Lingerie Market Report 2007

The total UK lingerie market, which includes corsetry, lingerie and hosiery, was worth £2.48bn at retail selling prices (rsp) in 2006. This resulted from a growth of 13.3% since 2002 in current terms, for a market that, while dynamic, has been subject to the deflationary pressure of fierce, discount-led competition in the retail marketplace.

Both the lingerie and corsetry sectors performed strongly over the review period (from 2002 to 2006) — with the latter now being the biggest sector, and also seeing the highest rises in value. In a period when an increasing number of women are taking at least a D-cup brassiere (bra) size, the importance of good-quality, well-fitting bras has been growing considerably. The lingerie sector has also performed well, fuelled by the rising level of interest in lingerie as fashion items, not just as staple garments. The trend for innerwear that is intended to be worn to be seen — such as camisoles and vests, for instance — has supported this sector.

However, the hosiery sector experienced declines in value between 2002 and 2006. Here the volume-led strategies of the supermarkets, which sell tights for as little as £1.50 for five pairs, have had a significant impact on sales. In the hosiery sector, as well as in the other sectors of the lingerie market, the brands have had to respond to this highly competitive performance on the part of the own-label segment. Largely, the brands have succeeded in doing so, and many manufacturers and retailers of branded underwear reported strong sales rises in 2005/2006 through dynamic product innovation and clear differentiation from own-label goods.

Despite this, the own-label segment is strengthening its hold. As well as a much improved product range from the major retailer, Marks & Spencer (which accounts for around 30% of sales of women's underwear), the high street generally has started to take lingerie seriously as an area for development and competitive focus. The discount retailers (Matalan, Primark and others), as well as high-street fashion retailers (such as New Look and Next), have all increased pressure on the market for good-quality but, nevertheless, low-priced lingerie garments.

The total corsetry, lingerie and hosiery market is forecast to grow to around £2.9bn at rsp over the next 5 years (from 2007 to 2011). The global market is dominated by cheap overseas production, and this will continue to have an impact on the stable but slow-growing lingerie market in the UK. SHOW LESS READ MORE >

Executive Summary

1. Market Definition

REPORT COVERAGE

MARKET SECTORS

Lingerie

Corsetry

Hosiery

MARKET TRENDS

Widening Access Points Give Power to the Consumer

Price Deflation Is Leading to Devaluation

Bigger Women Drive Trends

Erotic Themes Become More Mainstream

Sourcing Becomes More Diverse

ECONOMIC TRENDS

Population

Table 1: UK Resident Population Estimates by Sex (000), Mid-Years 2001-2005

Gross Domestic Product

Table 2: UK Gross Domestic Product at Current and Annual Prices (£m), 2001-2005

Inflation

Table 3: UK Rate of Inflation (%), 2001-2005

Unemployment

Table 4: Actual Number of Unemployed Persons in the UK (million), 2001-2005

Household Disposable Income

Table 5: UK Household Disposable Income Per Capita (£), 2001-2005

Retail Sales

Price Deflation

Women in the Workplace

Table 6: The Total Number of Women in Employment in the UK (million), 2000-2005

MARKET POSITION

The UK

Table 7: Turnover and Gross Value Added by UK Manufacturers of Underwear and of Knitted and Crocheted Hosiery (£m), 2001-2005

Overseas

2. Market Size

THE TOTAL MARKET

Table 8: The Total UK Corsetry, Lingerie and Hosiery Market by Sector by Value at Current Prices (£m at rsp), 2002-2006

Figure 1: The Total UK Corsetry, Lingerie and Hosiery Market by Value at Current Prices (£m at rsp), 2002-2006

BY MARKET SECTOR

Figure 2: The UK Corsetry, Lingerie and Hosiery Market by Sector by Value at Current Prices (£m at rsp), 2002-2006

Corsetry

Table 9: The UK Corsetry Sector by Value at Current Prices (£m at rsp and %), 2002-2006

Lingerie

Table 10: The UK Lingerie Sector by Value at Current Prices (£m at rsp and %), 2002-2006

Hosiery

Table 11: The UK Hosiery Sector by Value at Current Prices (£m at rsp and %), 2002-2006

