Today we started out our Market Research on a declining brand project. We needed to find out issues within the chosen brand and why they were in decline. We are then to compose a marketing report on the issues, SWOT, PEST, statistics, analysis, marketing strategies etc. As I didn't have the time to incorporate a photoshoot into my Zine, I am hoping to be able to do this in this project as part of my Campaign for the re-brand.
I decided to look into Victoria's Secret as I found a strong link between this and my Zine. I started initial research with looking into the statistics of the decline in sales of VS worldwide. From initial research I found many problems with Victoria's Secret in their lack of inclusivity, ignorance to consumer needs and keeping up with what women want. I'm looking into the parent company L Brands decline and compared this to other lingerie brands in the market. I also started to look into why this might be and why the consumer isn't as drawn to Victoria's Secret Brand.
Mintel report
They are the most well-known lingerie brand with 83% of women in the UK being aware of Victoria's Secret. This may be due to their high-profile shows as they are seen as exciting and trend-setting. They play a huge part in brand awareness due to them being everywhere in mainstream media. They have a decline in sales which may be due to their non-inclusive approach for casting as this can lack authenticity.
They appeal to 16-24 year olds and 37% are committed to the brand. Their customers peak at young consumers. Most of these suggesting they have a positive experience in VS and would recommend it to someone they know. However, they are losing more by not appealing to other demographic age groups. This all suggests that are lacking in appealing to an older audience.
Net Sales of VS worldwide from 2010 to 2017 shows quite a big loss in sales as profits go from 7.78 billion to 7.38 billion in the years of 2016 to 2017. This suggest the brand needs to take a new direction. Whether this be marketing, brand identity, or their outdated brand image. Women don't relate to the "flawless image" Victoria's Secret are showcasing every year in their shows and in their marketing strategies.
The Sun
Gabriella Santeilllo "The Angels are unrelateble, while the stores look too much like an outdated boudoir".
Victoria's Secret have increased spending on marketing campaigns. These are all over-sexualised and aren't moving with the forward-thinking society we are working towards.
The independent states that company sales fell by 4% compared to 2017. Their sales have also weakened from their core lingerie range, which is usually their biggest seller.
Market Watch found (I-D Magazine) in a Wells Fargo study 48% of customers in the poll shopped less in the past year (study done 2017). 28% of those had said they planned to shop even less in the next 12 months. 58% of those added that the prices were too high for them. This may be due to their lack of relatable looks and natural beauty,
L-Brands (Victoria's Secret parent brand) have had a 4% loss in same-store stores in August 2017. Victoria's Secret accounted for half of these percentage points.
Comfort and Size Representation
Victoria's Secret are having huge problems with keeping up with current trends, especially with millennials. They are wanting to reinvent their constructed bra, unwired, push-up and structured. however, the market is moving more towards wanting "comfort" over "sexy". Millennials are boosting sales or bralettes and wireless bras.
From this Study done by Mintel, it suggests that women 16+ value comfort more than any other factor when bra shopping. This suggests that as Victoria Secret are known for more glitz, glamour and underwire bras. Women now may shop elsewhere for a bra that is more comfortable for them (bralette/wireless).
Big brands like Victoria's Secret must keep up with the current bra trends in millennials as this can definitely sway sales and make people shop elsewhere. This is shown in the decrease in sales and profit in the company over the past couple of years.
The study above shows that 80% of consumers value comfort more than the design of the bra. The study also shows thats 73% of consumers believe that the campaigns underwear companies show should represent the average person. Victoria's Secret have been known for their 'angels' for many years. They haven't ever had a plus size model walk the runway nor have they been represented. With the average Victoria's Secret model having a 24" waist and around a size 6, this isn't what normal women look like. The average size in the UK is 16, with there being such a big gap towards women being represented the the brand, consumers may sway towards other companies that represent a wide range of different sizes, more achievable ones. This may be another reason as to why Victoria's Secret are declining, many influencers and campaigns have called to boycott the shows until average/ plus size women are represented by the brand.
Through all this research, I'm able to conclude some of the areas Victoria's Secret needs to work on to become more profitable. They over-sexualise women in their adverts and campaigns and it's left a sour taste for the consumer as they value women's empowerment, representation of size and a comfortable bra. I can now start to layout my marketing plan for VS as I have become aware of the consumer. Through further research Im going to be looking at the generational market for VS, the show views and opinions, the competitors, the online industry etc.
References
https://www.marketwatch.com/story/victorias-secret-losing-customers-on-price-and-bralettes-wont-bring-them-back-study-says-2017-09-13
https://i-d.vice.com/en_uk/article/43pa4q/victorias-secret-women-lingerie
https://www.statista.com/statistics/255806/net-sales-of-victorias-secret-worldwide/
http://academic.mintel.com/display/903802/?highlight#hit1
http://academic.mintel.com/display/903788/?highlight#hit1
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