposedly rebounding, consumers remain faced with uncertain employment options, increasing advertising and marketing pressures, and the growing dominance of “big box” retailers selling everything from tires to toothpaste and underwear to umbrellas. To help manufacturers and retailers keep pace with ever-changing consumer behaviors and attitudes, NPD Fashionworld has updated its annual NPD Market Insights: Panties and Underwear Bottoms report. While the scope of this report offers consumer feedback for the entire panties and underwear bottoms category, special emphasis has been placed on mass merchants, and Wal-Mart specifically, to give readers a sense of what’s driving this critical sector of the marketplace.

About NPD Market Insights: Panties and Underwear Bottoms This study was conducted via the World Wide Web November 16 to December 1, 2004. The survey was administered to a random sample of self-reported underwear and panty purchasers who were pre-identified from the NPD Fashionworld apparel industry tracking service. Panel members were asked to visit the NPD Online Research survey site in order to complete and submit the survey about underwear/panties. Respondents were initially asked to indicate who in their household, including themselves, they had purchased underwear or panties for in the past four months (from July 2004 through October 2004). For the remainder of the survey, respondents answered questions thinking about their underwear bottom or panty purchases (depending the wearer’s gender) for either themselves, their spouse, a child under age 13 in their household or a child/other family member age 13+. A total of 10,000 e-mails were sent to target panelists. A total return of 3,428 completed surveys was received . As an incentive to complete this survey, ten drawings for $100 were included. Ending sample sizes by age and gender of the wearer are as follows: Gender of Wearer Male Underwear Female Bottoms Panties Total

995

2,433

Age of Wearer Under 18 18-24 25-34 35-44 45-54 55+

207 52 124 207 246 159

261 331 507 489 555 290

4

Executive Summary Market Insights: Panties and Underwear Bottoms 2004

Men’s and Boys’ Underwear Bottoms - Key Findings Sales of male underwear bottoms have grown slightly in the 12 month period ending September 2004 with an increase of 2% overall to $2.4 billion. This growth is driven by the men’s segment showing a 3% growth, while boys are declining by 3% versus year ago. Within mass merchants, underwear bottoms sales were down, primarily driven by the men’s market which experienced a decline in sales of 9% to $791 million.

Retailers Shopped Wal-Mart continues to dominate the men’s/boys’ underwear bottoms market. Six in ten consumers reported they buy “some” or “most” of their underwear at Wal-Mart. Wal-Mart also remains most appealing to younger underwear wearers. Kmart continues to decline in reported underwear purchasing over the past year. Twenty-three percent of consumers reported buying “some” or “most” underwear bottoms at Kmart versus 28% in 2003 and 35% in 2002.

Underwear Bottom Styles Briefs remained the dominant style worn by men in 2004 with consumers reporting that almost half (49%) of the underwear bottoms owned consist of this basic style. However, it’s all about boxer briefs this year. This style has now caught-up with traditional boxers in 2004, with each style having a 23% share of underwear bottoms owned. In addition, 46% of purchasers of boxer briefs report this style as being worn “more often” compared to one year ago, which suggests that this style is still on the rise. •Boxer briefs gain across all age segments under 55, and this is mainly at the expense of boxers. While consumers are still interested in trying something new, they were less likely to cite preference for low-rise/bikinis in 2004. Four in ten buyers reported the style as being worn “less often” than last year.

Underwear Bottom Colors Similar to last year, underwear bottom colors worn depend largely on the selected style worn. Solid white continues to be a leading color worn, driven primarily by the high ownership of briefs among males. Among those who indicated purchasing brief style underwear bottoms, three in four cite “white” as the color worn in this style.

5

Executive Summary Market Insights: Panties and Underwear Bottoms 2004

Men’s and Boys’ Underwear Bottoms - Key Findings (Continued) Comfort Still Counts Comfort remains top priority within men’s and boys’ underwear bottoms. Almost nine in ten (86%) consumers agreed strongly or somewhat with the statement “comfort is more important than fashion when buying underwear bottoms.”

