Why Did Underwear Giant Abandon $500 Million Swimsuit Business?

As a giant in the underwear industry, the group recently announced that it would abandon the swimsuit business of up to 500 million dollars, and what caused the group to give up the huge swimsuit business.

This is a Victoria's Secret.

Victoria's Secret, a lingerie giant, will stop selling swimsuits at the end of 2016.

Thomson Reuters predicts that the Victoria's Secret parent company L Brands group's same store sales in March rose by only 2%, far below the 9% increase recorded last year. Earlier, L Brands announced 200 layoffs, plans to restructure and reduce certain commodity categories.

According to the US media Buzzfeed, an anonymous message means that it will stop the production and sale of swimwear lines, and pay more attention to its sports and leisure products catalogue.

A representative of the Wei told Buzzfeed that no further information could be disclosed except for the earlier announcement, and that more details would be announced at the May Co earnings call conference.

Last year, the turnover of Victoria's Secret swimwear business was about US $500 million, which accounted for 6.5% of the total turnover. In August, the company report showed that the swimwear category was on the low side.

According to the news, the decision to reduce the industry chain was made after the departure of Victoria's Secret CEO Sharen Turney. She once said cutting the swimwear line is the biggest regret for her.

In addition to cutting swimsuit catalogues, Victoria's Secret parent L Brands also said in a statement that it would reduce some of the categories and seek ways to interact with consumers through loyalty programs and brand building, so that business and consumers can be more closely integrated.

Some industry analysts pointed out that the Victoria's Secret show effect is still losing to consumers. Last year, the ratings of the CBS broadcast show fell by 32% compared with the same period in 2014. Inevitably, the attractiveness of the Victoria's Secret show is declining.

The New York Post newspaper commented that the Victoria's Secret swimsuit business has been cut down by more and more millennials who no longer accept the sexy sex sold by Victoria's Secret, and the first thing to do is Victoria's Secret's bathing suit business.

Around the age of 40, both typical American women and Chinese women will experience a period of panic.

At this time, they will see their youthful and sexy appearance gradually replaced by white hair, wrinkles and loose skin.

It all seems to have happened to Victoria's Secret. The company is almost 40 years old. Although it tries to maintain its sexy and youthful vitality, it seems that the industry sees the midlife crisis in its company.

Two months ago, the company CEO left. Recently, the company announced that it would undertake layoffs and reorganizations, reform sales and marketing strategies, and even break some of the iconic product lines.

It's worth billions of dollars.

Behind the business, the company has reason to start to tremble for the trend. Although Victoria's Secret has always enjoyed the reputation of the sexiest store in fashion retailing, its iconic sexuality seems to be faced with severe challenges as companies try to attract young consumers to shops.

If Victoria's Secret wants to enter the market environment of the millennial generation and avoid entering the same fate with the once cool and sexy Abercrombie & Fitch, it has to answer this question: "what is sexy?"

More specifically, Victoria's Secret will have to redefine sexy according to today's diversified needs, social regulations, the social consensus of the millennials and changing consumer attitudes, which may have serious problems for the underwear giant. The 78 year old Leslie Wexner still acts as CEO of Victoria's Secret, which is very surprising to the industry.

Imagine that Victoria's Secret is now a supernatural supermodel. They were once regarded as thin and beautiful body by the millennial generation. They are regarded as boring and bad physical characteristics. Now the millennial aesthetic standards have undergone great changes and elusive.

At present, the ideal figure of American culture has changed from the tall and slim appearance of the virgin to the plump and curvy figure like Kim Kardashian, which seems to represent the average American woman.

Many millennials do not think that sexy is the same tall and slender figure as Victoria's Secret angel. On the contrary, many people who believe in healthy body do not agree with Victoria's Secret's figure and appearance.

Former Victoria's Secret model Erin Heatherton has been exposed. She was told that because she was not thin enough, she had to lose weight before the next two fashion shows. This news once again aroused the industry's understanding of Victoria's Secret's so-called sexy.

Many companies listen to the demands of young people, who, after learning about these stories, send more complaints and angry comments, and continue to spread through social media.

Neither T nor its product category has shown much tolerance for Victoria's Secret, and the company has received $4 million racial discrimination lawsuit, which is also very passive for the company.

These problems have great impact on the consumers of the millennial generation. They want to support those real and valuable brands. For them, products are not just products, but brands should be a noun that symbolizes greater or more social significance.

This is a part of sexy and cool meaning. This is also a factor that can attract young consumers nowadays. Now it seems that Victoria's Secret is becoming more and more difficult to assume the definition of sexy definition. Some analysts have pointed out that Victoria's Secret has anything but lace little underwear.

20 years ago, according to the traditional mode of Victoria's Secret, there was no worry, but now Victoria's Secret has not set foot in the concerns of many millennials, such as gender identity, diversity, environmentalism, feminism and other popular topics.

A lot of problems are Victoria's Secret can bear and give it meaning, such as breast cancer awareness or sexual assault cases on campus.

Today, Victoria's Secret sells underwear without any value. It may not be cool enough and not sexy enough for the highly socialized Millennials.

Today's young buyers may be completely in the cold.

In addition,

The leading fast fashion business model is changing the fashion industry. Although Victoria's Secret, which occupies the 35% underwear market in the United States, has almost no competitors, it has begun to look for new growth points in the face of danger and reduce the swimsuit business. Focusing on the new force will be a new trend. The company points out that it will make every effort to develop the fast fashion mode of sportswear.

Now, the millennial generation is redefining what is really attractive brand or product, not only about women's figure, but also about company values and morals. If sexy marketing is sold as it used to be, the millennial generation will no longer buy Victoria's Secret accounts.