Mr. Nischal Puri, CEO, Brandis India, is seasoned brand strategist with over 15 years of experience across industries like retail, luxury brands and apparel brands. An avid reader, Nischal strongly endorses the view that the brands that will dominate the tomorrow's market place in India are yet to emerge. He is dedicated to contribute in shaping the innerwear industry in India. With excellent insight into consumer behavior, his efforts are presently dedicated in launching women’s innerwear “Beyouty” and men’s sportswear “2GO” brand under the brand name of BRANDIS INDIA. The company was incorporated in 2010 with the aim of launching global capable brands in the apparel and accessories space. Some of the brands he was associated with are Swarovski, Jockey.
Brandis India, was incorporated in 2010 with the aim of launching global capable brands in the apparel and accessories space. Brandis is promoted by Nischal Puri veteran in the Indian apparel industry. He has been instrumental in establishing and growing Jockey brand in India. During his tenure in Jockey he changed the direction of the brand from being an men innerwear brand to a lifestyle brand. He was instrumental in launching the exclusive stores for the brand besides changing the consumer perception of the brand from innerwear to an category inclusive brand. With proven track record of building brands Brandis India has successfully established Beyouty in India.
Replying to Anil Mascarenhas of IIFL, Nischal Puri says, “The Indian lingerie market has undergone a transformational phase and is growing at 24% and the unorganized is Rs20bn.”
Would you agree that the lingerie market has undergone a transformational change? What growth are you seeing? Share with us your insights.
The Indian lingerie market has been unleashed like never before, it has undergone a transformational phase over the past few years, there has been much innovation in the making of lingerie and technology has also influenced this. The market is growing at 24% and the unorganized is Rs20bn.
The size of the Indian lingerie market is Rs56.28bn and can be segmented as follows:
a) ECONOMY (Rs35.06bn growing at 17%)
b) MIDDLE (Rs12bn growing at 22%)
c) PREMIUM (Rs8.32bn growing at 32%)
d) SUPER PREMIUM (Rs900mn growing at 56%)
Growing number of working women, changing fashion trends, the increased awareness about better fits, quality, brands, colours, styling, increasing per capita disposable income, rising level of information and media exposure, and entry of large number of foreign brands have given the industry a new dimension. Indian women have become choosy and give importance to lingerie, as discernable from the increased spend on it. This changed attitude is also because of changing dress codes and the transformations in social mores. Indeed, the modern woman is boldly going where no woman has gone before, and her lingerie naturally follows.
Lingerie is an essential part of a woman's attire. If worn appropriately, it makes her look good and feel good. It is perhaps one of the most understated objects of fashion which can completely change the appearance of a woman and bring out her true sensuousness. The lingerie of yore was home or tailor made. It was uncomfortable and sometimes painful to wear. But today things have changed and lingerie has become brand. Apart from being a bare necessity, lingerie has quietly slipped into the luxury bracket.
How would you classify the lingerie market?
The lingerie market in India can be classified in super-premium, premium, mid-market and economy & mass market segment. The major share of lingerie market is held by the mid-market and economy segment, in both, value and volume terms. The super-premium and premium segments are relatively smaller but fast-growing segments. In present situation, the premium and super premium segments of the lingerie industry are advancing following a consumer shift from economy and mid-market segment to the premium segment.
Sales channels that are capitalizing on the growing Indian lingerie are the Multi Brand Outlets (MBOs), hosiery products outlets and large format stores (LFS). Top lingerie manufacturers in India have an entrenched and a strong presence in MBOs and LFS serviced through network of distributors or directly from warehouses.
The influx of large international brands in the Indian market, the growth of organized retail and choices for the Indian women has helped Indian economy in witnessing a phenomenal growth. The advent of international brands in the Indian market place has brought about some realignment in the fragmented lingerie market. The companies have started advertising boldly through advertisements, fashion shows etc., to catch up with the consumers to understand their preference. This, perhaps, is the reason why the premium and super-premium segment of the lingerie industry, with brassieres priced above Rs. 200 and mostly characterized by the presence of international brands, are witnessing higher growth compared to mid-market and low/economy segments.
Give us an idea of the share of women lingerie.
According to a research report by CARE, in volume terms; the women lingerie segment holds a 52% share of the total innerwear market in India. In value terms, women lingerie segment enjoys 66% share of the total lingerie market, thereby enjoying a higher Average Selling Price (ASP) compared to the men’s innerwear market. Overall the lingerie industry in India is expected to grow at a CAGR of 18.3% over the period 2009-2014. It is currently estimated at INR79bn and is expected to be worth INR183bn in 2014. It may not be an exaggeration to say that Indian lingerie might become the next fashion fad in India.
One of the most visible trends that have been observed in the last few years is consumer neutrality and consumer apathy towards pricing of innerwear. The aggressive growth observed in the premium and super premium segment is the testimony of the fact that consumers have moved beyond the over sensitivity to pricing.