Underwear Bottom Brands National brands continue to dominate men’s and boys’ underwear bottoms with designer and private label brands generally garnering “second tier” levels of aided recognition relative to the national branded players. However, many of the national brands have seen slight declines in overall recognition levels versus last year, while brands like Old Navy, Eddie Bauer and Faded Glory experienced increases in their awareness levels. Despite the slight increases in awareness, these brands failed to move up in the overall awareness rankings. •Hanes and Fruit of the Loom remain the most recognized brands in men’s and boys’ underwear with over seven in ten consumers aware of each of these brands. •Private label brands and designer labels have higher recognition among consumers buying for younger men (age 18-24). •Some new character licenses were added to this year’s study, and several of these are in the Top 10 for aided brand awareness of boys’ underwear bottoms – Bob the Builder (40%), Spiderman (40%), SpongeBob (39%), and Batman (36%) are more known than some of the Top 10 brands from 2003, such as Underoos, Disney, and JC Penney.

Future Purchase Plans Underwear bottom purchasing over the near future is likely to remain steady. Over half of buyers surveyed say they plan to purchase underwear in the next three months, which is similar to levels reported in 2002 and 2003. Briefs are expected to remain the dominating style with a 45% reported share of consumers’ next ten underwear bottom purchases. Boxer briefs follow with a 26% share of next ten purchases, edging out boxers for the second position. Solid white, followed by solid color, remains the color most likely to be purchased next time based on reported share of next ten purchases of underwear bottoms.

6

Executive Summary Market Insights: Panties and Underwear Bottoms 2004

Women’s and Girls’ Panties - Key Findings The female panties market reached $3.1 billion in 2004 - a 10% increase from the same time period in 2003. The $2.9 billion women’s panty business was up 10%, while the girls’ business was up 5% to $225 million. While total female panty sales were up, the category is declining by 3% within mass merchants to $840 million. Similar to 2002 and 2003, over half of panty buyers surveyed say they purchased the “usual amount” of panties for the wearer in the past three months. Almost one in three indicate that they purchased “more than usual.” Momentum appears to be shifting versus the same time period last year within some age segments as fewer panties buyers in the under 18 year-old age segment reported that they bought “more than usual” in the target time period in 2004 versus 2003 (31% in 2004 versus 36% in 2002). Conversely, buyers for wearers 18-24 filled in this gap, with 34% buying “more than usual” in the 2004 time period versus 27% in 2003. The overall number of pairs reported has remained constant, with an average of 21 pairs of panties in women’s drawers in both 2003 and 2004. Panty ownership is highest within the 18-24 age segment; however, there was a dip from 2003 to 2004. This dip in ownership for this segment, while at the same time stating that they are purchasing more pairs of panties than last year, could represent replacement rather than the stocking-up that was seen in 2003. Retailers Shopped As seen in 2002 and 2003, consumers are more likely to say they buy “some” or “most” of their panties at Wal-Mart than at any other retailer - about six in ten women overall. By age, however, 18-24 and 55+ are a harder audience for Wal-Mart to attract. Similar to the trend seen among men’s/boys’ underwear bottoms, Kmart has experienced a decline in reported panty purchasing over the past year. Twenty-two percent of consumers reported that they buy “some” or “most” panties at Kmart versus 27% in 2003 and 34% in 2002.

Panty Styles Briefs remain the top panty style worn with 56% of panty buyers citing the style as “ever worn.” However, boy briefs and low rise/hipsters gained momentum this year. Boy briefs experienced the strongest gain with 25% of panty buyers citing the style as “ever worn” versus 19% in 2003. Low rise/hipster style was cited by 36% of panty buyers compared to 31% last year. In addition, purchasing of both styles has increased, with a 6% upswing in purchasing of low rise/hipsters from 2003 to 2004, and a similar increase of 5% for boy briefs in the same time period.

