The Men's Innerwear Story!

The domestic men's innerwear market in India is going through an exciting phase. While leading domestic innerwear players are trying to eat into the large unorganised sector, major foreign brands are gearing up to eat a larger slice of the premium and ultra premium pie. Read On ..

And amidst all these, Artimas Fashions Private Limited, an arm of Lux Industries, has acquired manufacturing and marketing rights for the premium innerwear category for One8, Indian skipper Virat Kohli’s brand. Lux will now manufacture and market a unique collection of One8 branded socks, innerwear and sleepwear. It assumes significance in the wake of the fact that the overall size of the innerwear market in India can be anywhere between Rs 16000 crore and Rs 30000 crore. There is a large unorganised sector, which is equally large, if not larger than the organised sector, according to industry estimates. Interestingly, the premium and ultra-premium innerwear market in India has been witnessing increasing influx of foreign brands. In some estimates, out of nearly Rs 30,000 crore of overall hosiery industry, premium segment is valued at about Rs 6,000 crore-7,000 crore.

The domestic innerwear market, currently dominated by players like Jockey, Lux, Rupa, Dollar, Anmol, J G Hosiery, has an estimated contribution of 70 per cent by unorganised sector (local players). Significantly, most of the leading Indian brands subscribe to the view that consumers today are increasingly becoming brand conscious. And as a result, these local brands are losing market-share day by day.

While Vinod Kumar Gupta, managing director, Dollar Industries Limited, says that the Indian innerwear market is booming and its market size is nearly Rs 15870 crore, Saket Todi, senior vice president, Lux Industries, says that the organised sector is close to Rs 23000 crore. The unorganised sector is even larger. Both of them however agreed that the innerwear market is growing at an impressive CAGR of 10 per cent-12 per cent.

Therefore, Kolkata-based Lux Industries’ interest in acquiring Virat Kohli’s brand-One8 is understandable. Artimas fashion, a wholly owned subsidiary of Lux Industries, will now collaborate with Cornerstone Sport, the license owner of One8, to establish the brand as the most successful trendy innerwear brand for youth in the premium category. These products under the One8 brand name will be created in collaboration with Lux Industries, who will provide their knowledge and expertise in manufacturing, designing, marketing and retail for the brand.

The premium innerwear, socks and sleepwear range to be manufactured by Lux Industries will now incorporate One8’s subtle branding, look and feel emphasizing the simplicity of Virat’s personal style, while the dynamic colours of the products will be a reflection of Virat’s on-field persona. Brand One8 will aim at providing superior product quality coupled with a comfortable feel, intended to grab instant attention of the youth.

"Lux Industries' plan to associate with Virat Kohli is to fill the need-based vacuum that is created in the premium innerwear category and with One8 we would be able to provide a perfect synergy to that requirement. Through this partnership we wish to explore the territories unexplored and needs unmet," explains Udit Todi, senior vice president, Lux Industries Ltd.

Lux is not the only one trying to tap the premium or high-end innerwear segment. Others are trying the same tricks as well. Rupa & Co has attempted the same, bringing in FCUK from French Connection last April followed by Fruit of the Loom more recently. Siddhant Agarwal, vice-president, project and acquisition at Rupa & Co, says, “This vision of getting foreign brands to India or teaming up with premium brands started after a market survey from which we realised that once you enter the premium and super-premium categories, consumers, having high awareness, mostly go for foreign brands. That is why we thought of getting foreign brands to India, beginning with FCUK from French Connection last April followed by Fruit of the Loom now.” Oban Fashions Pvt Ltd, the newly formed subsidiary of Kolkata-headquartered hosiery major Rupa & Co, is now managing these two foreign brands having separate sourcing bases and marketing network.

Page Industries, on its parts, has exclusive licence to manufacture and distribute American brand, Jockey in India. Page Industries has been enjoying high margins with a market share in men's segment at 21 per cent. Page's Jockey actually rules the premium end of the market although Rupa & Co has been trying to take on Jockey with its own premium offerings Macroman; the other offerings from Rupa stable include Frontline, Euro and Bumchums.

Vinod Kumar Gupta, managing director, Dollar Industries also feels, “The hosiery market deals with the basic necessity of a human being. Therefore it is important to delight the customers through a range of products that not only deliver comfort but are constantly upgraded to keep the styling in line with the latest trends. That’s exactly what Dollar has been doing. All recent moves are aimed at that.”

Significantly, the most fascinating part of this India’s innerwear story is that quite like Lux, which had its origin in Biswanath Hosiery Mills, most of the leading branded players of today have had modest beginnings as unbranded local hosiery players.

- Debhota Mukherjee (TradeBriefs Bureau) - 

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