The Paris Media Show, Chinese Media Poured Into The Company.

The influx of Chinese media often represents two points: China.

Attention and enterprise or

Decline.

So are the four fashion week, Apple Inc. (NASDAQ:AAPL), Apple Corp, and Victoria 's Secret Vitoria.

November 30 Wednesday, USA

The beauty brand Victoria "s Secret" Vitoria held the annual underwear show secretly, although the venue moved to Paris, France, but in addition to the scenery, Chinese elements even far exceeded the French element.

In addition to Chinese models Liu Wen, He Sui, Xi Mengyao and Ju Xiaowen, in 2016, the secret of Victoria 's Secret, Vitoria also invited Taiwan singer Jolin and mainland actor Zhang Ruoyun. More importantly, the secret of the underwear show "Victoria" s Secret, Vitoria, also invited a large number of magazines and Internet media in mainland China. Youku, NetEase and other Internet media have made a large number of live broadcast of the underwear show behind the scenes.

Behind so many Chinese elements, in fact, is China's strategy of secretly implementing Victoria 's Secret Vitoria.

In the three quarter, the secret of Victoria 's Secret Vitoria appeared for the first time in the past 7 years, and the same store sales went backwards for the first time. The group also acknowledged the decline of the brand, and China's strategy is now the priority strategy of the L Brands Inc. (NYSE:LB) of the parent brand.

According to the world clothing and shoe net, at the investor conference of L Brands Inc., the Group Chairman and CEO Les Wexner acknowledged that the group is currently in a "turning point" state and has revealed some of China's strategy.

Les Wexner said that the secret of Victoria 's Secret Vitoria will be stationed in Alibaba Group Holding Ltd. (NYSE:BABA) Alibaba's Tmall mall, which sells millions of dollars in sales of current brand Chinese agents.

At the meeting, he described the Alibaba as "new best friend" and thought that Alibaba knew more about the online market than any other company, and was familiar with India and Southeast Asian markets. So now the group has a lot of contacts with Alibaba in Hangzhou.

Two days later, on the day of November 3rd, when L Brands Inc. released the quarterly report, it launched the Tmall store before China's double 11.

The Tmall store also shows that Alibaba is indeed the brand's "new best friend". Tmall shop is not only suspected of being a fake fan, but also a special treatment that does not show sales volume and inventory. This kind of treatment is only enjoyed by some Alibaba strategic partners such as Zara. Besides, Uniqlo, Tmall and Tmall stores also do not show inventories, showing only sales volume. The brand double 11 also produced a "sell out" paradox.

At the investor conference at the beginning of last month, Stuart Burgdoerfer, chief financial officer of L Brands Inc., said the group knew why the secret of Victoria s Secret Vitoria was being reformed because of accelerated growth.

One of the main drivers of growth will come from overseas markets, especially those with a high strategic position.

L Brands Inc. bought the Chinese business from the agent in April this year. Not only will all the stores in the district be converted to direct camp, but the flagship store, which sells the secret products of Vitoria (s) Secret, the first secret product of Shanghai (including underwear), will also open in 2017.

The group said it has set up a management team in Shanghai to promote the establishment of flagship stores, shopping malls and stores in Shanghai and Beijing, which sell Victoria, s, Secret, and Vitoria's Secret products.

In the first quarter, the group has invested $4 million in China's business and will accelerate investment in the two quarter.

But analysts expect the Chinese market to exceed its investment this year. Wells Fargo & Co. (NYSE:WFC) Wells Fargo Bank analyst Ike Boruchow expects full investment to reach $50 million this year.

Leslie Wexner claims that they see China as the "second headquarters office", which has no less potential than the US market, but will deliberately slow down the pace of development.

He even hinted that next year's Victoria 's Secret Vitoria's Secret annual show could move to Shanghai.

In addition, it is also reported that the brand is in contact with Xi Mengyao, who has already made two catalogues for him. The latter is expected to become the first secret Chinese signing angel of Victoria s Secret Vitoria, which is obviously warming up for the opening of the flagship store next year.

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Victoria 's Secret Vitoria's Secret China strategy has not brought good performance to L Brands Inc..

Investment bank Jefferies issued a report after the L Brands Inc. investor conference and the three quarter earnings report, which lowered the stock rating from holding to big market, and lowered its target price from $70 to $50.