Panty Colors Regardless of the panty style, most women wear solid colors. As seen last year, however, panty colors owned do vary depending on the age of the wearer. Girls (under age 18) own a greater volume of patterns/designs, while solid colors fill the drawers of 18-44 year-olds. As women age, they tend to own more solid white panties.

7

Executive Summary Market Insights: Panties and Underwear Bottoms 2004

Women’s and Girls’ Panties - Key Findings (Continued) Comfort and Fashion Overall, women’s/girls’ panty buyers place a higher priority on comfort than fashion - over three in four (78%) consumers agree strongly or somewhat with the statement “comfort is more important than fashion when buying panties.” Women won’t give up comfort for fashion, instead looking for brands and styles that offer both, as 79% agree strongly or somewhat that “some styles of panties offer both fashion and comfort.” The importance of fashion is further demonstrated by the finding that just over six in ten women (61%) age 13+ coordinate their bras and panties, and just as many (62%) coordinate the color of their bra and panty with the color of their outfit/outerwear. This is not just a teen phenomenon as one might think. The trend leans more towards women 18-34 (70%); however, over half of women age 45+ (55%) are coordinating their bras and panties. Older women (age 55+), who coordinate their bras and panties, report doing so more frequently than their younger counterparts. However, this could be, in part, due to older women being more likely to wear solid white intimate apparel. •Among those coordinating their bras and panties, 35% of panty buyers for women age 55+ claim the wearer coordinates her bra and panties five or more days per week compared to 21% of those buying for a female age 18-54. Panty Brands Recognition levels for women’s panties brands have remained fairly consistent with levels reported last year. Most brands are within two or three percent of last year’s reported awareness levels. National players, Hanes and Fruit of the Loom, are #1 and #3, respectively, while the specialty brand, Victoria’s Secret, comes in at #2 in aided brand awareness. While 2003 saw some increases for girls’ panties among smaller players, 2004 saw a dip for several brands within the Top 20. These brands include Carters (-6 pts.), Jockey (-8 pts.) Simply Basic (-8 pts.), Underoos (-7 pts.), and Looney Tunes (-11 pts.). Hanes, the #1 brand in terms of awareness within girls’ panties, saw aided awareness drop nine percentage points versus 2003. This represents a total drop of 16 percentage points since 2002. Even with the decline in recognition, however, Hanes remains atop the rankings within girls’ panties, followed by Fruit of the Loom. Future Purchase Plans Just under two in three buyers surveyed indicate that they have plans to purchase panties in the next three months, which is a slight decrease versus one year ago. Briefs are expected to remain the dominating style, driven by wearers under age 18 and those age 55+. Thongs are also expected to continue strong momentum among wearers age 18-24, representing 29% of reported next ten purchases among this age group. Solid color panties and those with patterns/designs increased in future purchase interest among younger age segments, while white continues to dominate older age segments.

8

Men’s/Boys’ Underwear Bottoms Market Overview Market Insights: Panties and Underwear Bottoms 2004

9

Market Overview Market Insights: Panties and Underwear Bottoms 2004 For the purposes of this report, Boys are defined as males age 4-12 and Men as males age 13+.

Underwear Bottoms Performance in the Total Market by Segment (Millions of Dollars) 2,500

2,000

In 2004, the male underwear category grew by 2% versus year ago. This growth was driven by men’s underwear (+3%), offsetting the declines in boys’ (-3%.)

1,994 2043 1,805

1,500

The growth in the men’s underwear category was driven by Specialty Stores. Direct Mail and Factory Outlets also contributed to the increases versus year ago.

1,000

500

341

333

323

0 Men's 12 Mths End Sept 2002 12 Mths End Sept 2004

Boys' 12 Mths End Sept 2003

Source: NPDFashionworld Consumer Estimates

Underwear Bottoms Performance in Mass Merchants by Segment

In mass merchants, male underwear bottoms were down by 9% from 2003 to 2004. This decline was due to losses in both the men’s (-9%) and boys’ (-8%) underwear categories.

