The landscape of the innerwear market today, with its mix of traditional and innovative brands, contrasts sharply with its state in 2001 when Dana-co first emerged. This evolution reflects a shift in consumer priorities, now favoring body positivity over sexualized advertising.
Zvi Etrel, President and CEO of Dana-co, a company that designs, imports, and markets high-end women’s intimate apparel and lingerie including brands like Natori, Oh La La Cherie, and Skarlett Blue, has observed numerous challenges faced by brands in the intimates sector. These range from reduced spending during economic downturns to changes in consumer behavior and generational tastes. Etrel emphasizes the necessity of adapting to changing circumstances, citing the 2008 recession and the pandemic as critical moments for the industry.
Recent years have seen the intimates market fluctuating, with only minor increases or decreases in sales. Etrel noted that although Dana-co was growing, it was often at the expense of competitors, signaling a stagnant overall industry. This realization led to the pursuit of innovative strategies, despite inherent limitations.
The pandemic marked a significant shift in the industry, with a focus on specialty items like sports bras, bralettes, and sexy lingerie. This trend was followed by a demand for everyday essentials as consumers resumed work and travel. Post-pandemic, the industry experienced notable growth, continuing for about three years.
This period of growth also saw the entrance of new, disruptive brands into the market. While these brands gained attention on social media, Etrel observed that they struggled in the current economic climate. He pointed out that during the surge in basic item purchases, consumers often bought in bulk, reducing their immediate need for further purchases. Furthermore, the innovations marketed by these new brands, such as extended sizes and color ranges, were already being offered by established brands.
Dana-co, in response to these market challenges, continues to seek innovative ways to engage consumers and remain flexible. This includes exploring related markets like swimwear and sleepwear. In 2021, Natori expanded into medical scrubs, and Dana-co announced plans to take Natori Intimates and Skarlett Blue to international markets.
Additionally, Dana-co is actively looking to acquire new brands. Etrel seeks brands with meaningful representation, potential for growth, and long-term viability, focusing on those with a promising five-year outlook.
