Sample provided by Research enquiries: Liz Hague, Sales Manager

Sample provided by
Research enquiries: Liz Hague, Sales Manager
email: [email protected]
tel: +44 (0)1527 573 604
US toll-free: 1-866-545-5878
fax: +44 (0)1527 577423
Global market review of lingerie and
intimate apparel – forecasts to 2017
2012 edition
February 2012
By Malcolm Newbery
With contributions from Divya Divakaran and Jane Steadman
Published by
Aroq Limited
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www.just-style.com/market-research/
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i
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iii
Table of contents
Chapter 1 Executive summary
Lingerie explained
The current approach to lingerie collections
Different types of lingerie retailer
Branded and own label lingerie, market share comparisons
Market growth and market share; the Boston Consulting Group (BCG) matrix
The importance of brands and own labels in emerging markets
The UK lingerie market, a fieldwork analysis
The lingerie retail market, 2004 -2011
The lingerie retail market, 2012-2017
Interview with the editor of lingerie buyer on trends and issues affecting the sector
Chapter 2 Lingerie explained
Product definitions and lingerie product categories
Styling history
Garment construction
The current approach to lingerie collections
Chapter 3 Brands and own label
Different types of lingerie retailer
Brand and own label pricing
The retail market pricing segmentation
The lingerie price-fashion matrix
Chapter 4 The importance of brands and own labels in major developed markets
Branded and own label lingerie, market share comparisons
Market growth and market share; the Boston Consulting Group (BCG) matrix
Market growth and market share; an alternative fast moving consumer goods theory
Market share by price point
Market growth and market share theory, North America in 2012
VF (Vanity Fair) Corporation and Fruit of the Loom
Market growth and market share theory, North America in 2017
Market growth and market share theory, Western Europe in 2012
Key lingerie sector events in 2006, 2007 and 2011
Market growth and market share theory revised, Western Europe in 2012
Market growth and market share theory, Western Europe in 2017
Chapter 5 The importance
importance of brands and own labels in emerging markets
BRICs
BRICs ratings as fashion retail markets
Brazil
Scalina
iv
Baci Lingerie
Russia
Silvano
Julie France
India
The market
Etam and Pantaloon
Lovable
Page Industries (Jockey)
Indiginous brands
China
The apparel market summarised
Aimer
Ordifen
Jianertan
Chapter 6 The UK lingerie market, a fieldwork analysis
Product types
The Price-fashion matrix
Key points worth noting
Stock density and presentation
Trends for spring-summer 2012
Chapter 7 The lingerie
l ingerie retail market, history
The lingerie retail market, 2004
The lingerie retail market, 2008
The lingerie retail market, 2010
Chapter 8 The lingerie retail market, current
The lingerie retail market, 2011
The scale of the revised 2011 estimate
Chapter 9 The lingerie retail market, future
The lingerie retail market in 2012
The lingerie retail market in 2013
The lingerie retail market in 2017
Headlines from just-styles’s long term timelines
Chapter 10 Interview with the editor of Lingerie Buyer on trends and issues affecting the sector
v
List of tables
Table 1: Branded and own label bra price architecture, US and Western Europe
Table 2: Lingerie price segmentation (bras), 2011, based on US market
Table 3: 2004 market value (US$bn), volume (m units) and unit prices of bras and briefs sold in North America,
Europe & Turkey, Japan & South Korea and world total
Table 4: 2008 market value (US$bn), volume (m units) and unit prices of bras and briefs sold in North America,
Europe & Turkey, Japan & South Korea and world total
Table 5: 2010 market value (US$bn), volume (m units) and unit prices of bras and briefs sold in North America,
Europe & Turkey, Japan & South Korea and world total
Table 6a: 2011 market value (US$bn), volume (m units) and unit prices of bras and briefs sold in North America,
Europe & Turkey, Japan & South Korea and world total
Table 7: 2012 market value (US$bn), volume (m units) and unit prices of bras and briefs sold in North America,
Europe & Turkey, Japan & South Korea and world total
Table 8: 2013 market value (US$bn), volume (m units) and unit prices of bras and briefs sold in North America,
Europe & Turkey, Japan & South Korea and world total
Table 9: 2017 market value (US$bn), volume (m units) and unit prices of bras and briefs sold in North America,
Europe & Turkey, Japan & South Korea and world total
Table 10: 2004-2017 market value (US$bn and % growth) of bras and briefs sold in North America, Europe &
