Market Insights: Panties and Underwear Bottoms
Transcription
Market Insights: Panties and Underwear Bottoms
NPD Fashionworld® Market Insights: Panties and Underwear Bottoms February 2005 Table of Contents Market Insights: Panties and Underwear Bottoms 2004 Page Background & Methodology 4 Executive Summary 5 Men’s/Boys’ Underwear Bottoms Market Overview • Market Performance • Wal-Mart Underwear Bottoms Gap Analysis • Channel Trends - Stores Shopped for Underwear Bottoms 9 Category Dynamics • Consumer Attitudes Toward Shopping For Underwear Bottoms • Fabric Preference • Packaging Preference - ‘Single Pairs Vs. Packages’ • Underwear Bottoms Purchase Frequency 18 Aided Brand Awareness • Top Brands for Men’s Underwear Bottoms • Top Brands for Boys’ Underwear Bottoms 31 Key Insights about Underwear Bottom Styles • Styles Purchased in Past 3 Months/Styles Ever Worn • Colors Worn by Style • Preferred Styles Worn by Activity/Occasion 34 Future Purchase Plans for Underwear Bottom Styles and Colors 42 Women’s/Girls’ Panties Market Overview • Market Performance • Wal-Mart Panties Gap Analysis • Channel Trends - Stores Shopped for Panties 48 Category Dynamics • Consumer Attitudes Toward Shopping For Panties • Fabric Preference • Packaging Preference - ‘Single Pairs Vs. Packages’ • Panties Purchase Frequency 2 57 Table of Contents Market Insights: Panties and Underwear Bottoms 2004 Page Women’s/Girls’ Panties, Continued Aided Brand Awareness • Top Brands for Women’s Panties • Top Brands for Girls’ Panties 73 Key Insights about Panties Styles • Styles Purchased in Past 3 Months/Styles Ever Worn • Colors Worn by Style • Preferred Styles Worn by Activity/Occasion 76 Future Purchase Plans for Panty Styles and Colors 84 Appendices A. Questionnaire B. About The NPD Group and NPDFashionworld 90 109 3 Background & Methodology Market Insights: Panties and Underwear Bottoms 2004 Background Even though the economy is supposedly rebounding, consumers remain faced with uncertain employment options, increasing advertising and marketing pressures, and the growing dominance of “big box” retailers selling everything from tires to toothpaste and underwear to umbrellas. To help manufacturers and retailers keep pace with ever-changing consumer behaviors and attitudes, NPD Fashionworld has updated its annual NPD Market Insights: Panties and Underwear Bottoms report. While the scope of this report offers consumer feedback for the entire panties and underwear bottoms category, special emphasis has been placed on mass merchants, and Wal-Mart specifically, to give readers a sense of what’s driving this critical sector of the marketplace. About NPD Market Insights: Panties and Underwear Bottoms This study was conducted via the World Wide Web November 16 to December 1, 2004. The survey was administered to a random sample of self-reported underwear and panty purchasers who were pre-identified from the NPD Fashionworld apparel industry tracking service. Panel members were asked to visit the NPD Online Research survey site in order to complete and submit the survey about underwear/panties. Respondents were initially asked to indicate who in their household, including themselves, they had purchased underwear or panties for in the past four months (from July 2004 through October 2004). For the remainder of the survey, respondents answered questions thinking about their underwear bottom or panty purchases (depending the wearer’s gender) for either themselves, their spouse, a child under age 13 in their household or a child/other family member age 13+. A total of 10,000 e-mails were sent to target panelists. A total return of 3,428 completed surveys was received . As an incentive to complete this survey, ten drawings for $100 were included. Ending sample sizes by age and gender of the wearer are as follows: Gender of Wearer Male Underwear Female Bottoms Panties Total 995 2,433 Age of Wearer Under 18 18-24 25-34 35-44 45-54 55+ 207 52 124 207 246 159 261 331 507 489 555 290 4 Executive Summary Market Insights: Panties and Underwear Bottoms 2004 Men’s and Boys’ Underwear Bottoms - Key Findings Sales of male underwear bottoms have grown slightly in the 12 month period ending September 2004 with an increase of 2% overall to $2.4 billion. This growth is driven by the men’s segment showing a 3% growth, while boys are declining by 3% versus year ago. Within mass merchants, underwear bottoms sales were down, primarily driven by the men’s market which experienced a decline in sales of 9% to $791 million. Retailers Shopped Wal-Mart continues to dominate the men’s/boys’ underwear bottoms market. Six in ten consumers reported they buy “some” or “most” of their underwear at Wal-Mart. Wal-Mart also remains most appealing to younger underwear wearers. Kmart continues to decline in reported underwear purchasing over the past year. Twenty-three percent of consumers reported buying “some” or “most” underwear bottoms at Kmart versus 28% in 2003 and 35% in 2002. Underwear Bottom Styles Briefs remained the dominant style worn by men in 2004 with consumers reporting that almost half (49%) of the underwear bottoms owned consist of this basic style. However, it’s all about boxer briefs this year. This style has now caught-up with traditional boxers in 2004, with each style having a 23% share of underwear bottoms owned. In addition, 46% of purchasers of boxer briefs report this style as being worn “more often” compared to one year ago, which suggests that this style is still on the rise. •Boxer briefs gain across all age segments under 55, and this is mainly at the expense of boxers. While consumers are still interested in trying something new, they were less likely to cite preference for low-rise/bikinis in 2004. Four in ten buyers reported the style as being worn “less often” than last year. Underwear Bottom Colors Similar to last year, underwear bottom colors worn depend largely on the selected style worn. Solid white continues to be a leading color worn, driven primarily by the high ownership of briefs among males. Among those who indicated purchasing brief style underwear bottoms, three in four cite “white” as the color worn in this style. 5 Executive Summary Market Insights: Panties and Underwear Bottoms 2004 Men’s and Boys’ Underwear Bottoms - Key Findings (Continued) Comfort Still Counts Comfort remains top priority within men’s and boys’ underwear bottoms. Almost nine in ten (86%) consumers agreed strongly or somewhat with the statement “comfort is more important than fashion when buying underwear bottoms.” Underwear Bottom Brands National brands continue to dominate men’s and boys’ underwear bottoms with designer and private label brands generally garnering “second tier” levels of aided recognition relative to the national branded players. However, many of the national brands have seen slight declines in overall recognition levels versus last year, while brands like Old Navy, Eddie Bauer and Faded Glory experienced increases in their awareness levels. Despite the slight increases in awareness, these brands failed to move up in the overall awareness rankings. •Hanes and Fruit of the Loom remain the most recognized brands in men’s and boys’ underwear with over seven in ten consumers aware of each of these brands. •Private label brands and designer labels have higher recognition among consumers buying for younger men (age 18-24). •Some new character licenses were added to this year’s study, and several of these are in the Top 10 for aided brand awareness of boys’ underwear bottoms – Bob the Builder (40%), Spiderman (40%), SpongeBob (39%), and Batman (36%) are more known than some of the Top 10 brands from 2003, such as Underoos, Disney, and JC Penney. Future Purchase Plans Underwear bottom purchasing over the near future is likely to remain steady. Over half of buyers surveyed say they plan to purchase underwear in the next three months, which is similar to levels reported in 2002 and 2003. Briefs are expected to remain the dominating style with a 45% reported share of consumers’ next ten underwear bottom purchases. Boxer briefs follow with a 26% share of next ten purchases, edging out boxers for the second position. Solid white, followed by solid color, remains the color most likely to be purchased next time based on reported share of next ten purchases of underwear bottoms. 6 Executive Summary Market Insights: Panties and Underwear Bottoms 2004 Women’s and Girls’ Panties - Key Findings The female panties market reached $3.1 billion in 2004 - a 10% increase from the same time period in 2003. The $2.9 billion women’s panty business was up 10%, while the girls’ business was up 5% to $225 million. While total female panty sales were up, the category is declining by 3% within mass merchants to $840 million. Similar to 2002 and 2003, over half of panty buyers surveyed say they purchased the “usual amount” of panties for the wearer in the past three months. Almost one in three indicate that they purchased “more than usual.” Momentum appears to be shifting versus the same time period last year within some age segments as fewer panties buyers in the under 18 year-old age segment reported that they bought “more than usual” in the target time period in 2004 versus 2003 (31% in 2004 versus 36% in 2002). Conversely, buyers for wearers 18-24 filled in this gap, with 34% buying “more than usual” in the 2004 time period versus 27% in 2003. The overall number of pairs reported has remained constant, with an average of 21 pairs of panties in women’s drawers in both 2003 and 2004. Panty ownership is highest within the 18-24 age segment; however, there was a dip from 2003 to 2004. This dip in ownership for this segment, while at the same time stating that they are purchasing more pairs of panties than last year, could represent replacement rather than the stocking-up that was seen in 2003. Retailers Shopped As seen in 2002 and 2003, consumers are more likely to say they buy “some” or “most” of their panties at Wal-Mart than at any other retailer - about six in ten women overall. By age, however, 18-24 and 55+ are a harder audience for Wal-Mart to attract. Similar to the trend seen among men’s/boys’ underwear bottoms, Kmart has experienced a decline in reported panty purchasing over the past year. Twenty-two percent of consumers reported that they buy “some” or “most” panties at Kmart versus 27% in 2003 and 34% in 2002. Panty Styles Briefs remain the top panty style worn with 56% of panty buyers citing the style as “ever worn.” However, boy briefs and low rise/hipsters gained momentum this year. Boy briefs experienced the strongest gain with 25% of panty buyers citing the style as “ever worn” versus 19% in 2003. Low rise/hipster style was cited by 36% of panty buyers compared to 31% last year. In addition, purchasing of both styles has increased, with a 6% upswing in purchasing of low rise/hipsters from 2003 to 2004, and a similar increase of 5% for boy briefs in the same time period. Panty Colors Regardless of the panty style, most women wear solid colors. As seen last year, however, panty colors owned do vary depending on the age of the wearer. Girls (under age 18) own a greater volume of patterns/designs, while solid colors fill the drawers of 18-44 year-olds. As women age, they tend to own more solid white panties. 7 Executive Summary Market Insights: Panties and Underwear Bottoms 2004 Women’s and Girls’ Panties - Key Findings (Continued) Comfort and Fashion Overall, women’s/girls’ panty buyers place a higher priority on comfort than fashion - over three in four (78%) consumers agree strongly or somewhat with the statement “comfort is more important than fashion when buying panties.” Women won’t give up comfort for fashion, instead looking for brands and styles that offer both, as 79% agree strongly or somewhat that “some styles of panties offer both fashion and comfort.” The importance of fashion is further demonstrated by the finding that just over six in ten women (61%) age 13+ coordinate their bras and panties, and just as many (62%) coordinate the color of their bra and panty with the color of their outfit/outerwear. This is not just a teen phenomenon as one might think. The trend leans more towards women 18-34 (70%); however, over half of women age 45+ (55%) are coordinating their bras and panties. Older women (age 55+), who coordinate their bras and panties, report doing so more frequently than their younger counterparts. However, this could be, in part, due to older women being more likely to wear solid white intimate apparel. •Among those coordinating their bras and panties, 35% of panty buyers for women age 55+ claim the wearer coordinates her bra and panties five or more days per week compared to 21% of those buying for a female age 18-54. Panty Brands Recognition levels for women’s panties brands have remained fairly consistent with levels reported last year. Most brands are within two or three percent of last year’s reported awareness levels. National players, Hanes and Fruit of the Loom, are #1 and #3, respectively, while the specialty brand, Victoria’s Secret, comes in at #2 in aided brand awareness. While 2003 saw some increases for girls’ panties among smaller players, 2004 saw a dip for several brands within the Top 20. These brands include Carters (-6 pts.), Jockey (-8 pts.) Simply Basic (-8 pts.), Underoos (-7 pts.), and Looney Tunes (-11 pts.). Hanes, the #1 brand in terms of awareness within girls’ panties, saw aided awareness drop nine percentage points versus 2003. This represents a total drop of 16 percentage points since 2002. Even with the decline in recognition, however, Hanes remains atop the rankings within girls’ panties, followed by Fruit of the Loom. Future Purchase Plans Just under two in three buyers surveyed indicate that they have plans to purchase panties in the next three months, which is a slight decrease versus one year ago. Briefs are expected to remain the dominating style, driven by wearers under age 18 and those age 55+. Thongs are also expected to continue strong momentum among wearers age 18-24, representing 29% of reported next ten purchases among this age group. Solid color panties and those with patterns/designs increased in future purchase interest among younger age segments, while white continues to dominate older age segments. 8 Men’s/Boys’ Underwear Bottoms Market Overview Market Insights: Panties and Underwear Bottoms 2004 9 Market Overview Market Insights: Panties and Underwear Bottoms 2004 For the purposes of this report, Boys are defined as males age 4-12 and Men as males age 13+. Underwear Bottoms Performance in the Total Market by Segment (Millions of Dollars) 2,500 2,000 In 2004, the male underwear category grew by 2% versus year ago. This growth was driven by men’s underwear (+3%), offsetting the declines in boys’ (-3%.) 