Monday, 17 December 2018

VICTORIA'S SECRET ON THE US MARKET


In its heyday, Victoria’s Secret was the kingpin of the US lingerie market, but in recent years the brand faced declining sales and also lost market share to more body-inclusive brands like American Eagle's Aerie.

According to the Columbus (Ohio-based company), decisions like terminating the production of swimwear and apparel products in March 2016, discontinuing the catalogue and substantially reducing direct mail promotions for bras and panties caused a market slip by 2 percentage points, to 28.8% in the past 5 years through 2017, compared with the 0.4 percentage point gain, (to 2.3% )that competitor brand Aerie declared over the same period (source: Euromonitor).

Considered out of touch with current times, VS is facing increasing competition on the US lingerie market from brands like Aerie, Third Love, Savage x Fenty or Walmart-owned Bare Necessities. A changing broadcast landscape, and the shifting tastes of consumers are demanding a more body-positive and diverse industry. Efforts like ditching photoshopped images and adopting a more realistic approach (the #Aeriereal campaign) proved to be welcomed by consumers, while touched-up models are considered deceptive and look “fake”.

In the quarter that ended Nov. 3rd  2018 the lingerie brand reported a 2% decline in comparable sales, followed by a 6% tumble at its brick-and-mortar stores. In addition, the brand's fiscal third-quarter operating income declined 89%($120 million).
Changes are slowly happening though as Jan Singer, former CEO, resigned and will be replaced early 2019 by Tory Burch president and former Club Monaco president and CEO John Mehas. We will have to wait and see how the new CEO will approach this kind of issues and if the brand will regain its market share.


References:
file:///C:/Users/Mihaela/Downloads/LB%203Q%202018%20Earnings%20Presentation%20-%20FINAL.pdf

Sunday, 16 December 2018

ENVIRONMENTAL AND ETHICAL CONCERNS POSTER TASK



“We believe in doing what is right in our industry, our community and our world. This includes conducting our business in an environmentally responsible way. We are always looking for ways to reduce our environmental impact through better management of our natural resources. That includes helping to reduce the demands on our forests by promoting sustainable materials. And we’re introducing programs to reduce our energy consumption and reduce or reuse materials whenever we can. Together with our manufacturers, suppliers, partners and customers, we’re helping to support a healthier planet.” – L Brands statement regarding environmental responsibility

Fact: Fashion is the second most polluting industry in the world.


Environmental Concerns

Even though Victoria’s Secret was one of the brands that committed to the "Detox My Fashion" Greenpeace campaign in 2011 the lingerie giant still doesn’t use eco-friendly materials in its collections and hasn’t set a precise greenhouse gas emissions reduction target, which is why is falling behind other brands like H&M, Benetton, and Zara. The use of synthetic fabrics contributes to the global plastic pollution crisis and cotton production methods are environmentally unsustainable (20,000 is the amount of water needed to produce one kilogram of cotton; equivalent to a single t-shirt and pair of jeans). Is spite of that, VS manufacturing is complying with a Restricted Substances List and has a deadline for ceasing the use hazardous chemicals by 2020. Nonetheless, water reduction initiatives are not enough without a specific target.
Also Victoria’s Secret doesn’t think recycled can be sexy, or at least so it seems considering they don’t use any recycled fabrics. Only for their glossy catalogues and only 10%.


Ethical aspects

From child labour to testing on animals and body shaming, VS has it all. In 2011 a Bloomberg news investigation regarding “Fair Trade” products ignited a media firestorm. They revealed the reality of children working in slave-like conditions in the West African country of Burkina Faso, farming the cotton subsequently used in the manufacturing of millions VS pieces of clothing. There is no doubt that tracing cotton can be incredibly challenging, but such a big company like Victoria’s Secret could invest more in regular and thorough investigations for long-term benefits.

This was their response:

“They describe behavior contrary to our company’s values and the code of labor and sourcing standards we require all of our suppliers to meet,” Tammy Roberts Myers, vice president of external communications for Limited Brands Inc., said in a statement.

“Our standards specifically prohibit child labor,” she said. “We are vigorously engaging with stakeholders to fully investigate this matter.”

Other concerns regarding overall manufacturing conditions at VS factories in Asia include low-wages, overtime working hours and sometimes even physical abuse. The sweatshop workers earn around 20,000 rupees a month (aprox. 280 US dollars) and have to meet daily targets of sometimes 120 items per person.

