Victoria's Secret's Billion-Dollar Loss

In the ever-evolving landscape of fashion and marketing, Victoria's Secret, an iconic brand, made a bold move towards inclusivity in 2021. However, the outcomes were not what they expected, and their sales plummeted by over a billion dollars. Let's dive into this fascinating rebranding saga and uncover essential lessons for marketers in the age of authenticity and inclusion.

A Rebrand Gone Wrong

Victoria's Secret took all the right steps, they did market research and found that two out of three Americans said their social values shaped their shopping choices. And 59% of consumers polled said they’re more loyal to brands that stand for diversity and inclusion in their advertising. So Victoria’s Secret made an important decision — to rebrand its image as one that supports all women.

Victoria's Secret decided to revamp its image to support all women. This transformation included an entirely new executive team and a board of directors predominantly composed of women. They introduced the "VS Collective," featuring prominent figures like Megan Rapinoe, Paloma Elsesser, and Priyanka Chopra Jonas. The shift was aimed at putting customers at the heart of the company's operations, emphasizing inclusivity and diversity.

A Billion-Dollar Decline

Despite generating buzz over their new look, this rebranding effort did not translate into sales. In 2020, Victoria’s Secret was the largest lingerie retailer in the United States with over 1,070 stores, but the rebrand caused them to lose market share, as many of their customers turned to other lingerie brands like Savage X Fenty and ThirdLove.

Even though ditching the famous “Angels” supermodels earned favorable reviews from online critics, this didn’t translate into sales for the brand.
In fact, it has led to a staggering decline of over $1 billion in sales since 2020. The company, however, remained committed to its inclusive approach.

The Failed Revival

In a new attempt to revitalize itself, the brand decided to bring back the hyper-sexualized brand image. Victoria’s Secret stock soared 15% in just five days after ditching its “wokeness strategy”, but revenue has been on the decline ever since. The decline in Victoria’s Secret’s sales coincided with the company’s decision to predominantly comprise its board of directors with women.

The Biggest Lesson

This is where many brands go wrong. They hire consultants and big market research agencies and blindly follow advice without truly comprehending what their customers care about. In Victoria's Secret's case, they missed a crucial point. While women did care about inclusivity and diversity with brands they interacted with or bought from, in the case of Victoria's Secret, it was very different.

1. Understanding the Real Intent to Buy

   Women were buying from Victoria's Secret not solely for inclusivity, but to feel sexy and enhance their allure, often for their partners. The brand perception was tied to enhancing one's sexiness for someone else, not just for themselves. This is a vital lesson—brands must truly understand why people buy from them and what the brand represents in the eyes of the consumers.

2. The Importance of Authenticity

   The rebrand lacked authenticity, making it feel insincere to consumers. Authenticity equals credibility, so ensure your marketing strategy is rooted in authenticity and supported by tangible proof points. Instead of trying to emulate every other brand, it's essential to be unique and authentic, resonating with your core audience's values and desires.

3. Embrace Small Changes

   One of the critical takeaways here is to never rush into making drastic changes. Rapid transformations can potentially damage your brand in the long run. The key is to understand your customers, make strategic, thoughtful changes, and maintain the elements that resonate with your audience.

My Advice For Victoria's Secret

Victoria's Secret has the potential to reinvent itself by focusing on empowerment and authenticity. Rather than changing angles to create inclusivity and diversity with the models, the brand can empower women to embrace their unique forms of sensuality, not just hide behind their sexuality and fetishes.

Imagine a campaign called "What's Your Secret?," where individuals are encouraged to celebrate and express their sexuality confidently and authentically. By embracing this bold approach, Victoria's Secret could create a movement that empowers women to feel sexy in their way and confidently share their secrets, breaking free from the constraints of traditional beauty standards.

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