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Underwear Retailing in the UK | Verdict Sector Report

Summary

Growth in the UK underwear market is forecast to pick up in 2015, up 2.8%. This will be driven by an improvement in the UK economy as unemployment falls and earnings growth exceeds inflation, easing pressure on disposable incomes. While a general upswing in consumer confidence will boost consumers’ willingness to spend on underwear on a more regular basis rather than on a needs-only basis.

Key Findings

  • Identify which underwear sub-sectors to invest in by using the five year forecasts for lingerie, nightwear, hosiery and men's daywear and nightwear.
  • Maximise sales potential by investing in the most important drivers of spend and satisfying consumer shopping habits and shopper journey.
  • Glean which retailers are gaining market share and why, and use these success factors to inform your business growth strategy.
  • Drive higher levels of impulse driven purchases rather than replacement driven by targeting the right shoppers and growing ranges of the right product
Synopsis

Value retailers have been the real winners, growing their share of the UK underwear market to 28.1% in 2015 up from 25.4% in 2010. With the economic downturn putting pressure on disposable incomes, consumers shifted their spend to value clothing players lured by their much improved underwear offer and keen price points.

65+ year olds hold the largest share of the UK underwear market. However, expenditure is driven by an ageing population with spend per head being the lowest of all age groups. Retailers can target this consumer group more effectively by expanding their ranges to better support their needs, including plus size lingerie and support underwear.

55.7% of underwear shoppers say price is their biggest driver of spend in underwear. However, fit and quality also rank highly with shoppers looking for value for money, therefore retailers cannot simply rely on low prices to drive spend. Fit is particularly important for 16–24s, so young value retailers must consider introducing fitting services.

Reasons To Buy
  • What share does online have of the total UK underwear market and how will this change by 2020? What can retailers do to increase online penetration?
  • How has nightwear preformed over the last five years and which retailers have invested in the sector? How can retailers drive men's nightwear sales?
  • Which retailers will gain and lose market share in 2015 and will M&S maintain its market leading position? How are underwear specialists performing?
  • What share of underwear spend is on gifting? What make the most popular underwear gifts and which consumers should retailers target gifting ranges to?
  • Which age groups across men's and women's spend the most on underwear and where do they shop? How can retailers get the 55+s spending more?


  • Outlook
    • Overview
    • Main Conclusions
      • Spend on underwear rises £655.0m in five years to 2015
      • Value retailers support market growth and steal sales from M&S
      • Innovation in textiles, shapewear and better private label availability boost lingerie spend by 14.6%
      • Investment in fashion will contribute to 19.2% growth in five years to 2020
      • Retailers' improved offers will encourage more men's nightwear gifting purchases
      • 65+s hold 19.9% of the UK underwear market, but spend per head is lowest
      • 25-34 men and women spend the highest of all age groups
      • Clothing specialists will make the most share gains in the next five years
      • Online share of spend to rise to 25.4% in 2020, equivalent of £930.2m
      • Online channel can boost the gifting market
  • Recommendations
    • Overview
    • Main Conclusions
      • Target missed opportunities in underwear propositions
      • Satisfy the needs of underserved age groups
      • Understand consumers' underwear shopping habits and decision journey
      • Retailer recommendations
      • Seize gifting spend
      • Utilise online benefits
  • Market Size
    • Overview
    • Market Definition
      • Women's underwear
      • Men's underwear
    • Underwear Expenditure
      • Table Underwear sales (£m) and year-on-year change (%), 2005-15e
    • Underwear Growth Versus Clothing
    • Product Category Segmentation
    • Sub-sector Segmentation
      • Table Underwear sub-sector performance (£m), 2005-15e
      • Women's underwear
      • Men's underwear
    • Age Segmentation
      • Total underwear
      • Women's underwear
      • Men's underwear
    • Spend per Head
      • Women's spend per head
      • Men's spend per head
    • Online Underwear Expenditure
  • Market Forecast
    • Overview
    • Market Definition
    • Underwear Expenditure
      • Market drivers
        • Table Underwear sales (£m) and year-on-year change (%), 2015e-20e
      • Positioning map
    • Underwear Growth Versus Clothing
    • Product Category Segmentation
    • Sub-sector Segmentation
      • Summary
        • Table Underwear sub-sector performance (£m), 2015e-20e
      • Women's underwear
      • Men's underwear
    • Spend per Head
    • Online Underwear Expenditure
  • Channel Shares
    • Overview
    • Department Stores and Clothing Specialists to Grow Share
      • Table UK underwear channels of distribution expenditure (£m) and share (%), 2014, 2015e and 2020e
    • Online and Offline Underwear Expenditure
  • Market Shares
    • Overview
    • Underwear Market Shares
      • Table Top 15 underwear market shares (%), 2010-15e
    • Women's Underwear Market Shares
      • Table Top 15 women's underwear market shares (%), 2010-15e
    • Men's Underwear Market Shares
      • Table Top 15 men's underwear market shares (%), 2010-15e
    • Key Operating Statistics
      • Table Top 15 underwear retailers' key UK operating statistics, 2015/16e
  • Sector Trends
    • Overview
    • Underwear Shopper Profile and Spending Habits
      • Shopper profile and penetration
      • Drivers of spend
      • Shopping habits
        • Table Percentage of female underwear shoppers who said they purchase the product (%), 2015
        • Table Percentage of male underwear shoppers who said they purchase the product (%), 2015
      • Preferred underwear destinations
      • Impulse versus necessity/replacement purchases
      • Spending habits
    • Online Underwear Shopping Habits
    • Gifting
      • Gifting Penetration and Expenditure
      • Bras make the most popular gifts
    • Underwear Shopping Habits by Retailer
      • M&S comes out on top
      • The march of the value players
      • Lack of specialists
      • Most shopped retailers among females and males
      • Retailer ratings
        • Table Ratings for range for underwear shoppers' Top 10 most shopped retailers, 2015
        • Table Ratings for price for underwear shoppers' Top 10 most shopped retailers, 2015
        • Table Ratings for convenience for underwear shoppers' Top 10 most shopped retailers, 2015
        • Table Ratings for quality for underwear shoppers' Top 10 most shopped retailers, 2015
        • Table Ratings for service for underwear shoppers' Top 10 most shopped retailers, 2015
  • Methodology
    • Methodology: Channel Shares
    • Methodology: Market Shares
  • Appendix
    • About Verdict Retail
    • Disclaimer

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