Localization Challenges Decades Of Standardization And Gains Ground In The Underwear Market

By Author: Mel Joelle
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In harsh economic times, the need to have your product stand out from the crowd becomes more significant than ever. While retail and business in general have always counted on challenges from competitors, it becomes a stronger sink or swim challenge when customers have fewer dollars to spread around. This is also the case in the underwear market. Though it is true that there will always be a demand for underwear, the supply must be met by localizing products. New competitors to the underwear market are aware of this need and are taking it into consideration when producing new collections. .

Just as big box retailers have relied on standardization of their stores and products in recent decades to spread their territory, the underwear market followed this trend in producing fairly generic styles and cuts of underwear. Men's lines by many companies progressed through long underwear union suits, briefs, boxers, Y fronts and thongs. Similarly, common women's lines developed from corsets, brassieres, bloomers, garter belts, hip huggers, bikinis, thongs and g-strings by many underwear companies. Colors were generally basic white ...
... until the 1950's when pastels and seasonal prints, patterns and mostly florals (for women) were widely produced by most underwear companies. Because standardization makes copying simple, as stated in the Harvard Business Review Article Localization: The Revolution in Consumer Markets and evidenced by Sam Walton's honest statement that big box KMart provided the model for his development of Walmart, this same principle applied to underwear and little was designed outside of the norm that targeted local audiences or individualized designs.

Today, localization and individualization have changed the face of competition in the underwear market. Customers with fewer spending dollars need differences in products to impact their choice. After all, what will influence a purchase of Generic A underwear versus Generic B underwear? Designers with an eye on outerwear fashion changes have taken this cue for their underwear designs.

For example, Alenver Inc., new to the underwear market but aware of the low-rise waist trend has tapped into this street fashion inspiration to take it to a higher level. Although other underwear companies such as Calvin Klein, Armani and 2(x)ist have used wide elastics, they have primarily used them as advertising beacons with the company name or logo. In contrast, Alenver's waistbands include metallic colors declaring a one to two word message, surprisingly reversed for secret reading through the mirror image, with a graphic design related to the message. Women's messages have included love, desire and bitch, while men's messages included respect, no fear and money. New localized messages such as Miami Beach and die for 305, in reference to the phone area code for Miami, are manufactured for those with a love for Miami. Since the Alenver principles are based in both Miami and Paris, their knowledge of the preferences of the local community are obviously strong. Images and messages for other niche communities are also possible, principles state, if there is a customer base to support the manufacture of at least 500 products.

Online sales also provide the opportunity for responding to local and smaller markets. When products are only available in physical stores, it limits the variety of products to only those that can be supported by a large customer base in a large urban market. Smaller, diversified less urban markets are consequently eliminated from production to suit their particular needs. It appears that retailers and buyers have utilized this opportunity as online sales during the 2008 holiday season were the only area in retail that did not take a significant dip. The Wall Street Journal reported that while sales were down in footwear 14%, men's apparel 14%, women's apparel 24%, and luxury items 35%, online sales, were down only 2%.

As localization breaks the bonds of standardization, it simultaneously makes copying of the product less likely. To copy the ideas of Alenver's waistband messages, for example, would be akin to design theft - and very unlikely. Consequently, although there is a design risk in trying a product so new and novel, there is a very strong benefit to being the groundbreaker for such a new idea - because you essentially own that idea. As the Harvard Business Review states, Customization encourages local experimentation and is difficult for competitors to track, let alone replicate. When well executed, localization strategies can provide a durable competitive edge for retailers and product manufacturers alike.

Companies with business philosophies that embrace localization will reap the benefits through these economic trials for having met the needs of local markets across the country and even the world. The time and effort taken in researching those needs will be more than worthwhile for them in the future.
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