No. 016: Will Victoria's Secret stay in its flop era?
plus, Kim vs. Jim(my), Hinge's love story zine, and Nara Smith for Aritzia
🧲 OBSESSION OF THE WEEK
Last week, Beats by Dre released an ad pitting Kim Kardashian and Jimmy Fallon against each other, each promoting their own Beats headphone collab.
There was content on social, a tie-in with Kim on The Tonight Show, and asking the public to weigh in on whose collab is better.
Of course it wasn’t actually a competition — the only real collab was Kim’s nude collection in Dune, Earth, and Moon, which launched a few days ago.
We are reaching the point of saturation of brand collabs, and I think this is a fresh approach that drives interest for any otherwise run-of-the-mill launch.
🍿 BRAND NEWS
Beyoncé just announced the launch of her new $89 whisky (spelled like that, without the e), SirDavis, named for her great grandfather, who was a prohibition era farmer. Apparently, it was created in partnership with LVMH leveraging special techniques and has won some awards…so it’s not all fluff — but do we really need another celebrity alcohol brand?
QR codes may replace barcodes soon, which makes sense, as it would enable brands to better understand who is buying what, where (right now, retail data can be a bit of a black box). Separately… I do think QR codes need a rebrand. I firmly believe that they were ahead of their time and never got the recognition they deserve.
David, the protein bar company I’ve covered before started by RXBAR founder Peter Rahal, just raised $10 million. I’m watching this launch closely — I feel like this bar could set the standard in terms of protein content and ingredients.
Podcaster Alex Cooper inked a new three year $125m deal with SiriusXM, ending her relationship with Spotify.
Canopy, maker of humidifiers and shower head filters, became the first home device brand to launch in Sephora. This is interesting as it signals the intersection of beauty and home and where the company might be headed. Are we going to see a Sephora Home one day?
Researchers are trying to develop AI to count calories while you eat. I can see why this would be helpful (MyFitnessPal seems like a historical relic), but when we are going to reach peak health optimization?!?!
Gap is back with a new campaign, this time featuring singer Troy Sivan to promote their baggy denim, leveraging TikTok viral song “Funny Thing” by Thundercat. It’s pretty fun and makes me feel like I need a pair of baggy jeans, so I guess it’s working.
Hinge launched a zine called “No Ordinary Love” with the stories of six-real life Hinge couples. I love this because 1) zines are back and 2) it tells real stories. Bumble is probably freaking out because their campaign was a flop (and as
noted, they just “went back to their old look.”)Nara Smith is now the face of Aritzia’s new Sweatfleece campaign, which feels like it shared a creative director with Severance. What do we think?
🎯 DEEP DIVE: Victoria’s Secret really needs the Abercrombie treatment
Context
When you think of Victoria’s Secret, what comes to mind? Probably some combination of big hair, angel wings, barely-there lingerie, a lot of pink & stripes. Maybe you think of the crown jewel, the annual Victoria’s Secret Fashion Show.
The brand started in San Francisco in 1977 as a store for men to buy women lingerie (who knew?) but was purchased in 1982 by Les Wexner, a retail billionaire who was responsible for turning the brand into a cultural phenomenon.
The 90’s were huge for growth, and 2016 was the brand’s revenue peak at $7 billion. The late 2010s were rife with scandal, slowed sales, and new competitors entering the market. Plus, there was a general shift in cultural beauty ideals — consumers began to realize that perfection was not everything.
Cut to 2024, and the brand is definitely in its flop era. But it seems like not all hope is lost.
Just last week, the brand announced the arrival of a new CEO, Hillary Super, former CEO at rival lingerie brand Savage X Fenty. This feels like a hail mary, and for good reason.
The question on everyone’s mind: will Super be able to turn around the brand?
Let’s take a look at the rise & fall of Victoria’s Secret and where they might go from here.
The Business
Performance
Victoria’s Secret global revenue was $6.18B in 2023, which is a 3% decrease from 2022. Their peak was 2016, with global revenue at $7.7B. While they haven’t completely dropped off, they are definitely in a plateau — worth not that they are still the largest lingerie retailer in the United States.
Product Portfolio
Victoria’s Secret sells products across lingerie, pajamas, sport, apparel, beauty, swim, and accessories. A quick look at their website shows that they’re still going all in on a sexy vibe.
Last year, they began selling on Amazon via an Amazon Storefront, which has been a great point of distribution for the brand (and its only non-VS storefront in America).
The Victoria’s Secret Fashion Show
For the uninitiated, the VS Fashion Show was a highly anticipated showcase of Victoria’s Secret Angels sporting runway-ready lingerie looks, featured pop star icons (including Taylor Swift and the Spice Girls), and over-the-top set design. It began in 1995 and became a sensation, peaking in 2001; however in 2018, they decided to stop the show due to declining ratings and company drama (more below).
They actually announced that they are bringing back the show this fall. I’m SO curious to see how they switch things up (if at all?)
Private Equity Drama
In February 2020, private equity firm Sycamore Partners purchased a 55% controlling stake in the lingerie brand in a deal valued at $1.1 billion in order to take the brand private. The goal was to get the necessary resources, focus, and expertise to restore the brand. Then, just a few months later, in May 2020, the deal was called off due to the pandemic. It then became a publicly traded company in 2021 when it separated from parent company L Brands, which also owns Bath & Body Works.