1,994 2043 1,805 1,500 The growth in the men’s underwear category was driven by Specialty Stores. Direct Mail and Factory Outlets also contributed to the increases versus year ago. 1,000 500 341 333 323 0 Men's 12 Mths End Sept 2002 12 Mths End Sept 2004 Boys' 12 Mths End Sept 2003 Source: NPDFashionworld Consumer Estimates Underwear Bottoms Performance in Mass Merchants by Segment In mass merchants, male underwear bottoms were down by 9% from 2003 to 2004. This decline was due to losses in both the men’s (-9%) and boys’ (-8%) underwear categories. (Millions of Dollars) 1000 870 800 791 791 600 400 217 199 200 183 0 Men's 12 Mths End Sept 2002 12 Mths End Sept 2004 Boys' 12 Mths End Sept 2003 Source: NPDFashionworld Consumer Estimates 10 Market Overview Market Insights: Panties and Underwear Bottoms 2004 As part of the Market Insights: Panties and Underwear Bottoms report, the following index analysis of Wal-Mart versus the total mass market and the total underwear market was conducted. This index uncovers areas of opportunity in gender mix, product mix, style mix and demographic profile mix for both underwear manufacturers’ and retailers’ consideration. For the purposes of this report, Boys are defined as males age 4-12 and Men as males age 13+. Wal-Mart Underwear Bottoms Index 12 Months Ending September 2004 (100=baseline) Wal-Mart Vs. Total Mass Wal-Mart Vs. Market Total Market Overall Bottoms Mix (As a % of total Underw ear Mix) Total Men’s and Boys’ Unit Share 104 106 Dollar Share 102 103 100 96 100 115 99 93 103 143 108 123 Boxers 85 83 Boxer Briefs 105 102 Bikini/Lo Rise/Other 116 88 Gender Mix Unit Share Men’s Boys’ Dollar Share Men’s Boys’ Style Mix Dollar Share Briefs For unit share, Wal-Mart is slightly overdeveloped in male underwear bottoms relative to the total underwear mix. When comparing the gender mix in WalMart with the total market, men’s underwear bottoms mix is slightly underdeveloped while the boys’ mix is overdeveloped, especially in terms of dollar share. Wal-Mart is overdeveloped in the Briefs category when compared to the total market. There may be an opportunity for growth with Boxers. Source: NPDFashionworld Consumer Estimates Note: Male Underwear Mix Defined as Underwear Tops, Underwear Bottoms, and Thermals 11 Market Overview Market Insights: Panties and Underwear Bottoms 2004 For the purposes of this report, Boys are defined as males age 4-12 and Men as males age 13+. Wal-Mart Underwear Bottoms Index 12 Months Ending September 2004 Dollar Share (100=baseline) Wal-Mart Vs. Total Mass Wal-Mart Vs. Market Total Market Pack Count Men's Underwear Bottoms 1 Pack 2 Pack 3 Pack 4 Pack 5 Pack 6 Pack 7+ Pack 58 76 106 107 114 122 126 27 75 120 167 183 162 159 Boys' Underwear Bottoms 1 Pack 2 Pack 3 Pack 4 Pack 5 Pack 6 Pack 7+ Pack 69 64 97 103 117 131 108 29 44 102 100 123 176 146 When comparing Wal-Mart’s men’s underwear bottoms mix against the total market and total mass market, Wal-Mart is overdeveloped in the larger pack counts, while underdeveloped in the 1 and 2 pack counts. The boys’ underwear bottoms category is a similar situation, underdeveloped in 1 and 2 packs while overdeveloped in larger pack counts. Wal-Mart Vs. Total Mass Wal-Mart Vs. Market Total Market Brand Type Mix Men's Underwear Bottoms National Brands Private Label Boys' Underwear Bottoms National Brands Private Label 110 65 100 103 152 47 Men’s underwear bottoms in Wal-Mart, when compared to the total market, is overdeveloped in the national brand programs while underdeveloped in private label. Boys’ national brand underwear bottoms mix is on par with the total mass market but overdeveloped when compared to the total market. 127 44 Source: NPDFashionworld Consumer Estimates 12 Market Overview Market Insights: Panties and Underwear Bottoms 2004 For the purposes of this report, Boys are defined as males age 4-12 and Men as males age 13+. Wal-Mart Underwear Bottoms Index 12 Months Ending September 2004 Dollar Share (100=baseline) Wal-Mart Underwear Vs. Wal-Mart Underwear Wal-Mart Tops Apparel Age of Buyer 13-24 25-34 35-44 45-54 55-64 65+ 100 86 102 104 103 91 103 100 Household Income Under $25,000 89 $25,000-$49,999 103 $50,000-$74,999 105 $75,000+ Source: NPDFashionworld Consumer 110 Estimates 100 88 141 112 88 80 77 100 105 107 96 90 13 Within the 25-34 age group, male underwear bottoms are overdeveloped when compared to male underwear tops. Among Wal-Mart consumers with incomes less than $25,000, male underwear bottoms are slightly underdeveloped when compared to total apparel. Market Overview Market Insights: Panties and Underwear Bottoms 2004 Analyzing Market Insights: Men’s/Boys’ Underwear Bottoms For this section of the Market Insights: Men’s/Boys’ Underwear Bottoms report, keep in mind that the sample is based on 995 NPD Fashionworld survey respondents. Any reference to percentage of respondents should be analyzed based on this sample and not the entire underwear bottoms marketplace. 14 Market Overview Market Insights: Panties and Underwear Bottoms 2004 Wal-Mart continues to dominate men/boys underwear purchases Wal-Mart continues to dominate the underwear category among the big three mass retailers. Nearly six in ten of men’s/boy’s underwear buyers reported making ‘some’ or ‘most’ of their underwear purchases at Wal-Mart compared to 23% at Kmart and 35% at Target. Over 2004, Kmart once again experienced a significant decline in underwear purchasing, slipping 4 percentage points from 2003. 100 Purchase Some or Most of Underwear Bottoms at Retailer - 2004 Vs. 2003 and 2002 (% of Buyers) 80 63 60 59 60 33 34 35 35 40 28 24 22 23 14 15 20 0 Wal-Mart Km art Target 2002 2003 JCPenney Kohl's 2004 Note: JC Penney and Kohl’s not available for 2002 Source: Market Insights: Underwear Bottoms 2004, 2003 and 2002 The 18-24 age group is the largest segment of underwear purchasers among all mass retail chains. While Wal-Mart continues to maintain leading market share positions among all age groups, Target is significantly improving its appeal within the 18-24 age group; its purchase incidence among this group of underwear shoppers jumped ten percentage points from 2003. 100 60 Purchase Some or Most of Underwear Bottoms at Retailer - 2004 By age of underwear wearer (% of Buyers) 76 80 59 58 50 54 57 50 49 43 36 35 40 23 28 30 27 21 20 23 22 22 19 22 27 19 19 22 22 25 15 15 20 12 17 18 14 0 Wal-Mart Km art Total Under 18 Target 18-24* 25-34 JCPenney 35-44 45-54 *Small base: 52 respondents Source: Market Insights: Underwear Bottoms 2004 15 Kohl's 55+ 9 Market Overview Market Insights: Panties and Underwear Bottoms 2004 Wal-Mart continues to have the most purchasers of other merchandise 64% of those buying underwear at Wal-Mart report also purchasing other items at Wal-Mart in the past 12 months. Overall, additional purchases are becoming less frequent for mass retailers compared to 2003 and 2002. Purchased Items Other Than Underwear Bottoms at Retailer in Past 12 Months - 2004 Vs. 2003 and. 2002 (% of Buyers) 100 80 74 66 64 60 54 50 46 45 36 40 32 29 29 22 24 20 0 Wal-Mart Km art Target 2002 2003 JCPenney Kohl's 2004 Note: JC Penney and Kohl’s not available for 2002 Source: Market Insights: Underwear Bottoms 2004, 2003 and 2002 What additional items are underwear shoppers purchasing at these retailers? Those who buy underwear at the big 3 mass retailers most often shop for other apparel items, groceries, toys and automotive supplies. At national chains, underwear purchasers are likely to buy other apparel items; 76% of JC Penney and 84% of Kohl’s underwear shoppers report purchasing apparel other than underwear. Items Purchased at Retailer - 2004 (% of Buyers) Base: Automotive Supplies Cosmetics Hardware Jewelry Toys Apparel Items (Other Than Underwear Or Panties) Groceries/Food Items Pet Food Lawn Supplies Wal-Mart Kmart (640) (291) 52 21 33 13 41 17 13 5 49 31 65 76 48 34 49 29 15 16 Target (445) 15 22 14 6 39 JCPenney Kohl's (293) (237) 1 0 4 4 1 1 9 20 3 14 63 38 17 14 Source: Market Insights: Underwear Bottoms 2004 16 76 0 0 1 84 0 0 1 Market Overview Market Insights: Panties and Underwear Bottoms 2004 Reasons for not purchasing men’s/boys’ underwear bottoms at mass Respondents who report purchasing “none” of their underwear bottoms at Wal-Mart, Kmart or Target cited “inconvenient to home or work,” “don’t purchase any apparel there” and “just don’t like the store/shopping experience” as their most common reasons for shopping elsewhere. Those who report buying no underwear at Wal-Mart say the retailer “doesn’t have the brands I prefer” while “inconvenience to home or work” is more likely to be cited as a reason for not shopping at Kmart and Target. In addition, non-buyers at Wal-Mart and Kmart are more likely to say they “just don’t like the store/shopping experience” as compared to non-buyers at Target. Reasons for Not Purchasing Underwear Bottoms at Retailer - 2004 (% of Buyers) Wal-Mart Kmart (412) (764) Base: Target (647) Don’t have the styles I prefer 15 9 8 Don’t have the brands I prefer 26 15 14 Price is too low-I question the quality 6 3 1 Is not convenient to my home or work 21 40 37 Don’t purchase any apparel there 24 24 21 Don’t have the variety I look for 10 7 6 Underwear is not appropriate 1 1 0 Underwear department is too cluttered 6 5 2 Underwear department layout is too confusing 4 2 1 Wouldn’t want my friends/family to know I buy underwear there 5 2 1 Underwear is not fashionable enough 5 3 2 Lack of privacy while shopping there 4 2 1 Just don't like the store/shopping experience 26 26 10 Underwear is not sexy enough 6 3 2 Source: Market Insights: Underwear Bottoms 2004 17 Category Dynamics Market Insights: Panties and Underwear Bottoms 2004 18 Category Dynamics Market Insights: Panties and Underwear Bottoms 2004 Comfort still on top for male underwear bottoms purchasers Overall, most men’s/boys’ underwear buyers agree that comfort is more important than fashion when buying underwear bottoms, with 86% strongly or somewhat agreeing with this statement. The Kohl’s underwear shopper shows the most variability when compared to the other shopper groups. •Most likely to agree that fashion and comfort in underwear can go hand-in-hand (77%) •Least likely to agree that males just grab whatever is on top of his underwear drawer (48%) •Most likely to have more colored underwear bottoms than he used to (53%) 19 Category Dynamics Market Insights: Panties and Underwear Bottoms 2004 Attitudes Toward Shopping for Underwear Bottoms % of Buyers Agreeing Strongly or Somewhat with Statement 86 88 88 85 87 82 Comfort Is More Important Than Fashion When Buy ing Underw ear For {Male} 66 65 62 72 69 Some Sty les Of Underw ear Offer Both Fashion And Comfort 77 64 69 69 70 64 71 Price Is A Very Important Factor When Buy ing Underw ear Bottoms 55 {Male} Just Grabs Whatev er Is On The Top Of His Draw er When Choosing What Underw ear To Wear 53 48 53 53 55 60 56 56 {Male} Ow ns More Underw ear Than He Used To 48 50 48 48 47 51 I Buy More Multi-Packs Of Underw ear Bottoms/Panties For {Male} Than I Used To So I Don't Need To Shop For Underw ear As Often 42 43 {Male} Has More Colored Underw ear Bottoms In His Wardrobe Than He Used To 48 47 49 53 37 38 36 40 43 45 {Male} Has More Variety Of Underw ear Sty les In His Wardrobe Than He Used To 25 22 23 28 29 30 The Ty pe Of Underw ear {Male} Wears Depends On The Sty le Clothing He Will Be Wearing The Ty pe Of Underw ear {Male} Wears Depends On The Activ ity Or 8 Occasion 8 7 7 I Buy More Indiv idual Pairs Of Underw ear For {Male} Than I Used To 11 10 12 12 13 10 12 10 0 Total 60 61 60 Wal-Mart 20 40 Kmart 60 Target Source: Market Insights: Underwear Bottoms 2004 20 80 JCPenney 100 Kohl's Category Dynamics Market Insights: Panties and Underwear Bottoms 2004 Do consumers’ attitudes differ depending on the age of the underwear bottoms wearer? Though comfort is most important to underwear shoppers for all age groups, it is most important for male wearers age 45+. Conversely, consumers who shop for a wearer under age 45 are more likely to agree that “some styles of underwear bottoms offer both fashion and comfort.” Purchasers for boys under age 18 remain more price sensitive, with more than three in four purchasers agreeing that “price is a very important factor when buying underwear bottoms.” 71% of buyers for 18-24 year-olds claim the wearer “owns more underwear than he used to,” which is significantly higher than that reported among other wearer age segments. Attitudes Toward Shopping for Underwear Bottoms % of Buyers Agreeing Strongly or Somewhat with Statement 73 81 85 83 Comfort Is More Important Than Fashion When Buy ing Underw ear For {Male} Some Sty les Of Underw ear Bottoms/Panties Offer Both Fashion And Comfort 61 48 Price Is A Very Important Factor When Buy ing Underw ear {Male} Just Grabs Whatev er Is On The Top Of His Draw er When 51 50 Choosing What Underw ear To Wear 59 60 56 57 60 63 53 {Male} Ow ns More Underw ear Than He Used To 48 47 46 50 47 44 53 47 47 48 48 49 I Buy More Multi-Packs Of Underw ear For {Male} Than I Used To So I Don't Need To Shop For Underw ear As Often {Male} Has More Colored Underw ear In His Wardrobe Than He Used To 36 28 31 20 17 The Ty pe Of Underw ear {Male} Wears Depends On The Sty le Clothing He Will Be Wearing 26 11 3 The Ty pe Of Underw ear {Male} Wears Depends On The Activ ity Or Occasion 17 12 12 5 8 I Buy More Indiv idual Pairs Of Underw ear For {Male} Than I Used To 3 5 9 0 Under 18 15 18-24* 21 77 60 57 61 71 35 37 34 22 19 20 Source: Market Insights: Underwear Bottoms 2004 *Small base: 52 respondents 71 68 90 93 44 46 44 41 {Male} Has More Variety Of Underw ear Sty les In His Wardrobe Than He Used To 72 73 73 72 40 25-34 60 35-44 80 45-54 100 55+ Category Dynamics Market Insights: Panties and Underwear Bottoms 2004 Males prefer 100% cotton underwear 100% cotton continues to be the fabric of choice among men’s/boys’ underwear bottoms buyers, as 74% of respondents reported 100% cotton as the wearer’s preferred underwear fabric. •The youngest (under 18) and oldest (55+) segment wearers are slightly more likely than other wearers to also like cotton/polyester blend. Underwear Bottoms Fabric Preference - 2004 Vs. 2003 and 2002 (% of Buyers) 100 80 76 77 74 60 40 15 20 16 14 6 6 0 100% Cotton Cotton/Polyester Blend 2002 2003 Cotton With Spandex Or Lycra Blend 2004 Source: Market Insights: Underwear Bottoms 2004, 2003 and 2002 Underwear Bottoms Fabric Preference - 2004 (% of Buyers) Age of Wearer 18-24* 25-34 35-44 45-54 Total <18 100% Cotton 74 73 58 76 72 76 75 100% Polyester 1 - 4 1 1 - 1 Cotton/Polyester Blend 16 21 15 12 15 14 19 Cotton With Spandex or Lycra Blend 6 5 17 6 7 5 3 100% Nylon 1 1 - - - 2 1 Nylon With Spandex or Lycra Blend 2 - 4 4 2 2 1 Microfiber 1 1 2 2 3 1 - Source: Market Insights: Underwear Bottoms 2004 *Small base: 52 respondents 22 55+ Category Dynamics Market Insights: Panties and Underwear Bottoms 2004 Most underwear purchased is contained in packaging 90% of underwear bottoms purchased are contained in packaging. •This percentage increases with age, with wearers 45+ having the highest percentage contained in packaging. •Though minimal, wearers age 18-44 have the highest share of underwear purchased hanging on hangars. Share of Underwear Bottoms Purchased in Each Package Type (% of Underwear Bottoms) Total 8 90 2 Under 18 6 92 2 Hanging on hangars Contained in packaging 18-24* 12 81 7 25-34 12 83 5 35-44 11 Folded on tables 45-54 1 93 6 55+ 3 0% 1 88 1 96 20% 40% 60% Source: Market Insights: Underwear Bottoms 2004 *Small base: 52 respondents 23 80% 100% Category Dynamics Market Insights: Panties and Underwear Bottoms 2004 Most purchasers also prefer underwear contained in packaging Again, almost all purchasers prefer underwear contained in packaging, regardless of age of wearer or retailer shopped. •Though being contained in packages is preferred, purchasers for wearers age 18-44 are more likely to choose alternatives than some of their other counterparts. •JC Penney shoppers are not as fond of underwear