With swiftly growing revenue, Clovia looks at leading the lingerie market in India

India’s lingerie market is worth Rs 18,000 crore and will be at Rs 58,556.4 crore by 2020. The current market is still so nascent that the top 10 brands put together are not even targetting 8 percent of the overall market, Pankaj Vermani, founder and CEO, Clovia in a conversation with Moneycontrol.

Here are edited excerpts from the conversation:

Q. By the end of this FY, Clovia will have generated around 20 percent of its revenue from offline channels. This number was almost negligible a year ago. Give us a year-on-year number comparison to understand how Clovia has been performing.

A. We launched our offline stores almost a year ago and saw phenomenal traction from an age group and audience which was complementary to that of the online channel. We now have nine exclusive brand outlets and 60-plus multi-brand outlets, including a chain retail. These numbers will triple over the next two quarters as the business from this channel is growing profitably and is registering a strong repeat purchase trend. Each outlet that we have opened, has turned profitable within 30-45 days.

We use smart technology and big data analytics to plan consumption and purchase patterns. Our product designs are based on consumer feedback. We create over 200 fresh styles in lingerie every month and none of our inventory is more than 45 days old.

Also, using technology for a geographical understanding of trends, we’re bringing structure to a traditionally unorganized market. Clovia’s revenue grew from Rs 39 crore in FY17 to Rs 52 crore in FY18 while improving our bottom line.

Q. What is the market size of women’s lingerie in India and what is your market share?

A. Lingerie, for the longest time, was a staple product with hardly any innovation. Last few years have seen an unprecedented growth in awareness – both from sizing/hygiene as well as fashion perspective. India’s lingerie market is Rs 18,000 crore and will be Rs 58,556.4 crore by 2020. The current market is still so nascent that the top 10 brands put together are not even addressing 8 percent of the overall market.

There have been phases of the apparel industry in this country that have changed the way we dress up, and now we believe is the time for lingerie. Clovia, we believe, is the front-runner in capturing the customer mindshare.

We are currently predominantly online, but will soon be present in all channels that work with our customer feedback driven philosophy. We have reached the same revenue numbers in 18 months which most of the 20-year-old brands took 8 to 9 years to reach. Today we are operationally profitable in all our sales channels post-marketing.

Q. How much has the spending on lingerie gone up in the last few years – particularly after people’s exposure to international brands.

A. India is going through a phase change when it comes to the lingerie sector. The overall affinity for brands is fast increasing, and more so towards fast fashion. Media awareness towards fashion and health is driving the customers to demand more. There have been considerable improvements in the lingerie market in recent years in terms of choice and availability, both online and offline.

The lingerie marketplace has gained momentum because of two things – an increase in working women, and an increase in disposable income Both these parameters have resulted in an increase in customer spending, leading to the marketplace becoming profitable.

With the rise in working women, their preferences have changed and they have found a way to pamper themselves.

Q. Nowadays, customers don’t mind spending as much money on lingerie as they would on a dress; would you plan to commence a luxury line?

A. Clovia stands for comfort with fashion. We have product lines targetting audiences with different purchasing capabilities. In addition, you will see a lot more action in the coming months with the participation from Bollywood as well as the country’s top designers in brand Clovia.

Q. You have almost revolutionized the lingerie market in India by taking it online – what’s next from the house of Clovia?

A. Our team at Clovia has a solution-based approach to designing lingerie. Lately, we had introduced super hit solutions like 'period panties’ or 'designer-back bras’ or ‘step-out-effortlessly loungewear’. Our team keeps in constant touch with our customers and will keep launching solutions for our customers, who now have fast evolving wardrobes.