Shapewear Market Insights

PRELIMINARY DRAFT
December, 2010

Market Size and Growth

Shapewear is an ~$850M market but is growing rapidly with sales expected to top $1 Billion by 2014 Shapewear Market Findings
Small market growing rapidly Few key playersSpanx and Flexees (owned by Maidenform)have benefited tremendously from celebrity endorsement Current customer trends indicate older women and college aged women who are willing to experiment with new looks Key Questions for BRFS Uncomfortable shapewearas a lasting trend needs to be validatedperhaps new fabrications are more comfortable than 1950s girdles? Current shapewear customers seem to be poorly aligned with our own customer (either over 55....or young and hip and willing to experiment)can we make comfortable shapewear accessible to 3045 year olds? How can BRFS create socially acceptable shapewear from an outlet positioning?

CAGR = 6.4%

Source: Mintel Research - Womens Underwear 12/09 2

Key Players
Spanx, Flexees and Hanes have the highest market share and both are growing rapidly
Shapewear Brands 1 Spanx 2 Flexees 3 Hanes 4 Maidenform 5 Victoria's 6 Secret Bali 7 Total 8 Walmart Fruit Of The 9 Loom Playtex 10 Just My Size (Hanes Plus 09 SOM 12% 8% 8% 5% 4% 4% 3% 3% 3% 3%

Shapewear
Shapewear segment has largely been formed by the $350M Spanx brand which has become trendy via celebrity endorsement Spanx mission to create comfortable, slimming garments that minimize figure flaws for both Plus and regular size women internationally (current distribution includes Asia, Europe, Australia and Latin America) Spanxenjoys high end domestic distribution: Nordstrom (incl. Rack), Neiman Marcus, Saks, Bloomingdales, Dillards and Lord & Taylor In addition to the core Spanx brand, Spanx segments the market with lower-priced Assets (distributed in Target, LOFT, Davids Bridal, Dillards, Motherhood Maternity and Belk) and Haute Contour by Spanx, featuring the benefits of Spanx shapewear with sexier styling Flexees by Maidenform, has also benefited from celebrity endorsements and are also reportedly more comfortable than Spanx Prior to celebrity validation, shapewear was viewed unfavorably like uncomfortable girdles of the past

Notes: Flexees are owned by Maidenform while Just My Size is Hanes Plus size offering; at $350M, Spanx owns 40+% of the $850M shapewear marketit may be that NPDs definition of shapewear does not include all of the Spanx offering Source: Market share NPD; internet research

Underwear (in general)

Mass merchandisers dominate the underwear market with almost 50% of the market and growing Dept. stores have become less important as an underwear destination

Who is buying Shapewear?

Mintel created a customer cluster to understand underwear purchasing behavior
Which of the following have you purchased in the last 12 months? Total Disloyalists Stickers Experimenters Camisoles 21% 16% 3% 45% Shapewear 15% 15% 3% 25% Maternity Underwear 2% 1% 1% 3% Total Moms No Children Panties 81% 89% 77% Bras 78% 83% 75% Camisoles 16% 20% 14% Shapewear 13% 16% 11% Maternity Underwear 1% 4% 0% None of the Above 10% 6% 13% Demographics Age 18-24 25-34 35-44 45-54 55-64 65+ Income <$25K $25-$49.9 $50-$74.9K $75-$99.9K $100K+ Ethnicity White Black Other Hispanic Not hispanic Education High School or below Some College College or More

Total Disloyalists Stickers Experimenters 100% 25% 5% 70% 100% 47% 13% 40% 100% 56% 18% 26% 100% 59% 26% 15% 100% 41% 47% 12% 100% 35% 64% 1% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 38% 47% 49% 53% 46% 43% 56% 46% 35% 48% 43% 45% 49% 31% 22% 25% 21% 30% 31% 14% 15% 19% 28% 32% 26% 21% 31% 31% 26% 26% 24% 26% 30% 39% 46% 25% 26% 29% 29%

Consumer Clusters: Full Coverage Bra Disloyalists 46% of sample surveyed Not loyal to brands or retailers Utilitarian Conservative Un-padded Stickers 26% of sample surveyed Overwhelmingly 55+ More likely to have purchased shapewear or camisoles Slow to embrace change Bikini, thong, and push up experimenters 28% of sample Generally 18-24 years oldcollege aged Most likely to try new stylesand significantly more likely to have purchased shapewear, thongs, bikinis, push up bras, etc. Moms Moms generally purchased shapewear that provide full coverage from bra to calves suggesting that they are self conscious about their post pregnancy bodies