contained in packaging as other retailer shoppers are. For those preferring underwear contained in packaging, 3 pairs is the magic number – almost half of all purchasers preferring this packaging would like it to contain 3 pairs. Underwear Bottoms Packaging Preference (% of Buyers) Age of Wearer Total <18 18-24* 25-34 35-44 45-54 55+ Hanging on Hangars Purchase Underwear At WalMart Kmart Target JCP Kohl's 7 14 11 11 7 2 18 7 8 8 12 8 Contained in Packaging 91 92 77 85 89 93 97 92 91 92 86 91 1 pair 4 0 10 10 8 3 3 0 1 2 2 3 2 pairs 7 3 8 11 7 8 9 5 5 4 6 7 3 pairs 47 46 45 46 40 50 55 41 38 47 59 61 4 pairs 12 11 18 16 14 11 9 16 16 17 10 8 5 pairs 4 4 5 4 4 4 1 5 4 4 1 3 6 pairs 18 26 10 11 20 16 16 23 26 17 17 12 7 pairs 2 0 0 3 3 3 5 3 4 4 2 5 8+ pairs 5 5 4 5 5 3 18 7 5 4 3 2 2 2 10 4 0 1 1 1 2 1 2 1 Folded on Tables Source: Market Insights: Underwear Bottoms 2004 *Small base: 52 respondents 24 Category Dynamics Market Insights: Panties and Underwear Bottoms 2004 Consumers continue to replenish their underwear drawers As was the case last year, 44% of buyers report purchasing four to six pairs of underwear bottoms during the 2004 survey recall period. # of Pairs of Underwear Bottoms Purchased - 2004 Vs. 2003 and 2002 (% of Buyers) 34 36 36 1-3 Pairs 44 44 4-6 Pairs 41 10 9 7-9 Pairs 12 12 12 11 10+ Pairs 0 20 40 2004 2003 60 2002 Source: Market Insights: Underwear Bottoms 2004, 2003 and 2002 On average, underwear buyers purchased 5.38 pairs of underwear bottoms during the survey period in 2004. Shoppers for wearers age 35+ purchased more pairs of underwear per wearer during this timeframe than the younger age segments. # of Pairs of Underwear Bottoms Purchased - Recall Period 2004 (% of Buyers) Age of Wearer <18 18-24* 25-34 35-44 45-54 55+ Purchase Underwear At WalMart Kmart Target JCP Kohl's 1-3 Pairs 39 46 50 30 26 28 32 31 39 35 41 4-6 Pairs 40 37 40 52 42 49 46 45 40 42 39 7-9 Pairs 10 10 2 9 17 8 11 10 10 11 10 10+ Pairs 12 8 8 11 17 16 12 16 12 14 10 5.28 4.29 4.19 5.32 6.05 5.86 5.38 5.70 5.22 Mean# Source: Market Insights: Underwear Bottoms 2004 *Small base: 52 respondents 25 5.50 5.10 Category Dynamics Market Insights: Panties and Underwear Bottoms 2004 Although there has been a slight increase since 2002 in the percentage of underwear shoppers who report buying underwear “more often,” the majority (72%) of respondents still say they are buying underwear at about the same rate in 2004 as they did in previous years. Frequency of Purchasing Underwear Bottoms for Wearer - 2004 Vs. 2003 and 2002 (% of Buyers) 2004 20 2003 18 2002 16 0% 8 72 7 74 9 75 20% 40% More often 60% Less often 80% 100% About the same rate Source: Market Insights: Underwear Bottoms 2004, 2003 and 2002 Compared to other age groups, respondents who shop for younger wearers were more likely to report buying underwear more often than previous years, with one in four shoppers for wearers aged 18-24 and 29% of shoppers in the <18 segment saying they bought underwear more frequently in 2004. Frequency of Purchasing Underwear Bottoms for Wearer (% of Buyers) <18 Age of Wearer 18-24* 25-34 35-44 45-54 55+ More often 29 25 22 23 13 10 Less often 5 12 12 5 9 10 66 64 66 72 79 80 About the same rate Source: Market Insights: Underwear Bottoms 2004 *Small base: 52 respondents 26 Category Dynamics Market Insights: Panties and Underwear Bottoms 2004 Similar to 2003, most respondents say they purchased the “usual amount” of underwear bottoms for the wearer during the 2004 survey period. Three in ten say that they purchased more than usual for the reported wearer. • Consistent with last year’s findings, those who bought more underwear than their usual amount say they did so because “it was a good deal.” Statement Best Describing Amount of Underwear Bottoms Purchased for Wearer (% of Buyers) Age of Wearer 25-34 35-44 Total <18 18-24* 45-54 55+ Bought The Usual Amount (NET) 55 61 53 54 67 61 64 Bought Fewer Than Usual (NET) 15 10 18 16 17 11 9 He Already Owned Enough 8 6 8 10 10 7 4 Spent Money On Other Items 3 2 4 4 2 2 1 Didn't Like The Selection Offered 4 1 5 1 4 2 1 Not A Special Deal 3 2 3 2 6 2 3 31 29 31 32 17 29 27 It Was A Good Deal 18 16 18 11 12 12 16 Found A New Product He Liked 8 6 9 6 6 5 7 He/She Didn't Own Enough 10 11 10 17 6 13 8 Bought More Than Usual (NET) Source: Market Insights: Underwear Bottoms 2004 *Small base: 52 respondents 27 Category Dynamics Market Insights: Panties and Underwear Bottoms 2004 Overall, most consumers reported buying the same amount of underwear per shopping occasion as compared to 2003 and 2002. Amount of Underwear Bottoms Purchasing Per Shopping Occasion - 2004 Vs. 2003 and. 2002 (% of Buyers) 2004 15 10 76 2003 14 9 77 2002 13 11 77 0% 20% 40% 60% Buying more Buying few er 80% 100% Buying same amount Source: Market Insights: Underwear Bottoms 2004, 2003 and 2002 Compared to the younger age groups, consumers buying for underwear wearers age 55+ are more likely to report buying the same amount of underwear per shopping trip. Conversely, buyers shopping for ages <18 are more likely to be buying more underwear on each shopping occasion. Shoppers for wearers 18-24 years old were the most likely to report buying fewer pairs during each purchase compared to previous years. Amount of Underwear Bottoms Purchasing Per Shopping Occasion (% of Buyers) Age of Wearer 18-24* 25-34 35-44 45-54 <18 55+ Buying more 19 10 15 16 13 12 Buying fewer 8 17 12 9 10 8 73 73 73 74 77 81 Buying same amount Source: Market Insights: Underwear Bottoms 2004 *Small base: 52 respondents 28 Category Dynamics Market Insights: Panties and Underwear Bottoms 2004 Reasons for buying more When consumers were asked why they are currently buying more underwear than in the past, 3 in 10 cited that their wearer changed size. This was the highest indicator for 2004, and it will be an interesting element to watch over time. Similar to 2003 and 2002, other important stimuli for increased purchases are that the wearer enjoys trying new/different products and lower prices. Reasons for Buying More Underwear Than in Past - 2004 Vs. 2003 and 2002 (% of Buyers) 30 *Changed Size 25 Like To Try New/Dif f erent Products 29 Prices Are Lower Than Bef ore 18 18 17 To Sav e Time 16 17 Buy ing For Dif f erent Occasions Or Moods 15 Buy ing In A Larger Pack Size (More In The Bag) 22 22 22 19 18 19 22 22 None Of These 0 10 20 2004 34 2003 26 30 40 2002 Source: Market Insights: Underwear Bottoms 2004, 2003 and 2002 *Changed Size not asked 2003 or 2002 29 Category Dynamics Market Insights: Panties and Underwear Bottoms 2004 Underwear Drawers Remain Steady at 16 Pairs. Across all age segments, average underwear ownership among men has remained constant since 2002. By age, there has been a steady increase in ownership for wearers 55+, while wearers under 18 maintain the smallest quantities. Mean # Pairs of Underwear Bottoms Owned by Wearer Age Segment 19 20 18 17 16 1616 16 18 18 17 17 18 17 17 17 16 16 16 15 13 12 12 10 5 0 Total Under 18 18-24* 25-34 2002 35-44 2003 45-54 55+ 2004 Source: Market Insights: Underwear Bottoms 2004, 2003 and 2002 On average, shoppers at Kohl’s, JC Penney, and Kmart report owning more pairs of underwear than consumers who purchase some or most of their underwear at Wal-Mart. Mean # Pairs of Underwear Bottoms Owned by Retailer Shopped 20 16 16 16 16 17 17 17 16 16 16 18 18 17 17 16 15 15 10 5 0 Total Wal-Mart 2002 2004 Kmart 2003 Target JCPenney Kohl's Source: Market Insights: Underwear Bottoms 2004, 2003 and 2002 30 Brand Awareness Market Insights: Panties and Underwear Bottoms 2004 31 Aided Awareness - Top 20 Men’s Underwear Brands Market Insights: Panties and Underwear Bottoms 2004 Hanes and Fruit of the Loom remain the top recognized brands for men’s underwear. Fruit of the Loom moves up into the #1 spot as the most recognized brand of men’s underwear with a 72% aided awareness level, while Hanes ranks #2 with slightly lower awareness (71%). Since 2003, awareness of FOTL has risen by one percentage point while Hanes recognition has slipped 2 percentage points. Tied for #3 in the rankings, Jockey and Calvin Klein shared an aided awareness of 58% in 2004. Although aided awareness remains at 55% for the brand, Fruit of the Loom’s BVD brand dropped one spot in the rankings for the second year in a row. Since its launch at Kmart in 2002, Joe Boxer has remained steady at #6 with nearly half of men’s underwear buyers aware of the brand. Comparing awareness among age groups, the awareness of designer brands Polo/ Ralph Lauren and Tommy Hilfiger is largely driven by those shopping for males age 18-34. Similarly, aided awareness of vertical specialty brands Old Navy and Gap is also higher among these shoppers. Aided Brand Awareness - Men’s Underwear Bottoms Brand Rank: (% of Buyers) 2002 1 2003 2 2004 1 2 1 3 Fruit Of The Loom 72 2 Hanes 71 3 3 Jockey 58 5 5 3 Calvin Klein 58 3 4 5 BVD 6 6 6 Joe Boxer 7 7 7 Tommy Hilfiger 8 9 8 Polo/Ralph Lauren na 7 9 JCPenney Brand na 10 10 Sears Brand na na 11 Dockers 25 10 11 11 Old Navy 25 11 12 13 Eddie Bauer 22 11 15 13 Gap 22 16 13 13 Champion 22 na 14 16 Lands' End na na 17 Basic Editions 16 na na 17 Perry Ellis 16 22 16 19 Cherokee 15 11 16 20 Munsingw ear 14 55 49 34 32 31 27 19 na = Not asked in 2002 32 Aided Awareness - Top 20 Boys’ Underwear Brands Market Insights: Panties and Underwear Bottoms 2004 As awareness of Fruit of the Loom for boys’ underwear slipped 3 percentage points to 70% for 2004, Hanes remained steady at 73%, moving into the top spot in brand awareness among shoppers of boys’ underwear. At 48%, aided awareness of BVD climbed 5 percentage points in 2004, though the brand still remains a distant third behind Hanes and FOTL. Joe Boxer and Jockey round out the top 5 with more than four in ten underwear shoppers aware of the brands. Looking at licensed underwear featuring Bob the Builder, Spiderman , Spongebob and Batman, the aided awareness of these popular characters rank in the top 10 among boys’ underwear shoppers. Three to four out of ten consumers surveyed are aware of these licensed brands. Aided Brand Awareness - Boys’ Underwear Bottoms Brand Rank: (% of Buyers) 2002 2 2003 2 2004 1 1 1 2 Fruit Of The Loom 3 4 3 BVD 6 3 4 Joe Boxer 4 5 5 Jockey na na 6 Bob The Builder 40 na na 7 Spiderman 40 na na 8 Spongebob 8 8 9 Calvin Klein 37 na na 9 Batman 36 5 6 11 Underoos 31 na na 12 Hulk 31 10 11 13 Carters 30 7 7 13 Disney 30 na 9 15 JCPenney Brand 30 na na 15 Basic Editions 28 9 9 17 Looney Tunes 28 na 15 17 Sears Brand 28 na na 19 Hot Wheels 27 11 13 20 Old Navy 27 Hanes 73 70 48 44 41 39 na = Not asked in previous year 33 Underwear Bottoms Styles - Key Insights Market Insights: Panties and Underwear Bottoms 2004 34 Underwear Bottoms Styles - Key Insights Market Insights: Panties and Underwear Bottoms 2004 Boxers, Briefs and Boxer Briefs Boxer briefs continue to gain popularity, with ownership of the style growing in every age segment except 55+. Comprising 38% of their underwear drawers, wearers age 25-34 report owning more boxer briefs than any other style. Briefs are still the most widely owned underwear style overall, with the greatest popularity among wearers younger than 18 and older than 45. In the 18-24 segment, boxers remain the most prevalent style, although the share has shifted towards boxer briefs since 2003. % Share of Underwear Bottom Styles Owned By Wearer Age - 2004 100 12 19 23 27 28 22 38 80 22 16 26 23 60 6 18 1 9 6 50 8 27 40 6 55 49 46 5 20 53 61 30 18 0 Total <18 Briefs 18-24* 25-34 Bikini/Lowrise 35-44 Boxer 45-54 55+ Boxer Brief % Share of Underwear Bottom Styles Owned By Wearer Age - 2003 100 18 13 19 14 80 17 26 31 24 0 60 15 25 26 20 8 6 61 59 45-54 55+ 33 6 62 7 6 40 50 56 3 20 44 35 16 0 Total <18 18-24 25-34 35-44 Source: Market Insights: Underwear Bottoms 2004 and 2003 *Small base: 52 respondents 35 Underwear Bottoms Styles - Key Insights Market Insights: Panties and Underwear Bottoms 2004 Underwear bottom colors owned remain tied to style Compared to 2003, men have not added or lost any color in their underwear wardrobe. Notably, when underwear is compared across age groups, the share of colors owned strongly coincides with style preference. Age segments owning more briefs are more likely to own white underwear while boxer-wearing 18-24 year-old wearers own more underwear featuring patterns and designs. The 25-34 age group who own the most boxer briefs also have more solid colors in their underwear drawer. Character underwear bottoms remain most popular among wearers younger than 18. 100 80 7 % Share of Underwear Bottom Colors Owned By Wearer Age - 2004 1 1 3 4 6 20 25 18 23 14 41 33 60 24 16 23 35 31 44 22 40 38 20 44 42 52 60 30 30 16 0 Total <18 Solid White 100 80 18-24* 25-34 Solid Color 35-44 Patterns/Designs 55+ Character % Share of Underwear Bottom Colors Owned By Wearer Age - 2003 2 0 1 7 4 8 15 15 18 25 28 20 42 60 45-54 29 28 25 33 23 44 40 20 20 32 56 60 45-54 55+ 45 43 30 29 20 0 Total <18 18-24 25-34 35-44 Source: Market Insights: Underwear Bottoms 2004 and 2003 *Small base: 52 respondents 36 Underwear Bottoms Styles - Key Insights Market Insights: Panties and Underwear Bottoms 2004 Since 2002, briefs have remained the most popular style, as the number of men wearing the style has hovered steadily around two in three wearers. In 2004, boxers are still the second favorite underwear style, worn by just under half of all men. Not surprisingly, as ownership of boxer briefs has grown over the past few years, more men are citing boxer briefs as a style worn than in 2003 and 2002. As they have continued to grow in popularity over recent years, the incidence of men wearing boxer briefs has moved within two percentage points of those wearing boxers. •Wearers age 45-54 have the greatest increase in having ever worn boxer briefs, up 14 percentage points from 27% in 2003 to 41% in 2004 Underwear Bottom Styles Ever Worn (% of Buyers) 67 68 66 Briefs 17 17 15 Bikini/Low rise 45 48 47 Boxer 43 Boxer Brief 39 38 0 20 40 60 2004 2003 80 100 2002 Source: Market Insights: Underwear Bottoms 2004, 2003 and 2002 Underwear Bottom Styles Ever Worn (% of Buyers) <18 Briefs Age of Wearer 18-24* 25-34 35-44 45-54 55+ 69 40 55 72 73 69 6 19 24 26 19 13 Boxer 47 85 59 44 35 34 Boxer Brief 38 52 68 51 41 20 Bikini/Lowrise Source: Market Insights: Underwear Bottoms 2004 *Small base: 52 respondents 37 Underwear Bottoms Styles - Key Insights Market Insights: Panties and Underwear Bottoms 2004 Boxer brief trend continues to pick up momentum. Further evidence that boxer briefs are still gaining popularity, 46% of respondents who reported ever wearing boxer briefs also say they are currently wearing the style more often than a year ago. With 62% of wearers reporting that they wear briefs with “about the same” frequency as the previous year, briefs remain the most steadily worn style. By contrast, only 34% of bikini/low rise wearers say they are wearing the style as often as they did last year, and four in ten wearers reporting that they are now wearing bikini/low rise styles less often. Compared to data collected in 2003, the percentage of wearers saying they currently wear boxers just as often as the previous year has slid by seven points to 45%. The remaining 55% of respondents who did report a change in how often they wear boxers are split nearly down the middle, with 27% of wearers saying they wear boxers less often and 28% wearing boxers more often than in 