Revenue fell during the recession but will rebound as disposable income improves
Los Angeles, CA (PRWEB) May 18, 2012
The multibillion-dollar Lingerie Stores industry is composed of retailers that sell lingerie, nightgowns, shapewear and other specialty items. Although the industry typically generates steady returns, as the economy entered into its worst downturn since the Great Depression consumers increasingly purchased inexpensive basic lingerie items or shopped from discount retailers, mass merchandisers and e-commerce retailers, according to IBISWorld industry analyst Caitlin Moldvay. As a result, revenue contracted 3.7% and 4.9% during 2008 and 2009, respectively. In the years since the recession, however, the Lingerie Stores industry has begun to recover and is expected to post a 3.0% revenue gain during 2012. The Lingerie Stores industry has benefited from the slow decline in the unemployment rate, which has boosted per capita disposable income, allowing consumers to increasingly purchase higher-end lingerie items. Moreover, plus-size intimate apparel has been another growth segment for the industry. Over the five years to 2012, revenue declined at an average annual rate of 0.7% to an estimated $11.5 billion, as poor operating performance during the recession overpowered steady growth before and after the recession. Sales of lingerie generate higher margins compared to general apparel products. However, rising cotton prices, discounted pricing and lower sales volumes have led to lower returns for the industry.
Over the next five years, conditions are set to improve for the Lingerie Stores industry. From 2012 to 2017, industry revenue is forecast to rise, Moldvay says. During this period, the unemployment rate is expected to slowly trend down, reaching 6.1% by 2017. With more favorable employment trends, per capita disposable income is expected to rise at an average annual rate of 2.3%, allowing consumers to increasingly splurge on higher-end lingerie items. The industry will, however, face increasing external competition from discount retailers, mass merchandisers and e-commerce retailers that are expected to continue expanding their lingerie lines.
The Lingerie Stores industry exhibits a moderate level of market share concentration. IBISWorld estimates the top two players in the industry will account for about 43.7% of revenue in 2012. While its many small operators characterize the industry, major player Limited Brands Inc. dominates the industry with its established brand Victoria's Secret and absorbs about 42.7% of the market. Frederick's of Hollywood, the second largest operator and another established lingerie brand, trails far behind, absorbing about 1.0% of the market. The two largest players operate several stores and invest heavily in advertising and marketing to advance their brand image. Smaller players in the industry serve narrow local markets, have fewer stores and do not have national brand recognition. For more information, visit IBISWorld’s Lingerie Stores in the US industry report page.
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IBISWorld industry Report Key Topics
his industry includes retailers that primarily sell intimate apparel for women. This includes bras, panties, sleepwear, shapewear and other lingerie items.
Key External Drivers
Industry Life Cycle
Products & Markets
Products & Services
Globalization & Trade
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Barriers to Entry
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