For decades, Victoria’s Secret earned its wings as one of the world’s largest intimates specialty retailers due to its focus on creating lingerie, undergarments, and sleepwear that empower women.
Although its products are flattering and eye-grabbing, the company made a name for itself through its genius brand identity that features femininity, runway models, and angel wings, with sparkles and pink tones that scream bombshell.
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Victoria’s Secret’s marketing is also a big factor in its success, especially with the return of the iconic Victoria’s Secret Fashion Show, which makes headlines every year due to the over-the-top looks it features, A-list performances, well-known supermodels, and the preservation of several known brand traditions.
Due to Victoria’s Secret’s massive success among consumers, it later expanded its offerings to beauty, activewear, swimwear, and accessories, also turning them into iconic brand must-haves in no time.
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Over the last few years, the intimates retailer has focused on newness and innovation by entering the apparel industry and developing casual wear to complement its lingerie offerings.
However, Victoria’s Secret decided to expand its ready-to-wear sector further by partnering with an unexpected brand to launch a first-of-its-kind collection.
A couple walks past a Victoria’s Secret store featuring a vibrant pink illuminated facade and festive displays.
Victoria’s Secret leans into a new market to reverse financial struggles
Although Victoria’s Secret was once very lucrative, it suffered some tumultuous years due to various controversies regarding its products’ lack of inclusivity and innovation. The company was even bombarded with allegations of misogyny, which led to ongoing lousy press and the cancellation of its fashion show in 2019.
The allegations and controversies damaged Victoria’s Secret’s image and business, so much so that for the full year of 2023, its overall sales declined 2.6%, with North America down 11%.
However, the company refused to let these major setbacks be the end of its business. Last year, Victoria’s Secret announced it would separate operations between its namesake brand and its sister brand, PINK, to focus on each brand individually. It also returned its iconic fashion show after nearly six years.
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After reporting multiple quarters of continuous sales declines, this readjustment of the company’s operations and branding seems fruitful.
According to Victoria’s Secret’s latest earnings report, overall sales increased by 6.5% compared to the same time last year, with North American sales up by 2.1%. This marks the first positive sales quarter for fiscal 2024.
In its last earnings call, the company’s CEO, Hillary Super, emphasized how much newness has driven positive results, especially regarding its product offerings. She also expressed her interest in entering the affordable luxury market.
“When I think about our positioning of accessible luxury and beauty being a big piece of that, I think we can do some tweaks there to make that feel like a more elevated experience,” said Victoria’s Secret CEO Hillary Super. “…bringing innovation back to the center of how we work is critical,” she added.
Victoria’s Secret partners with Altuzarra to create its first-ever luxury brand collaboration
This month, Victoria’s Secret (VSCO) announced it joined forces with the luxury fashion label Altuzarra to launch the first series of the Atelier Victoria’s Secret x Altuzarra, a limited-time high-end apparel collection with multiple upcoming seasonal drops throughout the year.
The Atelier Victoria’s Secret x Altuzarra marks the retailer’s first-ever luxury designer collaboration. The line comprises 11 pieces, including blazers, tops, bodysuits, skirts, and dresses.
“Merging Victoria’sSecret’s expertise in intimates with Altuzarra’s renowned creation of ready-to-wear styles allows us to offer a complete outfitting experience to our customers that embodies timeless glamour and sophistication like never before,” said Victoria’s Secret in the press release.
The best part is that the prices for this collaboration range from $95 to $500, a fraction of Altuzarra’s costly prices, around $2,000.
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Partnering with luxury brands to develop affordable collections is a strategy that has proven successful for various retailers, including H&M (HNNMY) . For decades, H&M has partnered with multiple high-end designer brands to launch limited-time collections that tend to sell out in minutes.
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