2003. Frequency of Wearing Underwear Bottom Style Compared to One Year Ago (% of Buyers) Bikini/Low rise 62 22 16 Briefs 0% 20% More often 36 18 46 Boxer Brief 45 27 28 Boxer 34 41 25 40% Less often 60% 80% About the same Source: Market Insights: Underwear Bottoms 2004 38 100% Underwear Bottoms Styles - Key Insights Market Insights: Panties and Underwear Bottoms 2004 Boxer briefs edge out boxers Since 2003, the percentage of underwear purchasers who bought boxers slid by two points compared to the purchase incidence of boxer briefs which increased by four percentage points. Boxer briefs are now being purchased by a higher percentage of underwear shoppers (31%) than are boxers (27%). Briefs are still the most commonly purchased style, with just over half of underwear purchasers buying the style. Only 8% of respondents reported buying bikini/low rise, placing the style in a distant fourth in terms of purchase incidence among underwear shoppers. Underwear Bottom Styles Purchased - 2004 Vs. 2003 and 2002 (% of Buyers) 51 52 51 Briefs 8 7 8 Bikini/Low rise 27 29 29 Boxer 31 Boxer Brief 27 25 0 20 40 60 2004 2003 80 100 2002 Source: Market Insights: Underwear Bottoms 2004, 2003 and 2002 Underwear Bottom Styles Purchased 2004 (% of Buyers) <18 Briefs Age of Wearer 18-24* 25-34 35-44 45-54 55+ 54 25 35 50 56 59 2 8 13 11 9 6 Boxer 30 58 34 25 19 24 Boxer Brief 23 37 52 38 29 13 Bikini/Lowrise Source: Market Insights: Underwear Bottoms 2004 *Small base: 52 respondents 39 Underwear Bottoms Styles - Key Insights Market Insights: Panties and Underwear Bottoms 2004 Underwear colors/patterns vary by style worn. With three in four buyers of briefs wearing “white,” this color remains the color of choice among wearers of this style. Overall, purchasers of bikini/low rise and boxer briefs prefer solid colors, with seven in ten bikini/low rise purchasers and 78% of boxer brief purchasers wearing solid colors within these styles. Among those who indicated purchasing boxer style underwear bottoms, just over two-thirds cited a preference for patterns or designs. Underwear Bottom Colors Worn by Style (% of Buyers) 75 Briefs 36 12 11 25 75 Bikini/Low rise 35 2 16 44 Boxer 69 22 35 Boxer Brief 78 24 4 0 20 Solid White 40 Solid Color 60 Patterns or Designs 80 Character Source: Market Insights: Underwear Bottoms 2004 40 100 Underwear Bottoms Styles - Key Insights Market Insights: Panties and Underwear Bottoms 2004 Briefs are still considered the most versatile underwear style. Briefs continue to be perceived as the most versatile style of underwear. They are more likely than other styles to be considered appropriate to wear everyday, while exercising, with jeans, with dress clothes, with casual clothes and to work. Boxer briefs continue to gain acceptance, with 71% of underwear shoppers citing the style as appropriate for everyday wear. Comparatively, boxers have lost some appeal since the previous year, with only 62% of purchasers perceiving the boxers as an everyday style compared to 70% in 2003. For dates and intimate occasions, two-thirds of underwear shoppers prefer bikini/low rise styles. Underwear Bottom Styles Worn For Each Activity/Occasion (% of Buyers for Wearers Age 13+) 46 64 79 70 68 71 Briefs 55 72 To sleep in 26 39 Bikini/Low rise 45 44 Exercise/Work out 52 Wear everyday 50 67 37 With jeans 69 33 62 50 51 Boxer With dress clothes 52 49 With casual clothes Date/Intimate occasion 60 54 To w ork 64 71 68 66 68 62 69 Boxer Brief 0 20 40 60 80 Source: Market Insights: Underwear Bottoms 2004 41 100 Future Underwear Bottoms Purchase Plans Market Insights: Panties and Underwear Bottoms 2004 42 Future Underwear Bottoms Purchase Plans Market Insights: Panties and Underwear Bottoms 2004 Over half of underwear shoppers indicate plans to purchase underwear bottoms for their wearer sometime in the next three months; no change from 2003. • Purchasers for wearers 18-24 are most likely to purchase underwear during the next 3 months, followed by shoppers for 25-44 year-old wearers. Those who buy underwear for someone 45+ are least likely to make a purchase within the next three months. Plan to Purchase Underwear Bottoms in Next 3 Months By age of underwear wearer (% of Buyers) 80 64 65 60 60 54 53 53 62 61 61 61 60 56 53 53 53 53 47 42 45 47 42 40 20 0 Total Under 18 18-24* 25-34 2002 2003 35-44 45-54 2004 Source: Market Insights: Underwear Bottoms 2004, 2003 and 2002 43 55+ Future Underwear Bottoms Purchase Plans Market Insights: Panties and Underwear Bottoms 2004 Briefs are most likely to be the next underwear style purchased. Consumers expect briefs to comprise the dominant share of their next ten purchases of underwear. Collectively, respondents report that 45% of their next ten underwear purchases will be brief styles. Over the past year, the overall planned purchases of underwear has shifted slightly away from boxers in favor of boxer brief styles. With boxer briefs expected to account for 26% of shoppers’ next ten purchases, consumers’ future purchase intent of boxer briefs has strengthened by five percentage points since 2003. •Shoppers for wearers younger than 18 and 45+ are most likely to purchase briefs. •More than half of purchasers for 18-24 year-old wearers say they will buy boxers in the future while the 25-34 age bracket remains the most likely to purchase boxer briefs. % Share of Next 10 Purchases of Underwear Bottom Styles By Wearer Age - 2004 100 12 26 24 22 31 80 60 25 42 23 6 23 16 29 17 6 9 1 54 9 25 40 7 20 45 59 49 43 8 50 26 15 0 Total <18 Briefs 18-24* 25-34 Bikini/Lowrise 35-44 Boxer 45-54 55+ Boxer Brief % Share of Next 10 Purchases of Underwear Bottom Styles By Wearer Age - 2003 100 21 19 15 20 30 80 18 27 32 8 60 6 0 27 30 22 7 59 7 40 20 17 28 7 46 59 55 45-54 55+ 49 8 38 33 13 0 Total <18 18-24 25-34 35-44 Source: Market Insights: Underwear Bottoms 2004 and 2003 *Small base: 52 respondents 44 Future Underwear Bottoms Purchase Plans Market Insights: Panties and Underwear Bottoms 2004 Consumers who shop for underwear at Wal-Mart are most likely to report planning to purchase briefs in the future. Comparatively, shoppers at Target and Kmart are more likely to buy boxer briefs than shoppers at other stores. Target, Kohl’s and JC Penney shoppers are more likely to purchase boxers among their next ten purchases of underwear. % Share of Next 10 Purchases of Underwear Bottom Styles By Retailer - 2004 100 22 25 27 25 5 7 6 26 26 28 28 23 20 22 25 5 4 80 60 6 40 20 45 49 47 43 44 44 Total Wal-Mart Kmart Target JCPenney Kohl's Boxer Boxer Brief 0 Briefs Bikini/Lowrise % Share of Next 10 Purchases of Underwear Bottom Styles By Retailer - 2003 100 21 21 22 27 27 6 4 46 46 48 Total Wal-Mart Kmart 19 21 28 30 6 5 47 45 JCPenney Kohl's 24 80 60 27 29 5 5 40 20 42 0 Target Source: Market Insights: Underwear Bottoms 2004 and 2003 45 Future Underwear Bottoms Purchase Plans Market Insights: Panties and Underwear Bottoms 2004 Most likely colors to be purchased in the future Overall, the solid white remains the most popular color choice for underwear, expected by consumers to comprise four of their next ten purchases. Solid color continues to trail, capturing slightly more than onethird of shoppers’ future underwear purchases. •Purchasers for wearers younger than 18 are more likely to buy underwear featuring characters. The 18-24 age group, dominated by boxer wearers, are more likely to purchase patterns or designs in the future. •Shoppers for wearers older than 45 remain more likely to purchase white underwear bottoms, while the 25-44 year-old wearers prefer solid colors for their next purchases more than any other age group. 100 80 % Share of Next 10 Purchases of Underwear Bottom Colors By Wearer Age - 2004 1 1 3 4 7 7 13 16 20 24 22 20 38 60 37 25 25 41 35 46 40 25 39 58 49 20 39 37 29 26 16 0 Total <18 Solid white 100 80 18-24* 25-34 Solid color 35-44 Patterns or designs 45-54 Character % Share of Next 10 Purchases of Underwear Bottom Colors By Wearer Age - 2003 1 1 4 3 8 7 14 15 18 26 24 20 39 31 60 55+ 24 30 38 33 47 40 20 25 38 53 56 45-54 55+ 41 40 26 25 16 0 Total <18 18-24 25-34 35-44 Source: Market Insights: Underwear Bottoms 2004 and 2003 *Small base: 52 respondents 46 Future Underwear Bottoms Purchase Plans Market Insights: Panties and Underwear Bottoms 2004 Underwear buyers who shop at JC Penney remain more likely to purchase white underwear bottoms among their next ten purchases of underwear compared to shoppers at other retailers. Target and Kohl’s shoppers anticipate patterns and designs will account for just over two of their next ten underwear purchases. Customers who buy underwear at Target also plan to purchase more underwear bottoms featuring characters than members of other retailers’ shopping groups. % Share of Next 10 Purchases of Underwear Bottom Colors By Retailer - 2004 100 80 60 7 9 9 20 19 18 6 12 7 20 23 22 35 33 30 36 34 35 40 20 43 39 39 37 Total Wal-Mart Kmart 36 31 0 Solid white Solid color Target JCPenney Patterns or designs Kohl's Character % Share of Next 10 Purchases of Underwear Bottom Colors By Retailer - 2003 100 80 60 7 20 10 7 10 18 19 21 33 30 40 38 42 Total Wal-Mart Kmart 33 7 21 8 23 33 34 35 40 20 34 42 35 0 Target Source: Market Insights: Underwear Bottoms 2003 and 2002 47 JCPenney Kohl's Women’s/Girls’ Panties Market Overview Market Insights: Panties and Underwear Bottoms 2004 48 Market Overview Market Insights: Panties and Underwear Bottoms 2004 For the purposes of this report Girls are defined as females age 4-11 and Women as females age 12+. Panty Performance in the Total Market by Segment (Millions of Dollars) 3,500 When looking at the total market, sales for women’s panties are up 10% from 2003. Girls’ panties were up 5% compared to the prior year. 2896 3,000 2,630 2,500 2,393 2,000 1,500 This large growth in Women’s panties is driven mostly by National Chains and Specialty Stores, with Off Price and Factory Outlets also showing some growth. 1,000 500 233 225 214 0 Women's 12 Mths End Sept 2002 12 Mths End Sept 2004 Girls' 12 Mths End Sept 2003 Source: NPDFashionworld Consumer Estimates Panties Performance in Mass Merchants by Segment (Millions of Dollars) While the total panties market is increasing, women’s/girls’ panties performance in mass merchants declined by 3% from year ending September 2003 to 2004. 900 746 723 675 600 • Women’s panties were down 3% in 2004 from 2003. • Girls’ panties were down 3% versus last year. 300 140 121 117 0 Women's 12 Mths End Sept 2002 12Mths End Sept 2004 Girls' 12 Mths End Sept 2003 Source: NPDFashionworld Consumer Estimates 49 Market Overview Market Insights: Panties and Underwear Bottoms 2004 As part of the Market Insights: Panties and Underwear Bottoms report, the following analysis of WalMart versus the total mass market and the total panties market has been conducted. This index uncovers areas of opportunity in gender mix, product mix, style mix and demographic profile mix for both panty manufacturers’ and retailers’ consideration. For the purposes of this report Girls are defined as females age 4-11 and Women as females age 12+. Wal-Mart Panties Index 12 Months Ending September 2004 (100=baseline) Wal-Mart Vs. Total Mass Wal-Mart Vs. Total Market Market Overall Panties Mix (As a % of Total Intimates Mix) Total Women's and Girls' Unit Share 99 109 102 112 Gender Mix Unit Share Women's 102 94 Girls' 92 130 Dollar Share Women's 101 94 Girls' 94 181 106 157 High Cut Brief 105 106 Hipster 101 77 Bikini 88 90 Thong 90 48 Boy Short 102 71 Other Panty 121 100 Dollar Share Style Mix Dollar Share Full Cut Brief Source: NPDFashionworld Consumer Estimates 50 In comparison to the total mass market, Wal-Mart is on par with its panties product mix relative to total intimates, while slightly overdeveloped in panties when compared to the market as a whole. Compared to the total market, Wal-Mart is overdeveloped in the girls’ panties business. The largest opportunity for Wal-Mart seems to be in the Thong panty, were sales are underdeveloped when compared to the total market. Sales of Full Cut Briefs are much stronger in Wal-Mart compared to the market as a whole. Market Overview Market Insights: Panties and Underwear Bottoms 2004 For the purposes of this report Girls are defined as females age 4-11 and Women as females age 12+. Wal-Mart Panties Index 12 Months Ending September 2004 Dollar Share (100=baseline) Wal-Mart Vs. Total Mass Wal-Mart Vs. Market Total Market Pack Count Women's Panties 1 Pack 2 Pack 3 Pack 6 Pack 7 Pack 88 89 92 113 126 38 157 128 264 312 Girls' Panties 1 Pack 3 Pack 4 Pack 6 Pack 7 Pack 10 Pack 112 74 84 105 116 137 24 65 66 158 109 213 Wal-Mart is overdeveloped in the larger pack counts of women’s panties. There may be an opportunity for growth in 1packs when compared to the total market. A similar scenario exists for girls’ panties as well. Wal-Mart is overdeveloped in 6-packs but underdeveloped in 1-packs and 3packs. Wal-Mart Vs. Total Mass Wal-Mart Vs. Market Total Market Brand Type Mix Women's Panties National Brands Private Label 115 69 193 41 Girls' Panties National Brands Private Label 107 66 145 33 In both women’s and girls’ panties, WalMart is overdeveloped in National Brands. Private Label may offer opportunities for growth in Wal-Mart. Source: NPDFashionworld Consumer Estimates 51 Market Overview Market Insights: Panties and Underwear Bottoms 2004 For the purposes of this report Girls are defined as females age 4-11 and Women as females age 12+. Wal-Mart Panties Index 12 Months Ending September 2004 Dollar Share (100=baseline) Wal-Mart Panties Vs. Wal-Mart Wal-Mart Apparel Intimates Age of Buyer 13-24 25-34 35-44 45-54 55-64 65+ 100 113 104 89 92 98 134 100 108 105 95 97 95 107 Household Income Under $25,000 $25,000-$49,999 $50,000-$74,999 $75,000-$99,999 $100,000+ 100 118 96 97 80 90 100 100 99 104 88 107 Census Region New England Middle Atlantic E.N.Central W.N. Central S. Atlantic E.S. Central W.S. Central Mountain Pacific 100 93 99 99 102 107 108 91 103 95 100 95 103 97 98 109 99 95 100 94 When looking at key demographics of the Wal-Mart consumer, relatively few differences exist between the Wal-Mart panty consumer and the Wal-Mart apparel or intimate apparel consumer. Source: NPDFashionworld Consumer Estimates 52 Market Overview Market Insights: Panties and Underwear Bottoms 2004 Analyzing Market Insights: Women’s/Girls’ Panties (Market Insights) For this section of Market Insights: Women’s/Girls’ Panties, keep in mind that the sample is based on 2,433 NPD Fashionworld survey respondents. Any reference to percentage of respondents should be analyzed based on this sample and not the entire panties marketplace. 53 Market Overview Market Insights: Panties and Underwear Bottoms 2004 Purchasing at mass for women’s/girls’ panties Wal-Mart continues to lead the mass retailers in women’s/girls panty purchases. Overall, 59% of panty shoppers report purchasing “some” or “most” of their panties at Wal-Mart compared to 38% at Target and 22% and Kmart. Target, however, is the only mass retailer that has shown positive trend in the panty category since 2002--increasing purchase incidence by 4 percentage points over the time period. With JC Penney climbing three percentage points to 25% and Kohls moving up to 19%, the reported increase in purchase incidence among consumers indicates these national chains are gaining appeal among panty shoppers. 