Unveiling the Resurgence of Sexy: Victoria's Secret's Irresistible Comeback
Victoria's Secret's rebranding efforts to shed its hyper-sexualized image and regain cultural relevance have received positive feedback from critics However, translating favorable reviews into increased sales remains a challenge for the brand
Editors Note: This article was originally published by Business of Fashion, an editorial partner of CNN
The radical transformation of Victorias Secret is over.
The American lingerie chain has spent the last two years revamping its overly sexualized image in an effort to regain cultural relevance and appeal to younger consumers who favor emerging brands like Savage X Fenty and Parade.
Although there were some achievements, such as the launch campaign for the "new" Victoria's Secret featuring soccer player Megan Rapinoe, transgender model Valentina Sampaio, and other spokesmodels, the positive feedback from online critics did not translate into sales success. The company projects a revenue of $6.2 billion for this fiscal year, which is a 5% decrease compared to the previous year and well below the $7.5 billion achieved in 2020.
Paloma Elsesser for the Victoria's Secret 'The Icon' campaign
Carlijn Jacobs/Courtesy Victoria's Secret
Newer campaigns have showcased models such as Hailey Bieber and Emily Ratajkowski, who would have seamlessly blended with Heidi Klum and Adriana Lima in the 2007 show, along with fresh-faced ambassadors like Paloma Elsesser and Ali Tate-Cutler, who represent plus-size models.
Victorias Secret enlists renowned supermodels for its latest Icon campaign.
Victorias Secret: The Tour 23, a recent venture aiming to revive the runway show concept, found itself balancing between the male desire-focused image of the brand's previous heyday in the 2000s and the inclusive ideals advocated by its numerous challengers.
But in a presentation to investors in New York last week, it was clear which version of the brand Victorias Secret executives see as its future.
Tennis champion Naomi Osaka teamed up with the brand in early 2023 on a range of lingerie and sleepwear.
Courtesy Victoria's Secret
Greg Unis, the brand president of Victorias Secret and Pink, believes that sexiness should be inclusive and celebrate the diverse experiences of their customers. The main goal is to increase profitability and surpass $7 billion in annual sales. This will involve investing in new categories such as activewear and swim, updating current stores, and opening 400 new locations worldwide. Additionally, cost reduction initiatives will be implemented, and the brand will be cautious about taking risks that could negatively impact their image.
"Despite everyones best endeavours, its not been enough to carry the day," said chief executive Martin Waters.
New clothes, new stores
Waters discussed the struggling retail industry and the consumer who is opting for discounted options due to financial strain caused by inflation. In order to regain the trust and patronage of such customers, Victorias Secret now provides a range of products beyond just lingerie, including clothing and sleepwear.
This involves a return to swimwear and activewear, two categories that the retailer previously withdrew from. According to Unis, activewear used to be a $500 million business for the company, accounting for 16 percent of the sports bra market. However, at present, this segment has significantly diminished, occupying only a 4 percent share.
Naomi Campbell also stars in a recent campaign for Victoria's Secret.
Courtesy Victoria's Secret
Additionally, the brand aims to expand its range of apparel options, including loungewear, sweaters, slip dresses, and corset tops, which complement their expertise in sleepwear and lingerie, according to Unis. Within the Pink line, Victorias Secret will focus on enhancing the variety of fleeces, sweatpants, tracksuits, and other casual items.
Arguably the most significant departure from Victorias Secret's previous image is its new physical store concept. Starting in 2021, the brand has been renovating its retail locations, abandoning the dark and austere atmosphere that may have been popular in the early 2000s but no longer appeals to contemporary shoppers.
Victoria's Secret has enlisted well-known supermodels for its latest Icon campaign. The brand's upcoming "store of the future" will boast inviting elements such as vibrant yet cozy lighting, soft furnishings, a more spacious entrance, and an overall comforting ambiance. Furthermore, the fixtures will be smaller, rounded, and painted in a gentle pink hue to create a sense of closeness with customers, according to Albert Gilkey, the company's Senior Vice President of Store Design and Construction.
The Elephant in the Room
To stay relevant in the ever-evolving digital landscape, Victoria's Secret initiated its contemporary transformation partially in response to the growing presence of new digital brands, like ThirdLove and Parade. These innovative companies effectively captivated consumers through their inclusive marketing strategies and forward-thinking use of language.
The threat of their disruption, however, has significantly reduced in recent months due to the ongoing decline of direct-to-consumer businesses and the inability of brands with only an e-commerce presence to sustain the rising costs of digital marketing. Parade, a company recently acquired by Ariela & Associates International, a bra licensing company that produces items for Fruit of the Loom.
Adriana Lima became one of the faces of Victoria's Secret in 1999 and still features in many of it's campaigns.
Carlijn Jacobs/Courtesy Victoria's Secret
However, Rihannas Savage X Fenty brand continues to be a strong competitor, while Aerie presents tough competition for Pink among younger consumers. Another brand, Skims, co-founded by Kim Kardashian, is also becoming a formidable contender. Skims recently received funding, valuing the brand at $4 billion. It projects sales of $750 million this year, surpassing many other potential challengers, although still falling short of Victoria's Secret's $6 billion-plus sales. If Skims goes public, it will have the resources to open stores rapidly and directly compete with Victoria's Secret.
Unis, on the other hand, remains unaffected. He believes that Victoria's Secret's foray into apparel will be cautious and will follow a test-and-learn approach.
Despite facing various challenges in recent times, Victorias Secret remains the dominant underwear retailer in North America, holding approximately 20% of the market share, as per its internal assessment. "In this tough market, we recognize the need for greater differentiation," Waters stated. Nevertheless, our goal of becoming the global leader in fashionable intimate apparel remains steadfast.
Editors Note: This article was originally published by Business of Fashion, an editorial partner of CNN
