Victoria Secret's Under Macro Environment
Victoria’s Secret
I, Company Background: Victoria’s Secret (VS) is an American retail brand of women’s wear, lingerie and beauty products. It was established by Roy Raymond in the San Francisco during the 1970s. Raymond saw an opportunity in taking “underwear” of the time and turning it into fashion. Products stood apart from the traditional white cotton pieces, which department stores offered, with colors, patterns and style that gave them more allure and sexiness. They combined European elegance and luxury. By 1982, Raymond had opened six stores and launched a modest catalog operation. He then sold VS to the American publicly-traded company Limited Brands, which took the lingerie company and sprinted away. Today, VS is the fastest growing subsidiary in the six brands that are owned and run by Limited Brands, generates more than $4 billion sales in a year and contributes approximately 42% of corporate profit. More than 1000 Victoria's Secret retail stores have been opened in the United States. Products are also available through the catalogue and online business, VS Direct, with sales of approximately $870 million.
II, Raw materials: Victoria’s Secret supply chain starts off with raw materials chosen by their designer's which then gets shipped from countries, such as: Sri Lanka, China, India, Vietnam, etc…for a cheaper price. This helps the company with price especially because the quality is high quality material. This high quality is satisfying to all their customers and that is VS top concerns. Sri Lanka might be a small supplier to the global garment market (it accounts for less than 1% of total clothing imports into the US) – but when it comes to intimate apparel like sultry nightwear and sexy underwear, the conservative island has a hot reputation. Over the years Sri Lanka has become one of the biggest suppliers to the US lingerie giant brand. For instance, 55m of the 70m VS panties made every year come from Sri Lanka. Sri Lankan factories also
I, Company Background: Victoria’s Secret (VS) is an American retail brand of women’s wear, lingerie and beauty products. It was established by Roy Raymond in the San Francisco during the 1970s. Raymond saw an opportunity in taking “underwear” of the time and turning it into fashion. Products stood apart from the traditional white cotton pieces, which department stores offered, with colors, patterns and style that gave them more allure and sexiness. They combined European elegance and luxury. By 1982, Raymond had opened six stores and launched a modest catalog operation. He then sold VS to the American publicly-traded company Limited Brands, which took the lingerie company and sprinted away. Today, VS is the fastest growing subsidiary in the six brands that are owned and run by Limited Brands, generates more than $4 billion sales in a year and contributes approximately 42% of corporate profit. More than 1000 Victoria's Secret retail stores have been opened in the United States. Products are also available through the catalogue and online business, VS Direct, with sales of approximately $870 million.
II, Raw materials: Victoria’s Secret supply chain starts off with raw materials chosen by their designer's which then gets shipped from countries, such as: Sri Lanka, China, India, Vietnam, etc…for a cheaper price. This helps the company with price especially because the quality is high quality material. This high quality is satisfying to all their customers and that is VS top concerns. Sri Lanka might be a small supplier to the global garment market (it accounts for less than 1% of total clothing imports into the US) – but when it comes to intimate apparel like sultry nightwear and sexy underwear, the conservative island has a hot reputation. Over the years Sri Lanka has become one of the biggest suppliers to the US lingerie giant brand. For instance, 55m of the 70m VS panties made every year come from Sri Lanka. Sri Lankan factories also