100 Purchase Some or Most of Panties at Retailer - 2004 Vs. 2003 and 2002 (% of Buyers) 76 80 66 63 61 59 60 38 34 36 34 40 27 22 22 25 17 19 20 0 0 Wal-Mart Km art Target 2002 Other Stores (Net) 2003 JCPenney Kohl's 2004 Note: JC Penney and Kohl’s not available for 2002 Source: Market Insights: Panties 2004, 2003 and 2002 Although the percentage of panties buyers who reported buying some or most of their underwear at WalMart only declined by 2% since 2003, the mass retailer has significantly lost its appeal among shoppers for the 55+ age group--the purchase incidence among these shoppers dropped 11 percentage points over the past year. Target continues to attract younger wearers with slight increases purchase incidence among all age segments 34 and under. 100 Purchase Some or Most of Panties at Retailer - 2004 By age of panties wearer (% of Buyers) 80 67 63 59 62 59 60 51 52 46 47 47 38 40 22 25 20 17 37 29 23 24 23 21 24 25 25 24 25 24 26 23 19 24 22 20 18 20 0 Wal-Mart Km art Total Under 18 Target 18-24* 25-34 JCPenney 35-44 Source: Market Insights: Panties 2004 54 45-54 Kohl's 55+ 13 Market Overview Market Insights: Panties and Underwear Bottoms 2004 Wal-Mart continues to drive more cross-purchasing among panty buyers 68% of women’s/girls’ panty buyers still report purchasing other items at Wal-Mart in the past 12 months. However, this is down twelve percentage points compared to 2002. At Wal-Mart and Kmart, purchases of additional items by women’s panties shoppers continue to be less frequent when compared to 2003 and 2002. Purchased Items Other Than Panties at Retailer in Past 12 Months - 2004 Vs. 2003 and 2002 (% of Buyers) 100 80 80 72 68 57 56 60 50 50 36 40 34 32 30 25 29 20 0 Wal-Mart Km art Target 2002 2003 JCPenney Kohl's 2004 Note: JC Penney and Kohl’s not available for 2002 Source: Market Insights: Panties 2004, 2003 and 2002 Among the mass retailers, panty buyers are most likely to be purchasers of other apparel items, cosmetics, and toys. Groceries/food items are also popular purchases, especially among Wal-Mart shoppers. At national chains JC Penney and Kohl’s, panty buyers were likely to purchase other apparel items and jewelry in addition to panties. For Wal-Mart, groceries has become a very important category, with these shoppers more likely to purchase groceries there than other apparel. Items Purchased at Retailer - 2004 (% of Buyers) Base: Automotive supplies Cosmetics Hardware Jewelry Toys Other apparel items Groceries/Food items Pet Food Lawn Supplies Wal-Mart (1,663) 45 59 35 21 52 67 77 51 34 Kmart (730) 15 28 14 13 33 50 29 20 20 Target (1,206) 9 43 10 15 41 63 39 21 11 Source: Market Insights: Panties 2004 55 JCPenney Kohl's (775) (696) 1 0 7 5 2 0 21 31 4 13 80 84 1 0 0 0 0 0 Market Overview Market Insights: Panties and Underwear Bottoms 2004 Reasons for not purchasing women’s/girls’ panties at mass When asked why they choose not to buy panties from the retailer, most common responses from Wal-Mart non-buyers included “don’t have the brands I prefer”, “don’t purchase any apparel there”, “inconvenient to home or work” and “just don’t like the store/shopping experience.” Among those who reported purchasing no panties at Kmart or Target, “Inconvenient to home or work” remains the most cited reason since 2003. Interestingly, Wal-Mart and Kmart non-buyers were much more likely to indicate that they “just don’t like the store/shopping experience” than Target non-buyers. Additionally, Wal-Mart non-buyers have a greater concern for “don’t have the brands I prefer.” This could indicate an opportunity for Wal-Mart to broaden it’s brand offerings and further expand it’s penetration in this category. Reasons for Not Purchasing Panties at Retailer - 2004 (% of Buyers) Wal-Mart Kmart (998) (1,892) Base: Target (1,512) Don’t have the styles I prefer 16 13 11 Don’t have the brands I prefer 25 16 17 Price is too low-I question the quality 8 4 2 Is not convenient to my home or work 19 37 34 Don’t purchase any apparel there 22 25 15 Don’t have the variety I look for 13 11 9 Panties are not appropriate 3 1 1 Panty department is too cluttered 11 8 4 Panty department layout is too confusing 4 3 3 5 3 1 Panties are not fashionable enough 9 6 4 Lack of privacy while shopping there 6 3 3 Just don't like the store/shopping experience 23 26 8 Panties are not sexy enough 8 6 4 Wouldn’t want my friends/family to know I buy panties there Source: Market Insights: Panties 2004 56 Category Dynamics Market Insights: Panties and Underwear Bottoms 2004 57 Category Dynamics Market Insights: Panties and Underwear Bottoms 2004 Attitudes toward women’s panties remain unchanged from 2003. Women continue to look for fashion, comfort and price when shopping for women’s panties. Overall, 78% of respondents agree that “comfort is more important than fashion when buying panties” and 79% believe “some styles of panties offer both fashion and comfort.” In addition, nearly seven in ten panty shoppers agree “price is a very important factor when buying panties.” There are some interesting differences based on retailer shopped: • Kohl’s shoppers are more likely to agree that the type of panties that the female wears is dependent on the style of clothing she will be wearing. • Target, JC Penney, and Kohl’s shoppers are more likely to agree that the female wearer has more variety of panty styles in her wardrobe than she used to. • Kmart shoppers are most likely to indicate that they buy more multi-packs for the female wearer so that they don’t have to shop for panties as often. One compelling similarity is that Target and Kohl’s shoppers are just as likely to agree that “price is a very important factor when buying panties” as Wal-Mart shoppers. 58 Category Dynamics Market Insights: Panties and Underwear Bottoms 2004 Attitudes Toward Shopping for Panties % of Buyers Agreeing Strongly or Somewhat with Statement Some sty les of panties offer both fashion and comfort Comfort is more important than fashion w hen buy ing panties for {female} 69 Price is a v ery important factor w hen buy ing panties 58 57 55 60 61 63 {Female} ow ns more panties than she used to 49 46 46 The ty pe of panties {female} w ears depends on the sty le clothing she w ill be w earing 48 48 48 49 50 {Female} has more colored panties in her w ardrobe than she used to 46 45 44 {Female} has more v ariety of panty sty les in her w ardrobe than she 36 {Female} just grabs w hatev er is on the top of her draw er w hen choosing w hat panties to w ear 33 32 I buy more multi-packs of panties for {female} than I used to so I don't 37 29 32 32 31 *{Female} has more v ariety of fabrics in her panty w ardrobe than *{Female} has more thong panties in her w ardrobe than she used to 55 44 50 38 40 42 she used to 24 22 62 39 40 36 38 35 need to shop for panties as often 74 79 76 72 75 54 53 58 used to 28 31 30 34 21 19 20 24 25 28 19 17 16 22 24 28 The ty pe of panties {female} w ears depends on the activ ity or occasion I buy more indiv idual pairs of panties for {female} than I used to 0 Total 54 54 77 79 77 84 82 86 78 82 84 78 77 75 Wal-Mart 20 40 Kmart 60 Target Source: Market Insights: Panties 2004 *Asked only among female panty wearers age 13+ 59 80 100 JCPenney Kohl's Category Dynamics Market Insights: Panties and Underwear Bottoms 2004 Older age segments look for comfort; younger wearers driven by fashion Consumers shopping for wearers 35+ are more likely to agree that “Comfort is more important than fashion when buying panties.” Those who shop for women age 18-34 are more likely to say “some styles of panties offer both fashion and comfort” and “the type of panties she wears depends on the style clothing she will be wearing.” Those shopping for wearers age 18 to 24 are more likely to agree the wearer “owns more panties than she used to” and has “more variety of panty styles,” more colored panties,” ”more variety of fabrics,” and “more thongs” in her wardrobe than she used to. Attitudes Toward Shopping for Panties % of Buyers Agreeing Strongly or Somewhat with Statement 78 87 86 80 Some sty les of panties offer both fashion and comfort 75 62 72 71 56 Comfort is more important than fashion w hen buy ing panties for {female} 83 72 71 74 69 67 Price is a v ery important factor w hen buy ing panties {Female} ow ns more panties than she used to w ill be w earing 26 51 57 52 {Female} has more colored panties in her w ardrobe than she used to 46 47 35 {Female} has more v ariety of panty sty les in her w ardrobe than she used to 22 {Female} just grabs w hatev er is on the top of her draw er w hen 22 I buy more multi-packs of panties for {female} than I used to so I don't need to shop for panties as often 33 34 30 she used to 16 *{Female} has more thong panties in her w ardrobe than she used to 40 38 43 36 occasion I buy more indiv idual pairs of panties for {female} than I used to 8 21 19 12 0 20 18-24 Source: Market Insights: Panties 2004 *Asked only among female panty wearers age 13+ 60 45 25 14 9 44 32 15 The ty pe of panties {female} w ears depends on the activ ity or 45 46 22 12 4 Under 18 24 30 70 46 22 *{Female} has more v ariety of fabrics in her panty w ardrobe than 61 62 40 28 29 choosing w hat panties to w ear 67 65 51 41 93 62 65 71 61 51 54 51 38 The ty pe of panties {female} w ears depends on the sty le clothing she 88 52 55 34 23 31 25 40 25-34 60 35-44 80 45-54 100 55+ Category Dynamics Market Insights: Panties and Underwear Bottoms 2004 How many women coordinate their panties with their bras or outerwear? When asked how frequently coordinating innerwear sets are worn, panty purchasers indicated that 61% of panty wearers ever wear coordinating bras and panties. Just as many (62%) report the wearer coordinates the color of her innerwear with the color of her outfit. •Wearers age 18-34 wear coordinating innerwear sets and coordinate innerwear with outerwear more frequently than other age segments. Coordinating Intimate Apparel - 2004 By age of panties wearer (% of Buyers) 100 80 62 61 62 72 69 67 67 60 61 58 59 52 60 48 52 40 20 0 Total Age 13+ 13-18 18-24 25-34 Coordinate innerw ear 35-44 55+ Coordinate innerw ear w ith outerw ear Note: Innerwear defined as bras and panties Asked only among female panty wearers age 13+ 61 45-54 Category Dynamics Market Insights: Panties and Underwear Bottoms 2004 How often do women coordinate their panties with their bras or outerwear? The majority of women age 13+ who coordinate their bra with their panty do so no more than two days per week. Frequency of Coordinating Bra with Panty - 2004 (% of Buyers) Everyday 15% Less than 1 day/w eek 36% 5-6 days/w eek 7% 3-4 days/w eek 19% 1-2 days/w eek 23% Asked only among female panty wearers age 13+ Source: Market Insights: Panties 2004 Frequency of Coordinating Outerwear with Panty - 2004 (% of Buyers) Everyday 12% Four in ten women coordinate innerwear with outerwear more than twice per week. Wearers 25-34 are more likely than other age groups to coordinate innerwear with their outerwear. 5-6 days/w eek 8% Less than 1 day/w eek 35% 3-4 days/w eek 21% 1-2 days/w eek 24% Asked only among female panty wearers age 13+ Source: Market Insights: Panties 2004 62 Category Dynamics Market Insights: Panties and Underwear Bottoms 2004 How many panties are purchased as bra and panty sets? Among purchasers of bra and panty sets, most report that no more than one-quarter of their panty purchases consist of bra and panty sets. Panty shoppers for wearers 25-34 purchase innerwear sets more often than other age groups. Percentage of Panties Purchased as Bra and Panty Sets - 2004 By age of panties wearer (% of Buyers) 100% 11 8 0 8 7 80% 24 11 11 8 6 10 15 19 14 14 6 2 13 20 18 58 63 62 25-34 35-44 45-54 21 60% 40% 63 70 69 71 20% 0% Total Age 13+ 13-18 1% - 25% 18-24 26% - 50% 51% - 75% 55+ 76% - 100% Percentage of Panties Purchased as Bra and Panty Sets - 2004 By retailer shopped (% of Buyers) 100% 11 9 7 7 80% 19 18 5 8 8 7 17 7 11 9 9 19 20 22 60% 40% 63 66 70 Total Wal-Mart Kmart 66 65 58 20% 0% 1% - 25% 26% - 50% Target 51% - 75% JCPenney 76% - 100% Source: Market Insights: Panties 2004 Asked only among female panty wearers age 13+ 63 Kohl's Category Dynamics Market Insights: Panties and Underwear Bottoms 2004 Women still prefer 100% cotton panties Consistent with data from 2003 and 2002, more than half of women prefer 100% cotton when buying panties. Shoppers for wearers younger than 18 are the most likely to prefer 100% cotton, with nearly seven in ten purchasers preferring the fabric. Cotton with a spandex or lycra blend is the second favorite fabric among women when shopping for panties. Overall, one in five purchasers prefer the fabric blend, driven largely by wearers 18-44. Panties Fabric Preference - 2004 Vs. 2002 and 2003 (% of Buyers) 100 80 60 58 55 55 40 16 19 20 20 10 10 10 6 7 6 4 5 5 5 4 4 1 1 1 100% Nylon 100% Polyester 0 100% Cotton Cotton With Spandex Or Lycra Blend Cotton/ Polyester Blend Nylon With Microfiber Spandex Or Lycra Blend 2002 2003 2004 Source: Market Insights: Panties 2004, 2003 and 2002 Panties Fabric Preference - 2004 (% of Buyers) Age of Wearer 18-24 25-34 35-44 45-54 Total <18 100% Cotton 55 69 48 54 53 56 56 Cotton With Spandex or Lycra Blend 20 14 26 24 22 18 12 Cotton/Polyester Blend 10 12 14 8 10 8 10 Nylon With Spandex or Lycra Blend 6 3 4 7 7 6 8 Microfiber 5 2 5 5 4 5 4 100% Nylon 4 1 2 2 3 5 8 100% Polyester 1 0 1 0 0 1 1 Source: Market Insights: Panties 2004 64 55+ Category Dynamics Market Insights: Panties and Underwear Bottoms 2004 Most underwear purchased is contained in packaging Just over 5 in 10 purchasers prefer panties that are contained in packaging. •This share is highest among those under 18 and those over 45. •Within the 18-24 wearer age group, panties folded on tables makes-up the largest share of panties purchased. •The 18-44 wearer age group is more likely to have a greater share of panties purchased on hangars than some of their younger and older counterparts. Share of Panties Purchased in Each Package Type (% of Underwear Bottoms) Total Under 18 21 53 26 19 65 16 Hanging on hangars 18-24 30 Contained in packaging 40 29 Folded on tables 25-34 35-44 5 67 28 0% 15 65 21 55+ 19 55 26 45-54 28 39 33 20% 40% 60% Source: Market Insights: Panties 2004 65 80% 100% Category Dynamics Market Insights: Panties and Underwear Bottoms 2004 Most purchasers prefer panties contained in packaging, though this varies greatly based on age and retailer Though the greatest share of panties purchased were contained in packaging, this style of purchasing is not necessarily strongly preferred. Just under half prefer panties contained in packaging, with another 29% preferring hanging on hangars, and 22% folded on tables. •Purchasers for wearers under 18 and 45+ dominantly prefer panties contained in packaging. •Conversely, for wearers 18-24, 43% prefer panties folded on tables, with panties contained in packaging coming in a distant second. •Purchasers for wearers 25-34 are equally split between the three packaging options. Wal-Mart and Kmart shoppers are more likely to prefer panties contained in packaging than other retailer shoppers. Kohl’s shoppers, on the other hand, prefer panties hanging on hangars, while JC Penney shoppers are almost equally divided on these two packaging options. For those preferring panties contained in packaging, 6 pairs per package is mostly preferred, followed closely by 3 pairs per package. Panties Packaging Preference (% of Buyers) Age of Wearer Total <18 Hanging on Hangars 18-24 25-34 35-44 