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    Why Did The 35 Stores In The First Quarter Go To Today?

    2019/6/4 12:06:00 10344

    Victoria'S Secret

    Victoria s Secret, known as the world famous underwear brand, has always been a fashion brand of women's underwear industry since its foundation. Many models will also be able to climb the s fashion show as their career goal.

    However, in recent years, it seems that the trend has already been lost. Not only does the sales decline continuously, but it also opens up shop around the world. Even the annual fashion show has only seen about 3000000 people last year, the lowest record in history.

    Sales decline, close shop, or will stop the show, once there is no scenery two "Victoria s Secret", why go to this stage today?

    35 stores closed in the first quarter

    The L Brands of the virgin parent company released its first quarter results after the closing of the US stock market on 22 May. The group's total sales volume was $2 billion 629 million, almost no growth compared with the 2 billion 626 million US dollars in the same period last year, and net profit dropped 15% to 40 million 300 thousand US dollars.

    Among them, the same store sales fell 5%, while Bath&Body Works sales rose 13%.

    L Brands said that a total of 35 stores were closed in the first quarter of this year.

    It is reported that the company has closed 30 stores last year.

    Previously, Stuart Burgdoerfer, chief financial officer of L Brands, said in a conference call after the annual earnings report that he will close 53 stores in the North American market this year. Cowen, a New York based investment company, believes that there are 150 redundant stores that should be eliminated.

    In fact, the first flagship store in mainland China was opened in Shanghai in 2017. At the end of the year, the weim show was also held in Shanghai. The new China Jingwei client found in the official website of weir China that at present, there are 49 new stores in the Greater China region such as Beijing and Hongkong.

    The new China Jingwei client found that the sale of discount stores from the PINK series to the weir series has never stopped. Sales of 3 pieces of 138 yuan, 2 pieces of 238 yuan, and buy one get one are not small.

    There are also some promotional activities on the online channel. There are also many discount promotions abroad.

    As a matter of fact, since 2018, the sale of goods has been greatly discounted, but it has been unable to save 1.1% of its sales. The loss of underwear products is more than 1.1%.

    In this regard, analyst Ike Boruchow has said that the main reason for the decline in performance in recent years is not only the decline in consumer preferences for sexy lingerie, but also the lack of management of offline stores after the rise of online business, because even if there is a large number of online consumer brands, the brand has not shut down any offline stores, which has led to a sustained increase in costs.

    Global data retail analysts have said that the brand has lost about 3 million 800 thousand customers in the past two years.

    Will the secret show be closed this year?

    In recent days, Leslie Wexner, chairman and chief executive officer of L Brands group, the parent company of Vitoria secret, said in a company briefing that the show will face a major adjustment: "fashion is a changing industry that must grow through development and change. TV and Internet are no longer suitable for big show. They will reassess the traditional secret show and look for new forms after 2019."

    This expression is believed by the market to release the signals from the secret show or to be suspended.

    For this year's secret show, whether or not to stop holding, or as usual held only on television stations, the new Jingwei client telephoned Wei Wei, Wei did not give a positive response, only revealed that the company is still discussing, reply to "there is really no relevant information can provide."

    After visiting the secret flagship store in Vitoria, Beijing, the staff members of the store said to the Sino Singapore Jingwei client, "the market department has not received the notice about the promotion of the show, and we have no idea what new products we have this year."

    According to foreign media reports, the cost of last year's exhibition was more than 130 million, which is undoubtedly a major financial pressure for the parent company L Brands, which is not optimistic.

    If the show is actually suspended this year, it means that the secret show of Vitoria, which has been with the audience for 25 years since 1995, will become a history.

    Data show that the ratings of the media have fallen for 6 consecutive years.

    In 2015, the ratings dropped by 30%, and the number dropped to 6 million 590 thousand.

    In 2016, the audience rating of viewers aged 18 to 49 was only 2.1, compared with 2.3 in 2015, which was reduced by 9%.

    In 2017, the ratings of Shanghai's big show fell by 30%, and the total audience number was less than 5 million. Last year, the ratings of the ABC show were declining, and the total number of viewers dropped to 3 million 270 thousand. Compared with the 2001's 12 million 400 thousand viewing rate, today's show is no longer in sight.

    "Underwear market" has no way to go?

    As the leader of the underwear industry, it was once a great hit in the millennium. The design of the main line and the "angel" on the overpass are the pronoun of "sexy". The "PINK" is the representative of youth. In the 2004 year, Heidi Klum, Adriaa and Lima were the most golden and glorious days of the brand.

    But in recent years, the output of the value chain which is inconsistent with the times is also one of the important reasons for its resistance by female consumers.

    For example, last year's big red Metoo trend urged women not to use the underwear to create a proud curve to win men's affection.

    It is understood that at present in China's underwear industry, such as Ann Li Fang, Ttiumph, Finn, man, and city beauty are all the main competitors of Wei.

    With the rapid development of the fashion industry and the changing demand and taste of underwear design, the billions of underwear businesses are facing the challenge of attracting young consumers.

    Xu Xiongjun, the strategic positioning expert and founder of the nine German positioning consulting company, said that the depression of the global economic environment has had a great impact on the entire female consumer industry in recent years, including beauty salons, cosmetics and women's underwear market. The underwear market has basically reached saturation in the global stock market and the incremental market, and now it has become stable.

    In addition, the population of most western countries has begun to grow negatively, and China's population growth is slowing down. The new underwear market is weakening.

    "Women's underwear sales are an economic barometer. When the economy is down, housewives will reduce their spending on underwear."

    Xu Xiongjun said.

    Xu Xiongjun believes that "Wei Mei underwear" is the main line of its business. Although the sales of accessory products such as cosmetics and body milk are better, its market share is very small, and the future development can not compete with L'OREAL, Estee Lauder and other old brand cosmetics. In general, there is little competitive advantage.

    "The fashion show in the past years, the underwear products introduced too much emphasis on" sexy "and" fashion ", but also made the product's R & D and design divorced from consumers, ignoring the need for comfort and practicality of underwear, and deviated from the consumer's demand for underwear.

    Xu Xiongjun said.

    Author: Zhang Yanzheng

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