Goat Brand Labs has reportedly put the Pepe innerwear business up for sale as competition intensifies in India’s fast-growing premium men’s innerwear segment. The move comes at a time when several direct-to-consumer (D2C) brands are facing increasing pressure from rising customer acquisition costs and aggressive market expansion strategies.
The innerwear line of Pepe Jeans was acquired by Goat Brand Labs as part of its strategy to build and scale fashion and lifestyle brands in India. However, industry sources indicate that the company is now exploring a potential sale of the business as it reassesses its portfolio and focuses on long-term profitability.
Market dynamics in the men’s innerwear segment have become increasingly competitive with the rapid growth of digital-first brands. Companies such as XYXX and Damensch have also been navigating the pressures of scaling operations while managing marketing costs and customer retention in a crowded marketplace.
Industry analysts note that while the premium innerwear category in India continues to grow, brands are facing challenges related to high online advertising costs, intense competition, and the need for constant product innovation. These factors have prompted several players to reconsider growth strategies and focus more on operational efficiency and profitability.
Despite the pressures, the Indian innerwear market remains attractive due to rising consumer demand for premium comfortwear, performance fabrics, and sustainable apparel. Industry observers believe that any potential sale of the Pepe innerwear business could attract interest from investors or strategic buyers looking to expand their presence in the rapidly evolving innerwear segment.
The development highlights the shifting landscape of India’s apparel market, where brand aggregators and D2C startups continue to recalibrate strategies to sustain growth in an increasingly competitive environment.
Source: Money Control
(Rewritten & adapted by Indian-Apparel.com News Desk)
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