Exponential growth in Indian lingerie market

Lovable increasing capacity & marketshare

 The Indian lingerie market is registering remarkable growth and the retailers are realizing that lingerie products have a higher profit margin as compared with other regular apparels. The Indian lingerie industry was worth Rs. 79 billion in 2009 and is expected to be worth Rs. 183 billion in 2014.

The Indian lingerie market has undergone a transformational change over the past few years. There has been much innovation in the making of lingerie, and the technology has also influenced this. The growing number of working women, changing fashion trends, the greater awareness about better fits, brands, colours, quality, styling, increasing per capita disposable income, rising level of media exposure and the entry of a large number of international brands have given the industry a new facet. Indian women have become choosy with lingerie and have moved beyond the over sensitivity to pricing.

Lovable, incorporated in 1987, is one of India’s leading women’s innerwear manufacturers. Its products include brassieres, panties, slips / camisoles, homewear, shapewear, foundation garments and sleepwear products. On December 26, 1995, Lovable was licensed the brand “Lovable” from Lovable World Trading Company, USA. Subsequently, under an agreement dated December 23, 2000, it acquired the brand “Lovable” from Lovable World Trading Company, USA, on an exclusive basis for India, Nepal, Sikkim and Bhutan. The innerwear products manufactured under the brand cater to the premium segment market in India.

Mr. L. Vinay Reddy, Chairman, Lovable Lingerie Ltd., says: “Building strong capabilities in the lingerie industry is the important agenda for Lovable. Towards this end we have invested in building world class manufacturing units. In 2011-12 we commissioned two manufacturing units, and the workforce, production and Q.A. Systems were brought upto Lovable’s internationally-benchmarked standards to produce world class quality and to produce new generation bras”.

Organized retail has also provided a pleasing façade to modern lingerie. Overall the lingerie industry in India is expected to grow at a CAGR of 18.3 per cent over the period 2009-2014. The super-premium and premium segment contributed 15.8 per cent to the total lingerie market in 2009 and is expected to grow to 28 per cent by 2014. Lovable commands 20 per cent market share in the premium category.

The key factors influencing the choice of consumers are comfort, price, brand and durability. Comfort plays a key role in their choice, followed by price and brand name. The lingerie industry in India is currently estimated at Rs. 7,89,800 lakhs and is expected to be worth Rs. 18,32,460 lakhs in 2014. This growth would be led by the super-premium, premium and mid-market segment.

Taking into account the evolving lifestyle and appreciation of quality lingerie from middle India, Lovable has registered rapid growth in retail network with the help of a new set of distributors for the “Lovable” brand numbering 51 at present which is expected to touch 75 by the end of the year. Lovable brand’s retail network will expand from 1,400 last year to 5,000 after expansion.

Lovable is headquartered in Mumbai, with its three manufacturing facilities, of which two are located at Bengaluru and one is at Roorkee in Uttarakhand. The two Bengaluru units which commenced operation in 1995 and 2005 respectively have a total installed capacity of 30 lakh pieces each per annum to manufacture brassiere and panties. Going forward, the company plans to implement a project for modernization and integration at a new location in Bengaluru which will result in an increase in overall capacity and value addition by 25 lakh pieces per annum.

The Roorkee plant commenced operation in February 2010. With an installed capacity of 7.5 lakh pieces per annum to manufacture brassiere and panties, it is in the process of expanding its manufacturing capacities with most modern manufacturing equipment and world class designing capabilities as well as a modern design studio.

For the year ended March 31, 2012, Lovable achieved net sales of Rs. 13,299.39 lakhs and net profit after tax of Rs. 2,165.20 lakhs, as compared to net sales of Rs. 10,148.50 lakhs and net profit after tax of Rs. 1,409.05 lakhs for the year ended March 31, 2011.

“We believe that our ability to strategically position our sub-brands will help us in increasing our customer base and our market share in the women’s innerwear industry. We are implementing some backward integration in critical components which are very essential to produce world class products and cut down import of components”, Mr. Reddy says.

With its strong brand image, presence in retail infrastructure and diversification into new retail formats positions, the company is an integrated player in the growing domestic market story. With robust economic growth, high disposable income with the end-consumer and the rapid construction of organized retail infrastructure, the company is confident that it is well placed to take advantage of the growth opportunities in the coming years.