Why Women's Underwear Prices Rose 44% in the US: "Because of Inflation"

[Image source=AP Yonhap News]

[Asia Economy Reporter Jeong Hyunjin] American lingerie company Journelle will raise the price of its Natalia Underwire Bra (wireless bra), launched in 2016, by $30 starting this June, selling it at $98 (approximately 122,000 KRW). Due to the sudden price increase, some retailers have stopped selling this product. What is the reason behind the company's abrupt price hike on underwear?

The Wall Street Journal (WSJ) analyzed and reported on the phenomenon of sudden product price increases as inflation reached its highest level in 40 years on the 24th (local time). The U.S. consumer price index for March rose 8.5%, marking the highest in 40 years.

According to the report, Guido Campello, co-CEO of Journelle, said they had no choice but to push for a price increase due to rising costs. Journelle's bras contain 27 components. Campello considered that once product prices rise, it is difficult to revert them and predicted that cost increases would continue for the time being.

Campello identified the surge in energy prices caused by Russia's invasion of Ukraine as the main reason for the cost increase. Journelle's Italian lace supplier passed on some of the cost burden to Journelle as energy costs quadrupled since 2019. As a result, the costs for lace and bra straps increased by more than 40% over the past three years. Additionally, since January 2020, the cost of dyeing fabrics has quadrupled, wire prices have risen more than 20% during the same period, and prices for bra components have increased by 25%. Paper products such as boxes and shopping bags also contributed to the cost increase.

Ultimately, Campello explained that the price increases of individual components had a cascading effect on the manufacturing process, leading to the bra price hike. In response to price pressures, he said they reduced shipping costs by purchasing parts from Europe instead of Asia and increased production of comfortable bras without wires, which gained popularity during the pandemic.

WSJ reported that other lingerie brands, such as La Perla and Victoria's Secret, owned by Wacoal International, are experiencing similar situations. According to market research firm NPD Group, total bra sales last year reached $10.2 billion, up 36% from 2020 and 24% from 2019.