Despite hard times, U.S. Consumers splurge on the Sexy Things in Life.

Economic pressures on consumers lately are not expected to impact the fashionable intimate apparel industry. According to Packaged Facts’ U.S. Market for Intimate Apparel, the market is appealing to retailers because it has higher profit margins than regular apparel, drives store traffic and boosts customer loyalty. In 2007, Packaged Facts estimates the lingerie market rang up nearly $10 billion in sales.

While the market grew modestly between 2002 and 2007, it seems that women’s intimate apparel has found a hot spot. Sexy/fantasy/trashy lingerie has seen significant growth in small, specialty lingerie companies that link their undergarments with accessories, novelties and adult toys. Escalation in sales of these foxy garments can be attributed to the Internet, which has helped small start-up companies flourish.

Full-figured lingerie is another key factor in the intimate apparel market. With the expansion in the women’s plus-size clothing market (which generates $22 billion in annual sales) comes lingerie that fits the full-figured woman. In 2007, intimate apparel sales accounted for more than 10% of all plus-size apparel and that number is expected to increase.
“In the battle for tightly held consumer dollars, size is no longer enough,” notes Cathy Minkler, Editor of Packaged Facts. “Players in the apparel industry will need innovation and original business models to stay in fashion.”

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