Victoria's Secret Brand Situational Analysis: Entering Singapore Market

BRAND SITUATIONAL ANALYSIS ENTERING SINGAPORE MARKET

VICTORIA’S SECRET BRAND SITUATIONAL ANALYSIS ENTERING SINGAPORE MARKET

Anastasia Sorokina x Eleonora Borodkina G1427521K x G1343341R BA in Fashion Marketing & Branding BFMD11508A Principles of Fashion Marketing & Branding Tutor: Sandra Moorhouse

CONTENTS I. INTRODUCTION, 1

II. EXTERNAL BUSINESS REVIEW, 2 PEST Analysis

3

Market “Health”

10

Competitor Analysis

11

CONTENTS III. INTERNAL BUSINESS REVIEW, 29 Brand “Health”

30

Brand DNA

36

Marketing Mix

37

Ansoff Matrix

43

SWOT Analysis

44

IV. ISSUES & POTENTIAL STRATEGIES, 46 V. CONCLUSION, 47 LIST OF ILLUSTRATIONS LIST OF REFERENCES

INTRODUCTION Victoria’s Secret is one of the most recognizable and popular brands in the world (Business Insider, 2013). The brand turned every day women’s nessecity that used to be hidden into the fashion items which people all over the world can see on the supermodels called “angels” doing the catwalk on CBS channel every year.

Victoria’s Secret originally was founded by Roy Raymond who wanted to set a lingerie store with not intimidating atmosphere for men who want to buy something for their spouses and full of exciting and fun experience for women. But only when Leslie Wexner bought the brand, it became so successful.

Now Victoria’s Secret together with related brand PINK and La Senza, which are all owned by L Brands makes up 41% of America’s lingerie market (Forbes, 2014).

Expanding it internationally can be troublesome because of different demographics, politics, sociological and cultural factors.

This report will cover the issues that the brand can face while expanding to Singapore and will provide the relevant brand analysis to understand where Victoria’s Secret is going.

“Raymond imagined a Victorian boudoir, replete with dark wood, oriental rugs, and silk drapery. He chose the name “Victoria” to evoke the propriety and respectability associated with the Victorian era.”

Naomi Barr Slate Magazine

1

EXTERNAL

BUSINESS REVIEW

PEST ANALYSIS To be a leader in the new enviroment (in this particular case - Singapore), where Victoria’s Secret is going to operate with its full potential it is vital to consider the external factors which can presumably impact on the business.

3

POLITICAL

Parlamentary republic based on the Westminster model Single party state Level of stability: very high (the chart below) Press is controlled by the government High level of bureaucratic efficiency (Straits Times, 2013) The lowest level of corruption in Asia (Forbes, 2015) Corporate income tax: 17% The number have been going down consistently. (Hawksford Singapore,2015) GST (7%) refund policy for tourists

The index of Political Stability and Absence of Violence/Terrorism measures perceptions of the likelihood that the government of Sin gapore will be destabilized or overthrown by unconstitutional or violent means, including politically-motivated violence and terror ism.

4

Singapore political state is business-friendly and the precise structure of the bureaucratic system speeds up all legal procedures.

ECONOMIC Stage of business cycle Growth of economy

contraction phase (Moody’s Analytics, 2015)

modest

2% in 2015, 1-3% is expected in 2016 (Straits Times, 2015)

GDP per capita

38087.89 USD in 2014

Core Inflation Rate (average)

1.45 percent from 2009 until 2016

(Trading Economics, 2016) The growth is shown in the chart below.

(Trading Economics, 2016)

(December quarter of 2015) Unemployment rate 1.9% (Trading Economics, 2016)

Labour Costs

118.3 Index Points (fourth quarter of 2015) (Trading Economics, 2016)

Considering a global recession in 2015, Singapore is one of the places that are currently “in risk”. (Moody’s Analytics, 2015) However, there are no signs of upcoming downturn there.

The issue that Victoria’s Secret and other international brands should be aware is that local business development in retail is trending.

5

SOCIO-CULTURAL The charts are from Yearbook of Statistics Singapore 2015

DEMOGRAPHICS 5,469,724 people in 2014 (Yearbook of Statistics Singapore, 2015) The population in Singapore has been significantly ageing for the last two decades. It certainly has an influence on retail business.

6

Victoria’s Secret would have a big opportunity to reach more customers with considering Baby boomers and Generation X in future, especially in Singapore.

The Economist Intelligence Unit Report, 2014

SPH Magazines, 2014

SOCIO-CULTURAL Female consumers in Asia are “showing increasing independence in handling their finances” (Hopfner, Cafolla, 2014), therefore marketing to them should be highly intelligent and effective.

The most trusted form of advertising by Singaporean women is positive word of mouth (SPH Magazines, 2014).

To appeal to the female consumer brand should focus on relationship marketing. Women want to feel understood, validated and heard. Unlike men they see brands as an active collaborative partners. (Darroch, 2014: 173)

69% of young women (b. between 1980 – 1995) in Singapore bring in equal or more salaries than their partners or spouses.

(PwC, 2015) (Pw

7

TECHNOLOGICAL How connected are women in Singapore?

The average Millennial (aged (a 16-30) in Singapore spends 3.4 hours a day on their mobile devices according to

8

Connected Life, a study of 60,500 internet users worldwide from global research consultancy TNS. They are one of the most addicted to mobile in the world. (Digital Market Asia, 2015)

Though Singaporean milennial women are heavy online users, the majority are still omni-channel shoppers who search online but go to the store for the experience.

What do women do on social media?

49% browse for products and services at least

once per day Victoria’s Secret successfully operates in its brick-and-mortar stores as much as online, which perfectly suits to local prospects.

