VH Innerwear’s goal is to continue delivering innovative products that meet evolving consumer needs while maintaining the high standards of quality and style that define the brand…
In an era where lifestyles are continuously evolving, where comfort, quality and sustainability are at the forefront of consumer minds, being innovatively fashion forward is everything. In such times, and driven by the aforementioned factors, the innerwear fashion category has evolved from being a basic necessity to a booming industry.
With increasing consumer awareness of body positivity and self-care, innerwear is now seen as an essential part of personal style, blending functionality with fashion. Brands are competing to offer a diverse range of products that cater to different body types, preferences, and sustainability concerns. One innovative brand, which has pioneered the redefinition of category codes in the mid premium innerwear segment is Van Heusen Innerwear & Athleisure.
Capturing the Innerwear Market
Launched in the year 2016, VH Innerwear & Athleisure is built on the pillars of innovation, performance, sophistication and fashion. It offers a wide range of styles across innerwear, athleisure, activewear and loungewear catering to the ever-evolving lifestyles of new age consumers.
“When we analysed the innerwear category, we observed that many international and Indian brands, particularly in the mid-premium space, have struggled over the past two decades. A deep dive into the key success factors revealed the necessity for a focused and dedicated product development engine, coupled with strong distribution expertise in the multi-brand space – something that couldn’t be effectively achieved through a typical brand extension approach. This insight led us to create a separate entity for innerwear, allowing us to better serve the market with specialised products and strategies,” says Puneet Kumar Malik, CEO – Innerwear Business, Aditya Birla Fashion and Retail Ltd.
Malik explains that in 2015-16, when Van Heusen decided to launch its innerwear range, the men’s innerwear market was dominated by economy players, while in the mid premium segment there was only one market leader with no other brands emerging or competing in the space.
“Most brands offered undifferentiated products, leaving significant room for innovation that could address consumer pain points. Additionally, India was rapidly transitioning towards aspirational brands at that time. We saw an opportunity to enter this category with one of our established aspirational brands, leveraging product innovation to create a winning proposition,” he says.
We introduced men’s innerwear in FY17, followed by women’s innerwear in FY20. Inspired by the positive response from our consumers, we further expanded our offerings to include athleisure, activewear, loungewear, socks, and thermals,” Malik adds.
And despite being a relatively new brand, VH Innerwear managed to successfully capture a significant share of the market, becoming a significant No. 2 player in the mid premium space. The brand’s focus on innovation, quality, and consumer-centric products has enabled it to grow and build a strong consumer base.
A Cut Above the Rest
Further building brand loyalty are the dual principles of innovative yet comfortable fashion and keeping the consumer at the centre product philosophy.
“Before entering the category, we conducted extensive research on the market, category, and consumers to identify white spaces and specific consumer pain points. Every product we launched was designed with innovations that addressed these unmet needs at compelling prices,” says Malik.
He cites the example of the introduction of the brand’s innovative Anti-Bacterial Men’s innerwear in 2016. “This collection took the industry by storm, prompting other players to follow suit. Similarly, for women, we were the first to launch bras with breathable cups, no-slip straps, and no-dig wires, offering maximum comfort for long days. These differentiated products at competitive prices helped us stand out in a crowded market and created strong consumer traction.”
Since then, the brand has diversified into Athleisure, Activewear, Loungewear, Thermal Wear, and Sleepwear categories for both men and women. It has recently expanded its offerings to include kidswear, further broadening reach. The brand also sees a significant potential in integrating other adjacent categories such as shapewear and enhanced sleepwear into their portfolio.
Operational Challenges
This is not to say that VH Innerwear hasn’t dealt with its fair share of challenges. In a sector largely overrun with unorganised players, Van Heusen worked hard to create a strong equity, offering high-quality products at compelling prices.
“Most unorganised players are unable to match the quality, consistency, and aspirational value that we as a brand provide. Consumers are willing to pay a small premium for superior products from a trusted brand, as long as they have easy access to them. In this market, distribution and consistent product availability are key drivers of success,” Malik explains.
As of now, VH Innerwear’s highest-performing markets are primarily the metros, where it has a strong and loyal customer base. This target audience consists of urban men and women aged 22 to 45, primarily from the NCCS A income group. The brand’s focus is young, discerning Indians who seek a blend of quality, aspiration, and fashion within the mid-premium segment, a demographic which values both style and substance, making them ideal customers for our innovative and high-quality product offerings.
Following closely are the tier 1 and tier 2 cities, where it has seen robust growth. Additionally, the brand has established a strong presence in several states, including Uttar Pradesh, Kerala, and Gujarat.
“This widespread success reflects our ability to appeal to diverse demographics and adapt to the varying needs of the Indian market,” says Malik.
Leveraging Technology to Increase Reach
To increase its presence in untapped markets, VH is focused on strengthening its distribution network and expanding its retail footprint in promising regions. Leveraging e-commerce platforms such as Amazon and Myntra has also significantly broadened its reach and visibility across key markets.
“E-commerce is a crucial and rapidly growing channel for us. We leverage online platforms to ensure our presence in areas where we don’t have physical stores. Currently, we rank among the top 2-5 brands across all major e-commerce platforms in our operating categories. This strong online presence allows us to reach customers effectively and maintain a significant market share even in regions without physical stores,” Malik explains.
The brand also has its own robust e-commerce platform. For online shopping, VH Innerwear utilises advanced technology to assist customers in finding the right size.
“On our ABFRL superapp, we offer an AI-powered Fit Expert that provides real-time size recommendations based on user inputs. This innovative tool helps ensure a more accurate fit and enhances the overall online shopping experience, making it easier for customers to select the correct sizes with confidence,” Malik says.
Expansion Plans
Over the next two years, Van Heusen plan to expand its innerwear category by adding between 50 and 100 new stores. The exact number will, however, depend on market conditions and the pace of market uptake.
“We currently operate over 200 exclusive stores, have a presence in more than 35,000 trade outlets, and are featured in nearly all major department stores and e-commerce platforms. Our current focus is on deepening our retail network in key cities to enhance our market presence. Additionally, expanding our distribution network remains an ongoing priority, ensuring that we continue to grow and reach new customers effectively,” Malik explains.
He adds that while the men’s innerwear category generates more revenue overall, this is primarily because VH launched the women’s line two years after the men’s. “Despite this, the women’s innerwear segment performs nearly as strongly in our retail stores, rapidly catching up and contributing significantly to our sales,” he says.
VH Innerwear anticipates that its ARR will grow at a rate surpassing the market average in the mid-premium space over the next two years. “Our focus is on reinforcing our position as a leading player, maintaining our status as the significant No 2 in the segment. This growth strategy reflects our commitment to expanding our market presence and driving sustained revenue increases,” he concludes.
