Market Research Findings
Market Research Findings
Victoria’s Secret continues its struggle. After less than flattering reviews (and viewer numbers) for its latest annual televised catwalk show, trading figures too are still failing to impress.
Despite “record Cyber Monday” trading, the high profile intimates retailer still saw its November same-store sales fall 6%, on top of a 9% decline recorded in November 2017. That Cyber Monday boost did at least push its online business into the positive, rising 2% last month.
Parent L Brands saw company-wide comps increase 9% for the four weeks ended December 1, but had to thank its Bath & Body Works business for that. Comps at the beauty and home fragrance banner jumped 14% and online comps rose 18% during the month.
True to its word, L Brands’ core focus is the survival/revival of its star brand Victoria’s Secret. So Thursday saw the proposed sale of less-loved lingerie brand La Senza to private-equity firm Regent for an undisclosed sum, although L Brands said it will reap further financial reward if the brand is sold on.
La Senza, which is expected to generate $250m in revenue and a $40m operating loss this year, operates 118 stores in Canada and 11 in the US.
The sale follows the impending closure of the 23-store luxury accessories retailer Henri Bendel, another brand deemed unimportant and a drag on already weak finances.
The continued clear-out comes after chief executive Leslie Wexner said he wants to focus on the company’s bigger brands, particularly Victoria’s Secret and its sister brand Pink, together with ever-consistent performer Bath & Body Works.
Q3 net sales for L Brands rose 6% from a year ago to $2.78bn, but the company posted a loss of $43m, compared with a profit of $86m in the year-earlier period.
https://www-wgsn-com.hallam.idm.oclc.org/news/victorias-secret-fashion-show-audience-hits-low-point/
The Victoria’s Secret fashion show drew an audience of 3.27m on ABC at the weekend, its lowest figure yet with the event losing more than half its US audience in two years, Nielsen said on Tuesday.
Critics weren’t kind to this year’s show, many saying it has run its course, although it’s worth noting that it had around twice the audience of the Alec Baldwin Sunday-night talk show that had aired in the same time slot until its recent move to Saturday.
The event has been one of the most effective marketing tools in the industry for much of this century but there are questions about its relevance today.
It started its reign as one of the biggest Holiday season happenings on TV back in 2001, but has been criticised for its focus on sexy women in underwear in the #MeToo era, and its lack of size diversity.
The company even apologised before the show after its marketing chief had said it wouldn’t use transgender or plus-sized models because Victoria’s Secret was selling a fantasy.
The show had drawn an all-time high audience-wise in 2011 when 10.3m viewers tuned in, but by 2016 the audience had fallen to 7.36m. Last year, its final year on CBS, it drew 5.37m.
Victoria’s Secret is arguably one of the most well-known underwear brands in the world and our research confirms this theory. Despite continuing to only have a limited geographical coverage in the UK, 83% of women in the UK are aware of the Victoria’s Secret brand. Despite lots of negative press attention in recent years, our brand research implies that the retailer has retained its popularity and continues to garner an image of being exciting and trend-setting. The retailer’s high profile annual shows inevitably play a part in its awareness, with the hype around them hard to miss in the mainstream media. It has been highly criticised for its non-inclusive approach to casting for such shows and, as a result, it lacks authenticity and is not widely recognised as accessible. However, overall the brand’s customers continue to view Victoria’s Secret in a positive light.
Key demographic groups – Victoria’s Secret continues to garner the highest levels of appreciation amongst the 16-24s. Some 37% of 16-24s that have heard of the brand are committed to it. Not only does usage peak amongst young consumers, but these are also the mostly likely to have had a positive experience when using the brand and are most likely to recommend the brand to someone they know. Overall, the 16-24s regard the brand exceptionally highly, but its appeal is lost on most consumer groups.
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