Our own-brand underwear price calculation laid bare
21.1.2026
Translation: Katherine Martin
For a few months now, Galaxus has been selling three-packs of underpants for 15 francs, i.e. a fiver per pair. But how exactly did we arrive at that price?
Multipacks of underpants have always sold like hot cakes on Galaxus – and not just when they’re featured as deal of the day. So inevitably, the team behind Galaxus’s own-brand range sensed an opportunity there. The question was: could we compete with big-name brands by selling high-quality, ethically produced underpants at an attractive price? Judging by the reviews our customers have left so far, the answer’s yes. Boasting an average rating of 4.7 stars, Galaxus underpants seem to be holding their own against the likes of Jack, Jones, Calvin and Tommy.
It goes without saying that I’ve also tested the Galaxus underpants myself. The cotton-elastane mix feels comfortable against my skin, the seams are flat, they wash well and I’ve no complaints when it comes to durability. But I’ll spare you a detailed review. Firstly, if I gave Galaxus underpants of all things five stars, some people simply wouldn’t believe me. Secondly, comfort’s key, and people’s personal preferences on that vary significantly.
How we did the price calculation
We occasionally receive comments saying we could actually sell our own-brand products at even lower prices. So, does that statement apply to our underpants? In a bid to find out, I spoke to Cristina Reis, Galaxus’s Head of Trade Brand Management, who’s responsible for our own-brand range. She divulged the price calculation to me and gave me the green light to share it with you.
As an example, let’s take a pair of underpants from the three-pack, priced at 15 francs. In other words, five francs per pair. Here’s how that price breaks down.
That leaves us with a gross profit of 2.10 francs. Which sounds like a seriously good deal for Galaxus, doesn’t it? You might even have a suspicion that we could sell the underpants for even cheaper.
The thing is, with a gross margin of 40 per cent, we’re on the lower end of the spectrum compared to the clothing industry as a whole. It’s not uncommon for businesses in the sector to be making margins of 60 per cent or more. Not to mention luxury brands, who can generate much higher margins simply by sticking their name on a simple cotton T-shirt.
Journalists at other outlets have made similar calculations to the underpants one I did with my colleague Christina, using running shoes as an example. The results? Huge differences between production costs and retail prices charged in stores. What’s more, an investigation into running shoe manufacturer On at the beginning of 2024 revealed that the brand’s 200-franc Cloudsurfer sneakers were stitched and glued together in Vietnam for under 20 francs (article in German).
Unfashionable underpants
That being said, the sizeable profit margins generated by sneakers are neither here nor there when it comes to the 2.10 francs we’re left with after each pair of underpants sold.
The money genuinely doesn’t go straight into Galaxus’s coffers as a net amount. It also has to finance all the other costs an online shop racks up, including our software developers’ salaries, fees for credit card and Twint transactions, payment of our quality-control partners in Hong Kong, and our office heating bill so that I, an editor, can stay toasty while I’m writing this article.
On the bright side, focusing on underpants has its perks. They’re a hardy garment that doesn’t require complicated planning. These knickers won’t be getting into a proverbial twist over the latest trends either. So we won’t have to throw away any stock that’d otherwise go out of fashion. Plus, we don’t pay celebrities to promote our sales by endorsing Galaxus underpants on social media. Instead, we’re again relying entirely on you to simply try them out, then share your honest opinion on the product page. Thanks in advance for that!
Martin Jungfer
Head of Content
Martin.Jungfer@digitecgalaxus.chJournalist since 1997. Stopovers in Franconia (or the Franken region), Lake Constance, Obwalden, Nidwalden and Zurich. Father since 2014. Expert in editorial organisation and motivation. Focus on sustainability, home office tools, beautiful things for the home, creative toys and sports equipment.
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