작성일자: 2013.8.6

작성자: 도하 무역관 Abhishek Pant, Ashwin Menon(ashwin@kotra.or.kr)

 

 

1. Introduction

 

 ○ The purpose of this paper is to explore the factors determining the demand for male underwear (White) in Qatar. The assumption made while conducting this research was that the definition of underwear would include, underpants of all types (briefs, V – shaped, boxers), tank tops, vests of all types (t – shirt, sleeveless etc.). Hence, the report will provide a general view on the demand dynamics of the male underwear category and avoid getting into the details of sub – category item demand. (For example: the demand for male V – shaped white underwear in relation to other types)

 

 ○ The data collected, was primary and secondary in nature. Market visits to retailers, department stores and shops along with telephonic interviews with wholesalers comprised of the primary data collection methods. All the secondary data was acquired from Qatar Statistics Authority(QSA),  which can be considered a reliable source, but its studies are open to flaws and over/under estimations of data. An intuitive assumption based on market visits tells us that approximately 80% of the underwear comprises of white colour vests and underpants

 

 ○ The focus of this paper would mainly be on the Middle class and Middle - Low class population segments (C Class) as TRY’s target audience mainly falls under the category of workers earning less than 10000 QR or 2747 USD a month.  Average worker’s wages a month in Qatar is around 7401 QR which equals 2027 USD. The average wage (2027 USD/month) is not a good indicator of a person being middle – class as the top earning 15 % of the total population of Qatar can easily dwarf the wages of the rest of the 75 %. For the purpose of simplification we can classify the individuals earning USD 2027 per month as middle – class and the persons earning lesser than this wage as the lower middle income individuals. These individuals are more likely to buy TRY’S products. (But workers earning above USD 2027/month could also buy these products as it depends on individual preferences and the utility derived through purchase of an item). Now we shall look at the deterministic factors of demand.

 

2. Factors Determining Demand

 

□ Population

 

 ○ The total population of Qatar as of 2013 is 1,938,110 out of which males represent 1,476,211 of the total population. To put it in perspective, a little more than 3/4th of Qatar’s population is male and 1,290,684 males are employed.

 

 ○ Qatar Statistics Authority or QSA defines the term ‘Economically Active persons’ as the persons who are already employed and the ones who are seeking employment as well. There are 1,234,059 economically active Non – Qatari males in Qatar.

 

 ○ The male population of Qatar was 1,288,590 in 2011, and 1,355,199 in 2012. If we take 2011 as the base year then, there has been an approximately 15% increase in the male population of Qatar from 2011~2013 and almost an approximately 9 % increase in male population when compared to last year (2012).

 

 ○ Socio – Economic Data

 

Locational Segmentation of the Male Population According to 2010 figures

Place of Residency	Grand Total		Public Housing		Labour Camps		Households
	Total	Males	Total	Males	Total	Males	Total	Males
Doha	796,947	610,817	796	486	10,954	436,539	348,658	173,792
Al Rayyan	455,623	301,842	989	879	2,545	161,896	290,193	139,067
Al Wakra	141,222	114,698	0	0	199	89,382	51,641	25,316
Umm Slal	60,509	36,700	0	0	193	16,678	43,638	20,022
Al Khor	193,983	181,005	74	52	429	169,028	24,452	11,925
Al Shamal	7,975	5,352	0	0	56	3,419	4,500	1,933
Al Dayyan	43,176	34,325	0	0	3	26,802	16,344	7,523
Total	1,699,435	1,284,739	1,859	1,417	14,406	903,744	779,426	379,578

 

  - The above figures clearly indicate that the majority of male population in Qatar in 2011, which is 903744, resides in Labour camps.  Hence, we can assume to some degree that based on the location of residence, the segment of population residing in labour camps is most likely earning extremely low wages when compared to the average wages of workers in Qatar (which is around 2027 USD).

  - Industrial Area in Doha is the largest sub –locality in the Doha region, which consists of 261000 residents approximately (Source: QSA Annual Bulletin 2011). Safari Hypermarket and mall has a popular presence in that region, and can be a good platform for catering to the lower wage populations in Qatar.

 

Male Occupation Statistics and Monthly Wage by Occupation, in relation to educational status

(Male population includes Qatari Men as well).

