Page Industries - More Challenges Versus Opportunity In Women’s Innerwear Segment: ICICI Securities

ICICI Securities Report

In this report, we present our primary research on 208 brands in both men and women innerwear segment, effectively, analysing 26,000 stock keeping units. Observations:

1. competition in women innerwear segment is 1.6 times higher (148 brands) than men (90 brands), primarily led by multi national company retailers (M&S, H&M etc.) and other direct-to-consumer brands (Amante, Clovia, Zivame etc),

2. Jockey is the only top brand that competes in both men and women innerwear segment with same brand name (out of 208 brands, only 30 brands follow similar strategy – none of them are in top 10 list). We believe having specialist brand image is imperative to drive differentiation in women-wear segment,

3. of the SKUs which we analysed, average selling price in women’s innerwear (at Rs 528) is 22% higher than ASP in men’s innerwear – implying scope for premiumisation,

4. Page Industries has over-indexed its portfolio in women’s innerwear at a price point (~Rs 260: lowest in our top-10 list versus Rs 340 in men’s innerwear). Since in organised space, women innerwear segment is significantly less penetrated (6- 8%) versus men’s innerwear (~20%), we believe it may be easier for Page Industries to drive higher penetration. That said, we reckon that brand perception has a larger role to play (versus price) to drive consistent revenue growth (it has already been five years since the launch of Jockey Women,

5. Page Industries continues to dominate men’s innerwear segment led by superior price equation, specialist brand perception, good customer reviews. However, competition from D2C brand remains strong.

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