Undressing the lingerie market - Evolution and Global Perspectives

Undressing the Lingerie Market (EXCERPT)

Marketing ResearchFebruary, 2015

Evolution and Global Perspectives

Undressing the Lingerie Market

February 2015

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1. A look at the Global Lingerie Market . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3

1.1. Market overview . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4

1.2. Distribution of underwear purchases by retail channels . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6

1.3. Top market players . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7

1.4. Case studies . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8

1.4.1. Victoria’s Secret . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8

1.4.2. La Perla . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9

1.4.3. Intimissimi . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10

2. Emerging trends and new opportunities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11

2.1. Brand extensions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12

2.2. Product ranges . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13

2.3. Shapewear lingerie . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14

2.4. E - commerce . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15

2.5. Emerging markets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16

Index


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1. A look at the Global Lingerie Market


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The Global Underwear market comprises, in itself, three complementary business categories: corsetry, lingerie and hosiery. Corsetry

holds the highest market share due to the higher price points of bras and corsets and the vast product range offered extending from high-

performance athletic bras to luxurious hand-stitched corsets. In the category of lingerie, is where fabrics innovation is mainly regarded

with new shapes and products being constantly developed. The hosiery category, is the smallest in terms of value but consistent in terms

of volume.

Global Underwear Market is estimated to have grown around €23.78bln in the recent. Although, it has historically demonstrated considerable

resilience compared to other markets, the recent recessionary pressures and the increased market saturation and fragmentation have

weighed on the industry players, with most of them growing only modestly in 2013/14. As the economic market recovers, expenditure

on underwear is expected to increase, as well. The growth is driven by variable trends in underwear sales in countries around the world.

1.1. Market Overview


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1.2. Distribution of Underwear Purchases by Retail Channels

29+28+16+13+14+0+dSpecialty Stores (e.g, Nordstrom, Macy’s)

29.4%

Mass Merchandisers (e.g., Wallmart, Target, Carrefour )

28.1%

Department Stores (e.g., Sears, JC Penney)

16.2%

Monobrands12.5%

Others (online, outlets, pharmacies etc.)

13.8%

Underwear is distributed via a plethora of different retail channels. In 2014, the dominant channels lost market shares; whereas brands’

directly operated stores (i.e, monobrands) and the online channels have made considerable gains. Nonetheless, consumers still prefer

specialty stores and mass merchandisers due to consumption habits related to the product category. Underwear purchases are often

secondary, adjunctive to other apparel or consumer goods purchases.


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1.4.2. Case study: La Perla

The brand’s acquisition by the London-based company, Pacific Global Management, helped La Perla to introduce a completely new strategy and become one of the most recognizable lingerie brands on the luxury market segment. The great success was achieved through clever techniques aimed to link La Perla with a sense of true luxury. New strategy underlines the refinement behind the brand’s products and communicates its heritage through more of a contemporary spirit. La Perla invites the most recognizable models to become faces of its sophisticated Advertising Campaigns, for example, Cara Delevingne, starring in the SS2014 ads. The brand is also extremely active when it comes to promoting its products through exclusive press - La Perla’s intimates can be spotted in Vogue or Harper’s Bazaar editorials around the globe. It carefully selects the communication channels in order to provide the coherent image of luxury where sophisticated sexuality is an understatement.

In order to enhance the prestigious image, La Perla has recently launched a made-to-measure service, described by the brand’s global director as the offer of “the spirit of the atelier and the emotion of having something really unique, sewn by hand and, in some cases, made precious by the use of gold thread”. Other recent activities include the re-launch of loungewear and beachwear collection for men - La Perla Pitti. The brand collaborated with British Style collective, The Sartorial 7, to introduce the new concept of SS2015 menswear during the Pitti Uomo 2014 show in Florence.

The new strategy is also highly focused on expanding the distribution, with the creation of 30 new company-owned stores in 2014, as well as renovations of already existing branches.

Cara Delevingne in La Perla Campaign SS2014

Kate Moss wearing La Perla in British Vogue editorialDecember 2014

La Perla Made-to-Measure Campaign FW2014

La Perla Men Camapign SS2015


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1.4.3. Case study: Intimissimi

Intimissimi is the underwear specialist that belongs to one of the top market players - Calzedonia Group. Over the last decade, Intimissimi has become the leader on the European lingerie market due to its remarkable competence to read and immediately react to all contemporary market trends.