(Millions of Dollars)

1000 870 800

791

791

600

400 217

199

200

183

0 Men's 12 Mths End Sept 2002 12 Mths End Sept 2004

Boys' 12 Mths End Sept 2003

Source: NPDFashionworld Consumer Estimates

10

Market Overview Market Insights: Panties and Underwear Bottoms 2004 As part of the Market Insights: Panties and Underwear Bottoms report, the following index analysis of Wal-Mart versus the total mass market and the total underwear market was conducted. This index uncovers areas of opportunity in gender mix, product mix, style mix and demographic profile mix for both underwear manufacturers’ and retailers’ consideration. For the purposes of this report, Boys are defined as males age 4-12 and Men as males age 13+. Wal-Mart Underwear Bottoms Index 12 Months Ending September 2004 (100=baseline) Wal-Mart Vs. Total Mass Wal-Mart Vs. Market Total Market Overall Bottoms Mix (As a % of total Underw ear Mix)

Total Men’s and Boys’ Unit Share

104

106

Dollar Share

102

103

100

96

100

115

99

93

103

143

108

123

Boxers

85

83

Boxer Briefs

105

102

Bikini/Lo Rise/Other

116

88

Gender Mix Unit Share Men’s Boys’ Dollar Share Men’s Boys’ Style Mix Dollar Share Briefs

For unit share, Wal-Mart is slightly overdeveloped in male underwear bottoms relative to the total underwear mix.

When comparing the gender mix in WalMart with the total market, men’s underwear bottoms mix is slightly underdeveloped while the boys’ mix is overdeveloped, especially in terms of dollar share.

Wal-Mart is overdeveloped in the Briefs category when compared to the total market. There may be an opportunity for growth with Boxers.

Source: NPDFashionworld Consumer Estimates

Note: Male Underwear Mix Defined as Underwear Tops, Underwear Bottoms, and Thermals

11

Market Overview Market Insights: Panties and Underwear Bottoms 2004 For the purposes of this report, Boys are defined as males age 4-12 and Men as males age 13+. Wal-Mart Underwear Bottoms Index 12 Months Ending September 2004 Dollar Share (100=baseline) Wal-Mart Vs. Total Mass Wal-Mart Vs. Market Total Market Pack Count Men's Underwear Bottoms 1 Pack 2 Pack 3 Pack 4 Pack 5 Pack 6 Pack 7+ Pack

58 76 106 107 114 122 126

27 75 120 167 183 162 159

Boys' Underwear Bottoms 1 Pack 2 Pack 3 Pack 4 Pack 5 Pack 6 Pack 7+ Pack

69 64 97 103 117 131 108

29 44 102 100 123 176 146

When comparing Wal-Mart’s men’s underwear bottoms mix against the total market and total mass market, Wal-Mart is overdeveloped in the larger pack counts, while underdeveloped in the 1 and 2 pack counts.

The boys’ underwear bottoms category is a similar situation, underdeveloped in 1 and 2 packs while overdeveloped in larger pack counts.

Wal-Mart Vs. Total Mass Wal-Mart Vs. Market Total Market Brand Type Mix Men's Underwear Bottoms National Brands Private Label Boys' Underwear Bottoms National Brands Private Label

110 65

100 103

152 47

Men’s underwear bottoms in Wal-Mart, when compared to the total market, is overdeveloped in the national brand programs while underdeveloped in private label. Boys’ national brand underwear bottoms mix is on par with the total mass market but overdeveloped when compared to the total market.

127 44

Source: NPDFashionworld Consumer Estimates

12

Market Overview Market Insights: Panties and Underwear Bottoms 2004 For the purposes of this report, Boys are defined as males age 4-12 and Men as males age 13+.

