As a high-end underwear brand familiar to Chinese consumers, Victoria's Secret is currently facing difficulties.
Following Victoria's parent company L Brands (LB) announced in May this year that it will permanently close 250 stores in North America, recently, Victoria's Secret has been exposed that its British branch is applying for bankruptcy and has entered management procedures. In the underwear industry, once the infinitely beautiful Victoria's Secret, the current situation is getting more and more difficult.
In addition, the interim CEO Stuart Bergerfer predicts that this year, in addition to the 250 stores in North America that Victoria plans to close, a considerable number of stores will be closed.
Seize the Chinese market to save themselves?
It is worth noting that the closure of overseas stores to seize the Chinese market may be Victoria's Secret's self-rescue rule.
It is reported that China is the first country to recover in the epidemic. Currently, more than 40 stores in Victoria, Beijing, Shanghai, Chengdu, Chongqing and other places have resumed normal business. "At present, we are all operating normally, don't worry, we will be new soon." A staff member of a Victoria's Secret store said in an interview.
According to data from AiMedia Consulting, China's underwear market has huge consumption potential. The market size in 2019 is about 200 billion yuan, of which the female underwear market accounts for more than 60% of the total market size.
Victoria's Secret in the predicament attaches great importance to the consumption potential of the Chinese market. On April 20 and April 24, Victoria Secret successively announced that Zhou Dongyu would become the brand spokesperson for its Greater China region, and Yang Mi would be its spokesperson for the Asian region.
On June 9, Victoria's Secret British Company was about to enter bankruptcy and liquidation. It is understood that the commissioned Deloitte Touche Tohmatsu stated that it will help Victoria Secret UK to carry out investment restructuring, adjust lease terms, and find potential buyers for it.
It is reported that Victoria's Secret has opened 25 stores in the UK. During the epidemic, all stores were closed. As Victoria Secret entered bankruptcy and liquidation, the company's more than 800 jobs in the UK were also in danger.