45-54 55+ Purchase Underwear At WalMart Kmart Target JCP Kohl's 29 18 31 36 31 26 29 27 25 30 37 41 Contained in Packaging 49 62 26 33 49 61 65 60 66 49 39 35 1 pair 1 1 5 1 1 2 2 0 0 0 2 2 2 pairs 2 1 1 4 1 2 3 1 1 2 4 4 3 pairs 30 21 21 26 29 34 38 24 24 30 32 37 4 pairs 13 12 23 16 12 10 14 13 14 16 16 15 5 pairs 6 6 12 5 6 6 4 6 7 5 5 6 6 pairs 34 37 30 36 38 33 32 39 39 35 30 30 7 pairs 5 5 2 4 5 8 3 6 5 4 3 1 8+ pairs 8 18 7 8 9 6 4 10 10 8 8 5 22 20 43 31 20 13 6 13 10 22 24 24 Folded on Tables Source: Market Insights: Panties 2004 66 Category Dynamics Market Insights: Panties and Underwear Bottoms 2004 Women continue to replenish their panty wardrobes Compared to 2003, the percentage of women who bought 10 or more pairs of panties during the 2004 recall period increased by four percentage points. The greatest percentage of women (44%) reported buying 4-6 pairs during the time frame. # of Pairs of Panties Purchased - 2004 Vs. 2003 and 2002 (% of Buyers) 28 33 33 1-3 Pairs 44 43 4-6 Pairs 41 12 11 12 7-9 Pairs 17 13 14 10+ Pairs 0 20 40 2004 2003 60 2002 Source: Market Insights: Panties 2004, 2003 and 2002 Among all age segments, the percentage of women who reported purchasing 10 or more pairs of underwear increased since 2003. # of Pairs of Panties Purchased From July-September 2004 (% of Buyers) Age of Wearer <18 Purchased Panties At 18-24 25-34 35-44 45-54 55+ WalMart Kmart Target JCP Kohl's 1-3 Pairs 31 26 30 29 27 23 28 27 28 25 28 4-6 Pairs 38 44 43 44 45 49 43 42 42 44 45 7-9 Pairs 14 12 9 12 11 14 12 12 10 12 10 10+ Pairs 17 18 18 16 18 14 17 19 20 19 17 5.86 5.91 5.73 5.68 6.08 6.06 5.92 6.06 5.98 Mean# Source: Market Insights: Panties 2004 67 6.08 5.79 Category Dynamics Market Insights: Panties and Underwear Bottoms 2004 With little change from 2003 and 2002, just over six in ten respondents reported purchasing panties at “about the same rate” as compared to the past. • Compared to other age segments, shoppers for wearers under age 24 are more likely to say they purchased panties “more often” in 2004 than previous years. • Ironically, those shopping for wearers 18-24 were also more likely than other age groups to report buying panties less frequently than in the past year. Frequency of Purchasing Panties for Wearer - 2003 Vs. 2003 and 2002 (% of Buyers) 2004 23 2003 22 14 64 2002 22 14 64 0% 15 62 20% 40% More often 60% Less often 80% 100% About the same rate Source: Market Insights: Panties 2004, 2003 and 2002 Frequency of Purchasing Panties for Wearer (% of Buyers) <18 Age of Wearer 18-24 25-34 35-44 45-54 55+ More often 30 31 28 22 16 15 Less often 7 23 19 17 13 9 63 46 53 62 71 76 About the same rate Source: Market Insights: Panties 2004 68 Category Dynamics Market Insights: Panties and Underwear Bottoms 2004 With no real change from 2003, 53% of panty buyers say they bought the usual amount of panties in the past three months. • A positive shift in the amount of panties purchased for the 18-24 age segment is evidenced by the seven point increase in the percentage of shoppers who reported buying more panties than the past for this group of wearers. • Conversely, the percentage of purchasers for under 18 wearers indicating that they bought more than usual dropped five percentage points from last year. Statement Best Describing Amount of Panties Purchased for Wearer (% of Buyers) Total 2002 Total 2003 Total 2004 <18 18-24 Age of Wearer-2004 25-34 35-44 45-54 55+ Bought usual amount 51 53 53 53 48 48 56 56 54 Bought fewer than usual (Net) 16 17 18 18 18 22 17 15 15 I already have enough 7 8 8 9 8 10 7 8 9 I spent money on other items 4 4 4 3 7 5 3 2 2 I didn’t like the selection offered 3 4 5 5 5 7 5 4 3 There was not a special deal 3 3 3 2 3 4 3 3 3 Bought more than usual (Net) 34 31 31 31 34 32 29 30 32 It was a good deal 19 18 18 15 20 18 17 18 21 8 8 9 8 9 11 9 7 6 11 9 10 14 13 10 8 8 9 I found a new product I/she liked I/she didn't have enough Source: Market Insights: Panties 2004 69 Category Dynamics Market Insights: Panties and Underwear Bottoms 2004 Similar to 2003, two-thirds of panty buyers report no change in the amount of panties they purchased per shopping occasion compared to past years. Amount of Panties Purchasing Per Shopping Occasion - 2004 Vs. 2002 and 2003 (% of Buyers) 2004 17 16 67 2003 18 16 67 2002 16 0% 15 69 20% 40% 60% Buying more Buying few er 80% 100% Buying same amount Source: Market Insights: Panties 2004, 2003 and 2002 Compared to 2003, buyers for 18-24 year-olds are less likely to report buying more panties. The percentage of buyers for the 35-44 age segment who reported buying fewer panties increased by 5 percentage points over 2003. The 55+ age group has become even more consistent in their purchasing with 80% of shoppers for this segment saying they purchased the same amount of panties as in the past. Amount of Panties Purchasing Per Shopping Occasion (% of Buyers) Age of Wearer 25-34 35-44 45-54 <18 18-24 Buying more 20 18 23 19 12 11 Buying fewer 15 25 18 18 12 9 Buying same amount 66 57 59 63 76 80 Source: Market Insights: Panties 2004 70 55+ Category Dynamics Market Insights: Panties and Underwear Bottoms 2004 Reasons for buying more Among the 17% of shoppers who are buying more panties than the past, most cite “buying for different occasions or moods” and “like to try new/different products” as the main reasons for their increased purchases. The percentage of respondents quoting “like to try new/different products” as a reason they bought more panties increased by 10 percentage points from 2003, indicating that new styles such as boy brief and low rise continue to incite new purchases by consumers. Other important reasons for buying more panties in 2004 were “changed size” and “prices are lower than before.” Similar to what we saw for men’s underwear bottoms, it will be interesting to see the trend of “changed size” over time. Reasons for Buying More Panties Than in Past - 2004 Vs. 2002 and 2003 (% of Buyers buying more panties) 36 Buying for different occasions or moods 42 40 42 32 34 Like to try new /different products 27 Changed size 23 25 23 Prices are low er than before 12 15 12 To save time 11 11 11 Buying in a larger pack size 11 None Of These 18 0 10 23 20 2004 2003 30 40 50 2002 Note: “Changed in size” not asked in 2002-2003 Source: Market Insights: Panties 2004, 2003 and 2002 71 Category Dynamics Market Insights: Panties and Underwear Bottoms 2004 Overall, women’s underwear drawers have remained the same size since 2003, with wearers currently owning an average of 21 pairs of panties. Those panty wearers age 18-34 continue to own the most pairs of panties per wearer compared to other segments. Mean # Pairs of Panties Owned by Wearer Age Segment 30 28 26 25 24 23 23 21 21 21 20 19 19 17 20 19 18 21 1818 19 18 18 17 15 10 5 0 Total Under 18 18-24 25-34 2002 35-44 2003 45-54 55+ 2004 Source: Market Insights: Panties 2004, 2003 and 2002 Although ownership remained constant among all consumers, the size of panty wardrobes among shoppers at Kmart, Target, JC Penney and Kohl’s has increased by at least one pair of panties compared to 2003. Mean # Pairs of Panties Owned by Retailer Shopped 30 25 21 21 20 19 20 20 18 21 22 19 22 23 22 23 24 22 20 15 10 5 0 Total Wal-Mart Kmart 2002 Target 2003 JCPenney 2004 Note: JC Penney and Kohl’s not available for 2002 Source: Market Insights: Panties 2004, 2003 and 2002 72 Kohl's Brand Awareness Market Insights: Panties and Underwear Bottoms 2004 73 Aided Awareness - Top 20 Women’s Panties Brands Market Insights: Panties and Underwear Bottoms 2004 Overall, brand recognition remained virtually unchanged for most brands compared to awareness levels for 2003. For the third consecutive year, Hanes/Hanes Her Way tops the list for aided awareness of women’s panties; more than three in four shoppers are aware of the brand. Victoria’s Secret and Fruit of the Loom brands rank #2 and #3, with aided awareness of 69% and 68%, respectively. Gap/Gap Body was the biggest gainer from 2003, with brand awareness increasing by 5 percentage points to 31% in 2004. Aided Brand Awareness - Women’s Panties Brand Rank: (% of Buyers) 2002 1 2003 1 2 3 2 Victoria's Secret 3 2 3 Fruit Of The Loom 5 4 4 Jockey 4 4 5 Just My Size 6 6 6 Calvin Klein 8 8 7 Joe Boxer 7 7 8 Bali 9 9 9 Maidenform 10 10 10 Barely There 11 11 11 Vanity Fair na 13 12 Tommy Hilfiger 32 12 14 12 Vassarette 32 17 17 14 Gap/Gap Body 31 14 15 15 Old Navy 30 13 12 16 Lane Bryant 29 na na 17 Donna Karan/DKNY na 24 18 Cherokee 25 na 19 18 Simply Basic 25 15 16 20 Olga 2004 1 Hanes/Hanes Her Way 77 69 68 57 55 52 49 48 45 43 36 28 24 na = Not asked in that year 74 Aided Awareness - Top 20 Girls’ Panties Brands Market Insights: Panties and Underwear Bottoms 2004 Similar to women’s panties brand awareness rankings, Hanes/Hanes Her Way and Fruit of the Loom are the top brands by aided awareness among purchasers of girls’ panties. With two-thirds of shoppers aware of the brand, Hanes/Hanes Her Way holds on to the #1 spot despite the brand’s aided awareness slipping by nine percentage points since 2003. Barbie holds its ground as the top girls’ panties license in 2004 with 56% of those who shop for girls’ panties aware of Barbie. Other licensed brands with high awareness are Disney, Dora The Explorer, Care Bears and Blues Clues. Brands that made the Top 20 that were newly introduced to the aided recall pre-list were Dora The Explorer, Care Bears, Basic Editions, Strawberry Shortcake and Princess Collection. Aided Brand Awareness – Girls’ Panties Brand Rank: (% of Buyers) 2002 1 2003 1 2004 1 2 2 2 Fruit Of The Loom 3 3 3 Barbie 4 3 4 Disney na na 4 Dora The Explorer na na 6 Care Bears 6 6 7 Blues Clues 5 5 8 Carters 34 na na 9 Basic Editions 33 na na 10 Straw berry Shortcake 31 na na 11 Princess Collection 30 7 7 11 Winnie The Pooh 30 10 12 13 McKids 27 11 9 13 Jockey 27 na 9 13 Simply Basic 27 7 11 13 Underoos 27 12 15 17 Old Navy 26 29 14 18 Health-Tex 25 9 8 18 Looney Tunes 25 14 15 20 Gerber 25 Hanes/Hanes Her Way 67 62 56 48 45 37 35 na = Not asked in that year 75 Panties Styles - Key Insights Market Insights: Panties and Underwear Bottoms 2004 76 Panties Styles - Key Insights Market Insights: Panties and Underwear Bottoms 2004 Briefs continue to be the most popular style In total, briefs remain the most popular style, comprising just over one-third of panty wearers’ wardrobes. The style with largest overall shift in ownership over the past year is hi-cut, losing four percentage points since 2003. •Low rise/hipster styles continue to gain popularity among younger women, as those wearers in the 18-34 category have increased ownership of the style. •Briefs are claiming a larger share in the wardrobes of girls under 18; ownership of the style increased by seven percentage points among this age group since 2003. The share of bikini styles by wearers under 18 slipped by four points over the same time period. 100 4 13 80 9 17 60 5 40 16 % Share of Panty Styles Owned By Wearer Age - 2004 2 4 4 4 6 9 7 11 12 21 8 10 27 3 28 4 12 2 26 16 20 13 11 4 5 7 17 11 1 5 19 1 4 70 22 20 48 36 48 22 30 11 19 0 Total 2004 Briefs <18 Bikini 18-24 String Bikini 25-34 Hi-Cut 35-44 45-54 Low Rise/Hipster Thong 55+ Other % Share of Panty Styles Owned By Wearer Age - 2003 100 80 3 4 12 13 60 22 7 9 21 5 7 7 12 24 17 19 2 3 5 1 4 26 20 1 5 29 2 3 12 7 8 11 40 10 6 29 45 5 2 18 68 20 20 37 41 50 25 32 20 10 0 Total 2003 Briefs <18 Bikini 18-24 String Bikini 25-34 Hi-Cut Source: Market Insights: Panties 2004 and 2003 77 35-44 Low Rise/Hipster 45-54 Thong 55+ Other Panties Styles - Key Insights Market Insights: Panties and Underwear Bottoms 2004 Panty colors owned vary depending on the age of the wearer. With the color comprising more than half of their wardrobe, solid white continues to be favored by women 55+. Conversely, patterns/designs are more popular among 18-44. • Notable shifts occurred in the color ownership of 18-24 year-old panty wearers as solid colored panties lost five percentage points and patterns/designs became increasingly popular among this age group. • Character licenses picked up momentum in 2004 due to girls under 18 owning more panties featuring characters than they did in the previous year. 100 4 % Share of Panty Colors Owned By Wearer Age - 2004 0 1 4 2 18 22 80 0 12 26 28 33 42 33 41 60 44 38 38 44 40 41 55 21 20 35 30 13 13 <18 18-24 41 20 0 Total Solid White 100 2 25-34 Solid Color 35-44 Patterns/Designs 45-54 Character % Share of Panty Colors Owned By Wearer Age - 2003 1 0 3 2 16 18 26 80 1 10 27 30 37 55+ 34 40 47 60 41 40 44 40 46 55 24 20 42 32 32 24 14 15 <18 18-24 0 Total Solid White 25-34 Solid Color 78 35-44 Patterns/Designs 45-54 Character 55+ Panties Styles - Key Insights Market Insights: Panties and Underwear Bottoms 2004 Low Rise/Hipster, Boy Brief trend is still growing. Overall, briefs continue to be the most popular style worn by women--over half of respondents cited briefs as a style “ever worn.” Bikini and hi-cut are the #2 and #3 styles “ever worn”, although the popularity of the hi-cut style continues a downward trend since 2002. Still favorites among 18-34 year olds, the popularity of boy brief and low rise/hipster styles also spills over into older age segments. The percentage of women over 55 reported ever wearing low rise/hipster styles increased by 5 points in 2004, and the percentage ever wearing boy briefs climbed 6 percentage points this year. Panty Styles Ever Worn (% of Buyers) 56 56 57 Briefs 45 45 42 Bikini 40 Hi-Cut Thong Low Rise/Hipster Boy Brief 9 19 24 25 44 46 36 33 33 36 31 23 21 21 String Bikini Tanga 4 0 9 8 20 40 2004 60 2003 80 100 2002 Source: Market Insights: Panties 2004, 2003 and 2002 Panty Styles Ever Worn (% of Buyers) Briefs Bikini Hi-Cut Thong Low Rise/Hipster String Bikini Boy Brief Tanga <18 65 48 10 27 37 22 26 5 18-24 33 69 26 75 66 55 55 18 Age of Wearer 25-34 35-44 45-54 46 51 66 63 42 30 43 52 52 59 33 15 49 29 23 33 18 10 35 19 11 12 9 5 Source: Market Insights: Panties 2004 79 55+ 80 15 33 5 15 5 8 3 Panties Styles - Key Insights Market Insights: Panties and Underwear Bottoms 2004 Briefs and both bikini styles remain stable While briefs and both bikini styles saw little movement from 2003 to 2004, most other styles experienced some shifts. • Low rise/hipster style panties maintain their momentum from 2003, with fewer women reporting they wear the style less often than they did one year ago. • The growing popularity of boy brief panties may be leveling out, as fewer women reported wearing the style more often than in 2003. • The tanga style of women’s panties is losing appeal among panty wearers. Fewer consumers reported the style being worn as often as a year ago, and more respondents saying the style is being worn less often than in 2003. 