Reliance Retail’s acquisition of Clovia signals India’s growing innerwear market

25 April 2022, Mumbai:

To capture the huge market opportunity offered by the innerwear segment, Reliance Retail made its third acquisition in the women’s innerwear space in March this year.

The company acquired an 89 percent stake in online lingerie retailer Clovia, almost two years after it acquired stakes in Zivame and Amante.

Through this acquisition Reliance Retail aims to fix the price point discrepancies in the market.

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Women’s innerwear to reach $8.5 billion in FY25

As per a Wazir Advisors’ report, the women’s innerwear segment is estimated to grow from $4.4 billion to $8.5 billion in FY25. It is the fastest-growing segment in the women’s apparel market, and is superseded by only ethnic wear in terms of market size, adds the report.

Reliance Retail sells women’s innerwear products catering to all income groups.

The retailer sells all types of brands starting from the ‘mass-market ones like ‘Hush’ to premium brands like Marks & Spencer.

It’s all three acquisitions viz. Clovia, Zivame and Amante, cater to different income groups. Amante sells more premium products while Clovia offers one of the most affordable ranges of lingerie.

RELEVANT NEWS Reliance Retail Ventures acquires equity stake in Clovia

Reliance Retail has been selling innerwear mainly through fashion e-commerce portals in India. The company organizes sale events like the ‘Grand Lingerie Festival’ to boost sales.

This quarter, Reliance Retail’s sales of Zivame lingerie reached such great heights it had to extend its products to mini Reliance Retail outlets -- Ajio, Avantra by Trends and Smart stores.

Lingerie companies focus on online portals Clovia forays into new Tier II and III markets

More than just brands, lingerie companies are focusing on acquiring online portals as offline brands are unable to increase revenues after a certain point, says Ramesh Agarwala, Chief Financial Officer, and Executive Director, Rupa & Co.

RELEVANT NEWS RRVL acquires majority stake in lingerie brand Clovia

Offline brands mainly lack proper distribution facilities, adds Agarwala. They are also unable to display their entire product range in the limited space offered by offline stores. Hence, online is the best way to sell women’s innerwear, he adds.

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