Wal-Mart Underwear Bottoms Index 12 Months Ending September 2004 Dollar Share (100=baseline) Wal-Mart Underwear Vs. Wal-Mart Underwear Wal-Mart Tops Apparel Age of Buyer 13-24 25-34 35-44 45-54 55-64 65+

100 86 102 104 103 91 103

100 Household Income Under $25,000 89 $25,000-$49,999 103 $50,000-$74,999 105 $75,000+ Source: NPDFashionworld Consumer 110 Estimates

100 88 141 112 88 80 77 100 105 107 96 90

13

Within the 25-34 age group, male underwear bottoms are overdeveloped when compared to male underwear tops.

Among Wal-Mart consumers with incomes less than $25,000, male underwear bottoms are slightly underdeveloped when compared to total apparel.

Market Overview Market Insights: Panties and Underwear Bottoms 2004

Analyzing Market Insights: Men’s/Boys’ Underwear Bottoms

For this section of the Market Insights: Men’s/Boys’ Underwear Bottoms report, keep in mind that the sample is based on 995 NPD Fashionworld survey respondents. Any reference to percentage of respondents should be analyzed based on this sample and not the entire underwear bottoms marketplace.

14

Market Overview Market Insights: Panties and Underwear Bottoms 2004 Wal-Mart continues to dominate men/boys underwear purchases Wal-Mart continues to dominate the underwear category among the big three mass retailers. Nearly six in ten of men’s/boy’s underwear buyers reported making ‘some’ or ‘most’ of their underwear purchases at Wal-Mart compared to 23% at Kmart and 35% at Target. Over 2004, Kmart once again experienced a significant decline in underwear purchasing, slipping 4 percentage points from 2003.

100

Purchase Some or Most of Underwear Bottoms at Retailer - 2004 Vs. 2003 and 2002 (% of Buyers)

80 63

60 59

60

33 34 35

35

40

28

24 22

23

14 15

20

0 Wal-Mart

Km art

Target

2002

2003

JCPenney

Kohl's

2004

Note: JC Penney and Kohl’s not available for 2002 Source: Market Insights: Underwear Bottoms 2004, 2003 and 2002

The 18-24 age group is the largest segment of underwear purchasers among all mass retail chains. While Wal-Mart continues to maintain leading market share positions among all age groups, Target is significantly improving its appeal within the 18-24 age group; its purchase incidence among this group of underwear shoppers jumped ten percentage points from 2003. 100

60

Purchase Some or Most of Underwear Bottoms at Retailer - 2004 By age of underwear wearer (% of Buyers)

76

80 59

58 50

54

57 50

49

43 36

35

40 23

28

30

27

21 20 23 22 22

19

22

27 19

19

22 22

25 15 15

20

12

17 18 14

0 Wal-Mart

Km art Total

Under 18

Target 18-24*

25-34

JCPenney 35-44

45-54

*Small base: 52 respondents Source: Market Insights: Underwear Bottoms 2004

15

Kohl's 55+

9

Market Overview Market Insights: Panties and Underwear Bottoms 2004 Wal-Mart continues to have the most purchasers of other merchandise 64% of those buying underwear at Wal-Mart report also purchasing other items at Wal-Mart in the past 12 months. Overall, additional purchases are becoming less frequent for mass retailers compared to 2003 and 2002. Purchased Items Other Than Underwear Bottoms at Retailer in Past 12 Months - 2004 Vs. 2003 and. 2002 (% of Buyers) 100

80

74 66 64

60

54

50

46 45 36

40

32

29

29 22 24

20

0 Wal-Mart

Km art

Target 2002

2003

JCPenney

Kohl's

2004

Note: JC Penney and Kohl’s not available for 2002 Source: Market Insights: Underwear Bottoms 2004, 2003 and 2002

What additional items are underwear shoppers purchasing at these retailers? Those who buy underwear at the big 3 mass retailers most often shop for other apparel items, groceries, toys and automotive supplies. At national chains, underwear purchasers are likely to buy other apparel items; 76% of JC Penney and 84% of Kohl’s underwear shoppers report purchasing apparel other than underwear. Items Purchased at Retailer - 2004 (% of Buyers) Base: Automotive Supplies Cosmetics Hardware Jewelry Toys Apparel Items (Other Than Underwear Or Panties) Groceries/Food Items Pet Food Lawn Supplies