Jefferies said that there are too many secret competitors in Victoria 's Secret Vitoria, including the rise of American Eagle Outfitters Inc. (NYSE:AEO)'s Aerie and other brands, so that the underwear market is becoming more and more dispersed. In addition, the L Aerie should be pressed by the trend, which also makes the profit margins of the group under pressure because the price is 60% lower than that of the ordinary bra.

Jefferies believes that the bralette bralette series has an impact on group profit of 10%, or about $0.07 per share.

Although the beauty business Bath & Body Works is still growing, Jefferies can not predict how long the business will last.

The three quarter earnings report released by American Eagle Outfitters Inc. on Wednesday showed that 21% of the group's lingerie brand Aerie had a strong sales growth in the same store, which was 17.4% higher than that of Consensus Metrix.

But Aerie's scale is far less than that of Victoria 's Secret, Vitoria.

At Victoria 's Secret Vitoria's Secret 2016 before the underwear show, shares of L Brands Inc. (NYSE:LB) fell 2.40% to $70.22, far less than the 0.22% decline in the S & P 500 index, and this year the company's share price has fallen 26.72%, while the S & P 500 index has increased by 7.58%.

For the future of Victoria 's Secret Vitoria's Secret China market, the industry is also cautious because the Chinese strategy of the brand is not active but passive.

In January 13, 2015, the secret of Victoria 's Secret, Vitoria was opened in Raffles square, Shanghai, the first official store in China. However, the store still rarely sees consumers' most anticipated Victoria' s Secret 'Vitoria secret series underwear products, but also beauty products.

This disappointment seems to have become the norm for consumers expecting to buy Victoria 's Secret Vitoria's secret underwear products in mainland China. On the contrary, more high-end La Perla, Agent Provocatuer and other brands are becoming new choices for Chinese consumers to high-end underwear brands in Europe and the United States.

Victoria's Secret Beauty & Accessories stores and Victoria's Secret stores are two concepts in L Brands, the former mainly sells beauty products and accessories, and the latter is the main selling underwear series.

However, Chinese consumers have long regarded the two concepts as the same concept. They expect the Victoria's Secret store that can buy underwear to settle in China, but Victoria's Secret Beauty & Accessories are always welcome, some of which are not the "Shanzhai stores" opened by the company or the real authority.

The news of "Victoria s Secret Vitoria's secret store in China" has been heard for many times in the past three years. In 2013, the secret "Shanzhai store" of Vitoria, Shanghai, Victoria, s, Secret, and Kun, was even more powerful when it opened.

In 2013, Shanghai Jintian Garments Co., Ltd. and Shanghai's Cci Capital Ltd opened a secret store called Victoria 's Secret, Vitoria, Shanghai in Shanghai City, Shanghai. Shanghai is known as the secret China general agent of Vitoria, s Secret, Vitoria, and invited businessmen to join.

And the actual situation is that Shanghai brocade clothing purchased the Victoria 's Secret Vitoria secret part of the inventory products, and Shanghai Department of wheat is responsible for the operation of this part of the sales of products.

In fact, Victoria 's Secret, Vitoria's Secret China agent is also a member of Malaysia retail group Valiram Group's trading company Kismat.

This not only shows that Victoria's "s Secret" Vitoria's secret strategy in China is slow, but is also considered to be a lack of control over its brand management.

After being "Shanzhai" in the Chinese market, Victoria s Secret, Vitoria's Secret parent L Brands Inc., brought the Shanghai wheat division to court, which was eventually awarded a compensation of 500 thousand yuan.

Because the secret of Victoria's "s Secret" Vitoria has a great negative impact on the Chinese market, the brand considers the shop remedies, but the confusion is probably only a cause for Victoria's s Secret Vitoria's Secret entry into the Chinese market, rather than the real reason, so that the brand's decision to enter the Chinese market in 2016 may be challenged by the growth of its company, and its competitors have taken the first step in the Chinese market and achieved good results.

Italy's luxury brand La Perla is also pushing China to expand.

Victoria, s Secret, one of the main competing secrets of Vitoria, Italy luxury brand La Perla is also expanding its strength in China.

The brand has undergone rapid growth since its new boss, Italy Telecom tycoon Silvio Scaglia, held two years ago. Its revenue growth has exceeded 25% in 2015. The growth rate of Silvio Scaglia is expected to accelerate to 30% in 2016, and the revenue will rise from 150 million euros last year to 200 million euros.

At the end of last year, La Perla, the most expensive Tongluowan store in Hongkong, opened its fourth independent boutiques in the local brand, claiming that the brand without overexposure still maintained 35%-40% growth in China, and this year it will continue to add 3-5 independent stores in China.

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