Brand Perception
Looking at Statista data from 2023, a few things stand out regarding the brand’s public perception in North America. Awareness is high at 87%, but popularity is only 34% and usage, buzz, and loyalty all under 30%. Not great.
What Happened?
The brand had a ton of missteps along the way.
#metoo: In 2019, it was revealed that then CEO Les Wexner was close friends with Jeffrey Epstein and that Epstein was involved in decisions around the company. Wexner actually tried to defend Epstein, which wasn’t a great look, caused stock to fall, and led to Wexner’s resignation in 2020.
diversity and inclusion: In 2014, American-Eagle owned Aerie announced that they’d no longer be retouching photos; of course, Victoria’s Secret did not follow suit. In 2018, then CMO Ed Razek, told Vogue that he didn’t believe transgender models were a fit for Victoria’s Secret fashion shows because they didn’t fit the “fantasy” that the brand was trying to go for. Excuse me? They’ve since tried to make the brand more inclusive, but it’s definitely too little too late.
competitive brands: brands like Savage X Fenty and SKIMS began to steal market share from Victoria’s Secret with differentiated products and brand values that closer aligned with changing consumer preferences.
lack of consumer insight: Victoria’s Secret seems to be a brand that led with a single notion: sex sells. It felt like more of a brand built on gut feelings than on actually listening to the changing needs of their customers and culture at large.
Hot Take 🌶️
It’s been said that Victoria’s Secret defined what “sexy” is for entire generations of people. It’s rare that brands have that level of cultural influence. But with great power comes… (you know the rest).
To me, Victoria’s Secret needs to take their power back in a way that feels modern and refreshing for 2024. They need more than a simple brand refresh. They need an entirely new way of thinking about their business, from brand values to their product assortment and maybe even their name (hot take below).
The difficulty is, this isn’t a brand that can lean on nostalgia because of their problematic past. Victoria’s Secret truly needs to look to the future.
Free Ideas ☁️
Some ways Victoria’s Secret could turn around their business to connect with a new generation of consumers:
Consumer Research: The brand should certainly start with hearing consumers out, and sharing those insights in future campaigns and product development. What do consumers want out of their lingerie? What’s missing in the category? What are they fed up with and what do they want more of? Who do they think the new Victoria’s Secret could be?
Brand Name: This one might be a little bold… but the name Victoria’s Secret just feels SO dated. What’s the big secret? Who is Victoria? In my view, the brand needs a new name. What is if it was just Victoria’s, and they did a whole campaign around why it’s *not so secret* anymore?
Product Development: Much like Abercrombie, Victoria’s Secret needs to find a way to grow up with its audience and be there for new milestones. I’d love to see them come out with a nursing bra, for example. They also have a ways to go in terms of addressing quality complaints. Bringing in a designer with a technical background from Nike or Lululemon could be cool.
Brand Collabs: Victoria’s Secret needs to find ways to get some cachet and exit their mall brand era. J.Crew and Gap (who I’ve written about before) have done an excellent job of this, and of course, Skims is QUEEN of the collab. Whether it’s finding culturally relevant “faces of” or influencers to design capsule collections, the brand needs new voices, perspectives, and faces.
In-Store Experience: Taking a page out of Reformation’s book, what if Victoria’s Secret made their stores truly delightful? The entire experience of finding lingerie (and swim!) is pretty terrible, so making it easy to get measured, find new sizes & styles, see yourself in different lighting environments, find styling inspiration… this could be a total win.
Strategic Partnerships: I’d love to see Victoria’s Secret partnering with organizations that help them remedy some of the damage of the 90’s and 2000’s in an effort to give back and behave like a brand that’s in its comeback era, like Girls. Inc or SeekHER.
Last week, 79% of you thought Liquid Death is Killin’ It, 14% of you said Kinda, and 7% of you said Nope.
🆕 TREND REPORT
A big week for shoes. Last week, founder of Spanx Sara Blakely announced the launch of her new shoe line, Sneex, which are a combination of a stiletto and a sneaker (that no one asked for?!) Apparently, they were 8 years in the making… and they cost between $400-$600. They are also really ugly and I’m not sure who is going to wear them?!?! In other shoe news, Sarah Jessica Parker’s shoe line, SJP, is folding after a decade (again, not sure who was buying these).
Raw-dogging flights. This one has been around for a minute, but the new Gen Z trend is to raw-dog flights, aka no movies, no food… and, sometimes, no water — just staring blankly at the back of the seat in front of you, alone with your thoughts. As someone that typically packs three books and a Kindle, snacks for a small village, and an entire skincare routine, this feels like the worst kind of torture imaginable.
🎲 ONE LAST THING
This doesn’t surprise me, but is good to know — probably why the brand is constantly coming out with new iced concoctions like sweet teas and creamy frappes.
Curious how new CEO Brian Niccol will leverage this insight? He’ll have time to figure it out during one of his three weekly private plane commutes from Laguna Beach to the company’s Seattle HQ to abide by the company’s hybrid policy.
Fits nicely into Starbuck’s sustainability efforts.
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have a great week.
- Sabena
THANK YOU for saying that about Sneex. I saw the announcement and was so confused. They are hideous????
Love love love everything in this Stack of yours!!! I think VS can make a comeback but my favorite part is your idea for the name change. Yes! Also hate those new Sneex or whatever they are upsetting they are so bad. Keep up the great work beans!!!