Victoria’s Secret is a famous brand in the women’s undergarment industry that has built a high sexual image around tall, thin models. However, despite its dominance, it has been under pressure because of the several changes occurring in the marketing environment for the women’s undergarment. First, there is a change in the economy, which picked momentum after the recession in 2008 and the years following. Most retailers, including Victoria’s Secret, experienced a decreased foot in traffic malls, leading to lower sales and increased price cutting (Ponomarenko, 2016). This leads to the reduction in Victoria’s Secret’s net income until the economy slowly rebounds as customers earn a higher disposable income.
Second, there is also a change in the women’s undergarment industry regarding the new customer groups. The evolving categories include young women and plus-sized women (Guajardo & Cohen, 2018). Their emergence and development lead to an increase in the overall purchasing in the industry. Additionally, as the sector continues to grow, there is increased competition. Although Victoria’s Secret is still the most popular brand in the industry, it faces growing competition from new companies such as Aerie, Soma, and Adore Me (Guarjardo & Cohen, 2018). Therefore, despite the competition, Victoria’s Secret can lead in the industry if it ensures the customer’s needs are met.
Strategies for Adapting into the Changing Industry Environment
The company can use the following strategies to adapt to the new industry; Victoria’s Secret should consider changing their prices to match their competitors. The company can also increase its focus on a specific line of products such as bralettes. Similarly, the company can stop producing products that are not the core aspects of the business. This might negatively affect the consumers who might turn to social media to air their grievances, which might ruin the company’s image. A brand sells itself in that people will praise their products and consequently, attract more customers.
Guajardo, J. A., & Cohen, M. A. (2018). Service differentiation and operating segments: A framework and an application to after-sales services. Manufacturing & Service Operations Management, 20(3), 440-454. Web.
Ponomarenko, P. (2016). Victoria’s Secret: A case study of maintaining brand relevance. [Master’s thesis, Universidade Catolica Portuguesa]. Open Access Theses and Dissertations.