The Economist Intelligence Union report, 2014

39% feel pressure to buy in stores, but do not feel this way online

Paragon shopping, Singapore

9

MARKET “HEALTH” As we can see from the chart done by Statista lingerie market is certainly emerging. Fashionbi claims that luxury lingerie brands are growing faster than mass-oriented ones.

Lingerie market is being transformed right now in Asia. Asian women culturally used to be conservative in their behaviour of buying lingerie. With social media and Western culture influence the situation is changing which is beneficial for Victoria’s Secret.

In the past year, sales of skimpy thongs fell 7%, while sales of briefs, boy shorts and high-waist

briefs grew 17% according to NPD Group.

The fact that women are switching to a full coverage of their panties is an alarm for Victoria’s Secret which signature products are push-up bras and thongs.

By 2020, just-style estimates that the unit growth will be 27 million extra bras, of which 15 million will be sold in Asia, and 77 million extra briefs.

10

COMPETITORS ANALYSIS Understanding who your competitors are, their strengths and weaknesses is a big advantage in order to develop a successful business strategy.

Apparel market, including intimate apparel market, is highly competitive.

With fast-fashion giants launching their own intimates, situation changes drastically. However, Victoria’s Secret as accessible luxury brand compared in this analysis to the other brands represent ed in Singapore: which specialize on lingerie have relatively the same price range

11

Victoria’s Secret

La Perla

Triumph

Wacoal

Reynoldsburg, OH USA

Bologna, Italy

Bad Zurzach, Swirzerland

Kyoto, Japan

6 % increase in total sales in 2015 comparing to 2014

20% increase in total sales in 2015.

Estimates 30% increase in 2016

average upper-middle class women from college age

upper-middle class and high-class women aged 18+

middle class women aged 25+

middle class women aged 16+

E-label

E-label

E-label

(rankabrand.com) 3 out of 31

(rankabrand.com) 0 out of 31

(rankabrand.com) 3 out of 31

no ranking contributed CSR (Corporate Social Responsibility)

5 stores

4 stores

9 stores 18 corners

11 stores (only accessories& beauty products)

"The world's best bras. The sexiest lingerie. The most beautiful Supermodels."

n/a

1% estimate decrease in total sales in 2015 comparing to 2014

in department stores

"Luxury Italian women's clothing company specializing in lingerie."

"The Makers of Lingerie since 1886. One word can empower.

One word can inspire."

“Our mission at Wacoal is to contribute to society by helping women everywhere become more beautiful.”

12

Victoria’s Secret

L Brands Inc.

PINK Bath & Body Works La Senza Henri Bendel C. O. Bigelow The White Barn Candle

13

La Perla

Pacific Global Management Group

Triumph

Wacoal

Triumph International Group

Wacoal Holdings Corp.

Lecien Corp.

Peach John Co., Ltd. Ai Co., Ltd. etc. + Wacoal is a manufacture for such brands like DKNY Intimates

Parent Company

Elite Model Management, Gold Typhoon and Women Management

BeeDees sloggi

China, Sri Lanka, Bangladesh

Italy

Thailand, China

South-East Asia, China

Made in

Flirty and fun

Sophisticated and exclusive

Warm and welcoming

Simple and calm

Brand Personality

Seductive but pure

Elegance and high-fashion

Class and conservative

Comfort and innovation

Brand Positioning

Panties: USD 40-800 Bras: USD 115-1500 Sleepwear: USD 120-3000 Swimwear: USD 90-1700 Bustiers: USD 200-2500

Panties: SGD 17-65 Bras: SGD 70-150 Sleepwear: SGD 100-140 Shapewear: SGD 30-220 Bustiers: SGD 150-300

Panties: USD 15-60 Bras: USD 20-100 Sleepwear: USD 20-100 Shapewear: USD 30-60

Price range

Panties: SGD 12-50 Bras: SGD 50-100 Sleepwear: SGD 65-100 Swimwear: SGD 30-140 Athleisure: SGD 40-130 Bustiers: SGD 70-120

Other Subsidiaries

Babydolls & Slips Corsets & Garter Slips Teddies & Bodysuits Gowns & Kimonos Hosiery

PRODUCT RANGE

Push-Up Full/Perfect Coverage Demi Unlined Strapless & Backless Bralette Lounge & Wireless Sport Bras Thongs & V-Strings Cheekies & Cheekinis Hiphuggers Bikinis Briefs & Boyshort No-Show & Seamless Hosiery & Garters

Pajamas Sleepshirts & Nighties Babydolls & Slips Robes & Slippers

Bikinis One-Pieces & Tankinis Cover-Ups

Sport Bras Pants & Bottoms Tops Shoes Dresses Hoodies Fragrance Mists Body Care Travel & Accessories Gift Sets Lip

14

Signature Push-up bra

15

Cheekies panties

Sportbras

Swimwear

16

PRODUCT RANGE

17

BRAS PANTIES BUSTIERS HOSIERY SLIPS/BABYDOLLS BODYSUITS/JUMPSUITS BASICS SHAPEWEAR GARTERS ACCESSORIES

BIKINIS ONE-PIECES COVER UPS ACCESSORIES

ROBES PAJAMAS NIGHTGOWNS BABYDOLLS LOUNGEWEAR

SWIM UNDERWEAR NIGHTWEAR LOUNGEWEAR ACCESSORIES

Loungewear JACKETS/CAPES TOPS/BUSTIERS PANTS/SKIRTS DRESSES ACCESSORIES

ATELIER

La Perla Lingerie

La Perla Atelier FW2015-16 Campaign

18

PRODUCT RANGE

Push Up, Maximizer Wired Non Wired Padded Non Padded Deep V 3/4 Cup Half-Cup, Bandeau & Strapless Bras Stick-On Bras T-Shirt Bras Sports Bras Bustiers & Corsages

