Victoria Secret is a famous designer and manufacturer company in the USA. As well as a marketer of Woman lingerie, women’s wear, and some beauty products. The company is considered to be the largest retailer for lingerie in the USA. The most popular in America as well as Canada. But for past 12 months, the company, Victoria’s Secret is facing downs in the business as there was a 40% drop in the company’s shares this year.
Victoria’s Secret is facing high competition and fading sales this year and a lot of comments that the brand is now out of step with the lingerie fashion.
Due to the constant decline in the business, the owner of Victoria Secret has decided to change the Chief Executive Officer of the lingerie series. They are doing it to restore the prosperity of the company. There is news that Jan Singer, present CEO, Victoria’s Secret, will be replaced by John Mehas in initial 2019. John Mehas is currently employed as the President at Tory Burch, a luxury style brand.
On this Monday, 19th November, there was a 5% fall in the shares of L Brand, the parent company of Victoria Secret which further led to a fall in the share prices of lingerie chain of Victoria’s Secret. A few days ago, in the month of November, Ed Razek, CMO of L Brands. made an offensive statement about transgender and plus-sized models to the Vogue magazine. According to some knowledgeable people, this has resulted in a further declination in the share prices of L Brands as well as Victoria’s Street. Victoria’s Secret also famous for their victoria secret pink lingerie.
Plans to Revive the Fortune of Victoria Secret
On the decision of hiring John Mehas as the new Chief Executive Officer, Leslie H Wexner, owner of L Brands, made a statement that the new executive would look into every matter and everything related to the business and would focus on increasing the sales and company value in the market.
Some professionals related to fashion and retail market have shared their thoughts. Like Daina Smith, Associate Director at Mintel said: “They unquestionably require some adjustment in their image situating pushing ahead and I believe they’re lack of limbo right now.”
Revenue development at undergarments stores is relied upon to rise just 1% every year. Throughout the following five years for Victoria’s Secret, as indicated by IBISWorld, a research firm. This revenue is less more than the 4% yearly rate that Victoria’s Secret business appreciated somewhere in the span of 2013 and 2018. Which is truly a major issue for L Brands and the lingerie chain, which as of now catches over 60% of incomes and has 1,000 and more Victoria’s Secret showrooms in the USA and Canada.
If we see the whole market, Victoria’s Secret company is still leading the lingerie market in the USA in terms of shares. But the increased competition is gradually decreasing its shares in the market. Some fashion and apparel firms Rihana’s Savage X Fenty, Thirdlove, and Lively have separated themselves by offering a more extensive gamut of sizes, including to the developing number of larger size clients or concentrating on specific items, similar to no-wire bras.
What IBISWorld Has To Say About Victoria’s Secret Down Fall?
The lower costs on women’s apparel set by the competitors are additionally part of the intrigue. Which analysts say is probably going to affect Victoria’s Secret’s overall revenues badly later on. The IBISWorld expects the quantity of undergarment showrooms managers in the USA to develop at a yearly rate of over 4% throughout the following 5 years, which is in excess of three times the pace of the more extensive ladies’ garments business.
“These little specialty administrators are just going to keep developing and just going to keep on populating the business. They have a genuine shot at contending with Victoria’s Secret,” said Claire O’Connor, lead analyst at IBISWorld. Victoria’s Secret also famous for their victoria secret pink lingerie.
John Mehas, the future CEO of Victoria’s Secret, is a very well-known an experienced professional in the field of marketing and management and has succeeded in his tasks. The company, therefore, expects a lot from him and has trust in his dedication and talent. The company is for sure going to see some improvements in the sales in upcoming years. But for now, it has to wait and plan a new strategy to retrieve its prosperity back in the market.