2004 2003 Frequency of Wearing Panty Style Compared to One Year Ago Frequency of Wearing Panty Style Compared to One Year Ago (% of Buyers) (% of Buyers) 19 Briefs Bikini 25 56 25 String Bikini 22 Hi-cut 22 30 41 Low Rise/Hipster 37 20 27 Boy Brief 52 Thong 0% 20% More often 29 40% Less often 22 80% 40 26 38 27 48 24 28 33 42 30 56 0% 22 42 20% More often About the same 45 43 Thong 100% 57 31 Boy Brief 23 32 60% String Bikini Tanga 26 25 39 24 Low Rise/Hipster 36 47 22 Bikini Hi-cut 49 44 Tanga 45 29 21 Briefs 26 40% Less often 22 32 60% 80% About the same Source: Market Insights: Panties 2003 Source: Market Insights: Panties 2004 80 100% Panties Styles - Key Insights Market Insights: Panties and Underwear Bottoms 2004 Briefs are still the most commonly purchased panty style; Low Rise/Hipster and Boy Brief styles continue positive momentum Women continue to purchase low rise/hipster and boy brief styles with increasing frequency. Purchases of these styles increased significantly from 2003 to 2004. These data reinforce the trends of the low rise/hipster and boy brief styles in women’s wardrobes and wearing frequencies. Compared to 2003, purchases of panties for girls younger than 18 have been relatively inconsistent. Shoppers for this age segment favored briefs while shying away from bikini, thong, and low rise/hipster styles more strongly than in 2003. Panty Styles Purchased - 2004 Vs. 2003 and 2002 (% of Buyers) 39 39 Briefs 25 Hi-Cut 28 43 31 27 26 26 Bikini 22 21 22 22 Thong Low Rise/Hipster 12 Boy Brief 10 4 16 15 10 9 10 String Bikini Tanga 1 3 3 0 20 40 2004 2003 60 2002 Source: Market Insights: Panties 2004, 2003 and 2002 Panty Styles Purchased (% of Buyers) Briefs Bikini Hi-Cut Thong Low Rise/Hipster String Bikini Boy Brief Tanga <18 51 5 34 20 25 17 12 3 18-24 15 11 41 50 41 34 28 8 Age of Wearer 25-34 35-44 45-54 23 32 51 20 36 38 39 28 15 36 21 6 33 17 12 22 10 5 12 9 4 5 3 1 Source: Market Insights: Panties 2004 81 55+ 72 24 6 2 9 3 1 1 Panties Styles - Key Insights Market Insights: Panties and Underwear Bottoms 2004 Solid colors are preferred across all panty styles With little change from 2003, solid colors are the most popular scheme within all panty styles. White is most likely to be found in brief and hi-cut styles, while patterns/designs comprise a significant share of bikini, string bikini, low rise/hipster, and thong styles. Although character designs have traditionally been most often associated with girls’ briefs, character designs gained popularity among wearers of low rise/hipster and boy brief styles during 2004. Panty Colors Worn by Style (% of Buyers) Briefs 60 65 47 9 43 Bikini 70 69 8 31 String Bikini 69 66 6 Hi-Cut 52 51 3 71 37 Low Rise/Hipster 63 11 25 Tanga 65 35 5 28 Boy Brief 69 52 16 71 35 Thong 65 7 0 20 40 Solid White Solid Color 60 Patterns or Designs Source: Market Insights: Panties 2004 82 80 80 Character 100 Panties Styles - Key Insights Market Insights: Panties and Underwear Bottoms 2004 Trends in panty wear by activity/occasion follow purchasing and ownership trends. As women report purchasing and wearing more low rise/hipster and boy brief panties, these styles are also being increasingly accepted as everyday wear. Compared to 2003, boy briefs are being worn more for activity/occasions such as “date/intimate occasions”, “under white pants/skirt”, “Under low rise pants/skirts”, “to work”, and “during menstrual period”. String bikini, hi-cut, and tanga styles were the biggest “losers”; each style of panty lost appeal in at least four activity/occasion categories. Women reported no changes in the frequency of wearing brief and bikini styles for the listed activities and occasions. Panty Styles Worn For Each Activity/Occasion (% of Buyers for Wearer Age 13+) Base (Wear style): Briefs (1216) Bikini (1035) String Bikini (559) Hi-cut (953) Boy Brief (593) Thong (873) With dressy clothes 48 49 39 54 40 32 21 74 With casual clothes 70 66 55 63 64 31 58 52 With jeans 64 63 52 56 67 29 48 63 Changing in front of others 56 57 42 51 55 24 59 27 To sleep in 63 54 40 45 45 18 60 23 Date/intimate occasions 29 50 51 43 47 42 33 85 Exercising/working out 67 50 25 50 37 6 37 26 Under white pants/skirt 56 39 31 47 34 15 26 66 Under tight/clingy clothing 33 28 22 38 26 16 14 83 Under low rise pants/skirts 22 42 34 25 77 18 27 58 Wear everyday 77 66 52 65 63 27 52 48 To work 70 61 46 62 57 25 45 51 During menstrual period 70 49 29 42 37 8 38 14 Source: Market Insights: Panties 2004 Low Rise/ Hipster Tanga (855) (212) = more than 3 percentage points different from 2003 83 Future Panties Purchase Plans Market Insights: Panties and Underwear Bottoms 2004 84 Future Panties Purchase Plans Market Insights: Panties and Underwear Bottoms 2004 Overall future purchase intent has slipped slightly among women’s panties shoppers since 2003. • Purchasers for 18-24 year-old remain more likely than those purchasing for other age segments to purchase panties in the next three months. • Purchasers for wearers age 55+ continue to be the least likely to purchase panties in the next three months. Plan to Purchase Panties in Next 3 Months By age of panties wearer (% of Buyers) 100 79 80 63 67 83 77 76 76 71 63 60 58 61 64 63 67 71 61 64 60 43 43 48 40 20 0 Total Under 18 18-24 2002 25-34 2003 35-44 45-54 2004 Source: Market Insights: Panties 2004, 2003 and 2002 85 55+ Future Panties Purchase Plans Market Insights: Panties and Underwear Bottoms 2004 Brief style panties maintain largest share of future panty purchases, driven by those younger than 18 and older than 45. Thongs continue to be popular among shoppers for 18-34 year old age segment; Hi-cut styles are second to briefs in planned purchases of 35+ age groups. 100 80 60 40 20 % Share of Next 10 Purchases of Panty Styles By Wearer Age - 2004 2 1 3 6 6 6 4 5 10 12 7 11 13 13 19 21 1 9 13 11 3 29 28 25 14 2 17 26 21 4 10 13 17 3 6 15 4 70 17 11 21 47 43 33 18 27 16 8 0 Total Briefs 100 80 60 <18 Bikini String bikini 25-34 Hi-cut 35-44 45-54 Low Rise/Hipster 24 15 17 17 3 7 16 6 9 Other 11 68 18 20 Thong 55+ % Share of Next 10 Purchases of Panty Styles By Wearer Age - 2003 1 3 4 5 5 3 4 8 10 6 11 12 16 21 7 22 9 0 27 29 10 5 34 2 11 29 20 4 40 18-24 35 38 21 8 49 30 16 0 Total Briefs <18 Bikini 18-24 String bikini 25-34 Hi-cut Source: Market Insights: Panties 2004 and 2003 86 35-44 45-54 Low Rise/Hipster Thong 55+ Other Future Panties Purchase Plans Market Insights: Panties and Underwear Bottoms 2004 Women who shop for panties at Wal-Mart and Kmart are most likely to buy brief style panties in the future; approximately four in ten of their next 10 purchases will be briefs. Similar to JC Penney and Kohl’s, those who shop for panties at Target intend to purchase more bikini, string bikini, low rise/hipster, and thong styles than panty shoppers at Wal-mart and Kmart. % Share of Next 10 Purchases of Panty Styles By Retailer - 2004 100 6 13 80 60 5 10 9 11 3 4 14 14 15 6 6 13 14 14 12 12 15 16 15 5 5 18 17 18 18 17 7 10 10 4 40 6 17 6 17 20 41 38 33 29 31 Target JCPenney 25 0 Total Briefs 100 Wal-Mart Bikini 60 String bikini Hi-cut Low Rise/Hipster Kohl's Thong % Share of Next 10 Purchases of Panty Styles By Retailer - 2003 4 5 7 7 5 12 80 Kmart 9 11 11 7 8 5 14 13 13 10 10 11 20 21 22 5 5 16 17 15 29 28 27 Target JCPenney Kohl's 19 20 20 Other 3 3 15 15 4 40 20 5 15 40 35 40 0 Total Briefs Wal-Mart Bikini Kmart String bikini Hi-cut Source: Market Insights: Panties 2004 and 2003 87 Low Rise/Hipster Thong Other Future Panties Purchase Plans Market Insights: Panties and Underwear Bottoms 2004 Colors that are most likely to be purchased next time Despite a slight decline in share among wearers younger than 45, solid color schemes continue to dominate the overall share of future panty purchases. Compared to 2003, the future purchase share of patterns/designs increased in every age group 18 and older. With future purchase share growing by seven percentage points among shoppers for wearers younger than 18, the popularity of character panties has grown significantly within the age group since 2003. % Share of Next 10 Purchases of Panty Colors By Wearer Age - 2004 100 4 4 1 3 0 10 18 23 80 1 27 28 33 41 60 36 43 41 40 40 45 40 43 54 23 20 32 29 13 12 <18 18-24 38 19 0 Total Solid white 25-34 Solid color 35-44 45-54 Patterns or designs 55+ Character % Share of Next 10 Purchases of Panty Colors By Wearer Age - 2003 100 2 1 29 28 3 3 16 19 27 80 0 0 12 36 35 45 60 41 42 41 46 40 46 53 25 20 39 30 29 23 14 14 <18 18-24 0 Total Solid white 25-34 Solid color 35-44 Patterns or designs Source: Market Insights: Panties 2004 and 2003 88 45-54 55+ Character Future Panties Purchase Plans Market Insights: Panties and Underwear Bottoms 2003 By retailer type, there are no major differences in planned purchasing by color, and fairly even distributions between white, solid color and designs/patterns. % Share of Next 10 Purchases of Panty Colors By Retailer - 2004 100 80 4 4 5 28 27 26 40 38 37 5 30 4 4 27 31 60 39 42 42 40 20 29 31 32 Total Wal-Mart Kmart 25 27 23 Target JCPenney Kohl's 0 Solid white Solid color Patterns or designs Character % Share of Next 10 Purchases of Panty Colors By Retailer - 2003 100 3 3 3 4 2 3 27 27 27 29 28 26 41 37 37 40 42 44 30 33 33 27 28 28 Total Wal-Mart Kmart Target JCPenney Kohl's 80 60 40 20 0 Solid white Solid color Patterns or designs Source: Market Insights: Panties 2004 and 2003 89 Character Appendix A: Questionnaire Market Insights: Panties and Underwear Bottoms 2004 90 Appendix A Market Insights: Panties and Underwear Bottoms 2004 Market Insights: Panties and Underwear Bottoms 2004 1a. Have you purchased any panties or underwear bottoms for any of the following members of your family, including yourself in the past 4 months (from July 2004 through October 2004)? (Select all that apply) Self Spouse Child under age 13 Child or other family member age 13+ None of these [VALIDATE] IF Q1A=”NONE OF THESE”, GO TO Q28 (NON-QUALIFIER QUESTIONS) 1b. Please indicate the age and gender for each family member you have purchased any panties or underwear bottoms for during the past 4 months (July 2004 through October 2004). (Select age and gender for each family member you purchased for) PIPE IN EACH HOUSEHOLD MEMBER PURCHASED FOR IN Q1A 2 PULL DOWN MENUS FOR EACH MEMBER Yourself Age [PULL DOWN MENU: 0-99] Gender [PULL DOWN MENU: Male, Female] Spouse Age [PULL DOWN MENU: 0-99] Gender [PULL DOWN MENU: Male, Female] ADD: If you’ve purchased panties or underwear for more than one child, please answer for only one. Child Under Age 13 Age [PULL DOWN MENU: 0-99] Gender [PULL DOWN MENU: Male, Female] ADD: If you’ve purchased panties or underwear for more than one child/family member, please answer for only one. Child or Other Family Member Age 13+ Age [PULL DOWN MENU: 0-99] Gender [PULL DOWN MENU: Male, Female] ROUTE IN 1 HOUSEHOLD MEMBER ONLY FOR THE REMAINDER OF THE SURVEY 91 Appendix A Market Insights: Panties and Underwear Bottoms 2004 2. Which of the following brands of [INSERT], if any, have you ever heard of? (Select all that apply) IF HH MEMBER=FEMALE AGE 13+ Adonna Ashley Taylor Avenue Bali Barely There Cacique/Lane Bryant Calvin Klein Catherine’s Cherokee Curvation Donna Karan/DKNY Fashion Bug/Fashion Bug Plus Felina Fruit Of The Loom Gap/Gap Body Gilligan O’Malley Hanes/Hanes Her Way Jockey Joe Boxer Just My Size Lane Bryant L.E.I. Lovable Love Pats/Wundies Maidenform Mossimo Mudd No Boundaries Old Navy Olga OnGossamer Pink Secret Treasures Simply Basic St. Eve Tommy Hilfiger T.R. Bentley Vanity Fair Vassarette Victoria's Secret Wacoal Warners Xhilaration None of these [VALIDATE] 92 Appendix A Market Insights: Panties and Underwear Bottoms 2004 IF HH MEMBER=FEMALE UNDER AGE 13 Bali Barbie Barely There Basic Editions Basic Image Blues Clues Care Bears Carters Children's Place Circo Danskin Disney Dora The Explorer Fruit Of The Loom Gap/Gap Body Gerber Hanes/Hanes Her Way Health-Tex Jockey Joe Boxer L.E.I. Limited Too Looney Tunes Lovable Love Pats/Wundies Mary Kate and Ashley McKids Mudd Old Navy Oshkosh B’ Gosh Playtex Powerpuff Girls Princess Collection Route 66 Scooby Doo Simply Basic Starter Strawberry Shortcake Underoos Vassarette Victoria's Secret Winnie the Pooh Xhilaration None of these [VALIDATE] 93 Appendix A Market Insights: Panties and Underwear Bottoms 2004 IF HH MEMBER=MALE AGE 13+ 2XIST Barrington Basic Editions Basic Equipment BVD C9 Calvin Klein Champion Cherokee Covington Croft & Barrow Dockers Eddie Bauer Faded Glory Fruit Of The Loom Gap Hanes Jake Taylor JCPenney Brand J.E. Morgan Jockey Joe Boxer Kirkland Lands’ End Life Merona Mossimo Munsingwear Old Navy Perry Ellis Polo/Ralph Lauren Pro Spirit Puritan Route 66 Sears Brand Sonoma Stafford Tommy Hilfiger Towncraft Under Armour None of these [VALIDATE] 94 Appendix A Market Insights: Panties and Underwear Bottoms 2004 IF HH MEMBER=MALE UNDER AGE 13 Basic Editions Basic Equipment Batman Bob The Builder Briefly Stated BVD C9 Calvin Klein Carters Champion Cherokee Children's Place Disney Fisher Price Fruit Of The Loom Gap Gerber Gymboree Hanes Health-Tex Hot Wheels Hulk Jake Taylor JC Penney Brand Jockey Joe Boxer Life Looney Tunes McKids Mossimo Old Navy Oshkosh B’ Gosh Pro Spirit Rescue Heros Route 66 Sears Brand Sonoma Spiderman Spongebob Stafford Starter Towncraft Underoos Yu Gi Oh None of these [VALIDATE] 95 Appendix A Market Insights: Panties and Underwear Bottoms 2004 For the remaining questions, please think only about the panty/underwear bottoms purchases you made for [INSERT] in the past 4 months. 3. How many pairs (not packages) of panties/underwear bottoms did you purchase for [INSERT] in the past 4 months (from July-October 2004)? (Select one) PULL DOWN MENU: 1,2,3,4,5,6,7,8,9,10,11,12,13,14,15,16,17,18,19, 20+ 3b. In general, what size were the panties/underwear bottoms that you purchased for [INSERT]? (Select one) PULL-DOWN MENU IF HH MEMBER = FEMALE 13+ XSmall/XS Small Medium Large XLarge/XL 2X/3X 4X+ Size 2 Size 3 Size 4 Size 5 Size 6 Size 7 Size 8 Size 9 Size 10 Size 11 Size 12 Size 13+ Other IF HH MEMBER = FEMALE UNDER 13 Infant Toddler XSmall/XS (Girls) Small Medium Large XLarge/XL or larger Other 96 Appendix A Market Insights: Panties and Underwear Bottoms 2004 IF HH MEMBER = MALE 13+ XSmall/XS Small Medium Large XLarge/XL XXL or larger Waist 28 Waist 30 Waist 32 Waist 33 Waist 34 Waist 35 Waist 36 Waist 38 Waist 40 Waist 42 Waist 44 Waist 46+ Other IF HH MEMBER = MALE UNDER 13 Infant Toddler XSmall/XS (Boys) Small Medium Large XLarge/XL or larger Other 4a. What percentage of the panties/underwear bottoms you purchase for [INSERT] are packaged/displayed in each of the following ways? (0% would mean none of your purchases are packaged this way, while 100% would mean all of them are packaged this way. You may use 0%, 100% or any number in between. Please remember your total must equal 100%.) PULL DOWN MENU: 0%-100% [DEFAULT SCALE AT 0%] Hanging on hangars Folded on tables Contained in packaging/plastic bags 97 Appendix A Market Insights: Panties and Underwear Bottoms 2004 4b. When buying for [INSERT], what type of packaging/display for panties/underwear bottoms do you most prefer? (Select one) Hanging on hangars Folded on tables Contained in packaging/plastic bags ASK Q4c IF Q4b = HANGING ON HANGARS 4c. When buying panties/underwear bottoms hanging on hangars for [INSERT], how many pairs do you prefer on each hangar? (Select one) PULL-DOWN: 1, 2, 3 ASK Q4d IF Q4b = CONTAINED IN PACKAGING/PLASTIC BAGS 4d. When buying panties/underwear bottoms contained in packaging/plastic bag for [INSERT], how many pairs do you prefer in each package/bag? (Select one) PULL-DOWN: 1, 2, 3, 4, 5, 6, 7, 8+ 5. Which of the following statements describe the amount of panties/underwear bottoms you purchased for [INSERT] in the past 4 months (July-October 2004)? (Select all that apply) I bought the usual amount I bought fewer than usual because he/she already owned enough I bought fewer than usual because I spent money on other items I bought fewer than usual because I didn’t like the selection offered I bought fewer than usual because there was not a