Leading hosiery brands Dollar Industries and Rupa & Company are reducing celebrity endorsement budgets to under 10% of total ad spends. The firms are shifting capital toward digital channels and regional marketing to sustain growth amid sector-wide demand volatility.
India’s major innerwear companies, Dollar Industries and Rupa & Company, are significantly restructuring their marketing strategies by reducing reliance on high-cost celebrity endorsements. While these brands continue to partner with popular film stars, celebrity fees now account for less than 10-12% of their overall advertising budgets. Instead, both companies are reallocating funds toward digital media, prime-time television, and localized advertising in Tier-2 and Tier-3 markets to navigate a challenging consumption environment.
This strategic pivot comes as companies face pressure to manage costs while maintaining visibility in a highly competitive innerwear market. By prioritizing digital placements, social media campaigns, and regional advertising such as outdoor hoardings, the firms aim to reach customers more directly. This shift is designed to optimize marketing efficiency, allowing companies to respond more dynamically to regional demand trends rather than relying solely on the mass appeal of celebrity branding.
Financial performance in the first quarter of fiscal year 2027 shows that this focus on operational and marketing efficiency is yielding mixed results for the bottom line. Dollar Industries reported a 25% year-on-year increase in standalone net profit to ₹24.5 crore, with operating margins reaching 11.80%. Rupa & Company also posted a strong 55% profit jump compared to the same quarter last year, although the firm noted that margins were temporarily impacted by higher-than-usual promotional spending and rising raw material costs.
Despite these profit gains, the sector faces several structural challenges that investors should monitor. Raw material volatility, specifically in yarn and cotton prices, remains a constant risk that can squeeze gross margins if companies are unable to pass on costs to consumers. Additionally, the innerwear sector is dealing with intense competition from both organized and unorganized players, which limits the ability of brands to hike prices aggressively.
Looking ahead, the effectiveness of this marketing shift will be tested by consumer demand, particularly in rural and semi-urban areas. While the move toward digital and regional engagement helps reduce fixed celebrity costs, the companies must manage the risk of margin compression caused by aggressive discounts and promotional activity used to gain market share. Key monitorables for shareholders include volume growth trends, the stability of raw material prices, and whether the festive season drives enough consumption to offset current competitive pressures.