Major Contender in Multiple Markets
Victoria’s Secret:
A Major Contender in Multiple Markets
While the market for women’s apparel is extremely competitive, there is one company that continues to thrive as it has for years, Victoria’s Secret. The company was created in 1977 by a man named Roy Raymond as a place where men could go to buy lingerie for women without feeling embarrassed. After five years of operation, Raymond decided to sell the Victoria’s Secret name to another well-rounded entrepreneur, Leslie Wexner. Wexner went on to create Limited Brands, which is now the parent of the following chains: Victoria’s Secret, Bath & Body Works, La Senza, and Henri Bendel. (Peter, 2010) Since Limited Brands acquired VS it has turned into much more than just a lingerie store. They have released many new lines of apparel, swimsuits, perfumes, and other beauty products. The chain has grown to about 1,040 stores in the U.S., with their headquarters located in Columbus, Ohio. Many Victoria’s Secret shops can be found in high fashion areas like New York and Chicago, but they are also in most common shopping centers and malls. Recent findings obtained from Limited Brands annual reports show that VS had a net income of $5.6 million and is always on the rise. For example, from 2009 to 2010 sales increased by an astounding 22%. Out of all the companies owned by Limited Brands, VS brings in the most revenue, coming in at around 67% of total income. (Annual Report, 2011) There are many factors that have lead to their growth and success such as how they deal with competition, effective marketing strategies, and the elegant environment that they provide for their customers. Since VS has expanded their products to much more than when the very first store opened, they are much more profitable and compete in many different markets. The most apparent and popular of these are lingerie and intimate apparel. Perhaps it is because that is what the company specialized in in the first place, or maybe because of their
A Major Contender in Multiple Markets
While the market for women’s apparel is extremely competitive, there is one company that continues to thrive as it has for years, Victoria’s Secret. The company was created in 1977 by a man named Roy Raymond as a place where men could go to buy lingerie for women without feeling embarrassed. After five years of operation, Raymond decided to sell the Victoria’s Secret name to another well-rounded entrepreneur, Leslie Wexner. Wexner went on to create Limited Brands, which is now the parent of the following chains: Victoria’s Secret, Bath & Body Works, La Senza, and Henri Bendel. (Peter, 2010) Since Limited Brands acquired VS it has turned into much more than just a lingerie store. They have released many new lines of apparel, swimsuits, perfumes, and other beauty products. The chain has grown to about 1,040 stores in the U.S., with their headquarters located in Columbus, Ohio. Many Victoria’s Secret shops can be found in high fashion areas like New York and Chicago, but they are also in most common shopping centers and malls. Recent findings obtained from Limited Brands annual reports show that VS had a net income of $5.6 million and is always on the rise. For example, from 2009 to 2010 sales increased by an astounding 22%. Out of all the companies owned by Limited Brands, VS brings in the most revenue, coming in at around 67% of total income. (Annual Report, 2011) There are many factors that have lead to their growth and success such as how they deal with competition, effective marketing strategies, and the elegant environment that they provide for their customers. Since VS has expanded their products to much more than when the very first store opened, they are much more profitable and compete in many different markets. The most apparent and popular of these are lingerie and intimate apparel. Perhaps it is because that is what the company specialized in in the first place, or maybe because of their
Bibliography: Chang, C. (28 May, 2004). The Silky Strategy of Victoria’s Secret. McKinsey & Company. Retrieved April 15, 2012. Limited Brands Inc. (2011). 2011 Annual Report. Retrieved April 15, 2012, from Limited Brands Inc. web site Mau, Dhani. (8 Nov, 2011). The Evolution of the Victoria’s Secret Fashion Show From 1995 to Now” Fashionista Online. Retrieved April 15, 2012. Peter, Diana. (16 Sept, 2010). The Legend of Victoria’s Secret. Ezine Articles. Retrieved April 15, 2012. Sauer, Abe. (29 Nov, 2011) Victoria’s Secret: Getting CBS to Pay for it’s Commerical, er, Fashion Show. BrandChannel. Retrieved April 15, 2012.