2019, Where Is The Outlet For The Underwear Market?

This year, I want to see the supermodels show their long legs and walk away from the show. Unfortunately, this year is gone.

Recently, supermodel Shanina Shaik confirmed in the interview with foreign media that the secret show of Vitoria will no longer be held this year.

She said, "unfortunately, there is no such show this year. It also makes me a little unaccustomed, because at this time of last year, I started training for the" Secret Angel ". But I believe there will be more in the future. I am sure they are trying to build up the secret and continue to do the program in a new way. Because it's the best. "

As early as May this year, there was news of the show or the news that it would be suspended. At that time, the CEO of the secret brand suggested that the show was facing major adjustments or would be suspended: "fashion is a changing industry and we have to evolve and change. TV and the Internet are no longer suitable for broadcasts. They will re evaluate the traditional" secret show "and seek new forms after 2019. Officials have not responded yet.

01 the failure of the secret show

Roy Raymond, founder of the "sexy myth", opened its first secret store in 1977 to provide sexy, fashionable and romantic underwear products for consumers.

In 1995, in order to reach more consumers, Wei first launched the annual show that affected the whole underwear industry. Since the beginning of the first "secret show", this activity attracted countless male consumers' eyes.

In 2001, the first show was broadcast on ABC television. The Fantasy Bra, valued at $12 million 500 thousand, was launched by supermodel Heidi Klum, which attracted many consumers' attention. In those days, 12 million 400 thousand viewers maintained the highest ratings in the history of the show.

In 2003, its sales amounted to US $2 billion 800 million and has more than 1000 stores worldwide. In November 13, 2007, the "Secret Angel" became the first trademark to be retained in Hollywood Walk of Fame. In 2009, it sold 600 underwear per minute.

However, after nearly 15 years of brilliance, Pyramid has been on the top of the "midlife crisis" in recent years, not only experiencing business struggles, but also the decline of its underwear show ratings.

In 2015, the ratings of the show declined 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 the Shanghai show dropped by 30%, while the total audience number was less than 5 million, of which 18 to 49 years old audience ratings were only 1.5.

In 2018, the ratings of the ABC show were still on the decline. The total number of viewers dropped to 3 million 270 thousand, of which the audience rating of viewers aged 18 to 49 was only 0.9.

The direct impact of traffic declines is revenue. After the $7 billion 780 million sales in fiscal year 2016, the performance of the company began to decline rapidly, and the revenue in the 2017 fiscal year dropped 9% to 7 billion 387 million 200 thousand dollars, and the revenue in the 2018 fiscal year continued to fall 0.17% to 7 billion 375 million dollars.

02, 35 stores in the first quarter of 2019

The L Brands of the virgin parent company released its first quarter results in May 22nd. Its overall sales volume was $2 billion 629 million, almost no growth compared with $2 billion 626 million in the same period last year, and net profit fell by 15% to $40 million 300 thousand. Among them, the same store sales fell 5%, L Brands said that in the first quarter of this year, it closed 35 stores.

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.

But what is unexpected is that the Shanghai lingerie show, because Chinese angels Xi Mengyao wrestled in the T platform, caused great public opinion sounding. The wrestling event completely covered the news and voice of the lingerie show itself. Then, the action of Wei Ming was even more startling. Xi Mengyao was used as the spokesperson for the Chinese market.

While more and more attention has been paid to the market performance in mainland China, the retail stores are getting smaller and smaller. In the early days of entering the Chinese market, the first tier cities such as Shanghai and Beijing chose to open large stores. However, with the lower and lower efficiency, big stores were forced to close their stores and chose the small store mode.

People who have visited the store may find that the discount shop has basically never stopped, from 3 to 138 yuan, 2 yuan 248 yuan, and buy one gift one, and so on. The sales promotion activities of the shop from PINK series to the Wei family have never ceased. 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.

03 is there no way out for the underwear market?

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 Me too trend, advocating that women no longer need 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.

According to a reporter, Xu Xiongjun, a strategic positioning expert and founder of the nine German positioning consulting firm, has said that the depression of the global economic environment has had a great impact on the whole female consumption industry in recent years, including beauty salons, cosmetics and women's underwear market. 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.