19

CORSAGES BODY & DRESSES BRIEFS & PANTIES SHAPE & SUPPORT BRAS HIGH WAIST LONG GIRDLE LONGE GIRDLE

Sexy Lace Seamless Briefs Strings & Thongs Mini & Tanga Midi & Maxi

SLEEPWEAR

Stand Up for Fit campaign, 2014

20

PRODUCT RANGE

21

Back Smoothing Bralette Convertible Demi Front Close Full Figure (Dd+) Minimizer Plunge Plus-Size Push-Up Racerback Seamless Sexy Sports Bras Strapless T-Shirt Underwire Unlined Wireless

Body Shaper Camisoles Control - Firm Control - Light Control - Moderate Panties Plus Size Slips Target Area Thigh Slimmer Torsette

Bikini Boyshort Briefs Cotton Hi-Cut Brief Hipster Plus Size Sheer Tanga Thongs

Chemise Nightgowns Sexy

Bras Panties Shaping Slips

Campaign celebrating all women body types

Wacoal Lingerie

22

Victoria’s Secret

La Perla

Triumph

Wacoal

Traditional promotion (magazines, billboards etc.)

Fashion Show

“Angels” supermodels Taylor Swift Selena Gomez Ariana Grande etc.

Cara Delevigne Liu Wen Natasha Poly

Lisa Snowdon Louise Redknapp

-

Celebrity brand ambassadors

Swarovski Brian Atwood Eddie Borgo

Jean Paul Gaultier

Swarovski

Wacoal x LYCRA

Collaboratons

PINK collaborates with some colleges and baseball teams across US selling customized using the college logo and colours for products

23

Matthew Williamson Louise Gray Fyodor Golan for 127 heritage of the brand

Victoria’s Secret

La Perla

Triumph

26,973,123 Total Page Likes (0.3% increase)

136,659 Total Page Likes (0.5% increase weekly)

1,908,394 Total Page Likes (number is stable)

18,944 Total Page Likes (0.2% increase weekly)

62,594 People talking about VS

1,671 People Talking About La Perla

146 People Talking About Triumph

189 People Talking About Wacoal

2.9m posts #victoriassecret ~35m followers on @victoriassecret ~135k likes on average per post ~3k posts overall ~10-15 posts per day available like2b.uy – service which allows you to shop the feed 1.5 m followers on @victoriassecretsport 4.5 m followers on @vspink

Wacoal

9,5k posts #laperlalingerie

~4k posts #triumphlingerie

~18k posts #wacoal

225k followers on @laperlalingerie ~1-2 posts per day ~1600 posts overall ~2k likes on average per post

There are few accounts @triumphlingerie @triumph_uk @triumph_usa but only @triumph_au is verified by Instagram

No verified account for Warcoal, a lot of small accounts according to the country or area of distribution e.g. Thailand, Indonesia, Malaysia, Europe.

For @triumph_au ~3k followers 35 likes on average per post ~460 posts overall

24

Victoria’s Secret

La Perla

Triumph

Wacoal

Variety of social platforms

Account Popularity

Quality of Content

Audience engagement

Motivation to buy a product

23

COMPETITIVE ADVANTAGE

WEAKNESSES

STRENGTHS

Victoria’s Secret

STRONG IMAGE APPEALING TO MILLENNIALS

La Perla

TAILORING AND EXCELLENCE PART OF HIGH FASHION

Triumph

Wacoal

RICH HERITAGE

INNOVATIVE FITTING

CLASSY

CELEBRATING ALL TYPES OF WOMEN BODY

COMFORT FITTING

SOCIAL MEDIA GIANT

DISREGARD TOWARDS PLUS-SIZED MARKET IRRELEVANT MESSAGE OF PERFECT WOMAN

UNDERESTIMATE OF SOCIAL MEDIA LACK OF MILENNIAL WOMEN INTEREST

POOR FITTING

INVOLVING RELEVANT CELEBRITIES CLEAR MESSAGE SELLING LIFESTYLE

BEING FEATURED

BY INFLUENTIAL FASHION MEDIA RUNNING AN ATELIER

LACK OF PR

IGNORANCE OF TRENDS

TOO SAFE CHOICES OF DESIGNS

LACK OF PR

NON-APPEALING TO MILLENNIALS

TOO COMMON

CONSERVATIVENESS

SPECIALIST IN SHAPEWEAR

RECOGNITION BY GEN X FUNCTIONALITY

ACCEPTANCE OF BODY SHAPES DIVERSITY

26

Fit Wacoal

M&S La Perla

Calvin Klein Triumph Uniqlo

Etam H&M

Victoria’s Secret La Senza

PERCEPTIONAL MAP (based on primary research)

27

Victoria’s Secret

Style

@wakingupwithvenus

28

INTERNAL

BUSINESS REVIEW

BRAND ‘‘HEALTH’’ To analyze the brand “health” is extremely important. It is the indicator of where the brand today and whether it has potential to grow in future or not.

The most relevant factors that have an influence on Victoria’s Secret are:

empowered millennial women body image sustainability

30

EMPOWERED MILLENNIAL WOMAN In 2015 there were a lot of iconic moments showing that women have become influential and independent like never before.

Hilary Clinton announced her run for President in the USA, Hollywood actresses were keep rising the issue on equal wedges with men relating it not only to entertainment industry, the British sport campaign “This Girl Can” has inspired thousands women to be more physically active. These are just some of the examples.

Victoria’s Secret image is based on sexy perfect look that drives men crazy. To presume success upon this is wrong.

The diffusion line PINK is more relevant now because it targets a young girl who does not dress for a man, she is having fun with her girlfriends.

Why was it so important to build a cabinet that had an equal number of women and men?

“Because it’s 2015.”

Canada’s Prime Minister Justin Trudeau

representing ECLECTIC INDEPENDENT SMART women bringing out

To run a “healthy” brand Victoria’s Secret should consider:

THE SENSE OF HUMOUR to its campaignes and fashion show

31

BODY IMAGE Victoria’s Secret built a strong essence of the brand with advertisements and show involving their supermodels “angels”.

