The Rise & Fall of Victoria’s Secret

Summary

This video delves into the rise and fall of Victoria's Secret, exploring its journey from a beloved lingerie brand to struggling with relevance. Initially successful by targeting both men and women, the brand peaked in the early 2000s but faced a decline due to stagnant strategies and changing consumer preferences. Controversies surrounding exclusionary practices further tarnished its image. In response, Victoria's Secret attempted a rebrand focusing on inclusivity and body positivity, though many view these changes as too little, too late. The video highlights the importance of staying true to core brand values while adapting to evolving market demands.

Takeaways

• 😀 Victoria's Secret started in the 1970s as a lingerie brand targeting men, transforming the market for women's underwear.
• 😀 The brand's major success came under Leslie Wexner, who shifted focus to women, introducing a content strategy and the iconic runway show.
• 😀 By the early 2000s, Victoria's Secret reached $7.7 billion in sales, establishing itself as a luxury yet affordable lingerie brand.
• 😀 Declining sales from 2015 to 2018 were attributed to stagnant strategies, decreased product quality, and failure to adapt to changing consumer behaviors.
• 😀 Competition increased with the rise of e-commerce brands focusing on body positivity and inclusivity, contrasting Victoria's Secret's traditional marketing.
• 😀 Controversies emerged, including CEO Ed Razek's refusal to feature plus-size and transgender models, leading to public backlash and stock decline.
• 😀 The brand's image suffered further due to connections with Jeffrey Epstein and a toxic corporate culture, resulting in significant store closures.
• 😀 The rebranding effort included hiring diverse models, canceling the fashion show, and launching initiatives like the Victoria's Secret Collective.
• 😀 The rebrand, however, has been criticized as too late and performative, lacking the glamour and distinctiveness that originally set Victoria's Secret apart.
• 😀 Key lessons include the importance of staying true to core brand values and evolving gradually rather than abruptly, while actively engaging with loyal customers.

Q & A

What was the original strategy of Victoria's Secret when it was founded?

Victoria's Secret was founded with the strategy of targeting men, creating a comfortable environment for them to buy lingerie as gifts for their wives, with a focus on affordable yet glamorous lingerie.

How did Leslie Wexner transform Victoria's Secret during his leadership?

Leslie Wexner shifted the brand's focus from catering to men to targeting women, introducing a more female-centric vision and launching the Victoria's Secret catalog, which became highly popular.

What led to the peak of Victoria's Secret's success in sales?

The peak was achieved through a combination of strategic branding, high-quality products, the introduction of the fashion show format, and a strong market presence, reaching $7.7 billion in sales.

What were some key factors contributing to the decline of Victoria's Secret in the late 2010s?

Key factors included stagnant strategies, declining product quality, outdated marketing approaches, increased competition from body-positive brands, and controversies surrounding the company's leadership and practices.

What major controversies did Victoria's Secret face in the 2010s?

The company faced backlash for refusing to include plus-size and transgender models in its fashion shows, leading to accusations of misogyny and contributing to a decline in consumer trust and sales.

What changes did Victoria's Secret implement in its rebranding efforts?

The rebranding efforts included hiring plus-size and transgender models, canceling the fashion show, launching the Victoria's Secret Collective, and focusing on women's empowerment and representation.

Why is the timing of Victoria's Secret's rebranding considered questionable?

The rebranding is viewed as potentially performative, occurring only after significant financial losses and controversies, raising doubts about the authenticity of the changes.

How did consumer behavior change during the decline of Victoria's Secret?

Consumers shifted towards body positivity and inclusivity, favoring brands that celebrated diverse body types and real women over the traditional, aspirational marketing strategies employed by Victoria's Secret.

What lessons can other brands learn from Victoria's Secret's experience?

Brands should stay true to their core values while adapting to market changes, carefully phase in rebranding strategies, and maintain open communication with loyal customers to avoid alienating their base.

What alternative branding strategies could Victoria's Secret have pursued?

Victoria's Secret could have integrated body positivity with its glamorous image, modernized its offerings gradually, and focused on its unique strengths rather than emulating competitors.