HOW “VISION OF FRUGALITY” WILL BE HELPFUL IN

COPING WITH ECONOMIC SLOWDOWN

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 Men’s underwear Industry
- Men’s underwear industry has hit a low in sales due to financial slowdown in the country. A slowdown in briefs can be revealing, according to Alan Greenspan. Innerwear sales
growth fell sharply in the June quarter, demonstrating the relevance of the so-called ‘men’s underwear index,’ as Indian consumers struggled to stretch budgets to cover
discretionary spending. Conceived by former US Federal Reserve Board chairman Greenspan in the late 1970s, the index suggests that declines in the sale of men’s underwear
indicate a poor overall state of the economy. Quarterly performance at the top four listed innerwear firms were the weakest in a decade. Sales of Page Industries, which sells the
Jockey brand of innerwear, grew 2%, its slowest expansion since 2008. That of Dollar Industries 4.69 % and VIP Clothing 3.15 % declined 4% and 20%, respectively. Lux Industries’
sales were flat.

- “BRIEF” solutions to the existing problem

1. Personal hygiene awareness camps can be done in tier 2 and tier 3 cities where people are not willing to spend much on quality undergarments, holding a camp will just cost few
thousands per camp and will increase the sales in that region. Given all the offline marketing needs the campaign will cost around rupees 10,000 per city. Sometimes fear work as
a factor in marketing and if people are told about the harmful impact of low quality undergarments on health it will act as a driving force in sales. These campaings should also run
on social media parallel to the offline campaign.

2. Discounts on pack of multiple undergarments, for example 3+1 on briefs, so that instead of purchasing a single piece of undergarment people will opt to get 4 if given a little
discount. The extra cost will just be production cost of 1 brief.

3. Companies like Jockey should also launch low price products as India is a price sensitive market and in time of economic slowdown people don’t spend much on essentials. As it is
said “In good times, people buy inessentials and more of the essentials, while in bad times they postpone buying inessentials and limit their purchases of essentials”. Lower the
quality to lower the price.

4. Giving Loyalty bonus to customers when someone buys the product again within a given period of time, let’s say 2 month. A minimum discount of like 50 rupees will drive that
person to purchase a new product every 2 months.