Aging in thinking makes Victoria Secret losing customers

How to Victoria Secret losing customers. Victoria’s Secret is a women’s underwear and cosmetics brand headquartered in the United States. The company was founded in 1977 by Roy Raymond and Gaye Raymond. Victoria’s Secret is said to be very potential as it raises $ 500,000 in its first year of business, enough to fund the expansion of a headquarters and build four new store locations, as well as order through letter.

By 1982, a fourth store (still in the San Francisco area) was added at 395 Sutter Street Victoria’s Secret until 1990. Later, it moved to Powell Street, a larger facade of Westin St. Francis. In April 1982, Raymond submitted his 12th catalog; each category costs $ 3 at that time. Portfolio sales accounted for 55% of the company’s $ 7 million annual revenue in 1982.

By 2006, there were 1,000 Victoria’s Secret stores across the country, accounting for one-third of all apparel purchases in fashion market. In May 2006, Wexner introduced Sharen Jester Turney to lead the entire company. In 2008, she acknowledged that “product quality is not equal to brand hype.” In September 2006, Victoria’s Secret tried to make their display materials feel like women’s daily fashion magazines.

The reason why Victoria Secret losing customers

However, in the 2008 article “Victoria’s Bad Secret: How Socio-Cultural Standards Affect Women and Adolescent Women” written by journalists Strahan, Lafrance, Wilson and Ethier from Wilfrid Laurier University, together with Spencer and Zanna from the University of Waterloo, stated: “The dissatisfaction of the female body is influenced by socio-cultural norms for the ideal appearance that pervades in society and specifically focuses on women. These standards tell women that they value the body, appearance and scale of attractiveness. Teenage girls begin dieting because they are struggling with weight and body awareness.

In parallel, this will continue throughout their lives. Victoria’s Secret sends a message to these teenage girls and women that their models are the standard of beauty. The model shown on television ads, advertisements and magazines means it is seen on a daily basis. The girls who are comparing themselves to these high unrealistic standards get media attention. If women feel that they have to live up to this social and cultural standard, then tell men that it is okay to treat and sexize women. The article concludes by stating: “Exposure to social messages reflects the sociocultural norms for the ideal appearance that negatively affects women.”

In February 2016, Turney resigned as CEO of Victoria’s Secret after serving for a decade. In 2016, direct sales increased by only 1.6% and decreased by 7.4% in the last quarter of the year. The company stopped using a printed catalog and dropped some types of clothes like swimwear. Sales revenue continued to stagnate and decreased in early 2017.

In November 2018, it was announced that CEO Jan Singer resigned amid declining sales. According to the Wall Street Journal, sales of the same store in the past two years only increased once, the announcement came a week after CMO Ed Razek made a controversial comment that the company did not choose a transgender model or oversized model in their annual fashion show “because the show is a bogus fantasy”.

After decreasing 40% in a year, Victoria’s Secret announced in 2019 that it will close 53 stores in the United States, more than three times the average of 15 stores in its history of closure in a year. The Victoria Secret scene in North America will be reduced by about 3%, even as it continues to develop the successful Bath & Body Works series. The company said its performance decline at Victoria’s Secret. L Brands shows the company’s total profits, except for some items, in a range from $ 2.20 to $ 2.60 this year, a sharp decline compared to the average estimate from analysts.

Victoria Secret losing customers. Victoria’s Secret has been tested for years for failing to keep up with the changing needs of consumers, especially regarding women’s empowerment and diversity topics. And its cautiousness of the change has been made more evident by the appearance of competitors such as Rihanna’s underwear company, Savage X Fenty, Aerie and ThirdLove of American Eagle Outfitters, aiming to the goal is to satisfy many women of different shapes and sizes.

In an effort to restore an aging brand, the company reformed a series of leaders. Sharen Jester Turney, who headed the project for a decade, suddenly retired in 2016. Jan Singer was replaced by the end of that year; but 2 years later, she also resigned. John Mehas has the opportunity to join, formerly the chairman of luxury firm Tory Burch, who was tasked with developing Victoria’s Secret earlier this year. The brand also hired a new head of the PINK brand last year.

One of the first big moves of Mehas was partnering with a French luxury firm to sell high-end lingerie, as well as its new leader looking to expand; in addition to discount bra and underwear. The main focus for Mehas and Victoria’s Secret PINK CEO Amy Hauk will be “getting back closer to our customers and improving the categories of goods.” The company adds, they hope the brand to be gradually improved as the previous years progressed.

“The outlook illustrates that the struggle for lingerie will last until retailers find a way to reconnect with shoppers on prices, products and images.” Bloomberg Intelligence Poonam Goyal and Morgan Tarrant wrote in a note, “investing in ecommerce website Victoria’s Secret ‘is a sideline activity but very important to success.”

Will Victoria’s Secret listen to customer psychology, change the conservative thinking and extremism on the female body to revive like the golden age? Let’s wait and see how the major shareholders will steer this boat in the future!

Phong

Photo: Internet