Male Occupation & Educational Status	Population Total	Monthly Average Wage by Occupation	University and above	Pre.U. Diploma	Secondary	Preparatory	Primary	Read & Write	Illiterate
Legislators, Senior Officials, and Managers	20,913	29,502	17,088	1,394	1,597	680	113	46	0
Professionals	75,019	17,937	74,799	143	77	0	0	0	0
Technicians and Associate Professionals	40,381	15,645	16,901	23,480	0	0	0	0	0
Clerks	30,777	11,930	3,688	0	19,147	4,630	1,433	1,879	0
Service Workers, Shop, and Market Sales Workers	71,719	5,875	23,837	0	19,321	9,188	71,717	9,113	2,543
Skilled Agricultural and Fishery Workers	9,625	3,322	306	0	537	870	3,957	2,780	1,175
Craft and Related Trade Workers	468,425	4,061	4,203	5,591	115,473	47,666	141,731	140,933	12,828
Plant and Machine Operators and Assembles	141,005	3,065	982	0	18,991	36,792	28,332	51,341	4,567
Elementary Occupations	210,460	2,924	2598	0	24,686	40,239	48,406	78,577	15,954
Total	1,068,329	7,401	144,402	30,608	199,829	140,065	231,689	284,669	37,067

 

  - In 2011, out of the 1,068,329 employed males, 468,425 persons were categorized as Craft and Related Trade Workers earning an average of 4061 QR or 1115 USD a month. In addition to this, the above statistics also indicate that this is the largest occupation followed by males in Qatar. The second largest group in the above table is workers engaged in elementary occupations which equal 210,460.

  - If you add up all individuals in professions which provide monthly wages less than 2027 USD, you would get 901234 male persons. Interestingly, the male occupation categories that are paying less than 2027 USD monthly wages, also include all the illiterate male population, which amount to 37,067 males (Hence 37,067 out of 901,234).

 

□ Import Statistics

 

Import Trends of All types of Male Underwear from 2008 ~2012

2008		2009
Commodity	Import Value	Commodity	Import Value
Underpants	4,667,511	Underpants	22,419,963
Vests	12,402,325	Vests	77,057,454
Total In QR	17,069,836	Total	99,477,417
Total In USD	$4,689,515	Total In USD	$27,328,960

 

2010		2011		2012
Commodity	Import Value	Commodity	Import Value	Commodity	Import Value
Underpants	12,304,504	Underpants	12,117,211	Underpants	13,949,119
Vests	97,315,968	Vests	184,747,159	Vests	137,572,138
Total	109,620,472	Total	196,864,370	Total	151,521,257
Total in USD	$30,115,514	Total In USD	$54,083,618	Total In USD	$41,626,718

 

 ○ Above, you shall find the import values for the male underwear category regardless of colour and type. The corresponding dollar values for the respective years are also mentioned. Based on the surveys conducted, wholesalers estimated that market size of male underwear is well below $50 million in one year. It is also to be noted that we cannot be certain of the figures provided above as the way goods are categorized by the custom authorities is unknown to us and there is a good chance of over or under representation of value of imports.

 

 

 ○ The graph above demonstrates the fluctuating trend of Male Underwear Imports in Qatar. The average of the past 5 years male underwear import data is $31,568,865. For the past three years, the value of male underwear imports has been crossing $30,000,000, hence, in 2013; we can expect the import values to be near the $ 30 million figure.

 

□ Competition

 

 ○ There is hyper competitiveness in the male underwear category, especially with respect to TRY’S target market. Majority of the competition hails from Far Eastern Countries such as China and Korea, and also from the Indian sub – continent which includes India and Pakistan. UAE and Egypt origin brands have a good presence in Qatar as well. Private label competition especially from established Department store retailers is highly limited. Below you can find a summary of the prices from 3 Department stores.

 

     Note: Price ranges are subject to fluctuation, and retailer initiatives. Hence, the might change in the future. Briefs and Underpants are referred to as the same item.

