Victoria’s Secret’s Decline: A New Chief Executive and the Fight for Relevance
A Challenging Time for the Lingerie Retailer
BBC:
Singer Rihanna’s Savage X Fenty lingerie has won fans for featuring models with all body types
The owner of Victoria’s Secret has named a new chief executive, John Mehas, president of luxury fashion house Tory Burch, who will take over in early 2019, replacing Jan Singer.
His appointment comes at a difficult time for Victoria’s Secret. The company is facing declining sales, a rising number of competitors, and suggestions that the brand – long a byword for mass-market lingerie in the US – is out of step with fashion.
The company is struggling to adapt to the changing landscape of the lingerie industry, which has become more diverse and competitive in recent years. L Brands, the parent company of Victoria’s Secret, has seen its shares fall more than 40% over the past 12 months.
The Changing Lingerie Market
The lingerie industry has evolved significantly in recent years, with customers demanding more variety and inclusivity in their purchases. Companies such as Savage X Fenty, Lively, and ThirdLove have differentiated themselves by offering a wider range of sizes, including to the growing number of plus-size customers, and focusing on particular products, like no-wire bras.
Lower prices are also part of the appeal, which analysts say is likely to hurt Victoria’s Secret’s profit margins in the future.
Analysts attribute the slowdown in growth largely to competition from online upstarts, department stores, and big retailers such as Gap, which are taking market share.
Victoria’s Secret is still the leader in terms of share, but its position is being challenged by new entrants in the market.
The Fight for Relevance
Victoria’s Secret’s scale meant it has been slow to respond to some fashions, such as demand for bralettes and triangle bras, categories where sell-outs have increased more than 100% in the last three months, according to analytics firm Edited.
However, some analysts believe that Victoria’s Secret is still a strong brand and can recover its market share.
Others believe that the company needs to rethink its approach to marketing and customer satisfaction. According to market research firm YouGov, customer satisfaction has improved and the number of women aged 18-49 making purchases has jumped since April.
Multiculturalism and diversity have also become important factors in the lingerie market. Savage X Fenty, for example, features models with all body types.
Conclusion
Victoria’s Secret’s decline is a clear sign that the company needs to adapt to the changing landscape of the lingerie industry. With the appointment of a new CEO, John Mehas, the company may be able to turn its fortunes around and regain its position as a leading retailer. However, the road ahead will not be easy, and the company will need to focus on innovation, inclusivity, and customer satisfaction to stay relevant.
FAQs
Q: What is driving the decline of Victoria’s Secret?
A: The decline of Victoria’s Secret is driven by a combination of factors, including the rise of online retailers, department stores, and big retailers, as well as changes in consumer behavior and preferences.
Q: What is Savage X Fenty?
A: Savage X Fenty is a lingerie brand founded by singer Rihanna. It is known for featuring models with all body types and has gained a large following for its inclusive and diverse marketing.
Q: What are some other challenges facing Victoria’s Secret?
A: Victoria’s Secret is also facing challenges from changes in consumer behavior, including a shift towards online shopping and a preference for smaller, more sustainable fashion companies.
Q: Is it too late for Victoria’s Secret to recover?
A: While it may be challenging for Victoria’s Secret to recover its market share, some analysts believe that the company is still a strong brand and can recover with the right strategies in place.