Models must be between 18 to 30 years and a minimum of 5'8" tall (barefoot).

The average weight is 115lbs with tiny measurements of 34-24-34.

(KGlobal, 2012).

The average American woman weighs 162.9 pounds and wears a size 14.

Obviously, Victoria’s Secret standards for their models are very far from their customers.

In 2015 American Eagle lingerie brand Aerie attracted the whole world’s attention with its compaign “I’m No Angel” (demonstrably related to VS).

With such an aggresive competition Victoria’s Secret shoud think of revaluation of its core brand postulates.

32

What to consider? welcoming PLUS-SIZED women editing photographs with LESS PHOTOSHOP promoting HEALTHY LIFESTYLE HEA for a fulfilling life and not for the perfect body

What consumers are looking for today more than anything else is meaning.

And meaning is going to come from relatability — can I really relate to this brand?

Jeetendr Sehdev Marketing professor University of Southern California (BusinessInsider, 2015)

1.Response to the scandalous VS campaign “Perfect Body” which was replaced by “Body for Everybody” 2. BuzzFeed photoshoot Victoria’s Secret models vs women from BuzzFeed staff

33

SUSTAINABILITY With “True Cost” documentary released in 2015 and rising awareness of what it actually yakes to manufacture fast-fashion frocks moving towards ethically right and enviromentally sustainable brand is essential in terms of both morality and marketing.

In 2011 it was revealed that Victoria’s Secret buys an organic cotton handpicked in Burkina Fasoby forced children. (Bloomberg,2011) Eventhough, Victoria’s Secret claimed that they signed for buying organic and Fair Trade cotton there with the aim to use sustainable raw materials and benefit African female workers without awareness of using child labour, the case was extremely harmful for the brand.

L BRANDS CONTRIBUTION TO SOCIETY AND ENVIROMENT SUPPORTS Think Pink Breast Cancer

United Way Forest Ethics

The Victoria’s Secret runway show in 2014 raised more than $2.5 million for American Cancer Society Pelotonia Gabriel’s Angels through ticket sales th

PLEDGED

However, Victoria’s Secret tries to contribute the good to society through their charity work. It’s hard to be fully sustainable but possible. Therefore, the long-term strategy to become an eco-friendly brand would be beneficial for Victoria’s Secret brand “health”.

34

Green Peace Detox Fashion Campaign (agreed to eliminate hazardous chemicals from the supply chains and products by 2020)

35

being the most popular brand in the world

fulfilling customer desires, reaching excellence in everything, cherishing diversity, being sources of good to the world

being a leader and trendsetter in lingerie market

flirty and teasing manner just like a confident woman would behave with the object of her desire

accessible luxury lifestyle of confident, powerful and stylish woman

DNA Brand ambassadors are one of the most successful and recognized women in the world (Taylor Swift, Katy Perry, Kendall Jenner etc.)

Innocent yet seductive, leaving something for imagination

Sexy Angel (desirable yet untouchable)

36

sexy sophisticated provocative glamorous dominant

PRODUCT PRICING PROMOTION PLACE

MARKETING MIX 37

PRODUCT Product Design

Quality

Victoria’s Secret divides its range into PINK line, targeting a college age woman and Victoria’s Secret itself for more sophisticated women.

There are 2 constant collections among lots of trending others - Body by Victoria (more casual look) and Very Sexy (fiercer and more dramatic).

The signature design features: bold prints and colors, extreme push-up bras, cheeky panties and thongs

Tangible features

Product Benefits Core product Confidence and feeling of being sexy Actual Product Branded with logo lingerie in bold styles and colors associated with “angels” and celebrities Other branded b attributes of “angel” lifestyle – swimwear, loungewear, athleisure, clothing, beauty products and accessories.

38

Augmented product Gift cards in various designs , which are tastefully packaged and ready to be gifted in a good manner.

From online feedback on VS products (including their own website feedback) customers struggle with fitting but delighted with designs. The durability depends on the type of product. Panties are claimed to be the most fragile.

Intangible features Overall, VS products have a positive reputation, as it is a lingerie destination number 1 in the USA. Public image, on which the company spends enormous sums of money, is generally stable with consistent engaging campaigns, launching new products, presenting new “angels” and running an annual fashion show with relevant performing celebrities.

Product Branding Signatu VS acronym logo stands for Victoria’s Secret and Signature creates some feeling of a mystery “What stands for these two letters?”

Using bright pink colour as the main theme differentiates the brand from others, so it can be easily recognized and noticed.

39

PRICING Price in marketing is the value placed on the physical good, service or idea offered by the marketer to the target market. (Dibb, 2004: 170) Psychological Pricing One of the examples – charging $49.50 for 2 casual sleepshirts. When the customer see such price, he thinks positively that he is going to spend less than $50, $100, $200 etc.

Bundle Pricing VS very often use the strategy of bundle pricing – grouping the categories of the products and selling them together at lower price than if you buy them separately.

Pricing the panties to generate more sales: 5/Sgd $38.61 4/Sgd $41.42 3/Sgd $49.14 Product Line Pricing VS does not build its pricing on this particular strategy as collections are relatively the same in terms of value. However, comparing PINK line and Victoria’s Secret. The first one targeting students considerably lower in price.

40

PROMOTION Message & Media Strategy Victoria’s Secret conducts an aggressive policy against its rivals (direct and indirect) constantly claiming that they are the best brand in the world. The sales talk for themselves.

The message is what reinforces the benefit of the product.

Victoria’s Secret was first to take the lingerie out of the department stores and communicate with prospects in such open manner.

