The innerwear market in India is experiencing significant growth, driven by evolving fashion trends, rising disposable incomes, and increasing awareness of comfort and style. According to industry estimates, the overall innerwear market size is projected to witness substantial expansion in the coming years. A detailed analysis forecasts the growth rate and market share for different segments within the innerwear industry.
Segmented Growth Projections:
In the fiscal year 2020 (FY20), the men’s innerwear category was valued at $1.9 billion and is anticipated to reach $3.1 billion by FY25, growing at a CAGR of 10.3%. Similarly, the men’s casual and active wear category is expected to surge from $7.7 billion in FY20 to $14.9 billion in FY25, reflecting a CAGR of 13.9%.
The women’s innerwear category, estimated at $4.4 billion in FY20, is poised to expand at a CAGR of 14%, reaching $8.5 billion in FY25. Meanwhile, the women’s casualwear category is projected to grow at a CAGR of 16.1% from $0.9 billion in FY20 to $1.9 billion in FY25.
Further, the kids’ wear market, currently valued at $14 billion, is expected to grow at a CAGR of 10.5%, reaching nearly $23 billion by FY25.
Leading Players and Market Share:
The key players driving the Indian innerwear industry are Dollar, Rupa, Lux, and Amul, with significant market shares. Foreign and multinational brands like Jockey, Calvin Klein, and Marks and Spencer are also major contenders. Among the domestic brands, Dollar holds approximately 15% of the market share.
Segment Breakdown:
The percentage-wise breakdown of the innerwear market is as follows: Men’s wear accounts for 82%, women’s wear constitutes 15%, and kids’ wear makes up 3% of the overall market.
Emerging Growth Segment:
The ‘youth category,’ comprising both men and women, is experiencing rapid growth. The younger generation, more fashion-conscious and financially empowered, exhibits a heightened demand for trendy styles, colors, cuts, and comfort. This segment presents ample opportunities for sales and growth.
Contribution of Unorganized Sector and Challenges:
The unorganized sector contributes significantly to the innerwear market. For men, it represents approximately 50-55% of the market, while for women and kids, it stands at 55-60% and 85-90%, respectively. However, during periods of demonetization and the recent COVID-19 pandemic, the unorganized sector faced numerous challenges, which created opportunities for established national players to capture market share.
Focus on Topline and Bottomline:
Companies in the innerwear industry prioritize both topline and bottom line growth to maximize stakeholder’s wealth.
Importance of Brand Loyalty:
In the innerwear segment, brand loyalty is crucial and primarily hinges upon factors like comfort, value for money, and style. A consistent fulfillment of these criteria allows brands to maintain customer associations.
E-commerce Growth and Antiviral Apparel:
E-commerce sales have witnessed remarkable growth, especially during the post-pandemic phase. Convenience, wider reach, and cheaper data availability have prompted more customers to embrace online shopping. At Dollar, significant investments have been made in software and technology to cater to the expanding e-commerce market.
Commitment to Sustainability:
Dollar Industries places a strong emphasis on sustainability in its operations. The company has implemented green guidelines at its integrated plants, ensuring responsible water management through effective treatment and reuse. Additionally, a solar power plant producing 75 lakh power units annually has been installed, furthering their commitment to environmentally friendly practices.
Conclusion:
With steady growth projected across segments and increased consumer demand for comfort and style, India’s innerwear market presents a promising outlook. Established domestic players and renowned international brands are vying for a greater share of this expanding market, with a focus on providing high-quality products that resonate with customers.
