When a company needs to improve sales or to increase profit, several strategies are used. Use Victoria’s Secret as an example, suffered from a serious sales blow in physical stores, the U.S. sexy lingerie brand Victoria’s Secret’s market looks unpromising. Sales for the latest month are lower than expected and have been declined for six consecutive months. As a result, the manager of Victoria’s Secret “focus on experiences and solutions to problems”(Rita Gunther McGrath) and has come out with some ways to achieve the goal.
According to research, although Victoria has never been sell products in Chinese stores, the amount Chinese consumers purchased through other ways are significant. After realizing the great potential of the Chinese market, Victoria has withdrawn all the agency rights in China and officially enter the Chinese market and launched two stores in Shanghai and Chengdu. In order to please Chinese consumers, Victoria’s Secret 2017 underwear show will also move to Shanghai, China which will be the first time Victoria holds its show in Asia. Chinese supermodel Liu Wen, Xi Mengyao, Sui Xiaowen, He Sui and Xie Xin will also participate in the catwalk. This will be the first time there will be five Chinese models in the show.
Another successful advertisement is Victoria’s Secret Show. It has become not only a lingerie show but also a commercial performance. This is a key factor for Victoria’s Secret to become competitive in marking: turn a lingerie advertisement into a show that attracts millions of viewers. In addition, Victoria’s Secret also has a number of manufacturers that provide sponsorship such as Swarovski, Fujifilm, etc. Ed Razek, the executive producer of Victoria’s Secret Show has said: “Impact that the show has on of sales seems immediately. At the night of Victoria’s Secret, you can see the media reporting the show a lot and the page view of the official website of Victoria’s Secret also surge. ” Moreover, more important than increasing in sales is to make the brand continued exposure. One insider has said. “People will always remember Victoria’s Secret. They discuss celebrities showed on the day, the fantasy bra and so on. After that, you will often see the news about which angle gives birth to a baby or how she loses weight and becoming a topic again. This is not only a show, but also a PR machine to continue making news.
However, some analysts pointed out that due to the late arrival in China, since the lingerie market is complicated in China, Victoria’s Secret may not have a advantage in China, if Victoria’s Secret can resume its growth relying on China is still unknown. Overall, long period may be needed for Victoria’s Secret to restore its financial health.
Reference: McGrath, Rita Gunther. The end of competitive advantage: how to keep your strategy moving as fast as your business. Boston, MA, Harvard Business Review Press, 2013.