Men's Underwear - UK - June 2008

Abstract

The overall men' s underwear market has been challenging over the last five years. Between 2003 and 2007, there was a 15.6% increase in the number of units sold across underpants, vests and socks, but a 4.6% decline in value sales - to reach £679 million. Consumers have bought a lot more for less money, due to deflation and a very competitive market. However, there was some upturn in 2007 from 2006.

The total picture also masks a polarisation in the market performance between underpants (positive value growth, especially in the last year), vests (stable) and socks (decline in value sales). Going forward, the challenge is to build on the increasing interest in fashionable quality underpants and to look to revive socks more into wants and not just needs.

High-profile marketing and advertising can help: the men' s underwear market shot into the spotlight at the end of 2007 with the David Beckham advertising images for Giorgio Armani. Sales of this brand, and of quality/premium underwear generally, were reported to have enjoyed a pre-Christmas boom as a result.

Retailers' own-brands dominate the men' s underwear sector and have further increased market share. However, there has also been growth in the premium/designer sector. The middle market has been more challenged, especially for less differentiated brands, and a key factor here has been the increased competition from Primark.

Main themes of the report:

• High-profile advertising and marketing using celebrities drives sales of men' s underwear. But investment in such activity is limited: more brands and retailers need to boost their spend and therefore, visibility and awareness. Intangible confidence-boosting attributes are brand standouts.
• Men are driven more by comfort than style, and so quality and the tangible benefits of the products are increasingly important. This should help drive the middle and premium brands.
• Men are increasingly into keeping fit and doing sport. They are also more fashion-conscious and brand-aware. The two can go hand-in-hand to drive underwear sales of brands that marry attractive design/fashionability with quality/comfort.
• Socks have become too much of a commodity basics product, but there are signs of a recovery as more premium and designer brands enter the market with more interesting designs. There is the potential to jump on the ' style statement' bandwagon to drive stronger sales.