The Indian innerwear market, which was valued at ~Rs 320 billion in 2018 is expected to grow at a CAGR of ~11 percent over the next decade to reach ~Rs 897 billion by 2028. It holds a lot of opportunities for the largely (5 percent) organized market. Modenik Lifestyle is one brand in the category that has been making the best of this opportunity. 

“Despite the first quarter being soft due to the second wave of Covid, YTD (year to date) Dec 21, we have registered a strong revenue growth of 25 percent. With the expansion to the online market portfolio, our e-commerce business has been consistently growing across the three brands with Dixcy Scott growing by 3x, Levi’s innerwear by 2x, and Enamor by 50 percent over the last year,” said Shekhar Tewari, Chief Category and Operations Officer, Modenik Lifestyle. (Dixcy Scott is chiefly in the men’s innerwear segment and Enamor in the women’s intimate wear space.)

In fact, FY2022 is a historic year for the company as the two organizations Dixcy Textiles and Gokuldas Intimatewear with two power brands Dixcy and Enamor merged as one Modenik Lifestyle Pvt Ltd. The merger is helping the brand in leveraging the operational efficiencies and manufacturing and distribution synergies between the two entities, to increase the scale of its innerwear and apparel business.

Currently, Modenik has a portfolio of 5 sub-brands, including Dixcy Scott Originals, Dixcy Scott Maximus, Josh by Dixcy Scott, Slimz, and Enamor. Also, the brand has an exclusive licensing agreement with Levi’s innerwear to manufacture and distribute innerwear in India, which would benefit from the synergies of this merger.

Market Understanding

The reason why the sector has changed so much is that earlier innerwear was seen merely as an essential commodity however now in the last 5 years or so it has majorly transformed into a fashion statement. Moreover, domestic demand has increased with the rise in discretionary spending, rising incomes, growing fashion consciousness, and so on. As such, brands across the men’s and women’s segments are expanding their portfolios. 

Tewari shared: “Exposure to social media, the recent D2C play, rising fashion awareness, demand for different types of innerwear, and understanding of health and hygiene is driving unprecedented growth in the innerwear market. Over the years, the men’s innerwear category has evolved from being a rudimentary segment to one that now boasts of innovation. Today, you will find briefs, boxers, vests, and trunks that are designed to be more breathable, comfortable, skin-friendly, and hygiene-oriented.”

It is also true with the advancement in technology available to manufacturers has given a lot of scopes to experiment with the product to perfectly cater to the consumer’s demands. Providing greater stretch, quick-dry, odor protection, a wide range of colors and designs options, etc. are some of the benefits that technology provides. 

Tewari stated, “As the innerwear market grows in the country, we are also set to grow exponentially. We are increasing the depth of our supply chain and making it more agile to handle any further Covid disruptions. We are extending our distribution network to increase our market penetration. We are driving innovation in our product and packaging across our entire Dixcy and Enamor product range to meet the changing consumer needs and preferences.”

Consumer Acquisition 

Modenik has a solid omnichannel distribution capability that makes sure its consumers have the access to its products range across offline and online channels. (The combined entity has an employee strength of about 4,800 and a supply network of over 400 SME and MSME job workers in Tirupur and Kolkata.)

Also, the company relies on campaigns to bring awareness about the quality and range of its products. 

“Most importantly, the emergence of dedicated e-commerce portals just for innerwear has proven to be game-changers for the consumers and the industry. The privacy, ease of browsing, customized and targeted messaging, and convenience of products reaching the consumer within a couple of days have all played a major role in making this segment blossom. The luxury of easy return at the comfort of your doorstep in case of any dissatisfaction with the product is another crucial factor,” Tewari further stated. 

Future Plans

Given the potential that the sector holds and with only notable players in the market, playing the right bets at this point will go a long way. As we have seen new players like XYXX, Tailor and Circus, etc. become hugely popular in a short span of time. 

Modenik’s two brands Dixcy Scott and Enamor are thus currently focusing on expanding distribution, strengthening supply-chain, and other front-end and back-end processes. With the merger, the company is now planning to tap into other consumer segments. 

Tewari added: “We are also looking at developing capabilities organically or inorganically in the adjacent categories in the two businesses and are exploring other categories such as kids wear where we have a limited presence at the moment. The focus of the business, however, would remain core categories of innerwear, thermal wear, and casual wear or athleisure.”