”MAS Holdings employs about 95,000 people, mainly women, in 53 plants across 17 countries, including Haiti, Bangladesh, Indonesia, Honduras, Jordan, Vietnam and the US.
The $US1.6 billion conglomerate is one of Sri Lanka’s largest apparel manufacturers, employing 70,000 workers in 40 facilities. This includes the MAS Fabric Park, the country’s first privately-owned apparel intensive free trade zone. The company produces for brands like Victoria’s Secret, Marks & Spencer and Calvin Klein.” (source: https://www.wsws.org/en/articles/2018/05/22/kili-m22.html)

Animal Testing

Since 2016 Victoria’s Secret has chosen profit over ethics and decided to enter the Chinese market, fully understanding that they would have to abandon their cruelty-free policies and follow the government's requirements, namely start testing on animals in order to sell their cosmetic products.

Body shaming




In 2014 a VS campaign with the following message “The perfect body” has stirred a lot of controversy and inevitably the rage of tens of thousands consumers who signed a petition requesting Victoria's Secret to apologize and change the campaign. VS indeed changed the campaign to “A body for everybody”, but used the same photo featuring models that didn’t represent body diversity in any way.
Victoria’s Secret lack of inclusivity on their runways and campaigns has caused a lot of backlash over the years. The “one size fits all” concept has been around for too long now and consumers are slowly but surely starting to demand a different approach. Portraying only one type of female body as beautiful and sexy is not only archaic and unrealistic, but unethical too as it can encourage negative body image and eating disorders.
The fashion and beauty industry has been feeding on consumers insecurities for too long. This old and objectifying idea of female beauty has to come to an end.

Cultural Appropriation


Not once, not twice, but three times the brand has been accused of racism, “accidental” or not. First, they had Candice Swanepoel (blonde and definitely not Asian) model a ‘geisha-inspired’ costume, then they dressed Karlie Kloss to resemble a Native-American and lastly the ‘wild things’ section of the 2010 fashion show where models of color were prominently featured stirred a lot of controversy. Maybe it’s time for a diversity consultant?





References:

https://www.thelingerieaddict.com/2012/12/victorias-secret-lingerie-issues.html


Saturday, 15 December 2018

SOCIAL MEDIA BACKLASH

After recent comments made by the brand's CMO, Ed Razek, Victoria's Secret marketing approach got a lot of backlash all over social media. 


After seeing the the controversial comments, American singer Halsey, who performed at the 2018 VS fashion show posted the following message on her Instagram, deciding to redirect the attention of her fanbase from the show to an organisation close to her heart.



Sources: https://hollywoodlife.com/2018/12/03/halsey-victorias-secret-fashion-show-diss-transgender-models/




Social media celebrities like Nikita Dragun and Gigi Gorgeous also responded to the comments by sharing their opinion with their huge social media following.



Nikita posted on her Instagram a "Victoria's Secret inspired shoot" with the caption:





"dear Victoria’s Secret, you said trans women can’t sell the “fantasy” so here i am as a TRANS WOMAN selling the FANTASY! 👼🏻 everyone is beautifully unique. embrace your differences. stand tall in who you are! live your fantasy and don’t let anyone tell you otherwise. shot by @liverichmedia"



Gigi posted a Youtube video explaining what a huge slap these comments were for her, as she used to shop at Victoria's Secret during her transition period into womanhood. Even though some people's comments were not very supportive of the star's opinion on this topic, I personally do believe that international companies like VS being publicly unsupportive of the LGBTQ+ or plus-size models or at least giving the impression that they don't support these people can hugely influence consumers in not accepting trans or plus-size persons in real life, which unfortunately can result in bullying.






Youtube comments:

"u think some company who doesn’t accept you is disgusting?? let’s be honest gigi when you became a trans the reason people supported you is because it’s your life and your choice, right? you did not change your decision because of anyone..same as VS it’s their company, their runway, their show..it’s their choice..i don’t have anything against you being a trans..you did what you want..so let others do that too..
VS is not the only lingerie company out there.."


 "just because you filled out a bra doesn’t mean you can become a vs model lol. short people, plus size models, down syndrome models, tattoo models etc. cannot walk there. it’s not just transgender people who cannot walk for vs. there are fashion shows for all these people but vs doesn’t do it and IT IS FINE. not everything is for everyone. get a cup of coffee chill. your video just makes me angry lol girl just sit down and chill. thank u, next."


 "Sorry but I am AGAINST transgender people being included in victoria’s secret, Miss Universe because its not fair. Transgender people are literally made, their new faces are ‘created’ with many operations and surgeries. Miss Universe and  Victoria secret models must be naturally beautiful to earn their place there. And suddenly some transgender ‘girl’ comes looking perfect with her new feminine nose, lips, cheeks etc and steals the show? ITS RIDICULOUS. If it actually happens, transgender people’s surgeons must show up on stage with them to show their ‘work’"


 "I am a woman, I would like to compete in a transsexual beauty contest ... to see if they will be inclusive with me"




Other celebrities reacting to the Vogue Interview were models Lily Aldridge, Karlie Kloss and Kendall Jenner. The former VS angels posted on their Instagram stories the following sentence: "Trans and GNC people are not a debate", while Kendall, whose biological Dad, now Caitlyn Jenner, announced her transition almost 3 years ago shared a "celebrate trans women" pin on the same platform.



