Reliance Retail set to face off against Nykaa: Women’s inner wear new battleground

Reliance Retail set to face off against Nykaa: Women’s inner wear new battleground

The competition between Reliance Retail and Nykaa, two prominent retailers in India, is expanding into multiple categories. Reliance Retail made its foray into the beauty retail space in April with Tira, an online and offline beauty destination, responding to Nykaa’s dominance. In turn, Nykaa is now targeting the women’s innerwear market.

Currently, India’s women’s innerwear market is mainly unorganized, comprising approximately 60-70% of the $6 billion market. The remaining 30-40% represents the organized sector, consisting of both online and offline brands. The organized segment is witnessing a growth rate of around 15-20% annually, making it an attractive opportunity for retailers.

Both Reliance Retail and Nykaa recognize the potential of the organized women’s innerwear market and aim to capture a significant share of it. With their established retail presence and consumer reach, these companies are well-positioned to tap into the growing demand for organized innerwear products.

The competition between Reliance Retail and Nykaa reflects the intense competition in the retail sector in India, where players are continuously expanding their offerings and targeting new market segments. This competition benefits consumers by increasing choices, improved product quality, and enhancing shopping experiences.

Overall, the women’s innerwear market presents a compelling growth story for retailers, and the rivalry between Reliance Retail and Nykaa in this segment showcases their efforts to capitalize on this opportunity and strengthen their positions in the retail landscape.

Reliance Retail has strategically built a strong portfolio of innerwear brands to cater to the diverse preferences of consumers. The company’s portfolio includes a mix of in-house brands, acquired digital brands, and partnerships with international brands.

One of Reliance Retail’s private label brands is Hush, retailed through its fashion retail chain, Reliance Trends. Additionally, the company has made significant acquisitions in the digital space, including Clovia and Zivame, both well-known online lingerie brands. The addition of these brands allows Reliance Retail to tap into its existing customer base and leverage its expertise in the innerwear market.

Furthermore, Reliance Retail has partnered with renowned international brands such as Marks & Spencer and Hunkemoller. These collaborations enable Reliance Retail to offer a wider range of products and leverage the brand recognition and expertise of these international players in the innerwear segment.

By curating a diverse portfolio of innerwear brands, Reliance Retail aims to cater to consumers’ varied needs and preferences. Including in-house brands and partnerships with established players helps Reliance Retail enhance its market presence and position itself as a comprehensive destination for innerwear.

The expansion into the women’s innerwear market demonstrates Reliance Retail’s strategic approach to diversifying its product offerings and capturing new market segments. With a robust portfolio of brands, Reliance Retail is well-positioned to compete in the organized segment of the innerwear market and offer consumers a wide range of choices. Reliance Retail’s move to pilot a new retail format called Blush Lace in the innerwear segment indicates its intent to establish a dedicated presence in this market. While the company already has a strong portfolio of innerwear brands, introducing physical retail stores would provide customers a unique and immersive shopping experience.

Blush Lace is expected to cater to the mass market, including tier II and III cities, which are witnessing significant growth and demand for organized innerwear products. These stores would likely offer a wide range of innerwear options, including products from Reliance Retail’s brands and other popular brands in the segment.
By entering the retail space for innerwear, Reliance Retail aims to tap into the consumer preference for offline shopping experiences and leverage its extensive retail network across the country. Physical stores would allow customers to interact with the products, try them on, and receive personalized assistance from store staff, enhancing the overall shopping experience.

While specific details about the Blush Lace stores and their formal launch are yet to be disclosed by Reliance Retail, the move signifies the company’s intention to strengthen its presence in the innerwear market further. The introduction of dedicated retail stores would expand Reliance Retail’s reach and provide an additional touchpoint for customers to engage with its innerwear brands.

As the retail landscape evolves, companies continuously explore new formats and channels to meet consumer needs and preferences. The launch of Blush Lace stores demonstrates Reliance Retail’s agility in adapting to market trends and further establishing its position in the innerwear segment. Nykaa’s entry into the innerwear market with its in-house brand Nykd has gained traction and is emerging as a strong player in the category. The brand’s online and offline presence, along with its unique value proposition, has contributed to its success.

Nykd has strategically established its footprint in key cities like Bengaluru, Delhi, Chennai, Hyderabad, and Mysore through the rollout of physical stores. This approach allows customers to have a tangible experience with the products and benefit from personalized assistance from store staff.

The brand’s success can be attributed to several factors. Nykd offers good designs, affordable price points, and easy-to-navigate tutorials, which make it appealing to consumers. Nykaa’s expertise in beauty retail, where they have effectively utilized similar strategies, has likely contributed to the success of Nykd as well.
With annual sales of Rs. 85 crores within just three years of its launch, Nykaa sees significant potential for further growth in the innerwear market. The company aims to scale up operations and capitalize on the booming demand in this category.

The success of Nykd underscores the growing significance of the innerwear segment and the opportunities it presents for retailers. As consumers increasingly prioritize comfort, quality, and style in their undergarments, retailers like Nykaa and Reliance Retail strategically position themselves to capture this market by offering compelling products and enhancing the overall shopping experience.

The competition between Reliance Retail and Nykaa in the innerwear market indicates the growing interest of established retailers in this segment. As these companies continue to innovate and expand their offerings, consumers can expect more choices and a greater emphasis on quality, design, and affordability in the innerwear market.

The entry of national and international brands into the innerwear market in India reflects the increasing consumer awareness and rising disposable incomes. The growth of online platforms has also played a significant role in expanding the organized sector of the market. Retailers, whether operating online or offline, are adopting an omnichannel approach to cater to a broader consumer base.

Reliance Retail’s Blush Lace aims to tap into this evolving market by offering a comprehensive range of products beyond lingerie. By including women’s accessories, beauty and skincare products, loungewear, shapewear, and sleep essentials, Blush Lace is a one-stop shop for all innerwear-related needs. This approach aligns with the changing consumer preferences for a holistic shopping experience and convenience.

The expansion of product categories within the innerwear segment reflects consumers’ evolving demands and preferences. Retailers recognize the importance of offering diverse products to cater to different needs and preferences. This approach allows them to capture a larger market share and establish themselves as destination stores for innerwear and related products.

The entry of Reliance Retail’s Blush Lace and Nykaa’s Nykd into the innerwear market signifies the growing competition and the potential for further market growth. As retailers continue to innovate and provide a broader range of choices to consumers, the innerwear market in India is expected to witness continued expansion and diversification in the coming years.

Reliance Retail’s Blush Lace is expected to incorporate its existing portfolio of innerwear brands into its catalogue. However, the company may also explore the addition of new brands in the future to attract more customers and drive footfall to its stores. This strategy allows Reliance Retail to offer diverse options and cater to different consumer preferences within the innerwear segment.

On the other hand, Nykaa’s Nykd and 20 Dresses will be key focus areas for the company in the innerwear category. Nykd, along with its combination of good designs, affordable price points, and easy-to-navigate tutorials, has shown promising growth and established itself as a strong player in the market. Similarly, 20 Dresses, another owned brand of Nykaa, is expected to contribute to the company’s focus on the innerwear segment.

Reliance Retail and Nykaa recognize the potential of the innerwear market and are aligning their strategies to capture a larger share of this growing segment. By leveraging their brand strengths, product offerings, and retail presence, they aim to cater to consumers’ evolving needs and preferences, further driving the growth of the organized innerwear market in India.