Victoria’s Secret Had To Do This To Retain Customers
Some days may be good for business transactions while some may not be favorable. Victoria’s Secret seems to be going through one of its downturn periods as it started a massive series of promotions through its brands, one of which was PINK.
There is a global indication that Victoria Secret is devising some new strategies to draw more customers to its business and services but something tells us that the company might be going through some hard times. The company’s current situation has been analyzed by Randal Konik, an equity expert and head of analysis working with Jefferies. Konik observed that the new promotions released by Victoria’s Secret don’t look well-guided, but it’s rather like a misplaced priority.
Victoria’s Secret New Company Strategies
The dependence of the company’s expenses and advertisements which are focused on its brands such as PINK is a pointer that Victoria’s Secret must be going through some bad period in its business and it’s difficult for it to attract customers to its promotions.
Konik views this as unhealthy for the undies’ market share. Victoria’s Secret is not leaving any stone unturned in its attempt to generate more customers. The new development at Victoria’s Secret should be enough to keep shareholders on their feet in anxiety because the company is taking a risky and brave step in the direction of promotions.
Company’s Signature And Best Selling Product Is PINK
The signature product, PINK, is the major selling point and sales’ cardinal point, according to L Brands, the forerunner company controlling Victoria’s Secret, asserted that fact recently. L Brand said V.S does not have to treat PINK like a common product because it can’t be compared with other products that have lower values. PINK should not be surrendered to tedious promotions. Sadly, Konik Randal is not comfortable with the way the lingerie maker is looking desperate to keep its clients but lack sufficient ideas, may also be to attract new ones. It’s mind-boggling.
In a short address written as a reply to shareholders this week, Randal Konik feels that Victoria’s Secret must have exhausted it’s every available promo ideas, to have depended so much on the PINK brand as the major selling point in the company.
Unfortunately, in his opinion, Konik observed that the ongoing intensive campaigns by Victoria’s Secret shows a possibility of rapid erosion of PINK’s value in the eyes of customers, and if care is not taken, Victoria’s Secret’s competitors like The American Aerie Outfitters’ Eagle will soon overthrow it in the chunk share of the market.
The Company Had A 12.5 Percent Decline
In addition to the above situations, further investigations imply that the prices for its panty brands are very low, which could mean a failed strength of appraisal. The analyst observed that the lingerie maker has just gone through a 12.5 percent decline in its prices of the panty, plus a decrease in prices of 10 percent year-to-year prices. According to Konik, the reason for the lesser prices is that Victoria’s Secret once introduced a bonanza on panty packs, almost ten years ago, where customers were allowed to purchase many pants at once but at a small amount. The goal was to draw more customers into the mall and eventually persuade them also to purchase Victoria’s Secret’s branded and costly bras, which would give the company extra financial gains.
At the moment, constituent prices are experiencing downturn due to the step the company is taking by producing a massive quantity of panties which will be sold at a various discount. This is another sign that the company now lack professional ideas. Konik insisted that the case of lesser unit appraising shows a possibility that the customers are not responding well enough.
Many Rivals Will See This V.S. Move As A Setback And A Chance To Enter The Market
What of the new habit of Victoria’s Secret to place lesser prices on its core apparels unit? Other rivals may soon see the opportunity to gain entry into the market and reduce Victoria’s Secret’s chances.
Sharing his forecasted price aim, Konik predicted a target of $40 per one share, which was trailing the almost 50% recent price of the stock of its’ forerunner firm, L Brands’. The trading was initially good at $49.70 per share. In 2017, the share was down to 17.16%.
Victoria Secret has been around for many years, and it’s one of the world’s leading brands in the productions of lingerie for women, from panty to bras and more.
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