25 November 2023, Mumbai
The Men's Underwear Index (MUI), a barometer of the country's economic health, is charting a downward trajectory.
Page Industries, the proprietor of the Jockey and Speedo brands in India, witnessed a revenue and volume decline of 8.4% and 8.8%, respectively, in the September quarter.
Trade dynamics
To manage excess inventory, many brands are resorting to unsustainable business practices.
The market, valued at $6.3 billion and accounting for 9% of India's overall fashion retail segment, remains largely disorganized and fragmented.
The demand slowdown is attributed to a high base, particularly in the athleisure wear segment.
Additional points
Consumers have curtailed spending on non-essential apparel items since Diwali last year, owing to factors such as inflation, rising interest rates, job losses in sectors like startups and IT, and an overall economic deceleration.
Sluggish consumer demand and bloated inventories continue to be a great concern.
The market is also facing stiff competition from digital-first brands like XYXX, Damensch Almo, Bummer, and Freecultr, which entice consumers with attractive pricing.
Five key insights :
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MUI down: The Men's Underwear Index (MUI) is declining, reflecting economic weakness.
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Page Industries' decline: Page Industries, a major underwear brand, saw revenue and volume drop.
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Unsustainable practices: Brands are resorting to unsustainable practices to manage excess inventory.
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Fragmented market: The men's underwear market is largely unorganized and fragmented.
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Demand slowdown: Demand is slowing down, particularly in athleisure wear.
