“Laundry is something like a recession indicator”

With over 95 years of company history, Mey is one of the most traditional lingerie manufacturers in Germany – and one of the few that still controls large parts of their value chain themselves. The family business, founded in 1928, is still fully family-owned today and is run by the Mey family in the third and fourth generations.

The company’s headquarters are in Albstadt, Swabia, a region with a long textile tradition. There, Mey produces around 85 percent of his fabrics himself. The production tour begins with pallets full of high-quality Pima cotton, which has been sourced from Peru for decades. Around 100 modern circular knitting machines produce fine fabrics that are further processed and assembled on site – for the international market in the day and nightwear segment as well as lingerie and loungewear. In addition, Mey operates its own production facilities in Hungary and Portugal.

We spoke to Matthias Mey, managing partner and spokesman for the management, about current developments in the underwear market, new trends and the company’s growth – and about why Mey’s own production in Germany is still worthwhile.

Mr. Mey, what is the current situation in retail? Are people spending money on laundry right now?

Matthias Mey: Overall, the situation is very challenging. There are markets in which sales are going very well – especially where purchasing power is high. In other regions, business is much more difficult. In a nationwide comparison, consumer sentiment is rather restrained. When people save, they often start with laundry – because you can’t see it. In this respect, laundry is something of a recession indicator.

In addition, the rapidly growing range of vertical brands makes the situation more difficult. Competitive pressure is increasing while average prices are falling. We address this by focusing on quality, fit, longevity and innovation – for example with our “undershirt”. This is an undershirt for men that remains invisible under white shirts and at the same time absorbs sweat – so there are no stains under the armpits. A great product, but the challenge is to make men aware of this product. Once you know it, you usually stick with it. But first you have to reach the target group in the first place.

What does the department store crisis mean for the lingerie market? How does Galeria’s situation affect your company?

Department stores make an important contribution to the attractiveness of many city centers. Of course, in many cases they need to be modernized, but their relevance remains. Galeria’s bankruptcy was a deep blow for the entire industry. Galeria was the number one local supplier for laundry in many cities.

We conducted targeted tests at locations where branches were closed, but we were unable to compensate for the lost sales there online. Customers are reorienting themselves. That’s why we very much hope that Galeria’s new concept will work – department stores remain an important sales channel for us.

In which areas are you growing?

We are growing steadily – through our own stores, our specialist retail partners, in e-commerce and, above all, internationally. In addition to the pure Mey stores, our retail business also includes our multi-label concept “Mes Amis”, which we introduced two years ago. The reason was the takeover of the business by a long-standing partner who could not find a successor. This idea has now given rise to nine “Mes Amis” stores. We operate a total of 38 stores worldwide – including franchises.

How high is your direct-to-consumer share?

Our DTC share is currently around 40 percent – primarily due to the strong growth in online business. Nevertheless, stationary retail remains our most important sales channel.

Why is stationary retail so important to you? Maybe you’d rather buy laundry online and try it on at home?

Laundry needs to be explained. We have to convey to our customers why our products are worth their price – through quality, comfort and longevity. This is best achieved in brick-and-mortar stores, through personal advice and trained sales staff. This personal bond is particularly valuable in difficult economic times.

Because qualified personnel are becoming increasingly difficult to find, we founded the Mey Academy – where we train our trading partners and their teams.

Which markets are you active in?

We are growing particularly strongly outside of Germany – for example in the DACH region, the Benelux countries and increasingly in North America, France and Italy. France is a particular success: the market is considered demanding and was difficult for us for a long time. Since the modernization of our brand and a higher level of fashion, we have had much better access there.

You received an ISPO Award for sports underwear at the ISPO in Munich last year. Is this another growth target?

Definitely. We want to gain a stronger foothold in the sports retail sector, even if that is a long road. We are seeing initial successes at Strolz in Lech and Reischmann in Kempten. We are still at the beginning here, but we want to make quick progress here.

You just mentioned modernizing the brand. How do you position the Mey brand today?

A brand must be distinctive – otherwise it becomes interchangeable. At Mey, it is our added value, fabric quality, fit, longevity and sustainability that sets us apart. Our products should become favorites – that is my personal motivation.

At the same time, we are now investing significantly more in fashion, aesthetics and emotional staging. Around 70 percent of our customers are women – they are more inspired by fashion. That’s why we have expanded our range and now see ourselves as a bodywear and lifestyle brand. We offer complete looks coordinated across all segments – daywear, nightwear, lingerie and loungewear.

What is your fashion share today?

About 30 percent of our collection is fashion, the rest is NOS (Never out of Stock). Fashion is essential in order to be able to sell basics at all – attention is generated through fashionable items. This is where we are currently seeing the strongest growth.

Is there a particular trend in laundry at the moment?

Our new series “Simply Better Invisibles” is currently growing rapidly – ​​invisible underwear that is not visible under clothing. This area is growing significantly. Bralettes are developing more dynamically than cup or underwire bras. What’s interesting is that this is primarily a German phenomenon – classic lingerie remains in greater demand in France and Italy.

How do you manage to maintain your own production in Germany? Why is this important to you?

In-house production brings many advantages: We are flexible, can react quickly to changes and have in-depth product knowledge, which enables us to develop tailor-made sample parts in order to be able to later produce high-quality, sophisticated products. And when we also work with contract manufacturing companies abroad, we treat them on an equal footing because we know exactly how much effort goes into each part.

One of the biggest challenges today is to strike a balance between achieving the target price level and the immensely high wage increases worldwide. In Germany we pay around 16 times the wages compared to Bangladesh. That’s why we rely on the most modern machines. Our sewing machines have been developed specifically for us to ensure maximum efficiency and quality. We invested a lot to maintain jobs here – but there was less budget available for marketing. But the decision was right.