The following research report contains market research, analysis, statistics and business intelligence relating to research on The US Intimate Apparel Market.

ABSTRACT
The Future of Intimates

The US Intimate Apparel Market has gone through many stages to get where it is today. The industry has just recently begun to develop new and improved textiles that are suitable and durable enough to be considered truly comfortable and functional for intimate apparel. Within the typical stereotype of the "future", we see everything computerized and doing all our work for us. Picture the cartoon, The Jetsons. A robot to do the cleaning? That now exists as the little floor vacuum that moves around and sucks up the dirt that it senses. Everything computerized? We are well on our way to that reality. Refrigerators complete with LCD screens and cell phones with navigational systems are becoming a commonality right before our eyes. We all like life to be more comfortable, so where will technology be branching next? If you guessed apparel, you're right. If you guessed intimate apparel, you're about to be amazed. It's not just those tech-savvy innovators waiting to scoop up the newest technological intimate apparel out there; there are a wide variety of products catering to even the tech-clueless consumer.

Technologies are a luxury, and although luxuries are still important to consumers today, they have become conditioned to shop at discounters for a majority of their everyday needs. Doing so enables more people to afford to splurge on luxury items that they may not have treated themselves to otherwise. Now, luxury items have become a less frequent but more cherished purchase. Quality items are more appreciated to consumers that have now seen the difference between a discount item and a luxury item. These luxury items are termed by Michael Brush of MSN Money as "new luxury". Brush describes "new luxury" as those products that are of higher quality and provide a higher level of service than conventional products. If purchased as a luxury item, consumers expect to get more value out of the product. What can it offer that goes above and beyond? The WGSN report on the Hi-Lo spending attitudes of consumers discusses that the experience of the product can be just as appealing. When investing in a luxury product, other factors become more important than just the purchase of the item. "Many consumers respond to seamless service, emotive experiences, authenticity and products that appeal to their sense of individuality," discusses the WGSN consumer attitudes report. Department stores do their part to make these luxury goods worth the price by creating an experience out of shopping.

Nearly 85% of new luxury products are purchased by women.
Michael Silverstein, Trading Up: The New American Experience. MSN Money, Dec. 2003.

As we study the market further, we can come to realize that with a combination of these factors, there are many new opportunities within the intimate apparel industry. There will be new consumers to cater to, possibilities for growth, higher acceptance of innovative products, and the opportunity to provide an experience to customers. Michael Silverstein, author of "Trading Up: The New American Luxury" discusses the fact that nearly 85% of these new luxury products are purchased by women. Women are often the primary shoppers of the household, and make most of the purchasing decisions for themselves and their children as well. Catering the shopping experience to this demographic will prove successful as this trend progresses.



The Boomer-Consumer

Intimate apparel makers may be changing directions quite soon in order to focus on the massive economically powerful group, The Baby Boomers. We all know who they are, and you just may be in this category as well!

The Baby Boomers, defined currently between the ages of 40 and 58, are said to control over two-thirds of the world's wealth! (Brent Green, Marketing to Leading-Edge Boomers, Paramount Marketing Publishing, January2007.)

According to the 2004 U.S. Census Bureau report: "U.S. Interim Projections by Age, Sex, Race, and Hispanic Origin," the total percentage of persons ages 45-64 was 22.1% in 2000. By 2010 the percentage is projected to increase to 26.2. Now is the peak time to market to this age demographic, as the numbers will drop back down within the next 10 years.

As the Baby Boomers continue to age, they also continue to be the most health and beauty conscious group. The possibilities to cater to this group are numerous. Providing comfortable, functional products has become increasingly more exciting with the use of new technology. The intimate apparel industry is currently discovering the technique of infusing fabrics with ingredients, which are necessary to health and comfort. Newly discovered products that still have developing opportunities are tank-tops and briefs infused with Aloe Vera, robes packed full of Vitamin C, strong seamless supporting garments, and even pajamas which cool the skin. The Baby Boomers can find an importance in these items, for they will keep them feeling younger and healthier.

Part of keeping the Baby Boomers feeling young and healthy is the increasing focus on physical fitness. Shocking statistics have revealed that the percentage of obese Americans has risen from 13% in 1962 to 31% by the year 2000 (American Sports Data, Obesity Research Statistics for the United States, January 2004.) The Baby Boomers are not the culprit; so to speak, as they are the most focused on continuing physical activity as they age. The American Academy of Orthopedic Surgeons discusses the fact that this demographic sometimes takes physical activity a bit too far in their article "Care of the Aging Knee: Baby Boomers May Need Lifestyle Changes." Focusing on the fitness level of the body tends to lead to ignoring its safety.