 

 ○ Carrefour Price Ranges: (Refer to Table 5 in the Appendix section)

  - Carrefour, price range of single brief/underpants is from $2.95~4.05. 2 pack brief/ underpants ranges are from $6.79~12.29. 3 pack underpants ranges are from $6.59~16.41. Hanes is the only supplier of the 4 pack underpants retailing at $21.7. ‘Tendencies’ is the only single vest supplier which retails at $4.05. 2 pack vests. Hanes is the only supplier of 2 pack vests for $10.9. 3 pack vests are supplied solely by Fruit of the Loom for $16.41.

 

 ○ New World Centre Price Ranges: (Refer to Table 6 in the Appendix section)

  - New World Centre is a part of Ansar Group that has multiple Department store outlets in Qatar. The single brief/underpants range starts from $2.67~5.42. 2 pack underpants range starts from $5.42~8.17. 3 pack underpants range from $4.58~11.81. Single vests range from $3.77~6.52. No 2 pack and 3 pack vests were found in this department store.

 

 ○ Lulu Centre Price Ranges: (Refer to Table 7 in the Appendix section)

  - Single brief ranges are from $1.78~6.45. 2 pack brief ranges are from $6.04 ~16.2. 3 pack underpants/brief ranges are from $4.12~16.2. Hanes is the only supplier that is providing 4 pack briefs at $21.7. Single Vests are from $1.78~4.94. There were no 2 pack vests noticed. 3 pack vests are within the ranges $7.14~16.20

 

□ Distribution Channels

 

 ○ There is a tremendous scope for improvement in Qatar’s current retail and distribution sector. According to the 2011 Wholesale and Retail trade statistics published by Qatar Statistics Authority, out of only 37 established wholesalers in the field of textiles, clothing and footwear, only 4 out of the 37, employ more than 10 people. This means that 33 wholesale companies are employing less than 10 people. Hence, we can assume that there are only a handful of companies that have good infrastructures to finance and support distribution in the clothing sector to various retailers.

     In addition to this, based on the telephonic surveys with representatives of the wholesalers, there are individuals that are working for established wholesale distribution companies in UAE, who are flying to Qatar, and after negotiating contracts, directly exporting to retailers in Qatar.

 

□ Weather

 

 ○ The warm season lasts from May 10 to September 26 with an average daily high temperature above 37°C. The hottest day of the year is July 6, with an average high of 41°C and low of 31°C.The cold season lasts from December 5 to March 6 with an average daily high temperature below 25°C. The coldest day of the year is January 22, with an average low of 14°C and high of 21°C. Hence, climatic factors have an important role to play in increasing the demand for underwear, as extreme temperatures force the male population to buy underwear suitable for them.

 

 

3. Conclusion

 

 ○ TRY’S target market ( individuals earning 2027 USD or below) will increase in the future as increase in construction activities is most likely going to lead to increase in the working male labour which will mainly comprise of construction workers. Hence, we can assume that the market size shall continually expand for the coming years. Major limitations in Qatar’s market are under developed distribution channels or sales channels for that matter. Online buying culture is highly limited in Qatar, and especially the target market of TRY would prefer buying in store instead of shopping online. This means there is an over – dependence on wholesalers and distributors for achieving sales expansion in Qatar. Selecting a wholesaler who has the right infrastructural capabilities will be of paramount importance. The major limitations of this research were types of underwear being ignored, and mixed colour underwear data was collected from department stores, due to the inconsistencies in packaging (mixed packaging of colours and white). Qualitative data which included the consumer tastes and preferences were also not provided.

     In closing arguments, increasing the product visibility in the eyes of the target group would lead to increase in sales, as underwear or vests is a commodity, which on an intuitive assumption, can be purchased twice an year. Wholesalers interviewed have a firm belief that the brand will do well in Qatar.

