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Consumer Discretionary
In recent years, the Indian economy has faced numerous challenges, from inflationary pressures to global economic downturns. One often-overlooked indicator of economic health is the sales of men's underwear, famously dubbed the "men's underwear index" by former US Federal Reserve Chairman Alan Greenspan. This index suggests that during economic downturns, men tend to delay purchasing new underwear, making it a potential bellwether for broader consumer spending trends. As men's underwear sales in India have shown signs of decline, it raises questions about whether the Indian economy should prepare for a potential economic jolt.
The concept of the men's underwear index is based on the idea that men's underwear is a discretionary yet essential item. When economic conditions tighten, men often put off buying new underwear, reflecting reduced consumer confidence and spending. This index has been used as a humorous yet insightful tool to gauge economic sentiment.
Recent data indicates that the Indian underwear market, including men's underwear, has experienced fluctuations. While the overall underwear market has shown growth, driven largely by women's lingerie and premium products, men's underwear sales have been slower to recover. Companies like Page Industries, which owns the Jockey brand in India, have reported mixed results, with some quarters showing growth but others indicating stagnation.
Several factors contribute to the current state of men's underwear sales in India:
The Indian economy is diverse and resilient, with various sectors contributing to its growth. While falling men's underwear sales might not directly indicate a severe economic downturn, they do reflect broader consumer behavior and spending patterns.
In contrast to men's underwear, the women's lingerie market in India is thriving. The market was valued at USD 5.4 billion in 2024 and is expected to grow significantly, driven by increased awareness, higher disposable incomes, and the influence of celebrity endorsements[3][5]. This growth highlights the shift towards premium and branded products, as well as the impact of e-commerce on expanding market reach.
While falling men's underwear sales might not be a definitive indicator of an economic downturn, they do reflect consumer sentiment and spending habits. The Indian economy is showing signs of recovery, with positive macroeconomic indicators and growth in other consumer sectors. However, businesses should remain vigilant and adapt to changing consumer preferences and economic conditions.
As the Indian economy continues to evolve, companies in the underwear sector must focus on innovation, digital expansion, and meeting changing consumer demands. The contrast between men's underwear and the thriving lingerie market highlights the importance of understanding specific market trends and consumer behavior.
