victoria\'s secret needs to break out of its sexpot rut

by:INGOR SPORTSWEAR     2019-09-18
The annual Victoria Secret Fashion Show aired on Sunday night, the same old six-pot parade we expect from the determined people in the mall: sparkling!
Oversized wings and spray of peacock feathers!
It is impossible to have a lot of hair on a very small body!
This event is a summary of the recent problems of retailers.
It\'s basically an hour.
Bomb and charm-
When women explicitly say \"no thanks\" for this atmosphere, pusses (
It\'s not that the show is completely aimed at them).
A stake in Victoria Secret\'s parent company, L Brands Inc.
More than 45% have plummeted this year, making it the worst-
Performance stocks in the S & P 500 index.
Signs of misfortune are accumulating.
In November, the company said it had been raising its annual dividend.
The leaders of Victoria\'s Secret and pink brands have recently resigned.
As I looked at Victoria\'s Secret even ail, I kept coming back to a question.
How does this powerful chain end in a place where no consumer winds are found to be changing?
Here\'s my theory: its huge market share in brasand-
An unusual position in the world of clothing that was originally divided --
Make it complacent.
In general, when American women fill their wardrobes, their money is widely spread among national brands abroad
The price of chain stores;
Private labels from companies like Target Corp. ;
Of course, this major-
Clothing stores all over the mall.
But the underwear industry is different.
Victoria\'s Secret has a large share in the United States. S.
Underwear categories, including bras and underwear, and \"pajamas\" categories including pajamas and silky shirts, all have markets.
Out of control is Victoria\'s Secret.
But share leaders for a while.
So why is this suddenly a responsibility now?
Because of the convergence of a series of factors, it brings new challenges, and the muscles that resist competition have shrunk.
Ed Yula, retail analyst at Keybanc Capital Markets, pointed out that
Up bras, Victoria\'s Secret staple food, is an engineering challenge and a unique supply --
Chain capability.
But he points out that many factories can produce new popular styles such as bras and sports bras, which makes it easier for new competitors to enter the competition and walk on Victoria\'s Secret lawn. Digital-
Newcomers like ThirdLove and Adore me are also making progress, even if they are not yet close to challenging Victoria\'s Secret crown.
Their arrival has exposed what may have been true for some time: Some shoppers don\'t go because they really want to go to Victoria\'s Secret.
They go because they don\'t see a better choice.
This reminds me of a cable provider that is dominant in a given geographic area, and how it passes despite poor customer service, or how airlines can get passengers to pay more than $25 because consumers don\'t have much choice and they can get rid of the unsatisfactory customer experience.
The stubborn commitment to sexy is not the only sign that Victoria\'s Secret has not been fully utilized.
These days, oil-coated retail machines.
Consider its swimwear business: it decided to turn it off in 2016, with the logic that it is a seasonally strong category and is distracting from supporting the core underwear lineup.
But last month, the company\'s saidit decided to re-launch the swim line in 2019, when a moveCFO Stuart Burgdoerfer told investors \"mainly driven by customer feedback \".
The company was forced to do a 180-
The degree opens up a major strategic move because it doesn\'t handle the shopper\'s response well to it.
Victoria\'s Secret is still on track.
Look at the Legends of Abercrombie and Fitch.
Another mall giant, a few years ago, stumbled when it was too focused on beef cakes and center decorations to stubbornly stick to the style of early 2000.
It took a while, but it seems that the company has finally found a way out of the wilderness.
Last week, its stock soared nearly 21% in a day, when it reported optimistic third-
Quarterly earnings and the appointment of Hollister\'s leader, Christine Stoto, as the new role to oversee all of its global brands, have brought more to Hollister\'s corporate siblings
Hollister has accounted for more than half of the company\'s revenue over the years, thanks to its lower prices, as well as marketing and business activitiesthe-moment.
If Victoria\'s Secret can find a similar rescue, I would suggest it not think like a market --
Share leaders, but start thinking like a startup that needs to prove its morale. —
The \"Victorian rule\" chart created by Elaine Ho.
At this point, the story: Sarah is at shalack Halzack @ bloomberg ).
NetTo contacted the editor in charge of the story: Daniel Niemi of dniemi1 @ bloomberg.
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