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Ahead of Mothercare’s demise at the end of 2019, the baby retailer was losing customers to competitors that offered greater choice and affordability, according to a survey by GlobalData, a leading data and analytics company.

Amy Higginbotham, Analyst at GlobalData, comments: “Mothercare made two fatal errors: it did not successfully promote its specialist credentials, which would have justified its higher price points, and the retailer struggled to transition customers online as it slimmed down its store estate.”

Some 58.2 percent of Mothercare shoppers switched from the retailer that they regularly purchase baby and children’s clothing, equipment and toys from in the past two years (though they may not have stopped shopping at Mothercare altogether). The most popular reason for switching was to access a greater range of brands (47.3 percent), followed by lower prices (42.3 percent) and greater product choice (36.2 percent). Less than one-fifth of those that switched cited the closure of their local Mothercare store as a motivation, indicating that the vast majority of shoppers could find what they were looking for elsewhere.

Higginbotham concludes: “Non-specialists offering low prices have benefitted the most from Mothercare’s demise – 30.4 percent of Mothercare shoppers stated that they frequently purchase baby and children’s items from supermarkets, while 23.8 percent regularly opt for online general merchandisers such as Amazon. Department stores such as John Lewis and Next, which offer a wide range of both branded and own-brand products, will also have stolen shoppers looking for greater choice.”

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The exposure to various international brands and organised players has kind of contributed in the Indian innerwear market growth as it made customers familiar with the concept of luxury innerwear. Customers are well informed about the quality standards and consequently more inclined towards buying more products. With increasing number of working women keen on spending on luxury items, the market is boosted too. Adding various layers to products with more innovative colour palettes and design patterns has refined the innerwear industry to a more advanced and innovative community.

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Brands are introducing various types of innerwear. For instance, briefs come in low-ascent, medium ascent, skyscraper and numerous cuts. Innerwear apparel players are extending their product portfolios by venturing into activewear, casual wear, formal wear, etc. Brands have created sub categories of men’s innerwear like vests, briefs, boxers, shorts, pajamas, etc. Just like the women’s innerwear segment, the men’s segment also divides the product range into classes such as super-premium, premium, medium and economy segments. Unlike the women’s segment however, the economy segment in men’s innerwear is the highest contributor to total men’s innerwear segment. It is expected that in the next five years, the premium and super premium categories are going to witness a phenomenal growth due to growing brand awareness and fashion consciousness.

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“India is a price sensitive country and that will always be a major driver for brands. Alongside price as a factor, we human beings love options for everything; hence the one that gives the most choices wins,” adds Grishma Patil, Founder, Candour London.

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This innovativeness and ideation not only caters to every kind of audience but has worked well for the brands as well, as it brings customer retention.

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GROWTH DRIVERS OF INDIAN INNERWEAR MARKET

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