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Wacoal PCL is Market Leader for Women's Underwear in Thailand with 13 Percent Share

Industry Sector

Textiles and Clothing

Published

28 October 2011

Author

Mike King

Type of News

General

Women's underwear, nightwear and swimwear in Thailand recorded strong current value growth of 9% in 2010 with sales hitting Bt32 billion. Women's underwear dominated the category. Women's underwear in Thailand saw the highest current value growth of 9% in 2010. The average unit price rose marginally in current terms in 2010. Thai Wacoal PCL held the leading position, with a 13% value share, due to strong brand loyalty to Wacoal. Women's underwear, nightwear and swimwear is expected to grow by a CAGR of 3% in constant value terms over the forecast period to reach Bt37 billion by 2015.

Women's underwear, nightwear and swimwear recorded healthy current value growth of 9% in 2010. The category is driven by robust demand for women's underwear, which dominates sales and saw 9% current value growth in 2010. Every woman needs underwear on a daily basis, but swimwear and nightwear is not always necessary since some do not swim and replacement cycles for swimwear are fairly low, while women can opt for tops and trousers as alternatives to proper nightwear. The necessity for women's underwear continued to supports its healthy performance in 2010.

Demand for women's swimwear tends to peak during summer time, from March to May, which is the period when there are school breaks and parents often take their children for long holidays. The preferred destinations are on the coast. Therefore, promotions and campaigns, as well as new collection releases, tend to occur during those months.

The major distribution channels for women's underwear, nightwear and swimwear in Thailand are store-based retailers, in particular department stores, where mid-price and high-end brands are widely available. Hypermarkets and other non-grocery retailers are key distribution channels for economy brands of underwear and nightwear. Swimwear is not a popular item in these channels, but wide ranges are offered by sports goods stores and department stores.

Wacoal, by Thai Wacoal PCL, was the top brand in 2010, owing to the popularity of Wacoal women's underwear. Wacoal has served Thai women for over 40 years. It was the first brand that heavily promoted women's underwear and remains a brand with high brand loyalty. Thai Wacoal PCL was established through cooperation between Saha Group of Companies and Wacoal Corp of Japan in 1970. The technology and know-how from Japan has enabled the company's underwear products in Thailand to achieve premium quality and to offer a wide variety of products.

Brands in swimwear favoured by local consumers in Thailand include Triumph, Jantzen and Speedo. Trends in women's swimwear have seen a shift beyond functionality to include aesthetics and fashion. Colourful designs are increasingly popular, and swimwear is generally moving towards more fashionable styles. For example, two pieces swimwear like the tankini are growing in popularity.

Private label brands are unlikely to enter the women's underwear and swimwear categories because of the strong position of the leaders and aggressive competition. However, there are many private labels in women's nightwear. Central Retail Corp, a leading retailing in Thailand, offers various private label nightwear items, for example Claudia Romance, Elizabeth Maria, Victoria and Sweet Sensations. The company aims to offer a complete range of products, including women's nightwear, in its department stores and there are few manufacturers which focus on nightwear.

Women's underwear, nightwear and swimwear is expected to see a positive constant value CAGR of 3% over the forecast period. Women's swimwear is predicted to see particularly strong growth with a 5% constant value CAGR, in view of increased demand for the more expensive functional swimwear, and increased tourist numbers, which had seen an earlier decline during the political instability between 2008 and 2010.

Uncontrollable factors, such as domestic political uncertainty and the global economic situation, remain potential threats to demand for women's underwear, nightwear and swimwear. Women tend to purchase underwear frequently, whereas holiday taking and tourism, which drive demand for swimwear, are more susceptible to the influence of external factors. If another bout of political instability occurs, it will definitely cause many tourists to avoid visiting Thailand, and Thai people will be less inclined to go travelling or shopping.

The Women's Underwear, Nightwear and Swimwear in Thailand report offers a comprehensive guide to the size and shape of the market at a national level. It provides the latest retail sales data 2006-2010 and analysis by distribution format allowing you to identify the sectors driving growth. It identifies the leading companies, leading brands, and offers strategic analysis of key factors influencing the market. Forecasts to 2015 illustrate how the market is set to change.

Click here for more detail: http://www.companiesandmarkets.com/Market-Report/womens-underwear,-nightwear-and-swimwear-in-thailand-market-report-706366.asp

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