Turkey, Japan & South Korea and world total
Table 11: 2004-2017 market value (US$bn and % growth) of bras sold in North America, Europe & Turkey,
Japan & South Korea and world total
Table 12: 2004-2017 market value (US$bn and % growth) of briefs sold in North America, Europe & Turkey,
Japan & South Korea and world total
List of figures
Figure 1: Price-fashion matrix, bras UK
Figure 2: Market growth and market share (Boston Consulting Group) matrix
Figure 3: Brand market attractiveness matrix
Figure 4: Brand market attractiveness matrix, US 2012
Figure 5: Brand market attractiveness matrix, US 2017
Figure 6: Brand market attractiveness matrix, Western Europe, 2012
Figure 7: Brand market attractiveness matrix, Western Europe, 2017
Figure 8: UK lingerie brands and own labels, functional/sport and practical/traditional
Figure 9: UK lingerie brands and own labels, contemporary/fashionable and high fashion/glamour
Figure 10: UK lingerie brands and own labels, extreme fashion
vi
Chapter 1 Executive summary
Lingerie explained
As in previous editions of the just-style lingerie report, lingerie is defined as being composed of three major
product groups. They are:
1.
Bras
2.
Briefs
3.
Daywear and shapewear
Sleepwear garments are excluded from this report.
There is no doubt that technology, in both materials (fabrics) and construction (sewing), have dramatically
influenced the sector since the 1960s. Fabrics are lighter and contain more stretch. Construction methods
include more welding and taping to complement old fashioned stitching.
The current
current approach to lingerie collections
As the sector consolidates (fewer brands and own label retailers), the emphasis has shifted from category subset specialisation to sub brands addressing each sub sector with a range dedicated to that area. This is an issue
which may well be approaching a tipping point, according to the Editor of Lingerie Buyer, namely whether to
specialise or whether to attempt to satisfy all consumer types.
Different types of lingerie retailer
Across the whole apparel industry, the retail distribution of clothing is composed of two basic approaches,
namely retailers who sell manufacturer brands or retailers who sell their own label merchandise. The
fundamental differences between the two approaches are that, for own label, the retailer has to design the
garment, choose the fabric and source it, produce illustrations, specifications, and measurement charts against
which the garment will be manufactured, select a manufacturer and negotiate the price at which the garment
is bought, and manage the supply chain and ensure that the manufacturer produces and ships on time and to
the required quality.
For retailers selling manufacturer brands the tasks are simpler. They merely have to choose the brand, buy
what they want from the brand collection at the brand’s wholesale price and wait for delivery.
1
Chapter 2 Lingerie explained
Product definitions and lingerie product categories
This is the fifth edition of just-style’s report on the lingerie market. Most readers will already be familiar with
the category and its subsets. In the previous reports on lingerie, the product offer was explained as being
composed of three major groups:
•
Bras
•
Briefs
•
Daywear and shapewear
These segment definitions were taken from a Textile Outlook International report which further explained
them as:
•
Bras are garments to support and shape the breasts, in a wide variety of styles
•
Briefs (in the US, panties) are garments worn from waist to thighs in a wide variety of styles
•
Daywear includes camisole tops and skirt slips
•
Shapewear is intended to firm and shape the body, and includes bodies, teddies, corsetry, and girdles
It is important to note here that some market researchers include sleepwear in the lingerie category. Although
most lingerie brands have some sleepwear in their ranges, much of what is worn today as sleepwear is daywear
such as T-shirts and underwear.
The quantitative figures in this report include maternity and mastectomy bras, which although specialist
garments are today also designed with the objective of being fashionable. It excludes totally specialist
garments such as:
•
Body armour bra products for the military or the police
•
Incontinence pants for medical patients
When it comes to the marketing of bra styling, most of the larger branded catalogues put their bra offerings
into four generic categories. They are:
2
•
Underwired
•
Padded
Chapter 3 Brands and own label
Different types of lingerie retailer
Across the apparel industry, the retail distribution of clothing is composed of two basic approaches:
1.
