Victoria’s Secret Formula for Brand Success
Buying a woman lingerie has a compelling upside. But while the upside is obvious, there are many uncomfortable downsides. One would be that as a man, when you walk into a lingerie store, you’re typecast. Your role is either playboy or creep. Ninety-nine percent of us are labeled creeps.
Let’s look at another polar opposite pair — a man that doesn’t know what to do with lingerie and a man who does. This article is determined to define the difference. Specifically by focusing on Roy Raymond and Les Wexner.
Raymond’s discomfort was noticeable the minute he walked through the department store doors. He was shopping for lingerie for his wife.
“Can I help you?” asked a saleswoman.
Feeling like an intruder, Roy muttered, “I’m good.”
Raymond felt like a pervert for being there. This bothered him.
Later that night, he called his best friend. Hesitant, he brought up his experience. He was shocked when his department-store situation resonated with his friend. After a few weeks, he realized that most of his friends felt the same way.
Raymond found an issue and felt he had the solution.
Inspired, he borrowed $80k in 1977 and opened a lingerie store targeted at making men comfortable while buying lingerie for their wives. He filled the store with lingerie for women to wear on special occasions and named this company Victoria’s Secret (VS).
“In an effort to make the stores seem ‘private’ and ‘fanciful,’ as Raymond put it to Vogue in 1992, he and his wife Gaye designed the shop with a Victorian-inspired style. The look was meant to impart the sense of class and dignity associated with the Victorian era, and the Queen for which it’s named. They chose ‘Victoria’ to emphasize the historic association, and ‘Secret’ to double up on the sense of intimacy for shoppers.” Time Magazine
That first year, VS made $500,000. From there, Raymond started a catalog and opened more stores. In 1982, VS generated $4 million in annual revenue. Despite the success, Raymond had trouble keeping VS profitable. Their targeted customers were men, but 70% of their in-store shoppers were women.
He lost the vision for VS and as loans piled up, he decided to sell before he could have had gone bankrupt.
Raymond sold the company for $1 million to Les Wexner, owner of clothing store, “The Limited”.
(After selling Victoria’s Secret, Raymond tried his hand at another clothing store. It went bankrupt within two years. He lost his home, cars, got divorced, started a children’s bookstore that failed, and then jumped off the Golden Gate Bridge.)
As for Wexner, he had a vision and recognized the issues immediately. He understood the retail business. The one glaring issue: Males were VS’s target customer. Wexner felt the business should focus more on the female customer, making women feel more comfortable buying lingerie for themselves, rather than having their husbands do it for them. Issue two, lingerie was for special occasions only. Wexner saw an opportunity to create lingerie for the “every day” American woman, a business model that was already working in Europe.
Wexner redefined the brand to stand for fantasy, sex, and glamour, as well as comfort and practicality.
Victoria’s Secret really began to blossom under Grace Nichols’ wing when they hired her as vice-president in 1986. In 1991, Nichols became CEO and President of Victoria’s Secret.
Once VS captured the lingerie industry, they moved to dominate swimwear and bridal wear. Vicotria’s Secret expanded to everything apparel-related, from skin care to bags.
Victoria’s Secret’s success comes from the purchasing experience they created for the buyer.
Three other main factors that contribute to their massive success:
First: Victoria’s Secret Fashion Show and the influence of their Angels.
Second: The conversation rate of their catalogs.
Third: The understood visual product placement seen in their online store and retail location congruency. The new bra (or swimsuit) is at the forefront of their website and store display.
Nichols shifted VS to a luxury brand. VS’s principal strength comes from their marketing. Key components to this marketing success: the VS catalog, annual fashion shows, and the all-powerful Victoria’s Secret Angels.
Today, Victoria’s Secret’s annual sales are over $8 billion. Their 1,000 stores span over a dozen countries.
What unique perspectives can you bring to your workplace, your company, your relationship? What’s your vision that nobody else can see?
