Products of Victoria’s Secret

• Lingerie
• Activewear
• Fragrances
• Make-Up
• Body products

Close Competitors of Victoria’s Secret

• Adore Me
• ThirdLove
• Nordstrom
• True & Co
• Calvin Klein

Now that we’ve seen a concise overview of the company, we can go right into the SWOT analysis of Victoria’s Secret.

SWOT Analysis of Victoria’s Secret 

A SWOT Analysis is a strategic planning and management approach for determining an organization’s strengths, weaknesses, opportunities, and threats in relation to commercial competitiveness or project planning. It’s a valuable planning approach that allows Victoria’s Secret to compare its performance to that of its competitors and the whole industry.

To better understand the SWOT analysis of Victoria’s Secret, refer to the infographic below:

So let us first start by looking at the strengths of Victoria’s Secret from the SWOT analysis of Victoria’s Secret.

Strengths of Victoria’s Secret

• Brand Presence: Brand recognition and visibility on a national and worldwide scale with over 1000 corporate outlets throughout the world.
• Fashion Show: The annual Victoria’s Secret Fashion Show, which is broadcast on all major fashion publications and networks, is responsible for most of Victoria’s Secret’s popularity. The show features not only the season’s newest styles but also high-priced fashion events.
• Premium Customer: Victoria Secret’s best strength is its huge list of devoted consumers who purchase lingerie and innerwear from the company regularly. This is feasible not just as a result of the company’s product quality, but also as a result of its customer engagement activities.
• Marketing and Advertising: Because of the nature of their product line, Victoria’s Secret is unable to rely on conventional advertising. Victoria’s Secret, on the other hand, has been able to penetrate the minds of female audiences through commercials in glossy fashion publications and brand placements in films. Active internet marketing by the company, which includes active blogs, social media presence, and catalogues to raise awareness of their product lines.
• Celebrity Following: Unlike other fashion companies that have celebrity endorsements, Victoria’s Secret is a brand that produces celebrities. Many of the models that promoted their products have gone on to become superstars, and the brand always selects models who are relatable to their target audience, which is largely female. The models serve as the lingerie brand’s initial point of contact with its clients.
• In-store Experience: Women choose to purchase at Victoria’s Secret not because of the reasonable prices, but because of the exceptional customer service the business offers. The in-store experience is completed with pink decor, large and sultry fitting rooms, knowledgeable and friendly employees, and a strong desire for innovation.

Weaknesses of Victoria’s Secret

• Research and Development: Investment in R&D is lower than that of the industry’s fastest-growing companies. Despite spending more on research and development than the industry average, Victoria’s Secret has been unable to compete in terms of innovation with the industry’s leading companies. It appears to be a well-established company eager to release goods with market-proven characteristics.
• High Attrition Rate: In comparison to other companies in the sector, Victoria’s Secret has a greater turnover rate and should spend significantly more on staff training and development than its competitors.
• Poor Penetration: The majority of Victoria’s Secret consumers live in Tier 1 or urban areas. As a result, the majority of their outlets are in cities, and the brand’s penetration into smaller towns is quite minimal. Most markets, on the other hand, are focusing on these areas.
• Switching to a New Product Line: To compete with the lower-cost competitors, the company began to focus on new product lines. Some of the most recent product introductions have received negative responses from the market, particularly in terms of comfort. As a result, many of the brand’s long-term customers have switched to competitor brands.
• High Day Inventory: When compared to rivals, days inventory is high, forcing the company to acquire more funds to spend in the channel. This may affect Victoria’s Secret’s long-term growth.

Opportunities for Victoria’s Secret

• Emerging Markets: Because of rising income levels, rising population, and most importantly, changing gender equations among youngsters, which involves openness of sexuality, emerging markets are promising for Victoria’s Secret growth.
• New Taxation Policy: The new tax policy might have a big influence on company practices and provide new opportunities for established businesses like Victoria’s Secret to raise profits. 
• Online Advantage: The corporation has put a lot of money into the internet platform in the last few years. Victoria’s Secret has gained access to a new sales channel as a result of this investment. In the next few years, the corporation can capitalize on this potential by better understanding its customers and meeting their demands using big data analytics.

Threats to Victoria’s Secret

• Intense Competition: Over the previous two years, stable profitability has expanded the number of participants in the market, putting downward pressure on not only profitability but on overall sales.
• Fake Products: Several brands are replicas of well-known designer labels. People are hesitant to spend a lot of money on lingerie, so they go for cheaper replicas.
• Emerging Local Distributors: Local distributors’ growing power poses a challenge in some sectors, as the competition pays local distributors better margins.
• Online Market: The present physical infrastructure-driven supply chain paradigm may be threatened by changing customer buying behaviour through online networks.
• Less Discount: When it comes to product promotion and discounts, most lingerie companies go above and beyond what Victoria’s Secret does.

This ends our detailed SWOT analysis of Victoria’s Secret. Let us conclude our learning below.