Wal-Mart Kmart (640) (291) 52 21 33 13 41 17 13 5 49 31 65 76 48 34

49 29 15 16

Target (445) 15 22 14 6 39

JCPenney Kohl's (293) (237) 1 0 4 4 1 1 9 20 3 14

63 38 17 14

Source: Market Insights: Underwear Bottoms 2004

16

76 0 0 1

84 0 0 1

Market Overview Market Insights: Panties and Underwear Bottoms 2004 Reasons for not purchasing men’s/boys’ underwear bottoms at mass Respondents who report purchasing “none” of their underwear bottoms at Wal-Mart, Kmart or Target cited “inconvenient to home or work,” “don’t purchase any apparel there” and “just don’t like the store/shopping experience” as their most common reasons for shopping elsewhere. Those who report buying no underwear at Wal-Mart say the retailer “doesn’t have the brands I prefer” while “inconvenience to home or work” is more likely to be cited as a reason for not shopping at Kmart and Target. In addition, non-buyers at Wal-Mart and Kmart are more likely to say they “just don’t like the store/shopping experience” as compared to non-buyers at Target. Reasons for Not Purchasing Underwear Bottoms at Retailer - 2004 (% of Buyers) Wal-Mart Kmart (412) (764)

Base:

Target (647)

Don’t have the styles I prefer

15

9

8

Don’t have the brands I prefer

26

15

14

Price is too low-I question the quality

6

3

1

Is not convenient to my home or work

21

40

37

Don’t purchase any apparel there

24

24

21

Don’t have the variety I look for

10

7

6

Underwear is not appropriate

1

1

0

Underwear department is too cluttered

6

5

2

Underwear department layout is too confusing

4

2

1

Wouldn’t want my friends/family to know I buy underwear there

5

2

1

Underwear is not fashionable enough

5

3

2

Lack of privacy while shopping there

4

2

1

Just don't like the store/shopping experience

26

26

10

Underwear is not sexy enough

6

3

2

Source: Market Insights: Underwear Bottoms 2004

17

Category Dynamics Market Insights: Panties and Underwear Bottoms 2004

18

Category Dynamics Market Insights: Panties and Underwear Bottoms 2004

Comfort still on top for male underwear bottoms purchasers Overall, most men’s/boys’ underwear buyers agree that comfort is more important than fashion when buying underwear bottoms, with 86% strongly or somewhat agreeing with this statement. The Kohl’s underwear shopper shows the most variability when compared to the other shopper groups. •Most likely to agree that fashion and comfort in underwear can go hand-in-hand (77%) •Least likely to agree that males just grab whatever is on top of his underwear drawer (48%) •Most likely to have more colored underwear bottoms than he used to (53%)

19

Category Dynamics Market Insights: Panties and Underwear Bottoms 2004

Attitudes Toward Shopping for Underwear Bottoms % of Buyers Agreeing Strongly or Somewhat with Statement

86 88 88 85 87 82

Comfort Is More Important Than Fashion When Buy ing Underw ear For {Male} 66 65 62 72 69

Some Sty les Of Underw ear Offer Both Fashion And Comfort

77

64

69 69 70 64 71

Price Is A Very Important Factor When Buy ing Underw ear Bottoms 55

{Male} Just Grabs Whatev er Is On The Top Of His Draw er When Choosing What Underw ear To Wear

53

48

53 53 55 60 56 56

{Male} Ow ns More Underw ear Than He Used To

48 50 48 48 47 51

I Buy More Multi-Packs Of Underw ear Bottoms/Panties For {Male} Than I Used To So I Don't Need To Shop For Underw ear As Often 42 43

