Reliance Retail, one of India’s leading retailers, is set to enter the women’s innerwear market to compete with Nykaa, the e-commerce company. Approximately 60-70 per cent of India’s US $ 6 billion innerwear market is unorganised, while the remaining 30-40 per cent is organised, including both online and offline brands. The organised segment is experiencing an annual growth of 15-20 per cent, making it an attractive opportunity for retailers.
Reliance Retail already has a strong presence in the innerwear market with six brands in its portfolio. These include private label Hush sold through Reliance Trends, as well as acquired digital brands Clovia, Zivame, and Amante. Additionally, Reliance Retail has partnerships with international brands such as Marks & Spencer and Hunkemoller.
However, what has been missing from Reliance Retail’s portfolio are dedicated retail stores for innerwear. To address this gap, the company is reportedly piloting a new retail format called Blush Lace in the innerwear segment. These stores are expected to be formally launched in the coming months, targeting the mass market, including Tier-2 and Tier-3 cities.
On the other hand, Nykaa has been making strides in the innerwear market with its in-house brand, Nykd. The company has already opened six Nykd stores in cities like Bengaluru, Delhi, Chennai, Hyderabad, and Mysore. Nykaa’s success in the category can be attributed to its combination of appealing designs, affordable price points, and user-friendly tutorials, which it has previously used effectively in the beauty retail space. Nykd has achieved annual sales of Rs. 85 crore within just three years of its launch.
Reliance Retail’s Blush Lace stores will not only offer lingerie but also women’s accessories, beauty and skincare products, loungewear, shapewear, and sleep essentials. While Reliance Retail’s existing innerwear brands will be part of the Blush Lace catalogue, the company may introduce additional brands in the future to attract more customers.
For Nykaa, Nykd, along with another owned brand called 20 Dresses, will remain major focus areas as the company expands its operations in the innerwear market.
Overall, the rivalry between Reliance Retail and Nykaa is intensifying as they compete for market share in various categories, including women’s innerwear. Both companies are leveraging their strengths and strategies to tap into the growing organised segment of the market.
