Two heavy hitters from different channels of distribution are expanding their presence in the lingerie arena in a big way.
Spiegel Brands has dramatically increased its lingerie offerings in its Spiegel and Newport News catalogues this fall, and J.C. Penney Co. Inc. will be launching a lingerie brand in February called Ambrielle for multidistribution: catalogue, e-commerce and its more than 1,000 stores nationwide.
The aggressive move into the annual $12.4 billion innerwear business at retail, which encompasses bras, underwear, sleepwear, robes, at-homewear and daywear items such as camis and tanks, is viewed by a number of industry executives as a line of business with much potential.
The lion’s share of mail-order and online lingerie business is generated by two companies: Victoria’s Secret, which posted $1.23 billion in direct sales in 2005, and Frederick’s of Hollywood, which has catalogue and Internet sales comprising about half of its $250 million in annual volume.
Exposure of lingerie and lingerie looks on fashion runways and Hollywood’s red-carpet extravaganzas, as well as motion pictures, TV and music videos, also has lent a certain cachet to a category that had long been considered a commodity item.
New York-based Spiegel and Plano, Tex.-based Penney’s are both aiming to claim a bigger stake in the intimate apparel field. They join the Chico’s lingerie spin-off, Soma, which has units that average $1 million in annual sales and for which a new Web site is planned for holiday selling.
Spiegel is poised for “tremendous” growth with its lingerie businesses, said Geralynn Madonna, president and chief operating officer, who added the parent company, Golden Gate Capital, plans to expand intimates beyond the Spiegel and Newport News venues into two other catalogues acquired in September: Carabella and A.B. Lambdin. Both catalogues are anchored in swimwear, a natural segue for Spiegel to grow its intimates business with a new customer base, said Madonna.
The newest introduction in July was the Cami Intimate line of lingerie created for both books. The five Cami Intimate groups — Flirty, Chic, Sexy, Beautiful and Glamorous — feature classic lingerie items such as embellished camis, but also comprise coordinating ready-to-wear pieces that Madonna describes as “on-trend.”
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“Last spring, we introduced The Show Bra and a cami that supports and enhances the figure,” she said. “We got the idea for the Cami Intimate Collection from that, which now comes in different fashion colors and a sweater with Lycra panels along the tummy.”
Madonna noted the Shape FX Collection, which was introduced in 1999 in Newport News with 10 to 15 control items, mostly push-up leggings, has expanded into an 80-piece collection for fall. The success of the line, though, is the melding of undergarments produced by a team of rtw and innerwear manufacturers who create built-in control in rtw pieces, or support garments in a variety of styles that can be worn underneath apparel for an allover smooth look, she said.
“We intend expansion of FX across the brands we currently own,” Madonna said. “The number of customers ordering the FX line is 600,000, up 3 percent from last year.”
She added that sizes will be expanded in the support items, which range from traditional shapers, dual-purpose bra tops, full slips and bodysuits to dresses, skirts, pants, jackets and knit apparel.
“We’ll be expanding large sizes by 20 percent, with 30 to 40 items next season, and we’ll also be going into petites,” she said.
The Shape FX and Cami Intimates lines are being featured in 45 pages of a 68-page Newport News catalogue that dropped last week. Also part of the lingerie initiative at the 104-year-old Spiegel catalogue is the introduction of four fashion innerwear brands for fall: On Gossamer, which is part of The Carole Hochman Design Group; the Classic Curves Collection by DKNY Underwear; Calvin Klein Underwear, and Le Mystère.
Madonna added the company plans to aggressively market and distribute its burgeoning lingerie business through “third-party extensions, including brick-and-mortar retailers and a unique Web site for Shape FX in early ’07.”
Meanwhile, the new lingerie mantra at Penney’s is “sensuality versus sexuality,” said Ceil McDermott, senior vice president and general merchandise manager of women’s accessories and family footwear, who is overseeing the launch of Ambrielle lingerie.
“The big focus for the Ambrielle brand is on sensuality, not on anything naughty or sexy,” said McDermott. “It’s all about what makes a woman feel good dressing for herself, not somebody else. In focus groups, women told us, we want something more subtle, more for myself, while sexy was considered overt, for somebody else.”
With this idea in mind, the Ambrielle brand will be promoted as a “big lifestyle brand in the intimate apparel arena,” said McDermott, noting it will replace a longtime proprietary brand by Penney’s called Delicates.
The new proprietary lingerie label was introduced to the media Sept. 28 at an “Art of Sensuality” art exhibit at the Chelsea Art Museum in Manhattan with an exhibit and party benefiting the New York Foundation for the Arts and featuring a performance by singer Anna Nalick. Penney’s set up an exhibit of classic and contemporary paintings, sculpture, design work and videos and had models in Ambrielle bras, lace camisoles, thongs and hipsters positioned by the art to underscore the sensuality of the brand. Models emulated iconic subjects depicted in the art reproductions. Some wore tutus, like the dancers in the Degas, another posed reclined, like the “Odalisque.”
“We are trying to build a brand that really makes that emotional connection with customers,” said Ken Hicks, J.C. Penney’s president and chief merchandising officer, at the party.
Ambrielle, which McDermott said will be the largest private brand launch in the company’s history, will feature smooth, seamless bras and panties of microfiber, feminine-looking embroidered lace bras and undies and a volume-oriented foundations group called Essentials that will cater to the customer who buys the Delicates brand for comfort and function.
McDermott noted that a “soft launch” will begin in early February at all Penney’s doors, including the 20 additional units opened Friday, as well as direct mailers at the end of February, major placement in the Penney’s spring catalogue and “extra specific” lingerie books to be mailed seasonally. McDermott added that Ambrielle will be the centerpiece of redesigned lingerie departments at stores nationwide. The big push will take place with a multimillion-dollar TV ad campaign airing Feb. 25 during the Academy Awards.
McDermott would not give the number of mailings or catalogue pages that will be devoted to Ambrielle lingerie. However, she did say that, in addition to the TV ad campaign, Saatchi & Saatchi will coordinate another major national print ad campaign for the Ambrielle launch.
“Intimate apparel is a very important part of our business and we’ve had consistent growth in sales over the past several years. It’s one of the 11 focused businesses in our company,” said McDermott. “While the customer didn’t respond to the Delicates name, she certainly bought a lot of Delicates products.”
Regarding the strategy behind the Ambrielle launch, McDermott said: “A lot more traditional retailers have gotten into this category, and because of that, we see a big sales opportunity in the long term.”