 

 

4. Appendix

 

Carrefour Prices of Male Underwear, including some mixed colours

Brand	Country of Origin	Classification	Packaging	Price Range (QR)
Tendencies	Unknown	Briefs	Single	10.75~12.75
Tendencies	Unknown	Vest	Single	14.75
Fruit of the Loom	U.S.A	Brief	2 pack	44.75
Fruit of the Loom	U.S.A	Brief	3 pack	59.75
Fruit of the Loom	U.S.A	Vest	3 pack	44.75
Hanes	U.S.A	Brief	2 pack	39.75~44.75
Hanes	U.S.A	Brief	3 pack	54.75
Hanes	U.S.A	Vest	2 pack	39.75
Hanes	U.S.A	Briefs	4 pack	79.75
Tex	Hong Kong	Brief	2 pack	24.75
Tex	Hong Kong	Brief	3 pack	29.75
Tex	Hong Kong	Briefs	3 pack	24~44.75

 

New World Centre: Prices of Male Underwear, including some mixed colours

Brand	Country of Origin	Classification	Packaging	Price Range (QR)
Young Life	UAE	Brief	Single	13.75~16.75
Young Life	UAE	Brief	3 pack	17.75~36.75
Young Life	UAE	Vest	Single	13.75~19.75
Try	Korea	Brief	Single	10.75~13.75
Try	Korea	Brief	3 pack	36.75~37.75
Try	Korea	Vest	Single	16.75
BYC - Scorpio	Korea	Brief	Single	16.75~19.75
BYC - Scorpio	Korea	Vest	Single	19.75~23.75
BYC	Korea	Brief	Single	16.75~19.75
BYC	Korea	Vests	Single	19.75
Slugger	Korea	Brief	Single	13.75
Slugger	Korea	Brief	3 pack	43.75
Slugger	Korea	Vest	Single	19.75
Rockkers	Korea	Brief	Single	11.75
Rockkers	Korea	Vest	Single	16.75
John Gladstone	China	Brief	Single	17.75
John Gladstone	China	Vest	Single	19.75
Byford	Malaysia	Brief	Single	13.75
Byford	Malaysia	Vest	Single	17.75
Jil	Egypt	Vest	Single	17.75~19.75
Jil	Egypt	Brief	Single	19.75
Evoro	China	Brief	2 Pack	19.75~27.75
Fukang Lai	China	Brief	2 pack	29.75
Diyigongzi	China	Brief	2 pack	29.75
First one	Unknown	Brief	2 pack	29.75
V Jeckey	China	Brief	2 pack	33.75
Dollar	India	Brief	Single	9.75
Dollar	India	Brief	3 pack	16.75~23.75
Pier Carno	China	Brief	Single	13.75
Senfoni	Unknown	Vest	Single	17.75
Gunners	Unknown	brief	single	13.75
Killer	India	brief	single	19.75

 

Lulu Centre: Prices of Male Underwear, including some mixed colours

Brand	Country of Origin	Classification	Packaging	Price Range (QR)
Oxford University	Indonesia	Brief	3 Pack	18~46
Comfort	Indonesia	Vest	3 pack	26~29
Comfort	Indonesia	Vest	Single	8~11.5
Comfort	Indonesia	Brief	3 pack	15~22
Fashion Academy	India	Brief	3 Pack	15
John Louis	China	Brief	3 pack	39~59
Hanes	U.S.A	Brief	3 pack	55
Hanes	U.S.A	Brief	4 pack	79
Hanes	U.S.A	Vest	3 pack	59
Fruit of the Loom	U.S.A	Brief	3 pack	49
Fruit of the Loom	U.S.A	Brief	2 pack	59
Frenchie	India	Brief	Single	11.5
Betteny	Unknown	Brief	2 pack	22~39
VIP	India	Brief	Single	6.5~7.5
VIP	India	Brief	3 pack	21.5
VIP - frenchie	India	Brief	3 pack	16.5
John Gladstone	China	Brief	3 pack	21
John Gladstone	China	Brief	Single	9.5
John Gladstone	China	Vest	Single	11.5~14
Zico	Korea	Brief	3 pack	21.5
Zico	Korea	Brief	Single	7.5~10.5
Zico	Korea	Vest	Single	12.5~14
BYC	Korea	Vest	Single	18
BYC - Scorpio	Korea	Vest	Single	15
Classic	UAE	Vest	Single	13.5~16
Big Lake	Korea	Vest	Single	13~15
De Backer	UAE  (Lulu Private Label)	Vest	Single	11.5~19
Cozy	Unknown	Vest	Single	9~12.5
Oxo	India	Vest	Single	6.5~7.5
Jil	Egypt	Brief	Single	13.5~23.5
Eten	Unknown	Brief	3 pack	29~39
Byford	Malaysia	Brief	Single	11.5