To sustain its advantage in front of competitors the brand has to maintain its leadership. (Trout, 2001:51-56) Types of promotion used by VS Advertising: street billboards, in store, print, TV, online Public Relations: fashion show, events, involving bloggers and digital influencers, teasers, “angels” publicity – being on talk shows, dating celebrities Internet Marketing: Instagram, YouTube, Facebook, Snapchat, Twitter, Spotify (”Train like an Angel” playlists)

41

PLACE Diversity of distribution channels Victoria’s Secret sells in store, online and through catalogue.

Product Design and Launch Design office in NY Concept-to-market principle (Launch Calendar) pre-production and testing in few selected stores.

Supply 2 supply supp chains - one for basic products, another for fashion launches.

Multiple small contract suppliers in Asia.

No supplier provides p more than 10% of Victoria’s Secret’s purchases.

42

Store Distinctive interior design with mild lighting, pop music and feminine atmosphere Sales Associates are must be well-trained to provide maximum comfort level to the customer, VS takes the training very seriously.

ANSOFF MATRIX

EXISTING

DIVERSIFICATION

PRODUCTS

NEW

NEW

MARKET DEVELOPMENT

EXISTING MARKETS

PRODUCT DEVELOPMENT

MARKET PENETRATION

The current goal of Victoria’s Secret is to concrete Singapore lingerie market. Thefore, according to Ansoff Matrix the brand is going to develop a new market with existing products.

Victoria’s Secret is already in Singapore but with limited product range. They sell only beauty products, accesories and small range of panties.

The brand step by step introduce itself in the new environment.

IHowever, Singaporean women are very brand awared and Victoria’s Secret is already on their minds, even though they may not be familiar with whole product range.

43

SWOT ANALYSIS • Strong marketing on various platforms (online, TV, Catalogs, Fashion show) • Strong brand presence and recognition • Omni-channel shopping opportunity • International fame • Product diversification • Huge customer base • World famous models • Victoria Secret annual fashion show • Financial Stability • Strategy to transform “PINK” young shopper into sophisticated “Victoria’s Secret” customer

• Further expansion internationally • Potential for other acquisitions such as La Senza • Possible reward system promotional plan • Development of international customer base through online shopping • Focusing on more healthy body image campaigns • Expanding into a higher-end market • Considering sustainability

44

S T R E N G T H O P P O R T U N I T Y

• High marketing costs • Limited international presence • Working conditions in factories located in developing countries • Negative body image publicity • Little attention to fitting

• Negative publicity because of irrelevance of “perfect” woman image • Competitors with healthy vision of woman beauty and more appealing product • Counterfeits • The increase of labour costs • Low profit margins due to price-competition or purchasing costs

W E A K N E S S

T H R E A T

Flagship Store Oxford Street, London

45

CONCLUSION

Victoria’s Secret is a very successful brand with the established image. It is indeed a leader in fashionable lingerie market. This report covered both external and internal factors influencing on Victoria’s Secret and gave an overview of their competition in Singapore.

Effective marketing strategies that Victoria’s Secret had implied over the years prove that consumers want experience and feelings, that such products give them, rather than products themselves.

Sexy Little French Maid, Victoria’s Secret

The aspirational, young and confident woman, who is Victoria’s Secret customer can become tired soon of such women objectification from the brand. If Victoria’s Secret’s aim is to remain the number one lingerie brand in the world, the change in their marketing strategy is imperative.

47

LIST OF REFERENCE Books Darroch, J. (2014). Why marketing to women doesn't work. Hampshire: Palgrave Macmillan.

Dibb, S. and Simkin, L. (2001). Marketing briefs. Oxford: Butterworth-Heinemann.

Dibb, S., Simkin, L., Pride, W. and Ferrell, O. (2005). Marketing: Concepts and Strategies. Houghton Mifflin.

Trout, J. and Ries, A. (2001). Positioning: The battle for your mind. 20th ed. New York: McGraw-Hill.

Online Sourses Accenture.com. (2016). Who are the Millennial shoppers? And what do they really want? | Accenture Outlook. [online] Available at: https://www.accenture.com/sg-en/insight-outlook-who-are-millennial-shoppers-what-do-they-really-want-retail.aspx [Accessed 18 Mar. 2016].

Alexander, D. (2016). Victoria's Other Secret: The Low-Key Billionaire Behind The Lingerie Giant. [online] Forbes.com. Available at: http://www.forbes.com/sites/danalexander/2014/09/30/victorias-other-secret-the-low-key-billionaire-behind-the-lingerie-giant/#477728d12be0 [Accessed 24 Mar. 2016].

Analyticpartners.com. (2016). Brand Equity, Brand Health - Analytic Partners. [online] Available at: http://www.analyticpartners.com/services/brand-equity/ [Accessed 10 Mar. 2016].

Ang, J., Zolkifi, S. and Lewis, R. (2015). Female Singaporean millennials most independent globally. [online] Human Resources Online. Available at: http://www.humanresourcesonline.net/female-singaporean-millennials-independent-globally/ [Accessed 18 Mar. 2016].

LIST OF REFERENCE Online Sourses Anon, (2016). [online] Available at: http://www.singstat.gov.sg/docs/default-source/default-document-library/news/press_releases/mrsjan2016.pdf [Accessed 17 Mar. 2016].

Anon, (2016). [online] Available at: https://www.singstat.gov.sg/docs/default-source/default-document-library/publications/publications_and_papers/population_and_population_structure/population2015.pdf [Accessed 18 Mar. 2016].

Anon, (2016). [online] Available at: http://www.superbrands.com/lkc1/pdf/22_consumerSB2.pdf [Accessed 4 Mar. 2016].

Anon, (2010). [online] Available at: http://www.vahlen.de/fachbuch/leseprobe/Hollensen-Marketing-9783800637225_0305201208360809_lp.pdf [Accessed 4 Mar. 2016].