OVERSEAS TRADE

General Overview

Imports

Table 12: UK Imports of Corsetry, Lingerie and Hosiery by Sector at Current Prices (£m), 2005

Exports

Table 13: UK Exports of Corsetry, Lingerie and Hosiery by Sector at Current Prices (£m), 2005

3. Industry Background

RECENT HISTORY

INDUSTRY SYNOPSIS

Table 14: Financial Performance of Companies Engaged in the Manufacturing of Lingerie (£000, %, £ and ratio), Latest Financial Year

NUMBER OF COMPANIES

Clothing Manufacturers

Table 15: Number of UK VAT-Based Enterprises Engaged in the Manufacture of Wearing Apparel, and in the Dressing and Dyeing of Fur, by Turnover Sizeband (£000), 2006

Underwear Manufacturers

Table 16: Number of UK VAT-Based Enterprises Engaged in the Manufacture of Underwear by Turnover Sizeband (£000), 2006

EMPLOYMENT

Clothing Manufacturers

Table 17: Number of UK VAT-Based Local Units Engaged in the Manufacture of Wearing Apparel, and in the Dressing and Dyeing of Fur, by Employment Sizeband (number of employees), 2006

Underwear Manufacturers

Table 18: Number of UK VAT-Based Local Units Engaged in the Manufacture of Underwear by Employment Sizeband (number of employees), 2006

REGIONAL VARIATIONS IN THE MARKETPLACE

Clothing Manufacturers

Table 19: Number of UK VAT-Based Local Units Engaged in the Manufacture of Wearing Apparel, and in the Dressing and Dyeing of Fur, by Government Office Region, 2006

Underwear Manufacturers

Table 20: Number of UK VAT-Based Local Units Engaged in the Manufacture of Underwear by Government Office Region, 2006

DISTRIBUTION

HOW ROBUST IS THE MARKET?

LEGISLATION

KEY TRADE ORGANISATIONS

Association of Suppliers to the British Clothing Industry

British Apparel and Textile Confederation

British Knitting & Clothing Export Council

British Textile Machinery Association

4. Competitor Analysis

THE MARKETPLACE

MARKET LEADERS

Lingerie Manufacturers

Table 21: Selected Leading Lingerie Manufacturers by Turnover (£000), 2003/2004, 2004/2005 and 2005

Bentwood Ltd

Company Structure 35

Current and Future Developments

Financial Results

Courtaulds Textiles

Company Structure 36

Current and Future Developments

Financial Results

Crystal Martin Holdings Ltd

Company Structure

Current and Future Developments

Financial Results

DBApparel UK Ltd (formerly Sara Lee Intimates UK Ltd)/Hanesbrands Inc

Company Structure

Current and Future Developments

Financial Results

Intimas Group PLC

Company Structure

Current and Future Developments

Financial Results

Unity Brands Ltd/Eveden Ltd

Company Structure

Current and Financial Developments

Financial Results

Lingerie Retailers

Agent Provocateur Ltd

Company Structure

Current and Future Developments

Financial Results

Ann Summers Ltd/Knickerbox

Company Structure

Current and Future Development

Financial Results

Bhs Ltd

Company Structure

Current and Future Developments

Financial Results

Contessa (Ladieswear) Ltd

Company Structure

Current and Future Developments

Financial Results

Figleaves.com (Figleaves Global Trading Ltd)

Company Structure

Current and Future Developments

Financial Results

La Senza Ltd

Company Structure

Current and Future Developments

Financial Results

Marks & Spencer PLC

Company Structure

Current and Future Developments

Financial Results

Other Companies

Primark Acquisition of Littlewoods Store Chain

Recent Casualties

OUTSIDE SUPPLIERS

Textiles for Lingerie

Textile Manufacturing Machinery

Computing Systems and Information Technology

MARKETING ACTIVITY

Table 22: Main Media Advertising Expenditure on Underwear and Lingerie, Sleepwear, and Stockings and Tights by Brand (£000), Year Ending June 2006

Exhibitions and Trade Shows

5. Strengths, Weaknesses, Opportunities and Threats

STRENGTHS

WEAKNESSES

OPPORTUNITIES

THREATS

6. Buying Behaviour

CONSUMER PENETRATION AND PROFILE

Purchasing of Lingerie

Purchases Made by Women

Table 23: Women's Purchasing of Lingerie in the Previous 12 Months — Penetration (% of women), 2006