The brand’s strategy strongly relies on maximizing its retail presence. In 1996, Intimissimi took the chance and introduced sophisticated and high quality lingerie at reasonable prices to the European customers. After its enormous success in the domestic market, the brand decided to extend its reach and currently, Intimissimi is the most rapidly expanding underwear company in the world. Today, the Calzedonia Group owns more than 3600 boutiques around the globe and is making efforts to take over Middle-East and Asia - the brand has already entered the Asian market in July 2013, with its first store in Hong Kong.

Similar to Victoria’s Secret, Intimissimi is also becoming more and more active in creating memorable experiences rather than just products offering. In September 2014, the brand organized the glamorous Ice Opera Pop event in Verona - combining the figure skating, music, special effects and beautiful show costumes inspired by Intimissimi lingerie.

Due to its mass-market approach, recently Intimissimi decided to increase its reach and push up the brand awareness through entering into collaborations with the Online Influencers. Famous Italian fashion blogger-celebrity, Chiara Ferragni, actively supports the promotion of the brand by spreading chic editorial pictures wearing Intmissimi lingerie via her blog and social media channels. It allows the brand to reach millions of people around the globe and increase the recognisability of its products.

Intimissimi Campaign FW2014 Intimissimi Winter Tale Campaign 2014

Chiara Ferragni for Intimissimi, November 2014Glamorous models attending the Intimissimi Ice Opera Event, September 2014


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2. Emerging trends and new opportunities


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2.2. Shapewear lingerie

The market of plus size and shapewear underwear is booming. These two categories

are expected to rapidly grow due to the rising level of obesity and the increasing

popularity of e-commerce shopping among the plus size customers. Brands are making

efforts to attract new customer groups by offering attractive and sexy shapewear

underwear in order to make it more desirable. Triumph, for example, offers a wide

range of shaping intimates. The enormous success of Spanx proves that shapewear

underwear is becoming a hit, both among the curvy and slimmer ladies. Hollywood

celebrities like Julia Roberts, Jennifer Lopez, Scarlett Johansson, Beyonce or Jessica

Alba have already become the fans of the brand.

“The Best Lingerie Comes in All Sizes” Voogue, November 2014 Spanx shapewear

Triumph Shapewear Collection


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2.4. E-commerce

The rapid growth of E-Commerce has spread to the underwear

market, and nowadays represents simultaneously a great

prospective growth driver and a competitive arena where only

the versatile and agile brands will be able to thrive.

As the importance of fit was crucial for this market’s products,

this industry players were late channel entrants. Today though,

comprehensive size guides are developed and offered online

alongside good delivery and customer care services, and

the growth inevitably accelerates. The issue of misfit remains

present, as a considerable amount of consumers are putting off

only purchases affected by the aforesaid consideration.

On the other hand, the online channel offers a great alternative to

consumers feeling uncomfortable while shopping for intimates.

No sales “cannibalism” has been noted so far with online stores

and channels healthily competing with brick-and-mortar stores.

The growth is regarded in both mature and emerging markets,

with Chinese and Russian consumers strongly opting for online

intimates purchases.

The Chinese top e-commerce platform Taobao, reported during

Singles’ Day celebrations, total sales of ¥6.7bln (€880 million),

untapping an incredible potential for underwear brands in the

market.

Among the e-tailers offering an extensive underwear portfolio

are Asos, Zalando, Bloomingdales, Nordstrom and House of

Fraser, with the latter being the largest stockist.

British etailer Asos.com has an exteded and well-performing underwear offer for both men and women


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This is an excerpt from

“Undressing the Lingerie MarketEvolution and Global Perspectives”

(http://fashionbi.com/omni-search/publication)

The full Marketing Research contains in-depth analysis on the booming underwear and lingerie market - a sector that has long experienced resilience and social pressures, especially in the emerging Asian

and Middle Eastern markets. Today, these markets, along with many others are contributing highly to the growth of this sector which is only likely to grow in the near future.

To access the full marketing research and more, become a member today: http://fashionbi.com/signup/member

or learn more from our website

> Lingerie market overview, sales and growth forecasts

> Retail distributions and consumers buying behaviours

> Top market players and their successful strategies

> Brand extensions and other popular tactics in the industry

> New styles, product extensions and wider reach

> Lingerie and E-commerce: growth and trends

> Current and future e-commerce market trends

> Asia, South America and EMEA as potential markets

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Undressing the lingerie market - Evolution and Global Perspectives

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