special deal I bought more than usual because it was a good deal I bought more than usual because I found a new product he/she liked I bought more than usual because he/she didn’t own enough 98 Appendix A Market Insights: Panties and Underwear Bottoms 2004 6. Thinking about how frequently you purchase panties/underwear bottoms for [INSERT], would you say you are currently buying more often, less often or at about the same rate compared to in the past? (Select one) More often than in the past Less often than in the past At about the same rate 7. Thinking about [INSERT], would you say you are currently buying more, less, or about the same amount of panties/underwear bottoms per shopping occasion compared to in the past? (Select one) Buying more each time than in past Buying fewer each time than in past Buying the same amount as in past ASK Q8 IF Q7 = “MORE”, ELSE GO TO Q9 8. Which of the following reasons, if any, describe why you are currently buying more panties/underwear underwear bottoms for [INSERT] than you did in the past? (Select all that apply) [RANDOMIZE] To save time Buying in a larger pack size (more in the bag) Like to try new/different products Buying for different occasions or moods Prices are lower than before Changed size None of these [VALIDATE] 9. Which styles of panties/underwear bottoms have you purchased for [INSERT] in the past 4 months? Which styles does [INSERT] ever wear? (Select all that apply for each) IF HH MEMBER = FEMALE, INSERT STYLE LINE DRAWINGS. CREATE LINK TO THE LINE DRAWINGS FOR RESPONDENTS TO REFER BACK TO FOR Q10, 11, 12, 14, 17 and 20 [MULTI-PUNCH GRID] TOP Purchased July-October 2004 Ever Wear 99 Appendix A Market Insights: Panties and Underwear Bottoms 2004 SIDE IF HH MEMBER = MALE: Briefs Bikini/Lowrise Boxer Boxer brief IF HH MEMBER = FEMALE: Briefs Bikini String bikini Hi-cut Low Rise/Hipster Tanga Boy Brief Thong 10. For each style [INSERT] ever wears, please indicate if this style is being worn more often, less often, or about the same amount compared to a year ago. (Select one for each style listed) PULL DOWN MENU: More often Less often About the same PIPE IN STYLES SELECTED IN Q9 FOR “EVER WEAR” 11. For each style [INSERT] ever wears, please indicate what color he/she wears. (Select all that apply for each style listed) [MULTI-PUNCH GRID] TOP: Solid White Solid Color Patterns or Designs (such as flowers, plaids, stripes or prints) Character (such as Barbie, Scooby Doo, NASCAR or NFL) SIDE: PIPE IN STYLES SELECTED IN Q9 FOR “EVER WEAR” 100 Appendix A Market Insights: Panties and Underwear Bottoms 2004 ASK Q12-13 IF HH MEMBER = FEMALE AGE 13+, ELSE GO TO INSTRUCTION BEFORE Q14 12. Thinking of the styles/silhouettes of panties [INSERT] ever wears, please indicate which styles/silhouettes are most suitable for each type of occasion or activity listed. (Select all that apply for each style listed) TOP: PIPE IN STYLES SELECTED IN Q9 FOR “EVER WEAR” SIDE: [RANDOMIZE] With dressy clothes With casual clothes With jeans When changing in front of others To sleep in Date/intimate occasions Exercising/working out Under white pants, skirt or shorts Under tight/clingy clothing Under low rise pants, skirt or shorts Wear everyday To work During menstrual period 13. How often does [INSERT] wear a coordinating bra with her panty? (Select one) Everyday 5-6 days a week 3-4 days a week 1-2 days a week Less than 1 day a week Never Don’t Know IF Q13 = “NEVER”, GO TO Q13C 13b. What percentage of the panties you purchase for [INSERT] are coordinating bra and panty sets? (0% would mean none of your bra and panty purchases are coordinating sets, while 100% would mean all of them are coordinating sets. You may use 0%, 100% or any number in between. Please remember your total must equal 100%.) PULL DOWN MENU: 0%-100% [DEFAULT SCALE AT 0%] 101 Appendix A Market Insights: Panties and Underwear Bottoms 2004 13c. How often does [INSERT] ever coordinate the color of her bra and panty with the color of her outfit (outerwear)? (Select one) Everyday 5-6 days a week 3-4 days a week 1-2 days a week Less than 1 day a week Never Don’t Know ASK Q14 IF HH MEMBER = MALE AGE 13+, ELSE GO TO Q15 14. Thinking of the styles/silhouettes of underwear bottoms [INSERT] ever wears, please indicate which styles/silhouettes are most suitable for each type of occasion or activity listed. (Select all that apply for each style listed) TOP: PIPE IN STYLES SELECTED IN Q9 FOR “EVER WEAR” SIDE: [RANDOMIZE] To sleep in Exercising/working out Wear everyday With jeans With dressy clothes With casual clothes Date/intimate occasion To work 15. What fabric preference, if any, does [INSERT] have when buying panties/underwear bottoms? (Select one) 100% cotton 100% polyester Cotton/Polyester blend Cotton with Spandex or Lycra blend 100% nylon Nylon with Spandex or Lycra blend Microfiber 16. How many pairs of panties/underwear bottoms does [INSERT] currently have in his/her drawer/closet wardrobe? (Select one) PULL DOWN MENU: 1-99 102 Appendix A Market Insights: Panties and Underwear Bottoms 2004 17. What percentage of the panties/underwear bottoms [INSERT] owns are each of the following styles? (0% would mean none of them are this style, while 100% would mean all of them are this style. You may use 0%, 100% or any number in between. Please remember, your total must equal 100%.) PULL DOWN MENU: 0%-100% [DEFAULT SCALE AT 0%] IF HH MEMBER = MALE: Briefs Bikini/Lowrise Boxer Boxer brief IF HH MEMBER = FEMALE: Briefs Bikini String bikini Hi-cut Low Rise/Hipster Tanga Boy Brief Thong 18. What percentage of the panties/underwear bottoms [INSERT] owns are each of the following colors? (0% would mean none of them are this color, while 100% would mean all of them are this color. You may use 0%, 100% or any number in between. Please remember, your total must equal 100%.) PULL DOWN MENU: 0%-100% [DEFAULT SCALE AT 0%] Solid White Solid Color Patterns or Designs (such as flowers, plaids, stripes or prints) Character (such as Barbie, Scooby Doo, NASCAR or NFL) 19. Do you plan to purchase panties/underwear bottoms for [INSERT] in the next 3 months? (Select one) Yes No 103 Appendix A Market Insights: Panties and Underwear Bottoms 2004 20. Thinking of your next 10 purchases of panties/underwear bottoms for [INSERT], please indicate below how many times you would purchase each of the following styles. (Select the number for each style you would purchase. Please remember, your total must equal 10.) PULL DOWN MENU: 0-10 [DEFAULT SCALE TO “0”] IF HH MEMBER = MALE: Briefs Bikini/Lowrise Boxer Boxer brief IF HH MEMBER = FEMALE: Briefs Bikini String bikini Hi-cut Low Rise/Hipster Tanga Boy Brief Thong 21. Thinking of your next 10 purchases of panties/underwear bottoms for [INSERT], please indicate below how many times you would purchase each of the following colors. (Select the number for each color you would purchase. Please remember, your total must equal 10.) PULL DOWN MENU: 0-10 [DEFAULT SCALE TO “0”] Solid White Solid Color Patterns or Designs (such as flowers, plaids, stripes or prints) Character (such as Barbie, Scooby Doo, Nascar or NFL) 22. At which stores do you purchase some of the panties/underwear bottoms for [INSERT]? At which one store do you purchase most of the panties/underwear bottoms for [INSERT]? GRID HEADINGS: Purchase Some (Select all that apply) Purchase Most (Select one) 104 Appendix A Market Insights: Panties and Underwear Bottoms 2004 SIDE: JCPenney Kohl’s Mervyn’s Sears Kmart Target Wal-Mart Other Discount Stores (such as Meijer or Shopko) Victoria’s Secret (Catalog or Store) Other Specialty Stores (such as Gap Body or Banana Republic) Department Stores (such as Nordstrom, Dillard’s or Macy’s) Plus Size Specialty Stores (such as The Avenue or Lane Bryant) Warehouse Clubs (such as Sam’s, Costco, or BJ’s) Dollar Stores (such as Dollar General or Family Dollar) Food/Drug Stores Catalog/Direct Mail Factory Outlets Other Stores VALIDATE THAT STORE SELECTED FOR “PURCHASE MOST” WAS SELECTED FOR “PURCHASE SOME” 23. Have you purchased any items other than panties/underwear bottoms at the following retailers in the past 12 months? (Select one for each) JCPenney Kohl’s Mervyn’s Sears Kmart Target Wal-Mart Victoria’s Secret (Catalog or Store) None of these [VALIDATE] IF Q23 = “NONE OF THESE”, GO TO Q25 24. Please indicate which items you purchased at each of the following retailers in the past 12 months. (Select all that apply for each) GRID HEADINGS: PIPE IN STORES SELECTED IN Q23 105 Appendix A Market Insights: Panties and Underwear Bottoms 2004 SIDE: Automotive supplies Cosmetics Hardware Jewelry Toys Apparel items (other than underwear or panties) ASK Q25a IF “Kmart” NOT SELECTED IN Q22 FOR “Purchase Some” OR “Purchase Most”, ELSE GO TO INSTRUCTION BEFORE Q25b 25a. Why do you not buy any panties/underwear bottoms for [INSERT] at Kmart? (Select all that apply) [RANDOMIZE] Don’t have the styles I prefer Don’t have the brands I prefer Price is too low – I question the quality Is not convenient to my home or work Don’t purchase any apparel there Don’t have the variety I look for Panties/underwear bottoms are not appropriate Panty/underwear bottoms department is too cluttered Panty/underwear bottoms department layout is too confusing Wouldn’t want my friends or family to know I buy underwear bottoms/panties there Panties/underwear bottoms are not fashionable enough Lack of privacy while shopping there Just don’t like the store/shopping experience Panties/underwear bottoms are not sexy enough Other (Please specify) [VALIDATE] 106 Appendix A Market Insights: Panties and Underwear Bottoms 2004 ASK Q25b IF “Target” NOT SELECTED IN Q22 FOR “Purchase Some” OR “Purchase Most”, ELSE GO TO INSTRUCTION BEFORE Q25c 25b. Why do you not buy any panties/underwear bottoms for [INSERT] at Target? (Select all that apply) [RANDOMIZE] Don’t have the styles I prefer Don’t have the brands I prefer Price is too low – I question the quality Is not convenient to my home or work Don’t purchase any apparel there Don’t have the variety I look for Panties/underwear bottoms are not appropriate Panty/underwear bottoms department is too cluttered Panty/underwear bottoms department layout is too confusing Wouldn’t want my friends or family to know I buy underwear bottoms/panties there Panties/underwear bottoms are not fashionable enough Lack of privacy while shopping there Just don’t like the store/shopping experience Panties/underwear bottoms are not sexy enough Other (Please specify) [VALIDATE] ASK Q25c IF “Wal-Mart” NOT SELECTED IN Q22 FOR “Purchase Some” OR “Purchase Most”, ELSE GO TO Q26 25c. Why do you not buy any panties/underwear bottoms for [INSERT] at Wal-Mart? (Select all that apply) [RANDOMIZE] Don’t have the styles I prefer Don’t have the brands I prefer Price is too low – I question the quality Is not convenient to my home or work Don’t purchase any apparel there Don’t have the variety I look for Panties/underwear bottoms are not appropriate Panty/underwear bottoms department is too cluttered Panty/underwear bottoms department layout is too confusing Wouldn’t want my friends or family to know I buy underwear bottoms/panties there Panties/underwear bottoms are not fashionable enough Lack of privacy while shopping there Just don’t like the store/shopping experience Panties/underwear bottoms are not sexy enough Other (Please specify) [VALIDATE] 107 Appendix A Market Insights: Panties and Underwear Bottoms 2004 26. Thinking about buying underwear bottoms/panties for [INSERT], please indicate how much you agree or disagree with each of the following statements. (Select one for each statement) PULL DOWN MENU: Agree Strongly Agree Somewhat Neither Agree nor Disagree Disagree Somewhat Disagree Strongly [RANDOMIZE STATEMENTS] Comfort is more important than fashion when buying panties/underwear bottoms for [INSERT] I buy more multi-packs of panties/underwear bottoms for [INSERT] than I used to so I don’t need to shop for panties/underwear bottoms as often The type of panties/underwear bottoms [INSERT] wears depends on the style clothing he/she will be wearing [INSERT] has more colored panties/underwear bottoms in his/her wardrobe than he/she used to [INSERT] just grabs whatever is on the top of his/her drawer when choosing what panties/underwear bottoms to wear [INSERT] has more variety of panties/underwear bottoms styles in his/her wardrobe than he/she used to [INSERT] owns more panties/underwear bottoms than he/she used to Some styles of panties/underwear bottoms offer both fashion and comfort Price is a very important factor when buying panties/underwear bottoms The type of panties/underwear bottoms [INSERT] wears depends on the activity or occasion I buy more individual pairs of panties/underwear bottoms for [INSERT] than I used to INCLUDE IF HH MEMBER = FEMALE AGE 13+: [INSERT] has more thong panties in her wardrobe than she used to [INSERT] has more variety of fabrics in her panty wardrobe than she used to 27. Which of these statements best describes what you usually do if the specific panty or underwear bottoms item you intend to purchase for [INSERT] is not available (out-ofstock) where you usually shop? (Select one) I buy another style or fiber content of the same brand of panties/underwear bottoms I originally intended to buy I buy another brand of panties/underwear bottoms, but the same style or fiber content as I originally intended to buy I do not buy anything 108 Appendix B: About The NPD Group, Inc. Market Insights: Panties and Underwear Bottoms 2004 109 Appendix B Market Insights: Panties and Underwear Bottoms 2004 About The NPD Group, Inc The NPD Group, Inc. (NPD) is a global market information company that measures product movement and consumer behavior across a broad range of industries -- apparel, automotive products, consumer electronics, cosmetics and fragrances, food, foodservice, footwear, housewares, information technology, interactive entertainment, toys and music. NPD's clients, many in the Fortune 500, use this insight to uncover market opportunities, strengthen channel relationships and benchmark industry performance. Since 1967, NPD has introduced numerous industry firsts, most recently combining and calibrating information from consumer panels and point-of-sale tracking via its flagship services, the NPD Worlds. The firm has offices and affiliations in 60 countries. For more information on The NPD Group, visit www.npd.com. About NPD FashionworldSM NPD Fashionworld®, a division of The NPD Group, provides sales and marketing information for manufacturers, retailers and related services in the apparel and footwear industries. NPD Fashionworld provides the most accurate market intelligence available, including what is selling, where, to whom and why. Information is delivered online in a secure, Web-based environment via interactive delivery tools that make information accessible and actionable to a wide range of users -- from executives to sales and marketing to research. Today more than 100 market-leading companies in the industry rely on NPD Fashionworld for the knowledge they need to drive better, fact-based decision making. For more information about NPD Fashionworld, visit www.npdfashionworld.com. 110 Produced and created by NPD Fashionworld - A Division of The NPD Group, Inc. 2005 No part of this report may be reproduced without written permission. The NPD Group, Inc. 900 West Shore Road Port Washington, NY 11050 www.npd.com 111