Purchases Made by Men

Table 24: Men's Purchasing of Lingerie in the Previous 12 Months — Penetration (% of men), 2006

Purchasing by Age

Table 25: Purchasing of Lingerie in the Previous 12 Months — Profile and Penetration by Age (% of all adults), 2006

Purchasing by Social Grade

Table 26: Purchasing of Lingerie in the Previous 12 Months — Profile and Penetration by Social Grade (% of all adults), 2006

Purchasing by Expenditure Bracket

Spending Patterns for Women

Table 27: Women's Purchasing of Lingerie — Profile and Penetration by Expenditure Bracket (% of women), 2006

Spending Patterns for Men

Table 28: Men's Purchasing of Lingerie — Profile and Penetration by Expenditure Bracket (% of men), 2006

Women's Use of Hosiery

By Age

Table 29: Women's Use of Tights, Stockings and Hold-ups in the Previous 12 Months — Profile and Penetration by Age (% of women), 2006

By Frequency of Use

Table 30: The Frequency of Use of Tights, Stockings and Hold-ups by Women — Penetration (% of women), 2006

7. Current Issues

PRICING

THE FATE OF BRANDS

TRENDS IN BODY SHAPE

TRENDS IN FASHION

8. The Global Market

THE TOTAL MARKET

MAJOR TRENDS

CONSUMER BEHAVIOUR

THE FUTURE

9. Forecasts

INTRODUCTION

Population

Table 31: Forecast UK Resident Population by Sex (000), Mid-Years 2006-2010

Gross Domestic Product

Table 32: Forecast UK Growth in Gross Domestic Product in Real Terms (%), 2006-2010

Inflation

Table 33: Forecast UK Rate of Inflation (%), 2006-2010

Unemployment

Table 34: Forecast Actual Number of Unemployed Persons in the UK (million), 2006-2010

FORECASTS 2006 TO 2010

Table 35: The Forecast Total UK Corsetry, Lingerie and Hosiery Market by Sector by Value at Current Prices (£m at rsp), 2007-2011

Figure 3: The Forecast Total UK Corsetry, Lingerie and Hosiery Market by Value at Current Prices (£m at rsp), 2007-2011

Figure 4: The Forecast UK Corsetry, Lingerie and Hosiery Market by Sector by Value at Current Prices (£m at rsp), 2007-2011

MARKET GROWTH

Figure 5: Growth in the Total UK Corsetry, Lingerie and Hosiery Market by Value at Current Prices (£m at rsp), 2002-2011

FUTURE TRENDS

The Competitive Arena

Globalisation

Fashion Trends

10. Company Profiles

BHS LTD

CRYSTAL MARTIN HOLDINGS LTD

DBAPPAREL UK LTD

FIGLEAVES GLOBAL TRADING LTD

MARKS & SPENCER PLC

11. Consumer Confidence

METHODOLOGY

KEY FINDINGS THIS QUARTER

THE WILLINGNESS TO BORROW

Confidence Slips Slightly

Table A: The Average Amount Consumers Are Willing to Borrow in Order to Purchase Expensive Items at Current and Constant November 2004 Prices (£ and £bn), November 2005-2006

Significantly More Adults Are Willing to Borrow

Table B: The Number of Adults Willing to Borrow in Order to Purchase Expensive Items (000 and %), November 2005-2006

SPENDING FROM SAVINGS

Little Change in Spending from Savings

Table C: The Average Amount Consumers Are Willing to Spend from Savings in Order to Purchase Expensive Items at Current and Constant November 2004 Prices (£ and £bn), November 2005-2006

Saving Grows in Relative Importance

Table D: The Average Amounts Adults Are Confident Spending to Purchase Expensive Items (£ and %), November 2005-2006

12. Further Sources

Associations

Government Sources

General Sources

Bisnode Sources

-Sara Lee UK Holdings PLC
-Crystal Martin Holdings Ltd
-Bentwood Ltd
-Unity Brands Ltd
-Eveden Ltd
-Sherwood Group PLC