Market Overview

Size of the women’s underwear market in 2019 shrunk to 605,000 million yen, 98.6% of the previous year. While the market trend of “comfort” continued, the market had no remarkable hit product in 2019. Under the circumstance, product line was enhanced for comfort products like non-wire bras with loose-fit, comfort, or ‘liberation’ as selling point, and sales of whole undergarments expanded.
The retail market of men’s underwear declined to 255,000 million yen, 98.6% of the preceding year. As mainstream of men’s underwear are functional products, product development involves constant renewals every year. Although products committed to materials or functionalities have been developed in recent years, they didn’t sell well. 

 

Noteworthy Topics

Underwear Makers Entering “Mask Market” One After Another

It is noteworthy that all types of industries, including apparel industry, have entered the market of “masks”. Underwear industry also joined the “mask market” amid COVID-19 calamity, where both major companies and SMEs reinforced production of in-house products and OEM products.
Uniqlo’s “AIRim” mask had significant impact on the market. It went viral, and on its debut shoppers formed long queues to buy them. Moreover, underwear makers are trying to differentiate their “masks” by adding value, creating them as one of the in-house brand products or using same material as their underwear. While no one knows when the COVID-19 calamity ends, demand for masks is likely to remain high, and therefore it is assumed that underwear makers will continue producing masks, considering it as a regular item instead of temporary item.


 

Future Outlook

The retail market of women’s underwear is projected to attain 589,000 million yen for 2020, 97.4% of the previous year. While sales at physical stores are struggling amidst COVID-19 calamity, reinforcement of e-commerce is one of the critical challenges. Key for success lies in how business of physical stores and e-commerce can be merged. Successful products like non-wire bras have potential for the market to thrive; however, a product which can drive a big growth of the market is difficult to develop.
For men’s underwear, the retail market generated 249,000 million yen in 2020, 97.6% of the preceding year. As seen in the women’s underwear market, online sales are expanding. Underwear is compatible with mail orders because unlike other apparel products, they don’t necessarily require a try-on. Underwear makers are focusing on online sales as a new direct sales channel, and retailers are pouring their energy to utilize it as a part of their multichannel strategy. Leading mail order companies are also eager to shift to online sales.


 

Research Outline