Sources: Youtube, Instagram 
               https://www.teenvogue.com/story/victorias-secret-ed-razek-transgender-model-comments-response?verso=true

Friday, 14 December 2018

BRAND HISTORY


The brand was officially launched in 1977 by founder Roy Raymond, who felt uncomfortable when buying his wife sexy lingerie and wanted to transform this process into an exciting and less embarrassing one for men in the same situation. He decided to borrow some money from his family and together with some saving, he had a total of $80,000 to transform his dream into reality. The first VS store opened in a small shopping mall in Palo Alto, Calif.

The brand’s name was chosen to evoke the decency associated with the Victorian times, while the word “Secret” added a touch of mystery.

In 1982 Leslie Wexner, founder of L Brands( Victoria’s Secret parent company) bought the business for $1 million dollars as the company stood on the brink of bankruptcy. Wexner started to market towards women instead of men, while staying true to the original Victorian store design (Daree Shannon, Deliberate magazine). This ingenious marketing move was the starting point of turning Victoria’s Secret into the billion dollar company that it is today.






Sources for the information: https://www.businessinsider.com/victorias-secrets-crazy-history-2015-7
                                              http://www.deliberatemagazine.com/history-victorias-secret/

Imagery Sources: https://www.cosmopolitan.com/style-beauty/fashion/a30475/the-history-of-sexiness-victorias-secret-catalog/

VICTORIA'S SECRET FASHION SHOW 2018

Nov. 8th, New York
aired Dec. 02 on ABC



Once one of the most popular and highly anticipated TV broadcasts globally, the Victoria’s Secret fashion show is currently causing more controversy than ever before. Due to its homogenous casting practices that encapsulate a very narrow idea of female beauty (mostly white girls, cisgender, young, rail-thin and really tall) the brand has lost customer sympathy and has been on a steady downfall since 2016. The situation is not pink anymore for Victoria’s Secret and controversial comments from brand CMO Ed Razek just made things worse. Before the event’s taping, during an interview with Vogue magazine he stated:
 "Shouldn’t you have transsexuals in the show? No. No, I don’t think we should. Well, why not? Because the show is a fantasy"
"We attempted to do a television special for plus-sizes [in 2000]. No one had any interest in it, still don’t."
Following his remarks and the brand’s outdated approach, the 2018 VS fashion show only scored a 0.9 rating within its target viewer demographics (between 18 and 49) and managed to reach a total audience of only 3.27 million, according to TV by the numbers. Compared to its peak in 2001 (12.4 million) the audience of the show fell dramatically this year.

In the official video, the brand had some of its infamous angels talk about how the show made them feel. “Empowering”, “Strong”, “Fierce”, “Sexy”, “Iconic”, “Succesful”, “Powerful” were some of the words they used.
“We should go forward, push the boundaries” (Taylor Hill)
“Defend who you are as a person” (Sara Sampaio)

Through the message conveyed the brand tried to position itself in a good light, but the statements were definitely not in accordance with a show that lacks authenticity and fails to promote inclusivity.

References:
https://fashionista.com/2018/11/victorias-secret-fashion-show-ed-razek-trans-plus-size-models-comments

MODULE BRIEF


“You will develop an understanding of how to apply these skills and methodologies to a fashion brand, and will demonstrate this through creating a Brand Marketing Report, based on auditing their current positining, whilst advising on what they could improve on, or change in order to re-establish the brand. You will choose from one of the following brands to base your marketing report on;
 1. Topshop/Topman
 2. Ben Sherman
 3. Umbro
 4. Victoria’s Secret
 5. Abercrombie & Fitch
 6. Dolce and Gabanna

Using this brand, you will use primary and secondary research, to develop a strategic Brand Marketing Report. Your report must be informed by your market research and should be relevant, insightful and considered, with a comprehensive evaluation of the brands current market condition including any external factors affecting success, competitor analysis and a number of other key considerations. A key part of your brand report will be to produce a creative strategy proposal with a series of recommendations, of which will naturally derive from your brand research. These recommendations could be based on advising your brand to connect with a new segment, launching brand extensions, a change of ethics, or even developing new products, or introducing or relaunching social media platforms/influencer campaigns, for example. It must include references and sources acknowledged using APA referencing. ”

After researching into all 6 brands I decided to base my report on Victoria’s Secret as I feel that current concerns regarding body image and adopting a sustainable business model are becoming increasingly important in the fashion landscape.