{Male} Has More Colored Underw ear Bottoms In His Wardrobe Than He Used To

48 47 49

53

37 38 36 40 43 45

{Male} Has More Variety Of Underw ear Sty les In His Wardrobe Than He Used To 25 22 23 28 29 30

The Ty pe Of Underw ear {Male} Wears Depends On The Sty le Clothing He Will Be Wearing The Ty pe Of Underw ear {Male} Wears Depends On The Activ ity Or

8

Occasion 8 7 7

I Buy More Indiv idual Pairs Of Underw ear For {Male} Than I Used To

11 10 12 12 13 10 12 10

0 Total

60 61 60

Wal-Mart

20

40 Kmart

60 Target

Source: Market Insights: Underwear Bottoms 2004

20

80 JCPenney

100 Kohl's

Category Dynamics Market Insights: Panties and Underwear Bottoms 2004 Do consumers’ attitudes differ depending on the age of the underwear bottoms wearer? Though comfort is most important to underwear shoppers for all age groups, it is most important for male wearers age 45+. Conversely, consumers who shop for a wearer under age 45 are more likely to agree that “some styles of underwear bottoms offer both fashion and comfort.” Purchasers for boys under age 18 remain more price sensitive, with more than three in four purchasers agreeing that “price is a very important factor when buying underwear bottoms.” 71% of buyers for 18-24 year-olds claim the wearer “owns more underwear than he used to,” which is significantly higher than that reported among other wearer age segments. Attitudes Toward Shopping for Underwear Bottoms % of Buyers Agreeing Strongly or Somewhat with Statement

73 81 85 83

Comfort Is More Important Than Fashion When Buy ing Underw ear For {Male} Some Sty les Of Underw ear Bottoms/Panties Offer Both Fashion And Comfort

61

48

Price Is A Very Important Factor When Buy ing Underw ear

{Male} Just Grabs Whatev er Is On The Top Of His Draw er When

51 50

Choosing What Underw ear To Wear

59 60 56 57 60 63

53 {Male} Ow ns More Underw ear Than He Used To

48 47 46 50 47 44 53 47 47 48 48 49

I Buy More Multi-Packs Of Underw ear For {Male} Than I Used To So I Don't Need To Shop For Underw ear As Often {Male} Has More Colored Underw ear In His Wardrobe Than He Used To

36

28

31

20 17

The Ty pe Of Underw ear {Male} Wears Depends On The Sty le Clothing He Will Be Wearing

26

11 3

The Ty pe Of Underw ear {Male} Wears Depends On The Activ ity Or Occasion

17 12 12

5 8

I Buy More Indiv idual Pairs Of Underw ear For {Male} Than I Used To

3

5

9

0 Under 18

15

18-24*

21

77

60

57

61

71

35 37 34

22

19

20

Source: Market Insights: Underwear Bottoms 2004 *Small base: 52 respondents

71 68

90 93

44 46 44 41

{Male} Has More Variety Of Underw ear Sty les In His Wardrobe Than He Used To

72 73 73 72

40 25-34

60 35-44

80 45-54

100 55+

Category Dynamics Market Insights: Panties and Underwear Bottoms 2004 Males prefer 100% cotton underwear 100% cotton continues to be the fabric of choice among men’s/boys’ underwear bottoms buyers, as 74% of respondents reported 100% cotton as the wearer’s preferred underwear fabric. •The youngest (under 18) and oldest (55+) segment wearers are slightly more likely than other wearers to also like cotton/polyester blend.

Underwear Bottoms Fabric Preference - 2004 Vs. 2003 and 2002 (% of Buyers)

100

80

76

77

74

60

40

15

20

16

14

6

6

0 100% Cotton

Cotton/Polyester Blend

2002

2003

Cotton With Spandex Or Lycra Blend

2004

Source: Market Insights: Underwear Bottoms 2004, 2003 and 2002

Underwear Bottoms Fabric Preference - 2004 (% of Buyers) Age of Wearer 18-24* 25-34 35-44 45-54

Total