The Price Of New Products In The New Season Has Dropped Sharply And Pformed Into Fast Fashion.

Victoria's Secret

The price of the product is getting cheaper.

From the sale price of Victoria's Secret official website, a Sport Bra price is only 15 US dollars, lower than the average retail price of goods before six months ago.

Other high cost bra prices are still hovering around $20, compared with forever 21's basic sports bra priced at $9.9 to $15.9, including two top bras priced at $88.

And its other main competitor, Lulu Lemon, has a sports underwear price of between 48 and 68 dollars, which is higher than that of Victoria's Secret.

However, as the price of new products decreases, it seems that it is not a bad thing when brand competition becomes more intense.

Gabriella Santaniello, the founder and analyst of A Line Parter, told reporters: "Victoria's Secret's most attractive to consumers is that they can buy reliable products at affordable prices, which are very competitive in the same market at present."

In addition, Victoria's Secret also follows the trend to develop bralette products vigorously. Santanuello points out: "because bralette products are low in price but high in profits, there are many

They all sell this type of product. "

Stuart Burgdoerfer, chief financial officer of L Brand group, also pointed out that bralette will be the next popular item in last week's earnings call conference.

Santaniello also believes that the price reduction of Victoria's Secret sports series and the follow up trend of launching bralette series products seem to mean that brands are gradually pforming into fast fashion brands.

The essence of fast fashion brands, such as Zara and H&M, is to maintain the relevance between brands and consumers through the continuous introduction of fashion trends.

Victoria's Secret is exploring and adapting to the needs of young consumers. Taking into account the economic capabilities of young consumers, it also adjusts the prices of its products.

Victoria's Secret re launched the sports underwear business, but "sexy" will no longer be the main player.

But it is precisely because consumers gradually become accustomed to lower prices and accelerate the changing style. Many retail brands, including Banana Republic and J.Crew, are facing huge inventory backlog risks. Even recently, the hot Lulu Lemons is also struggling to solve the inventory problem. Therefore, some people have questioned Victoria's Secret's move towards fast fashion pformation, which is not considered a wise move.

However, Burgdoerfer said in a conference call last week: "Victoria's Secret sports bra and bralette series have significant growth, the company is very optimistic about this."

The fast fashion model is being verified as a successful fashion industry. At the beginning of last year, Victoria's Secret has said that the brand is following ZARA to speed up its design and delivery process.

Former CEO Sharen Turney has said that Victoria's Secret basically has all kinds of underwear styles in a fast process, and the replenishment time is shortened to 15 to 25 days. At the same time, the brand is still trying to reduce the time from product design to shop.

A report by Goldman Sachs sums up the overturn of fast fashion retailers.

The reason is that fast fashion retailers have specialized buying groups to purchase seasonal popular products from third party suppliers, while traditional retailers use design teams to produce goods that they think will become popular in 12 months.

ZARA is built on an unconventional philosophy: speed and responsiveness are more important than cost.

ZARA is famous for its small batch and quick release of new products in stores.

Store management orders are placed two times a week, and new clothes are delivered to stores two times a week.

To achieve this, ZARA controls more production processes than most retailers: about half of their garments are produced in Spain or neighboring countries.

For ZARA, the supply chain is its competitive advantage.

According to Goldman Sachs report, the risks of trying to predict the trend in advance one year are attacking fashion retail giants such as Gap, Abercrombie & Fitch, Ann Taylor, American Eagle, etc.

If these retailers' forecasts fail, they will need to sell at a reduced price, which will damage profits.

ZARA's non-traditional retail business model clearly circumvented the risk.

Some analysts pointed out that Victoria's Secret, which occupies the 35% underwear market in the United States, has almost no competitors. But it has begun to restructure in danger and seek new market growth points, including the closure of swimsuit business, the cancellation of printed catalogue shopping, and the development of fast fashion sports women's clothing business.

Goldman Sachs report that independent fashion retailers need to emulate fast fashion mode to succeed.

Victoria's Secret's parent company L Brands announced sales figures for the second quarter of 2016. In the first three months ended July 30th, the company's net turnover increased by 5%, from 2 billion 760 million US dollars in the same period last year to 2 billion 890 million US dollars, of which second quarter profit increased 24.7%. Because investors are optimistic about the ongoing restructuring of L Brands, the stock price of the company has increased by 16% in the past three months.