Victoria Accelerates Speed Expansion in the Chinese Market

Taking advantage of the “East Wind” of Hong Kong's retail recovery, Victoria is accelerating its expansion in the Chinese market.

According to the fashion business news, the US lingerie Rosewholesale Coupon Code brand Victoria's Secret Victoria took over the completed Forever 21 flagship store in the Jinghua Center in Causeway Bay, Hong Kong last year, and used it as the brand's first full-class flagship store in Hong Kong. It is scheduled to officially open on July 17.

Although Victoria entered the Hong Kong market as early as 2013, it was limited to the sale of perfumes, cosmetic bags, small leather goods and accessories, and did not involve the core underwear business.

Khalid Rouissi, CEO of Valiram Group Hong Kong and Macau, authorized by Victoria, explained earlier that Chinese women and American women are different in size. It is not appropriate to directly sell underwear in the US market to Asia, and some investors think that Wei Mi Underwear does not match the needs of Chinese women.

In fact, in the entire Chinese market, Victoria did not adjust the products and sell underwear products until 2016, and began to recover the management rights of more than 20 stores from Chinese agents. In the same year, they entered the Tmall flagship store. The number of fans on the cat has reached 2.033 million.

According to Tmall data, the Victoria brand's double 11 turnover last year was 10 times higher than last year, ranking second in the Tmall Bra international brand. The double-headed 2017 Weiwei Shanghai Daxiu and the surrounding nightgowns were ranked third in the day.

In addition to the upcoming Hong Kong flagship store, Wei Mi has opened stores in Shanghai, Chengdu and other places. Last year, before and after the big show, the brand also added three new stores in Chongqing, Beijing and Suzhou, and in January this year, Guangzhou Taikoo Hui's full-category stores. Also open.

Victoria accelerated its entry into the Chinese market in March last year. The picture shows the opening of the Shanghai flagship store.

Some analysts pointed out that Victoria's high-profile march into China in March last year reflected that the US domestic market is full, and the brand urgently needs to open up new growth points for the stagnant performance.

According to the fashion headline data, Victoria's parent company L Brands' first-quarter net profit fell 49.5% year-on-year to 47.5 million US dollars, while sales rose 7.8% year-on-year to 2.63 billion US dollars, less than Wall Street analysts expected.

For reasons of unsynchronized sales and earnings, Amie Preston, L's chief investment relations director, said that during the period, the price of underwear should not be reduced to attract passengers, resulting in a decline in profits, but the executive did not disclose the specific price cuts.

However, investment bank Jefferies stock analyst Randal Konik pointed out that continued price cuts will further negatively impact L Brands' performance, especially when this cost-cutting behavior spreads to its teenage brand PINK, the market needs to be vigilant.

For the millennial generation of consumers, PINK was once regarded as the growth driver of L Brands's performance in marketing and product positioning, but the last "Ace" is also difficult to escape the price of bad luck or show that its consumers are losing a large area.

In this regard, the data agency EBITED through research shows that Victoria price cuts are also helpless. The agency analyzed 80 underwear retailers around the world, including Wei Mi, and found that sales of steel-rimmed underwear decreased by 50% year-on-year, while lining-type bras fell by 22% year-on-year. Drastically falling. In contrast, the new rimless underwear increased by 18% year-on-year and sports underwear by 27%.

For underwear manufacturers, this trend is crucial because the Shein Coupon Codes price of rimless underwear is 26% cheaper than the average market price, and because of the less material used in production, it means lower cost. When this type of underwear is sought after by the market, this means that Vimy's opponents are quickly capturing a large number of consumers at a lower price.

Hong Kong's retail industry regained growth, Wharf Property's turnover increased 24% last year to HK$20.9 billion

Now, Victoria is turning to China, where the underwear market has not yet reached maturity, or because of cost savings and fierce competition to avoid the local market.

On the one hand, sales in the Chinese market are close to the local underwear foundries represented by Virginie, and more importantly, unlike the West, which has begun to prevail in sports and leisure, Wei Mi still has a large market potential in China, which is still in its infancy.

According to a data, in 2014, the per capita underwear consumption of women in the United Kingdom was 884 yuan, and the consumption of French women's underwear accounted for 20% of total clothing expenditure. In the same period, the market for Chinese women's underwear consumption was only 200 yuan, accounting for less than 10% of total clothing expenditure. From a market perspective, the Euromonitor agency predicts that the retail value of the Chinese women's underwear market will reach $25 billion this year, twice the size of the US market and will grow to $33 billion by 2020.

At this time, Victoria has a large store in the Causeway Bay business district in Hong Kong. Victoria obviously has its own plans. Previously, the Forever 21 lease expired at a time when Hong Kong retail bottomed out. According to the fashion headline data, the first year of the brand's arrival in the lot will be as high as 11 million yuan, and the subsequent rent will add 1 million yuan per year to 2016. The monthly rent has risen to 13.8 million yuan.

Due to the sluggish retail industry in Hong Kong, the rents of shops represented by Wharf began to fall, and the rent of another high-end shopping mall, Times Square, will be lowered by 15% in the next five years. Industry insider Deng Yuming said frankly that the sharp drop in mainland tourists directly led to a 30% to 40% drop in core area rents. According to sources, when Victoria took the store from Forever 21, the monthly rent plunged to more than 8 million Hong Kong dollars, that is, the average daily rent was nearly 300,000.

Surprisingly, the retail industry in Hong Kong, which has experienced a three-year downturn, has recently been boosted by luxury consumption. It has begun to show signs of recovery. From March 2017, the total retail sales of Hong Kong has recorded a nine-month increase in growth. Gradually accelerated, and continued to record double-digit gains in May this year, total sales increased by 12.9% year-on-year to HK$40.5 billion.

According to PricewaterhouseCoopers, the retail market in Hong Kong will continue to improve in 2018. The retail industry will grow by 4% to 6% this year, which is about 465 billion to 480 billion yuan. The overall trend is expected to last for five years.

The improvement of the retail environment is undoubtedly a great news for Victoria. The location of the Causeway Bay, where Hong Kong's first flagship store is located, has always been the preferred shopping destination for a large number of tourists visiting Hong Kong because of its high-end brands.

US stock investment agency Seeking Alpha pointed out that L Brands will open 10 more physical stores in China this year. In view of the increase in the consumption power of the middle class in the Yoins Coupon Code Mainland, the Group will double the momentum of expanding the Chinese market or continue to 2019.

Another analyst said that Victoria has opened a large flagship store in China in recent years in order to strengthen its high-end positioning in the market. Its products have a higher premium than those in Europe and the United States, which is against Victoria, which is suffering from price cuts and performance declines. Words may be a new turn.

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