The competition between two prominent retailers in India, Reliance Retail and Nykaa, is expanding across various product categories. Reliance Retail recently entered the beauty retail space with Tira, an online and offline beauty destination, as a response to Nykaa’s dominance. Now, Nykaa is setting its sights on the women’s innerwear market, a segment that accounts for around 60-70% of the $6 billion market in India and is primarily unorganized. The organized portion, which includes both online and offline brands, is growing at a rate of 15-20% annually, making it an attractive opportunity for retailers. Read More Business News on our website.
Reliance Retail Face Off Against Nykaa In The Innerwear Market
Reliance Retail already has a strong presence in the innerwear market with six brands in its portfolio. These include their private label Hush, which is sold through Reliance Trends, as well as acquired digital brands like Clovia, Zivame, and Amante. They have also established partnerships with international brands such as Marks & Spencer and Hunkemoller. However, Reliance Retail lacks dedicated retail stores for innerwear, and to address this gap, they are reportedly piloting a new retail format called Blush Lace.
These stores will cater to the mass market, including tier II and III cities, and are expected to be formally launched in the coming months. Blush Lace aims to become a comprehensive destination for innerwear, offering not only lingerie but also women’s accessories, beauty and skincare products, loungewear, shapewear, and sleep essentials.
Meanwhile, Nykaa has been making steady progress in the innerwear market with its in-house brand, Nykd. They have opened six Nykd stores in cities like Bengaluru, Delhi, Chennai, Hyderabad, and Mysore. Nykd has gained traction by offering appealing designs, affordable prices, and user-friendly tutorials, leveraging strategies that have proven successful in the beauty retail sector. Within three years of its launch, Nykd has achieved annual sales of ₹85 crore ($11.4 million), and Nykaa plans to expand its operations further as the category continues to grow.
While a significant portion of the innerwear market in India remains fragmented, the entry of national and international brands, along with increased consumer awareness and disposable incomes, has spurred growth. Online players have also contributed to the development of the organized market, and most brands adopt an omni-channel approach to reach consumers. Both Reliance Retail and Nykaa recognize the potential in this market and are actively working to capture a larger share. Blush Lace will incorporate Reliance Retail’s existing innerwear brands and may introduce additional brands in the future, while Nykaa will focus on Nykd and another owned brand called 20 Dresses.