Page 21 - AVN Intimate Summer 2017

By Allison Travers
Wearing Well Eldorado peeks inside the latest lingerie industry report
Who’s Working It?
The largest target base for lingerie purchases is women between the ages of 45
and 54, followed by women aged 35 to 44. However, there is a growing segment
for a younger market. While this market is currently small, industry players are
targeting this group to establish brand loyalty. In addition, there are many lingerie
manufacturers producing lingerie for men, including Jack Adams, Male Power,
Magic Silk and many more.
Who’s Killing the Mood?
Online retailers are gaining in the market by offering the same provocative
products at a lower price. They can go lower because they don’t have the overhead
costs that brick-and-mortar retailers have. In addition, general apparel retail stores
like American Eagle have jumped into the lingerie market by adding low-cost
lingerie products to their merchandise floor.
If the Bra Doesn’t Fit ...
Brick-and-mortar lingerie retailers have a “move” that online and big box
retailers can’t compete with: bra fitting. Since almost 65 percent of today’s women
wear the wrong bra size, many stores have trained their sales associates to provide a
proper bra fitting, allowing women to find bras that are more comfortable and look
better under their clothes, thus making them feel more confident.
WhAT Does This Mean For You, The Lingerie ReTAiler?
While the industry is expected to continue growing due to improving economic
conditions, lingerie stores will still face significant competition from discount
retailers, mass merchandisers and online retailers. Furthermore, the competition
will be upping their game through product expansion and by tapping into new
markets.
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the Fashionsitas trilogy and the darkest and sexiest tale he’s ever made.
and made a $365.8 million profit, with an annual
I n 2016, lingerie stores pulled in $7.5 billion in revenue
growth of 1.9 percent. And as alluring as those
numbers are, let’s lean in for a closer view at what’s
making this industry look so good. Good Times Lead to a “Good Time”
The economy has steadily grown over the past five years,
providing customers with more disposable income to spend
on indulgent products such as high-end lingerie. In addition,
savvy industry operators have expanded their customer base
by reaching out to new markets, including teens, women over
45 and the plus-sized audience.
Who’s Bringing the Sexy?
Currently there are around 16,500 companies in the lingerie
business, and many are small businesses with less than five
employees. More than 1,000 are operated by the industry
leader, Victoria’s Secret. However, thanks to the improving
economy, a greater number of retailers are expected to enter
the market over the next few years with a projected number
of 21,300 stores by the year 2021.
WhAT Does Sexy Look Like?
So far, lingerie and sleepwear products lead the way with
50.2 percent of sales, followed by bras, girdles and corsets at
39 percent. Hosiery, pantyhose, socks and tights come in at
10.8 percent.
Savvy industry operators have expanded their
customer base by reaching out to new
markets, including teens, women over 45 and
the plus-sized audience.
To our retailer clients, we recommend the following:
Make sure you’re hitting all of your potential markets. Are you carrying lingerie
for the plus-size crowd as well as other markets? Diversity in your selection will
help ensure that you’ll have something for every customer who walks in your store.
Offer services your customers can’t get online. Train yourself and your employees
to size a woman properly for her bra. Educate yourself on your products so when
customers have questions, you’ll have the answers. Offer suggestions and make
your customers feel empowered when they shop. If possible, provide well-lit
dressing rooms so your customers can try on lingerie before buying.
Curate your selection so that you only offer the best. Handpick the highest
quality and highest rated products so customers will know they’re getting the best
when they get it from you.
So there you have it. Although there will be growth in the lingerie store industry,
competition will continue to take bites out of the market. But if you’re proactive and
take the right steps to ensure a fantastic shopping experience with your customers,
you will stay ahead of the competition and continue to grow and succeed in your
business. And as always, your partners at Eldorado are here to help you succeed as
well.
This article by Allison Travers, Eldorado Trading’s marketing director, originally
appeared in the adult distributor’s monthly newsletter. IBISWorld is a leading publisher of
business intelligence. This adult store industry report is available for purchase at
IBISWorld.com/industry/lingerie-stores.html.
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