Faced with slowing sales in Western markets, lingerie firms are increasingly focusing on emerging markets like Russia and Asia for growth. According to new research, both China and India are likely to see a double digit hike in lingerie sales over the next three years.

The recessionary pressures on Western markets are presenting unique challenges to the lingerie sector, increasing the importance of emerging markets like Russia and Asia for growth, according to new research.

According to the report 'Global Intimate Apparel Market: 2008 Edition' by Koncept Analytics, the Russian lingerie market is already marching on, whilst increased brand awareness and organised retail in China and India are bearing fruits too.

The report says: "Currently, the Asian market is strongly supporting the growth of the lingerie industry. While the global lingerie market grew at a rate of approximately 3%, the Asian lingerie market alone witnessed a tremendous growth of 8%.

"So, it is evident that Asia and to some extent Eastern European countries like Russia, have emerged as important markets for Western and Asian lingerie brands."

Western woes
In addition to the global financial crisis, intimate apparel companies in the US and Western Europe are also being hit by increasing production costs in the Far East and increased competition, Koncept notes.

The lingerie report finds that during 2007, growth in the global lingerie market was slow, with total sales growing 2.9% to US$33bn. This compares to 6% growth during the period between 2005 and 2006.

In the US, intimate apparel accounted for 6% of the country's US$195.58bn total apparel sales. However, intimate apparel was the only major category in the US that saw a drop in sales year-on-year, dropping by 0.7% to reach US$11.03bn in 2007.

The lingerie market in Western Europe, meanwhile, has witnessed sluggish growth, with the entry of new lingerie firms leading to intense competition, the research says.

In 2005, the Western European lingerie market was estimated at US$11.27bn, which rose to US$11.45bn in 2006. In 2007 though, the Western European market grew by just 1% to US$11.56bn.

While the economic slowdown in US and EU markets is partly to blame for the slowdown, together they still represent 68.4% of the global intimate apparel market.

Asian opportunities
In comparison, Asia represents just 19.6% of the market but is enjoying 8% annual growth, according to the Koncept research.

The lingerie sector in China is also seeing unequalled growth, rising by an average of 11% for the past five years.

Meanwhile, the Russian apparel market is expanding at a rate of 30% per annum. The country's mass-market segment is driving much of this growth, the research says, with 55% of the overall market share compared to 10% for the premium segment of the market.

The research finds that brands from Italy - Idea, Stella, and La Perla; France - Lady De Paris, Christian Lacroix; Germany - Nina Von, Felina; Spain - Othaik, Princesa; and the US - Playtex, Wonderbra - represent a major share of the segment for elite underwear in Russia.

Branded breakdown
Koncept notes that the main competitors in the global intimate apparel industry include Aerie by American Eagle, Cupid Foundations, Fruit of the Loom, Hanesbrands, Jockey International, The Lane Bryant division of Charming Shoppes, The Soma division of Chico's, Spanx, Triumph International, The Victoria's Secret division of Limited Brands, Wacoal Corp and The Warnaco Group.

Together with a detailed breakdown of the operations of these firms, 'Global Intimate Apparel Market' gives projections and a future outlook for the sector, with market forecasts to 2010.

With the rise of Russia and Asia expected to continue, the biggest opportunity in Western Europe lies in the UK, according to predictions by Koncept.

It says: "In the Western Europe market, the UK is the only country that shows growth potential and is likely to register a double-digit growth. Growth in this market will mainly be driven by the growth of categories like plus-sized and body control lingerie.

"Likewise, the Russian lingerie market also appears to hold immense growth potential and seems to see notable gains in the years to come.

"Most growth in the global lingerie market will come from the Asian countries specifically China and India. Both the Chinese and the Indian lingerie market are expected to see double digit growth in the period of next three years."

For a more detailed breakdown and forecast, the 'Global Intimate Apparel Market: 2008 Edition' report is available from just-style. It gives an updated and analytical view of the global intimate apparel industry, with assessment of the overall industry by region, trends and sales channels. It also analyses the market opportunities for lingerie manufacturers, suppliers, distributors and retailers involved in the sector.