Innerwear sales are an optimistic indicator amid promising economic indications like the southwest monsoon’s advancement and the falling rate of inflation.
This has been confirmed in earnings calls this month by notable businesses including Page Industries, which owns the Indian rights to the Jockey brand, Aditya Birla Fashion and Retail, Arvind Fashions, and Rupa & Co. Green shoots can be seen in the June quarter, indicating a resurgence in the consumption of innerwear, including men’s pants. Quick commerce has also contributed to a spike in sentiment by accelerating sales.
The “men’s underwear index,” coined by former US Federal Reserve chairman Alan Greenspan, is supposed to be able to identify when a downturn in consumption is about to end and signal the start of a recovery during difficult times. The notion is that when money is tight, people—men in particular—tend to put off buying these necessary clothes as long as they can.
The management of Page Industries informed investors that increased foot traffic and higher revenues were the result of improved inventory health at distribution hubs, a resurgence in demand, and ensuring new launches were available in stores. Ganesh VS, the managing director, mentioned encouraging early signs. Page stated in its results announcement for the June quarter that customer confidence is rising, which is driving up spending on apparel and accessories.
“The rise of e-commerce and digital platforms has expanded market reach, enabling brands to connect with the consumers more effectively,” it said. “The industry is poised for significant growth.”
The innerwear market for Arvind Fashions is expanding at a double-digit rate, outpacing the company’s overall sales growth. Revenue increased by 8 per cent between April and June, according to Rupa, while volume growth increased by 9 per cent, “supported by strong sales in the economy.” The previous quarter saw a 9 per cent increase in volume and revenue for Lux Industries as well. VIP Clothing, a retailer of Frenchie and VIP labels, reported “signs of recovery and growth in the market.” Revenue growth of 15-20 per cent is anticipated in the September quarter, the company stated in its management guidance, “owing to good visibility of product offtake.”