Anon, (2013). [online] Face time with Fashion CEO: TriumphAvailable at: https://www.fashionunited.co.uk/fashion-news/fashion/face-time-with-fashion-ceo-triumph-2013010916645 [Accessed 7 Mar. 2016].

Barr, N. (2016). The Tragic Story Behind Victoria’s Secret. [online] Slate Magazine. Available at: http://www.slate.com/articles/business/when_big_businesses_were_small/2013/10/victoria_s_secret_founding_roy_raymond_had_a_great_idea_but_les_wexner_was.2.html [Accessed 24 Mar. 2016].

Bloomberg.com. (2016). Apparel Shares Drop as Ralph Lauren, Kohl's Signal Weakness. [online] Available at: http://www.bloomberg.com/news/articles/2016-02-04/apparel-shares-slammed-as-ralph-lauren-kohl-s-signal-weakness [Accessed 16 Mar. 2016].

BuzzFeed. (2016). We Tried On Victoria's Secret Bathing Suits And This Is What Happened. [online] Available at: http://www.buzzfeed.com/laraparker/heres-what-victorias-secret-swimsuits-look-like-on-real-wome#.qj4eXzVVV [Accessed 14 Mar. 2016].

Conti, S. (2014). Victoria’s Secret Show: A Charity Money Spinner. [online] WWD. Available at: http://wwd.com/fashion-news/fashion-scoops/victorias-secret-show-a-charity-money-spinner-8054955/ [Accessed 9 Mar. 2016].

CPP-LUXURY. (2016). La Perla expects 30% sales increase in 2016 - CPP-LUXURY. [online] Available at: http://www.cpp-luxury.com/la-perla-expects-30-sales-increase-in-2016/ [Accessed 7 Mar. 2016].

LIST OF REFERENCE Online Sourses DataSpark Analytics. (2016). DataSpark Analytics Understanding the Singapore shopper |. [online] Available at: https://datasparkanalytics.com/insight/understanding-singapore-shopper/ [Accessed 5 Mar. 2016].

Digital Market Asia. (2015). Singaporean Millennials spend day-a-week on mobile - Digital Market Asia. [online] Available at: http://www.digitalmarket.asia/2015/11/singaporean-millennials-spend-day-a-week-on-mobile/ [Accessed 4 Mar. 2016].

Euromonitor.com. (2016). Consumer Lifestyles in Singapore. [online] Available at: http://www.euromonitor.com/consumer-lifestyles-in-singapore/report [Accessed 10 Mar. 2016].

Forbes.com. (2016). Forbes Welcome. [online] Available at: http://www.forbes.com/sites/jwebb/2016/01/28/singapore-is-the-least-corrupt-country-in-asia-but-standards-drop-when-its-businesses-trade-abroad/#3b1063b257af [Accessed 5 Mar. 2016].

Forbes.com. (2016). Forbes Welcome. [online] Available at: http://www.forbes.com/sites/natalierobehmed/2015/12/08/the-business-of-the-victorias-secret-fashion-show/#3fcfa1c241bb [Accessed 8 Mar. 2016].

Givhan, R. (2016). The fashion industry wants to disrupt the runway. It’s missing the real problem.. [online] Washington Post.

Available at: https://www.washingtonpost.com/news/arts-and-entertainment/wp/2016/02/15/the-fashion-industry-wants-to-disrupt-the-runway-theyre-missing-the-real-problem/? [Accessed 5 Mar. 2016].

Insights. (2015). 8 Tips On How To Market Effectively To Millennial Women - Insights. [online] Available at: http://insights.newscred.com/8-tips-on-how-to-market-effectively-to-millennial-women/ [Accessed 14 Mar. 2016].

Insights. (2015). What Women Want: How To Create Content Marketing For Millennial Women - Insights. [online] Available at: http://insights.newscred.com/what-women-want-how-to-create-content-marketing-for-millennial-women/ [Accessed 5 Mar. 2016].

The New Paper. (2016). Confessions of a lingerie buyer. [online] Available at: http://www.tnp.sg/news/confessions-lingerie-buyer [Accessed 10 Mar. 2016].

The Huffington Post. (2016). 35 Inspiring Feminist Moments From 2015. [online] Available at: http://www.huffingtonpost.com/entry/feminist-moments-2015-because-who-run-the-world_us_56673cb8e4b08e945ff16ea5 [Accessed 8 Mar. 2016].

LIST OF REFERENCE Online Sourses Kglobal.com. (2016). Victoria’s Real Secret | The Juice from kglobal. [online] Available at: http://kglobal.com/blog/victorias-real-secret [Accessed 11 Mar. 2016].

Lutz, A. (2016). How Victoria's Secret Became The Most Popular Apparel Brand In The World. [online] Business Insider. Available at: http://www.businessinsider.com/victorias-secret-is-the-top-brand-2013-1?IR=T&r=US&IR=T [Accessed 10 Mar. 2016].

Lutz, A. (2015). Watch out, Victoria's Secret: women are abandoning sexy underwear - Business Insider. [online] Business Insider.

Available at: http://www.businessinsider.sg/women-buying-granny-panties-not-thongs-2015-5/#.VvOlZMca9PM [Accessed 8 Mar. 2016].

Lutz, A. (2016). Why The Lingerie Industry Can't Compete With Victoria's Secret. [online] Business Insider. Available at: http://www.businessinsider.com/victorias-secret-will-beat-competition-2013-9?IR=T&r=US&IR=T [Accessed 8 Mar. 2016].

Martinotoole.wordpress.com. (2016). brand onion | Brand New Media. [online] Available at: https://martinotoole.wordpress.com/tag/brand-onion/ [Accessed 4 Mar. 2016].

Matthews, C. (2014). Why you should expect a global recession in 2015. [online] Fortune. Available at: http://fortune.com/2014/10/28/global-recession-us-europe-china/ [Accessed 8 Mar. 2016].

