Innerwear sales indicate economic turnaround is here to come
Leading companies such as Page Industries, which has the rights for the Jockey brand in India, Aditya Birla Fashion and Retail, Arvind Fashions and Rupa & Co. have attested to this in earnings calls this month. A consumption recovery of inner wear, including men's underwear, is in sight with green shoots visible in the June quarter. Sentiment has also been boosted by sales kicking off through quick commerce.
The so-called men's underwear index, thought up by former US Federal Reserve chairman Alan Greenspan, is said to detect the beginning of a recovery during tough times, marking a turnaround from a slump in consumption. When money is tight, people, especially men, tend to put purchases of these essential garments off as long as they can — that's the theory.
Page Industries management told investors that sales have been lifted with better footfalls thanks to a revival in demand as well as action to improve inventory health at distribution hubs and ensuring new launches are available in stores. Managing director Ganesh VS cited early positive indicators.
In its June quarter earnings release, Page said consumer confidence is rebounding and leading to increased spending on clothing and accessories.
«The rise of ecommerce 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.»
Inner wear sales have been particularly impacted for over six quarters now, along with a slowdown in overall apparel
