When it comes to the brand “Victoria’s Secret,” many people might think of the “Victoria’s Secret Fashion Show”—which models appeared, what they wore, whether they had glamorous wings—these always became hot topics on the internet.
In 2017, the Victoria’s Secret Fashion Show was held in Shanghai, with seven Chinese supermodels walking the runway. Ming Xi’s fall pushed the brand’s online buzz to its peak. But after reaching the peak, it was all downhill. Due to a significant drop in viewership, the Victoria’s Secret Fashion Show was canceled in 2019, and the brand’s online presence dwindled with no new highlights.
Victoria’s Secret disclosed in its financial report that in 2024, the brand plans to close 38 to 42 stores in the United States.
Why did the once “angelic” brand fall from grace?
Why are consumers no longer attracted to this brand that focuses on “glamorous allure”?
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**Struggling:**
**Stock Price Plummets Over 30%, Continuous Store Closures**
Victoria’s Secret once evoked keywords like “perfect women, limitless allure.” Riding on the global popularity of the “Victoria’s Secret Fashion Show,” the brand was a leading player in the women’s lingerie market. According to public records, in 2003, Victoria’s Secret had annual sales of $2.8 billion and more than 1,000 stores worldwide. In 2009, Victoria’s Secret sold an average of 600 pieces of lingerie per minute. At its peak, Victoria’s Secret held a 30% share of the U.S. lingerie market.
However, the trends in women’s fashion are changing, and Victoria’s Secret’s unchanging brand message has drawn consumer dissatisfaction.
Victoria’s Secret once released a print ad featuring ten models with great bodies wearing the brand’s lingerie, with a bold slogan in the middle of the picture—The Perfect Body. This ad sparked a lot of backlash from netizens, who countered Victoria’s Secret’s message with “all body types are perfect.” This reflects a shift among young people who no longer endorse Victoria’s Secret’s beauty standards, preferring new dress and body standards that emphasize self-pleasure, equality, inclusiveness, and comfort.
In 2018, the Victoria’s Secret Fashion Show hit a record low in viewership, and in 2019, the show was canceled. Victoria’s Secret’s performance in its U.S. home market also suffered significantly. In 2020, Victoria’s Secret’s parent company L Brands announced the permanent closure of 250 stores in North America. In 2021, Victoria’s Secret was spun off from L Brands and went public independently.
Victoria’s Secret’s financial report for the first quarter of the 2024 fiscal year shows that for the 13 weeks ending May 4, 2024, net income dropped 59% compared to the same period last year, with a net loss attributable to shareholders of $3.642 million.
In the first-quarter earnings call, Victoria’s Secret CEO Martin Waters stated that for the second quarter of the 2024 fiscal year, sales are expected to decline in the low single digits compared to the same period last year. Annual sales for the 2024 fiscal year are projected to be around $6 billion, a single-digit decline from the 2023 fiscal year.
As performance declines, Victoria’s Secret’s stock price has also plummeted, dropping more than 30% from mid-February this year to now.
In 2024, Victoria’s Secret’s store closure wave continues in the U.S. The first-quarter financial report shows that at the beginning of the year, Victoria’s Secret had 808 stores in the U.S., with 38 to 42 expected to close, 14 new stores to open, resulting in a net decrease of 24 to 28 stores by year-end.
**Seeking Change:**
**Switching from Supermodels to Actors as Ambassadors, Crazy Online Discounts**
With poor performance in the U.S., Victoria’s Secret sees the Chinese market as a lifeline. Currently, there are 70 Victoria’s Secret stores in China, making it the brand’s second-largest market globally after the U.S. In the first-quarter earnings call, Victoria’s Secret executives specifically mentioned, “The Chinese market is very important.”
Checking review apps, Victoria’s Secret has two stores in Hangzhou, located in in77 and Chengxi.
To change its situation, Victoria’s Secret has implemented promotions and price reductions, strengthened its e-commerce channels, and increased endorsements by Chinese actors to win consumers’ hearts.
Victoria’s Secret’s ambassadors have changed from supermodels to Chinese actors Yang Mi and Tian Xiwei, and they have also invited Yang Tianzhen to become a brand friend. In May this year, Victoria’s Secret announced the return of the Victoria’s Secret Fashion Show in fall 2024 after a six-year hiatus.
Additionally, Victoria’s Secret is expanding its market through discounts, e-commerce channels, and other methods. According to third-party data platform Mofangxi, since 2021, the average price of Victoria’s Secret bras has been declining, down about 20%. Victoria’s Secret is also offering discounts and promotions on its flagship stores on various e-commerce platforms.
Discounts, live streaming sales, changing ambassadors… but so far, these measures seem to have little effect. According to recent rankings on e-commerce platforms, Victoria’s Secret is not among the top 20 best-selling women’s lingerie brands.
**Expert Analysis:**
**Diverse Aesthetics, Consumers More Focused on Personal Experience**
Regarding the decline in Victoria’s Secret’s performance, experts state that today’s aesthetics are more diverse than before, and supermodel figures are not the only standard of beauty. “Compared to the unattainable ‘Victoria’s Secret Angels’ figure, women are more concerned with their own joy and self-consistency. Various sizes and styles of healthy beauty are all beautiful.”
Victoria’s Secret’s weak product design and innovation, market positioning errors, and single marketing strategies are key reasons for the brand’s performance decline.
Checking the sales rankings on e-commerce platforms, as of the evening of June 7, the top positions in the bra sales rankings are dominated by domestic brands focusing on simplicity and comfort. Victoria’s Secret is not among the top 20. These emerging brands are mostly positioned with “basic styles,” “no size,” and “comfort,” which are well-received by consumers.
As for Victoria’s Secret, consumer opinions are quite consistent. Many Chinese people express that Victoria’s Secret is expensive and uncomfortable. Some also say, “The lack of comfort no longer fits young people’s dressing concepts, so it’s normal for Victoria’s Secret to be out of favor.”
Have you ever bought Victoria’s Secret?
What do you think about this?