Matthews, R. (2013). The GREEN MARKET ORACLE: Victoria's Secret, the Benetton Group and Uniqlo Sign-On to Detox Fashion. [online] Thegreenmarketoracle.com. Available at: http://www.thegreenmarketoracle.com/2013/01/victorias-secret-benetton-group-and.html [Accessed 8 Mar. 2016].

Rankabrand.org. (2016). La Perla and sustainability: E-label | Buy sustainable brands. [online] Available at: http://rankabrand.org/sustainable-lingerie-underwear/La+Perla [Accessed 8 Mar. 2016].

Rankabrand.org. (2016). Triumph and sustainability: E-label | Buy sustainable brands. [online] Available at: http://rankabrand.org/sustainable-lingerie-underwear/Triumph [Accessed 8 Mar. 2016].

Rankabrand.org. (2016). Victoria's Secret and sustainability: E-label | Buy sustainable brands. [online] Available at: http://rankabrand.org/sustainable-lingerie-underwear/Victoria%27s+Secret [Accessed 13 Mar. 2016].

LIST OF REFERENCE Online Sourses Retailers, A. (2016). A Shift in Shopper Dynamics Provides New Opportunities for Singapore Retailers. [online] Nielsen.com. Available at: http://www.nielsen.com/sg/en/press-room/2015/shift-in-shopper-dynamics-provides-new-opportunities.html [Accessed 14 Mar. 2016].

Reuters UK. (2016). Research and Markets: Global Online Lingerie Market 2015-2019 with Calvin Klein, L Brands, Lejaby, Lise Charmel & Rosy Dominating. [online] Available at: http://uk.reuters.com/article/research-and-markets-idUKnBw075830a+100+BSW20150107 [Accessed 16 Mar. 2016].

Saris-Brandon, B. (2014). Senses and sensibility: a human-centred branding strategy. [online] Aut.researchgateway.ac.nz. Available at: http://aut.researchgateway.ac.nz/handle/10292/8013 [Accessed 8 Mar. 2016].

Schlossberg, M. (2015). An unlikely retailer is beating Victoria's Secret at its own game - Business Insider. [online] Business Insider.

Available at: http://www.businessinsider.sg/aerie-is-the-hottest-lingerie-company-2015-7/#.VvN7I4RVmu7 [Accessed 4 Mar. 2016].

Schlossberg, M. (2015). How Victoria's Secret's core customers have completely changed - Business Insider. [online] Business Insider. Available at: http://www.businessinsider.sg/victorias-secrets-crazy-history-2015-7/?r=US&IR=T#.VvM3wcca9PM [Accessed 24 Mar. 2016].

Sorin, K. (2016). Luxury brands lead lingerie market in growth: report - Luxury Daily - Research. [online] Luxurydaily.com. Available at: http://www.luxurydaily.com/luxury-brands-lead-lingerie-market-in-growth-report/ [Accessed 4 Mar. 2016].

SPH Magazines. (2016). Decoding the Singapore Millennial Woman - SPH Magazines. [online] Available at: http://www.sphmagazines.com.sg/blog/industry-talk/guest-blogger-rachel-cheong/2015/decoding-the-singapore-millennial-woman [Accessed 5 Mar. 2016].

SPH Magazines. (2016). Singapore Women Digital Study - SPH Magazines. [online] Available at: http://www.sphmagazines.com.sg/blog/research/admin/2014/singapore-women-digital-study [Accessed 13 Mar. 2016].

Stampler, L. (2016). Here's How Victoria's Secret Photoshops Its Models. [online] Business Insider. Available at: http://www.businessinsider.com/how-victorias-secret-photoshops-models-2012-10?IR=T&r=US&IR=T [Accessed 11 Mar. 2016].

LIST OF REFERENCE Online Sourses Statista. (2016). Singapore - Gross domestic product (GDP) growth rate 2020 | Statistic. [online] Available at: http://www.statista.com/statistics/378630/gross-domestic-product-gdp-growth-rate-in-singapore/ [Accessed 4 Mar. 2016].

The Business of Fashion. (2015). Inside the Economics of Your Underwear. [online] Available at: http://www.businessoffashion.com/articles/intelligence/inside-the-economics-of-your-underwear [Accessed 8 Mar. 2016].

The Lingerie Journal. (2014). How US Lingerie Dominates The Global Market | The Lingerie Journal. [online] Available at: http://thelingeriejournal.com/us-lingerie-dominates-global-market/ [Accessed 8 Mar. 2016].

The Straits Times. (2015). Making Singapore a great retail destination again. [online] Available at: http://www.straitstimes.com/opinion/making-singapore-a-great-retail-destination-again [Accessed 24 Mar. 2016].

Tradingeconomics.com. (2016). Singapore Core Inflation Rate | 2009-2016 | Data | Chart | Calendar. [online] Available at: http://www.tradingeconomics.com/singapore/core-inflation-rate [Accessed 8 Mar. 2016].

Wacoal (2016). Wacoal. [online] Available at: http://www.wacoal.com.sg/ [Accessed 8 Mar. 2016].

WACOAL HOLDINGS CORP. (2016). Financial Indicators | WACOAL HOLDINGS CORP.. [online] Available at: http://www.wacoalholdings.jp/en/ir/financial/index.html [Accessed 8 Mar. 2016].

Wpp.com. (2016). Marketing to the modern Asian woman: Trends to watch by Vic Corsi, Landor - WPP. [online] Available at: http://www.wpp.com/wpp/marketing/branding/marketing-to-the-modern-asian-woman/ [Accessed 8 Mar. 2016].

Writer, S., Ramli, Y. (2015). How brands can best communicate with Singaporean women. [online] Marketing Interactive. Available at: http://www.marketing-interactive.com/singaporean-women-use-smartphones-watch-tv/ [Accessed 7 Mar. 2016].

