Underwear growth is sluggish derivative becomes main force

- May 10, 2019-

    According to world dress shoe hat net understands, underwear just needs a product as the woman, consumer began to pay attention to product quality and detail gradually.In the underwear industry there are a variety of brands, but also led to a decline in the performance of underwear shops.In order to break the unity of traditional underwear brand, most brands now develop towards horizontal and vertical business, not only have a lot of home wear, leggings and swimsuit, but also launched plastic clothes, plastic pants, non-underwear sales accounted for even more than half.Industry insiders pointed out that, with more and more participants in the underwear industry, the market share is divided. In order to highlight the influence of the brand, underwear brands need to constantly innovate and develop derivatives to attract consumers.

underwearLack of growth in underwear

    With the strong competition of domestic underwear brands, the homogenization of products has been gradually saturated in the market.The reporter visits many underwear brand store discovery, in Victoria's secret store, sweet atmosphere product and body breast are welcomed by consumer.In the first quarter, L Brands group Victoria's secret saw same-store sales fall 1% from a year earlier, while its Bath & Body Works unit saw sales rise 5%.Therefore, L Brands has announced its plan to restructure its beauty business, and will increase the publicity of its beauty business in the future to make its cosmetics business more prominent.

    The future of the lingerie industry is also uncertain.As more and more characteristic underwear brand joins the contention between each big underwear brand, underwear market may face reshuffle at any time.According to the data of the first three quarters of the 2017/2018 fiscal year recently released by Wolford, the luxury underwear company in Austria, although it has narrowed by half compared with the 5.08 million euros in the same period last year, the after-tax loss of the company is still as high as 2.57 million euros, and the wholesale channel sales are down 4.4% compared with the same period last year.

    As the consumptive idea of domestic consumer matures gradually, the function of underwear already was not onefold.Underwear will be based on the user's different scenes, age, function, preferences will be more in-depth market segmentation.Women's bras, for example, are diverse in color and style. The hoop-shaped bras that have been popular for many years have also shrunk sharply in the last two years under the leading trend of "health", and have been quickly taken over by the bra without hoop-shaped.

Derivatives dominate

    The young line of lingerie brand 6ixty8ight derivatives is almost the same as the main product category.The brand market related personnel of Beijing branch, 6 ixty8ight products mainly include two types: underwear and casual wear, casual wear of sales accounted for about 43% of total sales, at the same time, underwear and sportswear sales than to 5:1, and entity shop and online shop often have 115 yuan 5 panties and other preferential activities, under such efforts under way of selling, most consumers will buy for the unit with the 5 panties every time.

    For example, Wolford, the Austrian luxury underwear company, said that the decline in wholesale business was mainly due to the relocation of sock brands from their original main positions to higher floors of department stores, and at the same time, the decrease in department store traffic is a commercial phenomenon in recent years.While it should be more focused on its own stores in this case, the nature of Wolford's business means it can't completely separate itself from department stores.On the contrary, that socks products directly affect the sales of the company's performance.

Victoria's secret has seen its performance slip since it scrapped its derivative swimwear business.The December 2017 sales report released by Victoria's secret parent L Brands showed that the withdrawal of the swimming and clothing categories led to a 3% and 5% drop in sales of the company and Victoria's secret respectively.In December 2017, net sales were $2.516 billion, up 3% from a year earlier.Meanwhile, in the third quarter of 2017, the company's sales were $3.84 billion, down 11 percent year-on-year.Among them, the main brand Victoria's secret same-store sales fell by 13% in the month.In response, Jan Singer, CEO of Victoria's secret, said that the company is currently readjusting the core products of the brand and accelerating the improvement and improvement of in-store services.Indeed, Victoria's secret has been in a slump for a long time, with same-store sales falling for 12 months in a row since the end of 2016, when the swimsuit and ready-to-wear business was scrapped.

Share reduction seeks differentiation

    "2018-2023 China women's underwear industry market foresight and investment planning analysis report" pointed out that the trend of women's underwear more obvious differentiation, underwear market for different consumer groups for market segmentation will be the future development trend.The report also shows that as consumer demand has become more diversified and personalized, the share of popular brands in consumer choice has declined, while niche waist brands have gained a larger market share.The whole market meets the diversified and personalized needs of consumers through differentiated brand strategy.

    The popularity of lingerie derivatives is also due to the growing number of competitors in the industry, which has divided the market to some extent, according to chaili, a senior fashion designer and brand consultant to the expert judges of the Italian international fashion week.In order to highlight the brand benefits, the development of derivatives is also one of the measures of brand innovation.However, the current underwear is no longer one of the accessories of clothing, but as a trend, fashion, a mainstream, and even can be worn outside.Underwear will be healthy, fashionable, personalized and differentiated in the future, but brands need to conduct deeper precipitation and further crowd segmentation according to customer preferences.As a result, many big brands are at risk of losing customers to niche markets.

    Shen yuan, research director of hualizhi, said the emergence of derivatives is a natural extension of products for companies with a certain brand power to seek new growth points.Overall, the recent round of traditional brand performance decline mainly derived from the past is extensive channels to drive business model, for branding and user management is relatively weak, and a new generation of consumers through more channels of information and actively look for more suitable for their own product brands, so it is also one of the reasons of consumption were scattered.Instead, it creates more opportunities for the new brands of many new entrepreneurs.