24 November 2023, Mumbai
Diminished demand and a surplus of inventory have compelled innerwear and athleisure wear brands to extend substantial discounts to customers in recent weeks. The Men's Underwear Index (MUI) reflects a downturn in India's men's underwear market, mirroring broader economic challenges. Page Industries, the proprietor of Jockey and Speedo brands in India, reported an 8.4 per cent revenue decline and an 8.8 per cent volume reduction in the September quarter.
Presently valued at $6.3 billion, the men's underwear market constitutes 9 per cent of the total domestic fashion retail segment. Despite its significant size, the market remains highly fragmented and disorganized. VS Ganes, Managing Director of Page Industries, underscores that many brands are resorting to unsustainable business practices due to the burden of excess inventory.
Brands attribute the deceleration in demand to a high base, particularly in the athleisure wear segment. Additionally, consumers have curtailed non-essential spending on apparel since Diwali last year, influenced by factors such as inflation, escalating interest rates, job losses in sectors like startups and IT, and an economic slowdown. The market has also witnessed disruptions from digital-first brands like XYXX, Damensch Almo, Bummer, and Freecultr, enticing consumers with attractively priced products.