Retailers who sell manufacturer brands.
2.
Retailers who sell their own label merchandise.
The fundamental differences between the two approaches are that for own label the retailer has to:
•
Design the garment
•
Choose the fabric and source it
•
Produce illustrations, specifications, and measurement charts against which the garment will be
manufactured
•
Select a manufacturer and negotiate the price at which the garment is bought
•
Manage the supply chain and ensure that the manufacturer produces and ships on time and to the
required quality
For retailers selling manufacturer brands the tasks are simpler. They merely have to choose the brand, buy
what they want from the brand collection at the brand’s wholesale price and wait for delivery. This distinction
is just as true in the lingerie retail market as in any other product category.
In lingerie as elsewhere in fashion retail, the distinction is additionally about scale. A single boutique can buy a
very small quantity from a manufacturer brand. A single boutique cannot contemplate selling own label. No
supplier would be prepared to make the garments for the boutique in such small quantities. To be in the own
label business, the retailer requires a critical mass, which is most easily expressed as a minimum number of
branches of the own label chain. It is for this reason that new own label retailers are rare. In the UK Theo
Paphitis, the owner of the Ryman stationery chain and one of the dragons of the entrepreneurial TV show
Dragon’s Den has started an own label lingerie chain, Boux Avenue. In September 2011, it opened its seventh
branch, and its first in the UK’s North East region at the Metrocentre shopping mall in Gateshead.
However, most own label lingerie chains are much bigger than Boux Avenue. The world’s largest is Victoria’s
Secret with sales of US$xxxbn and xxxxx US branches as at 9th November 2011.
3
Chapter 4 The importance of brands
and own labels in major developed
markets
Branded and own label lingerie, market share
comparisons
It is an undisputed fact, that in the lingerie product category, brands compete better with retailer own labels
than they do in many other categories. In a previous edition of this report, Pamela Scott, the managing Editor
of Underlines, a founding member magazine of the European Network Dessous media grouping, commented
that brands survive well in lingerie because of two factors that are in their favour; fit and exclusivity. Her stance
was that women, once convinced that a particular brand was “right” for them, would remain loyal to it.
Nevertheless, this is an attitude that has to be tempered by the realities of different degrees of brand and own
label power in different parts of the world. Other accepted facts are that:
•
The United Kingdom and the Republic of South Africa have the most concentration of buying power in
the hands of relatively the fewest private label retailers in the world
•
The US has a high concentration of retail buying power, but within retailers that are more inclined to
buy brands than to follow a private label model (although in lingerie, Victoria’s Secret is a dramatic
example of the opposite approach)
•
Northern Europe (Germany, France, Benelux and Scandinavia) are more inclined to private label,
whilst the Mediterranean Latin countries favour a branded approach
•
Japan has a few huge brands (such as Wacoal) but then a rather fragmented market in both brands
and private label
•
In the developing countries of India and China, brands are only slowly finding a niche position in what
until recently has been a market/bazaar driven retail sector
•
Brazil, another of the BRIC economies, has its own tradition of South American brands, many of which
sell well in the Brazilian chains of prominent European own label retailers such as Zara and C&A
4
Chapter 5 The importance of brands
and own labels
labels in emerging markets
BRICs
Much has been written recently about the importance of the emerging markets, and particularly the BRIC
nations (Brazil, Russia, India, China).
Together they account for xx% of the population of the world. Their influence on the lingerie market is far less
than that percentage, but it is growing at a time when the lingerie sectors of North America and Western
Europe are, at best, flat.
It is not possible to isolate key players using the Boston Consulting Group approach because the players are
operating in a fragmented and market bazaar way, in markets that have yet to become fully managed by
“organised distribution”. Organized distribution implies a clearly defined market with easily visible routes to
reach the consumer such as boutiques, department stores, own label retailers and the internet. The BRICs have
all the routes to reach the consumer but in a muddled and incoherent manner, when compared with the
developed world.
BRICs ratings as fashion retail markets
Brazil's high spending on apparel items and strong clothing imports, make the country the most attractive
emerging market destination for apparel retailers, according to a study from global management consulting
firm A.T. Kearney.
