According to Technopak’s market research, the innerwear industry’s market size is expected to rise at a CAGR of 10% over the next decade, reaching Rs 74,258 crore by 2027. And, with national brands like Dollar, Lux, VIP, and others dominating the Indian market, it’s unclear how XYXX will ramp up in the immediate future. XYXX has introduced its men’s innerwear brand, which includes a wide range of trendy items priced between Rs 199 and Rs 399, for all the men out there searching for daily comfort and unconventional variety in their innerwear but only finding bland and costly choices.
Yogesh Kabra: The face behind XYXX
XYXX is a luxury men’s innerwear and loungewear company founded by Yogesh Kabra in Surat, Gujarat, in 2017. The business was created with the aim of changing India’s innerwear community. Innerwear is the first garment a person wears every day, and there were not enough options on the market, according to Yogesh Kabra. If my outerwear reflects my mood for the day, why can’t my innerwear do the same? It doesn’t have to be black or white.”
Trunks, boxers, shorts, knitted Pyjamas, vests, and t-shirts are among the fashionable innerwear for men designed and manufactured by the company.
XYXX: promoting comfortability of men
Yogesh Kabra returned to India after completing his post-graduate studies in the United States and entered his family’s textile company. The company imports cloth for the domestic market from all over India, primarily for women’s ethnic wear, men’s shirts, and home decor. Yogesh claims that after returning from the United States, he went shopping for innerwear one day but couldn’t find anything suitable. The fabric consistency was consistent for all manufacturers, and there was none that suited his preferences.
He realised that in India, it is hard for men to make a ‘happy choice’ for their innerwear. As a result, the idea hit him, and he decided to start his own men’s innerwear company. He claims that the men’s innerwear industry in India has been stagnant for several years. We’re not only arguing about bad goods here; we’re even talking about bad habits that surround them. XYXX needs to transform India’s innerwear culture.”
The USP of XYXX
Innerwear from XYXX is made of LenzingMicroModal cotton, which is known for its consistency and comfort. It is the world’s most expensive underwear thread, made from the pulp of the beechwood tree in Austria. “MicroModal is three times lighter than cotton, feather-light, smoother to the touch, and up to 50% more moisture absorbent than cotton,” Yogesh explains, “making it the right fabric for India’s weather.”
MicroModal is both biodegradable and natural, according to him. This ensures that all MicroModal clothing can decompose within a person’s lifespan. Microfiber yarns are used in the waistbands of XYXX innerwear, which are very soft on the skin and do not cause rashes. “Not many national players use micro modal fabric in their entire range,” he says, “but XYXX is doing it in a major way.” At a price point where there is a significant demand, XYXX offers the best value for money.
The online marketplace accounts for 70% of revenue, while brick-and-mortar stores account for the remaining 30%. According to Kabra, the firm mostly used new mediums for ads in FY19. 5 per cent of overall promotional spending was directed to Facebook, while the remaining 7% was directed to e-commerce sites such as Flipkart and Amazon. Kabra stated that the company is yet to devise a marketing plan for this year,
Funding and business model
The business is bootstrapped and started with a capital of Rs 50 lakhs. XYXX currently hires 40 employees in its Surat branch. XYXX recently reported a $20 million seed round from Sauce. VC., and Govind Shrikhande, the former MD of Shoppers Stop, has joined the brand as a Senior Advisor. According to Yogesh, the biggest obstacle is the customer’s mindset. Men try to keep their innerwear, even though it is really mature.
The innerwear has a shelf life of 25 washes, but Indian customers use it for an average of 70-80 washes, even after the fabric has lost its soaking capacity and simple characteristic feature. According to the group, 500-600 orders are placed per day, with an average ticket price (ATP) of Rs 850. Currently, recurring purchases account for 35% of all orders. A shipping fee of Rs 60 is also charged by the firm.
Future plans and Development
XYXX advertised itself on Amazon for sales after its launch. About the fact that the Indian innerwear market was dominated by large brands, XYXX, with its USP, began generating revenue right away, rising by 50% per month. Maharashtra, Madhya Pradesh, Gujarat, and Chhattisgarh are among the states where XYXX has distribution networks. The brand has drawn 3,00,000 consumers so far, generating Rs 12 crore in annual revenue, which it plans to double in the coming months.
Yogesh says that in the future, the company needs to take advantage of as many opportunities as possible to be available at big customer shopping points. He also aims to expand the brand’s presence in both new and traditional media. Yogesh also mentions that with the first round of seed funding received recently, the brand is looking forward to strengthening its team and expand its reach to increase sales pan India.