The American Academy of Orthopedic Surgeons is recommending the following activities to replace the previous vigorous activities being performed:
· Stretching
· Swimming
· Water aerobics
· Cycling
· Walking on a treadmill or outside
· Playing golf


An opportunity in the intimate apparel and active wear markets is to provide fashionable and functional apparel for the activities that will become the new sports of the Baby Boomer generation. Supportive shaping sports bras, comfortable shaping swimwear, and unrestricting cooling apparel for walking and golfing will be in high demand in the coming years. NuMetrex had these active bodies in mind when designing the Heart Rate Monitor Sports Bra, which has heart rate sensors comfortably built into the band while providing ultimate support and shape control.

Hi-tech Tweens
Another growing group of consumers, but in a different way than our large population of Baby Boomers, is the Tween between the ages of 8-14. The "tween" demographic as predicted by 2010 will be on a decrease in comparison to the total population. The U.S. Census Bureau conducted a survey in 2004 titled "U.S. Interim Projections by Age, Sex, Race, and Hispanic Origin" which displays the fact that the total percentage of the tween demographic will be decreasing in comparison to the total population.

In 2000, the 5-19 age group was 21.7% of the total population. By 2010 they are expected to be 20.0% and decreasing to 19.6, 19.5, and 19.2 percents every 10 years, respectively.

Families will continue to have fewer children, but because of this, the discretionary income to be spent on the children will be divided by a fewer amount of children per family. This gives each child a higher spending power - both with their own income and their influence on their parents' purchases. This also means that higher quality products may become a demand. A lower quantity of products will be required but a larger amount of money will be allotted to the item being purchased by either the tween or the parent.

Part of creating and marketing products to Tweens is remembering that they want the things that they think makes them look and feel older than they are. If it is targeted to a teen, a tween will aspire to it. The trick is to create these products but make them age-appropriate. Tweens are increasingly more into technology than ever before. Even some kids know how to use a computer better than their parents do. As the love and knowledge of technology increases in the tween demographic, along with purchasing their own clothing and other items, a marriage of the two is most necessarily called for. Creating intimate apparel that is cool, looks or acts hi-tech, and is functional for that age group is going to become a huge opportunity as the Tweens spending power continues to increase.
Pl>y (Play) Underwear, for example, created the "iBoxer"
for both men and women. The iBoxer is the only underwear specially designed to hold an iPod or a cell phone.
An opportunity to provide a similar product to the Tween exists as the popularity of iPods and cell phones among Tweens increases.


Lavish Luxury Retail Report

As the appreciation for luxury shopping grows, retailers will begin to rethink how they are presenting and selling these products to the consumer. Thinking ahead, Bloomingdale's has prepared itself for the importance of providing an experience to the shopper of the new luxury. WWD reports in their article "Bloomingdale's Intimate Space" that in June of 2006, Bloomingdales unveiled an entirely revamped intimate apparel department complete with boudoir furnishings, soft lighting, full-length mirrors, and decorative curtains. Wide marble aisles, plasma TV's flaunting French lingerie runway shows, and fitting rooms as comfortable as personal bedrooms lend to the absolutely memorable shopping experience that consumers are going to be looking for when planning to purchase their new luxury items.

The atmosphere created for the customer will encourage a purchase in a less obvious way. It will not be the coupons or the pushy sales associates that boost sales volume anymore, it is going to be a beautifully memorable experience that not only encourages a purchase but encourages a customer to return again and again.

David Bell, a marketing professor at UCLA, reports for Knowledge @ Wharton in the article "How Store Location and Pricing Structure Affect Shopping Behavior" that once people find a store that fits their needs, they tend to develop a loyalty to that store that is hard to break. Bell says it is a more successful technique to develop ways to keep your current customers than to try to attract new ones. Making customers feel comfortable, special, and building their trust are the best ways to gain and maintain customer loyalty.


Privacy and Personalization Online Retail Report
As observed in the past few years, online shopping has grown, but is it big in the intimate apparel industry as well? Intimate apparel, especially for the category of women's bras, must fit perfectly or it will be returned. There is no better way to obtain a proper fit than to try it on in the store. As more and more intimate apparel retailers begin to provide online services, the way they provide them can lend to providing perfectly fitted intimates.

Increase Online Sales:
· Detailed and easy to use size charts
· Body measuring how-to diagrams
· Provide photos of each garment on a body (preferably in various body types)
· Make a wide range of sizes available
· Free shipping helps too!

Since intimate apparel boutiques tend to offer that special shopping experience that intimate apparel shoppers crave, their loyal customers will also be willing to use the website of the boutique for their repeat purchases. Intimate apparel boutiques are encouraged for this reason to expand to online retailing as well, in order to maintain their current customers and easily access new ones.

DISCLAIMER
Information in this report relies on sources including Government Publications, Opinions of industry experts and other public sources. Infomat can accept no responsibility for the accuracy or completeness of such information or for loss or damage caused by any use thereof. All prices subject to change without notice.

Published: 2006 November
Market: Mens Womens
Region: usa
Industry: Apparel