The A.T. Kearney retail apparel study looked at ten influences including apparel consumption and clothing
imports/exports."There is great potential for global apparel retailers to succeed in Brazil," said Hana BenShabat, a partner with A.T. Kearney. "Brazil is the most attractive apparel market for reasons of demographics
and demand."
Brazil's clothing market is estimated to be growing at more than x% annually and is valued at US$xxxxbn. The
country is young, with more than xx% of population below the age of xx. Small retailers make up more than
xx% of a highly fragmented domestic retail apparel market.
5
Chapter 6 The UK lingerie market, a
fieldwork analysis
Product types
Within the lingerie market the fieldwork established five main types of lingerie that consumers buy. The
different categories for bras were:
•
Functional/Sports
•
Practical/Traditional
•
Fashionable/Contemporary
•
High fashion/Glamour
•
Extreme Fashion/Sex
In order understand the current market positioning of branded and own label lingerie, a comparative shop was
undertaken. In September 2011, department stores such as Selfridges, House of Fraser and Debenhams,
together with own label lingerie retailers such as Marks and Spencer, Topshop, and Tenzenis were visited.
The physical comp-shop delivered further understanding of the prices and styles of lingerie that are sold on the
High Street. It is however also very important for the price-fashion matrix to include e-tailers such as Figleaves.
The physical and online comp-shop, generated price-fashion information based on the prices of non wired full
cup bras, for both branded and own label lingerie.
The PricePrice-fashion matrix
The price fashion matrix was constructed from the information collected from the comp-shop. The prices of
the lingerie were converted to US dollars to keep the prices used consistent with the rest of this report. For
ease of viewing, the comp-shop analysis has been displayed as three figures, Figures 8-10 below.
6
Chapter 7 The lingerie retail market,
history
The lingerie retail market, 2004
The first quantitative review of the lingerie market, made by the author for just-style, was in 2004. At that
time, the lingerie market at retail prices was worth US$xxxxxbn. Within that total, the respective market
values for bras, briefs and other lingerie apparel garments (daywear and shapewear) were as given in Table 3.
Table 1: 2004 market value (US$bn), volume (m units) and unit prices of bras and briefs sold in North
America, Europe & Turkey, Japan & South Korea and world total
US$bn values
World Total
Total
North America
Europe and Turkey
Japan and South
Rest of the World
Korea
Total lingerie
xxxxx
xxxx
xxxxx
xxxx
xxxx
Bras
xxxxx
xxxx
xxxx
xxxx
xxxx
Briefs
xxxx
xxxx
xxxx
xxxx
xxxx
Other garments
xxxx
xxxx
xxxx
xxxx
xxxx
Bras
xxxx
xxx
xxx
xxx
xxx
Briefs
xxxx
xxx
xxxx
xxx
xxxx
xxxxx
xxxxx
xxxxx
xxxxx
xxxx
xxxx
xxxx
xxxx
xxxx
xxxx
Unit million volumes
Unit US$ prices
Bras
Briefs
7
Chapter 8 The lingerie retail market,
current
The lingerie retail market, 2011
At the beginning of 2011 there were signs that the world was coming out of recession. By the end of an
eventful year, that was no longer the case and forecasters everywhere were downgrading their GDP and
market estimates. just-style have done the same. There are two estimates for 2011, the “was” and the “is”.
just-style has to believe the “is”.
Both are shown as Tables 6a and 6b, but only 6b is explained. The US$ market value for bras, briefs and other
lingerie apparel garments (daywear and shapewear) for the year just ended is as follows.