With the rapidly spreading mall culture, the Indian lingerie market is all set to grow further in future. With the popularity of Lingerie boutiques in shopping malls the stigma of buying and wearing lingerie is now a thing of the past. The times are changing and young women are looking for to spice up their trousseaux. For one, with lots of colour. The days of strictly blacks and whites are left far behind. A lot of overtly feminine tones have taken over the market these days. Companies are constantly bringing out new lingerie collections that give woman a chance to look stylish, exclusive and glamorous. Intricate detailing can be seen and decorative seams to accentuate her sensuality. Fabrics like Italian silks, satins, chiffons, French and Italian laces are extremely popular.
With the entry of large international brands in India and available choices for the Indian women increasing, how do you view competition?
The economy segment is dominated by the unorganized and local players while the middle, premium and super premium segments are dominated by national and organized players
The international brands have focused on the super-premium segment. This segment is small and has limited markets available to them. BEYOUTY brand is an active player in the middle and premium segment. Hence the international brands are not a direct competition. BEYOUTY competes primarily with brands in the middle and premium segment. These 2 categories are witnessing aggressive growth owing to following factors:
- Consumer over the last 5 – 6 years have become more brand conscious and are reacting positively to brand building initiatives of the brands.
- Price sensitivity of the consumer is getting replaced with quality and brand consciousness.
- Organized retail: with retail becoming more sophisticated consumer has better retail ambience available to shop in. The betterment of the retail space has made brands to display their offerings in better and more appealing environment
- Beyouty with its premium imagery is perfectly poised to become a dominant player in the chosen segment
What would be the marketshare of the top 3-4 brands? Which are they? What is your marketshare?
No single brand is more than Rs1.10bn in the lingerie market. The market share of most brands is 1-2% of the total market. However, in the middle segment brands with market share of 9-10%. BEYOUTY will acquire 10% market share in 3 years time.
What are the key factors driving Indian lingerie market?
Key factors driving the Indian lingerie market:
a. Consumer shift in 3 predominant aspects:
- Reduced price sensitivity
- Greater appreciation and response towards branding
- Readiness to experiment with new innovative styles and designs
b. Organized retail:
- With retail becoming more organized the consumer has far better retail environment and brands also get to showcase their products un more consumer conducive ambience
c. Disposable income and consumer demographic change
- Consumer segment has become younger. With disposable income rising and more youngsters joining the working class the consumer of today has more resource to indulge
What is your view on FDI in retail? How does it affect your business?
FDI in retail is in fact the necessity of the industry. With banks tightening the strings of the loan purse the industry does not have access to funding. Lack of funding has adversely impacted the penetration of organized retail in the country. With retail becoming one of the largest employers FDI in retail will give aggressive growth to the retail segment which in turn will lead to creation of more and more jobs.
Tell us about your manufacturing units. What it he capacity and utilization? How much is outsourced?
We have semi-owned manufacturing units. And we are geared up to 75,000 pieces of bra and 125,000 pieces of panties per month.
Comment on your BEYOUTY brand in the women lingerie space. What is the size of this market?
Beyouty Brand is a mid segment player which has a market of Rs8.50bn and the total lingerie market size is Rs55bn.
In how many stores are your brands retailed? What is your distribution and marketing strategy?
The brand is retailed in 200 stores across 40 cities and towns in India.
Brief us on your financials. What is your outlook?
We will be crossing Rs500mn in the 2012-2013 financial year.
You have been involved with the Jockey brand in India, which is quite popular. How do you see Brandis changing the game?
Brandis with its modern outlook and contemporary marketing and distribution thought process will bring in to the market innovations and newer strategies.
You are looking at launching another men sports apparel brand. Tell us more about it. What is the size of this market? Would you be looking at women’s sport apparel too?
Sports apparel market is Rs35bn. The existing players are predominantly global brands in the performance sports space. The brand 2 Go has distinctive proposition that shall strike chord with the youth population. Our plan for brand extensions is open and we shall look at other categories too.
What are some of the international trends you noticed in lingerie?
Globally, the lingerie segment has seen much higher level of innovation be it in fabrics or styling. India in comparison to that has remained more conservative in these two aspects. Further to that lingerie in developed markets is almost a fashion accessory and a garment for self expression.
Tell us what got you interested in this business. Do you have plans to sell online too?
The sweet spots in the market were the key reason that got me interested in these categories. I feel the market is so big that at least 2-3 more brands can be easily accommodated in the space. We are already on e-commerce portals.
What are some of the unique characteristics of your products?
a) Innovative designs
b) Modern fabric
c) Premium imagery
Who is your target audience?
Our target audience is: 20- 27 years, urban self aware and value conscious female.
Your message to anyone who wishes to join your company?
Brandis India has emerged as one of the fastest growing clothing company in India. Those who want to put their careers on a fast track are welcome to join the winning team of Brandis.