LIST OF ILLUSTRATIONS 1. VS show 2013. (2016). [image] Available at: http://www.businessinsider.com/victorias-secret-fashion-show-2013-2013-11?IR=T&r=US&IR=T [Accessed 17 Mar. 2016].

2. Singapore VS store. (2016). [image] Available at: http://learnclubdance.com/victoria-secrets-bras-accessories-store/ [Accessed 13 Mar. 2016].

3. Singapore. (2016). [image] Available at: http://www.biopharma-reporter.com/Upstream-Processing/Sigma-Aldrich-opens-doors-to-latest-Singapore-biopharma-investment [Accessed 17 Mar. 2016].

4. SG shoppers in Paragon. (2016). [image] Available at: http://www.stregissingapore.com/en/shopping-dining [Accessed 16 Mar. 2016].

5. Maria Borges VS Fashion show (VS Product Range page). (2016). [image] Available at: http://www.ibtimes.co.uk/victorias-secret-fashion-show-2015-models-show-off-lingerie-including-2m-bra-1528166 [Accessed 15 Mar. 2016].

6. Candice, (2016). [image] Available at: http://www.amazon.com/s?rh=n%3A1044960%2Cp_4%3AVictoria's+Secret [Accessed 17 Mar. 2016].

7. VS panties (2016). [image] Available at: http://www.amazon.com/Victorias-Secret-Strappy-Cutout-Cheeky/dp/B012C1HA5C [Accessed 16 Mar. 2016].

8. Sportbras VS, (2016). [image] Available at: http://www.frugalcouponliving.com/free-victorias-secret-sport-pant-up-to-70-value-with-sport-bra-purchase/ [Accessed 16 Mar. 2016].

9. Swimwear Alessandra, (2016). [image] Available at: http://www.dek-d.com/board/view/3510553/ [Accessed 16 Mar. 2016].

10.La Perla, (2016). [image] Available at: https://www.pinterest.com/pin/273945589811092584/ [Accessed 14 Mar. 20 11. La Perla, (2016). [image] Available at: https://www.pinterest.com/pin/403494447842935297/ [Accessed 16 Mar. 2016].

12. Triumph lingerie ad. (2016). [image] Available at: http://www.tonguechic.com/fashion/the-red-hot-triumph-lingerie-giveaway/ [Accessed 17 Mar. 2016].

LIST OF ILLUSTRATIONS 13. Triumph Stand up for Fit. (2016). [image] Available at: http://www.aandrphotographic.co.uk/news/wendy-carrig-triumph-uk [Accessed 17 Mar. 2016].

14. Wacoal, (2016). [image] Available at: http://www.lingerieinsight.com/article-6354-wacoal-europe-to-open-new-london-showroom/ [Accessed 16 Mar. 2016].

15. Wacoal, (2016). [image] Available at: http://nite.com/wacoal-loves-everybody/ [Accessed 17 Mar. 2016].

16. Wakingupwithvenus Instagram, (2016). [image] Available at: https://www.instagram.com/wakingupwithvenus/ [Accessed 14 Mar. 2016].

17. Miranda Kerr. (2016). [image] Available at: http://www.nydailynews.com/entertainment/gossip/miranda-kerr-no-longer-victoria-secret-angel-article-1.1318562 [Accessed 12 Mar. 2016].

18. VS Shopping Bag, (2016). [image] Available at: http://www.huffingtonpost.com/jim-joseph/shopping-victorias-secret_b_6017234.html [Accessed 14 Mar. 2016].

19. Perfect Body campaign, (2016). [image] Available at: https://audreyhume2015.wordpress.com/2015/01/31/blog-post-2/ [Accessed 14 Mar. 2016].

20. Average women, M. (2016). [image] Available at: http://www.express.co.uk/life-style/style/587564/Victoria-s-Secret-bikinis-model-catwalk-real-women [Accessed 14 Mar. 2016].

21. Nature, (2016). [image] Available at: http://www.dream-wallpaper.com/nature-wallpaper/wheat-field-1-wallpaper/1920x1200/free-wallpaper-4.html [Accessed 14 Mar. 2016].

22. Behatiin swimwear, (2016). [image] Available at: http://www.vspinkoutlet.com [Accessed16 Mar. 2016].

23. Adriana Lima, (2016). [image] Available at: http://www.racked.com/2015/12/8/9870132/victorias-secret-brand-fashion-show [Accessed 14 Mar. 2016].

LIST OF ILLUSTRATIONS

24. Body for everybody, (2016). [image] Available at: http://www.fanpop.com/clubs/victorias-secret-angels/images/27893816/title/vs-angels-wallpaper [Accessed 16 Mar. 2016].

25. VS Sale Ad, (2016). [image] Available at: http://savor-themoment.com/blog/2014/01/ [Accessed 14 Mar. 2016].

26. VS Angels in London. (2016). [image] Available at: http://www.ibtimes.com.au/victorias-secret-fashion-show-2014-first-look-angels-they-pose-front-lingerie-store-see-photosvideo [Accessed 12 Mar. 2016].

27. VS Store Interior. (2016). [image] Available at: http://www.cdinduluth.com/the-blog/2014/6/24/victorias-secret-to-remodel-open-freestanding-pink-store [Accessed 18 Mar. 2016].

28. Victoria's Secret Store at London. (2016). [image] Available at: http://www.visitlondon.com/things-to-do/place/26681010-victorias-secret [Accessed 18 Mar. 2016].

29. Victoria's Secret, (2016). Sexy Little French Maid. [image] Available at: https://www.victoriassecret.com/lingerie/shop-all-lingerie/sexy-little-french-maid-sexy-little-things?ProductID=21929&CatalogueType=OLS [Accessed 17 Mar. 2016].