"As a commodity, underwear was always less affected by economic fluctuations and was traditionally more stable in terms of both volume and value. This stability appears to be on the wane, and underwear has become part of a much more volatile retail market."

Extract from this report

Sales of underwear in 1999 accounted for around 13% of consumer expenditure on clothing, with the spend on women's underwear rising by 18% since 1994. Underwear has ceased to be regarded as purely a commodity and has become integrated into the fashion world. With men's underwear increasingly composed of designer labels, the nature of underwear retailing is polarising, with a distinct difference in approach between 'value-for-money' retailers and fashion retailers. The market has been characterised by fierce price discounting, with the consumer often willing to wait for the next cut-price sales, and men's underwear has tended to show a stronger bias towards to value for money than women's. Despite gallant efforts by some specialist underwear and hosiery chains in the 1990s, retailing remains very much in the hands of the largest retail chains, yet with the increase in single person households likely to transform underwear buying patterns, can stores such as supermarkets cash in on the consumer with less time on their hands? As underwear becomes increasingly fashion-dictated, what are the opportunities for new fabrics and fibres?

· Underwear has ceased to be regarded as purely a commodity and has become part of fashion.

· Are different living patterns changing the nature of who buys the family underwear?

· Do future opportunities lie in fabric and fibre as opposed to styling and design?

With mail order a growing medium, can new forms of retailing - such as the Internet - command a market share and appeal to younger consumers? This report analyses the retail market for men's, women's and children's underwear. Underwear Retailing looks at the spending bias of the increasingly sophisticated shopper and considers market size and trends during a fierce retail war, asking consumers about their preference for comfort or style and how much they are prepared to pay for the underwear they want. This report also discovers where people shop and what different types of apparel customers want. Underwear Retailing looks at the differentiation between fashion retailers and value-for-money retailers, highlighting the distribution mix, and profiles leading retailers and appraises market share. In assessing the pressure on prices, this report determines how the sector can compete against other commodities for the consumer's disposable income and analyses the remaining UK manufacturing base.

Other Mintel reports of relevance include:

- Stockings and Tights, Market Intelligence, January 2000

- Bras and Pants, Market Intelligence, November 1999

- Menswear Retailing, Retail Intelligence, April 1999

- Womenswear Retailing, Retail Intelligence, March 1999

- Children's Clothing Retailing, Retail Intelligence, January 1999

- Men's Underwear, Market Intelligence, April 1998.