Table 2 a: 2011 market value (US$bn), volume (m units) and unit prices of bras and briefs sold in North
America, Europe & Turkey, Japan & South Korea and world total
US$bn values
World Total
North America
Europe and Turkey
Japan and South
Rest of the World
Korea
Total lingerie
xxxxx
xxxx
xxxxx
xxxx
xxxx
Bras
xxxxx
xxxx
xxxx
xxxx
xxxx
Briefs
xxxx
xxxx
xxxx
xxxx
xxxx
Other garments
xxxx
xxxx
xxxx
xxxx
xxxx
Bras
xxxx
xxx
xxx
xxx
xxx
Briefs
xxxx
xxx
xxxx
xxx
xxxx
xxxxx
xxxxx
xxxxx
xxxxx
xxxx
xxxx
xxxx
xxxx
xxxx
xxxx
Unit million volumes
Unit US$ prices
Bras
Briefs
8
Chapter 9 The lingerie retail market,
future
The lingerie retail market in 2012
In 2010 there were signs that the world was coming out of recession. In 2011 those hopes were dashed and the
market fell back by nearly US$xbn from its previous projection. The recovery, according to most economists
and pundits, will be slow and painful. In this situation what is the prognosis for lingerie?
As has been noted earlier in this report, lingerie, historically, has proved to be a resilient sector, both for the
brands and for retailers. However, at the moment, as will be explored in the interview with the editor of
Lingerie Buyer, that does not seem to be the case. European brands, such as Lejaby, have gone into
administration, and independent lingerie boutiques are shuttering their shops and exiting the sector.
In this scenario, it is predicted that for 2012, the lingerie market at retail prices will be worth US$xxxxxbn. This
is marginally (down by xxx%) less than the 2011 figure. Within that total, the US$ market value for bras, briefs
and other lingerie apparel garments (daywear and shapewear) is given in Table 7.
Table 3 : 2012 market value
valu e (US$bn), volume (m units) and unit prices of bras and briefs sold in North
America, Europe & Turkey, Japan & South Korea and world total
US$bn values
World Total
North America
Europe and Turkey
Japan and South
Rest of the World
Korea
Total lingerie
xxxxx
xxxx
xxxxx
xxxx
xxxx
Bras
xxxxx
xxxx
xxxx
xxxx
xxxx
Briefs
xxxx
xxxx
xxxx
xxxx
xxxx
Other garments
xxxx
xxxx
xxxx
xxxx
xxxx
Bras
xxxx
xxx
xxx
xxx
xxx
Briefs
xxxx
xxx
xxxx
xxx
xxxx
xxxxx
xxxxx
xxxxx
xxxxx
xxxx
xxxx
xxxx
xxxx
xxxx
xxxx
Unit million volumes
Unit US$ prices
Bras
Briefs
9
Chapter 10 Interview with the editor of
Lingerie Buyer on trends and issues
affecting the sector
just-style often includes an interview in its garment category reports, either with a senior executive of a brand
or own label retailer, or with a knowledgeable person in the industry. In the 2009 edition, interviews were
conducted with both a magazine editor, Pamela Scott of Underlines, a UK member of the European group
Network Dessous, and with an owner of an independent lingerie boutique selling brands in London. These
interviews were conducted approximately one year after the October 2008 banking credit crunch crisis, long
enough for the implications to trickle through the fashion supply chain critical path.
Pamela Scott’s reaction to the initial question about recession and its effect on the lingerie sector was “overall,
the word I would use is polarisation. Although even the luxury market is feeling the squeeze, the worst hit are
the middle priced mass market lingerie companies. The top end are suffering but not so badly, and the budget
discount end is benefitting”.
If this report were being written a year ago, at the end of 2010, it would have been likely that it would have
sounded cautiously optimistic about recovery. But, at the end of 2011, with the US unable to agree on an
economic recovery policy, and European nations struggling with their euro-crises, the first question that juststyle asked Lotte Debell, Editor of Lingerie Buyer, a magazine published in the UK by the Hemming Group was:
justjust-style:
There is no doubt that we are in a “double-dip” recession. What is your evidence for this in
terms of examples from brands of reduced branded advertising in the magazine?
Lotte Debell: Branded advertising fell to an all time low in late 2009. Since then it has been rising steadily,
although it is still lower than it was pre 2008. The double-dip has not hit advertising levels
just yet.
j-s:
Is there similar evidence about the depth of the recession in terms of fewer retailer readers
as independent boutiques shutter their shops, never to return?
10
Research enquiries:
Liz Hague, Sales Manager
email: [email protected]
tel: +44 (0)1527 573 604
US toll-free: 1-866-545-5878
fax: +44 (0)1527 577423