Victoria secret in China

            China has over time transformed from being a poor state in terms of the economy worldwide into being a second largest economy through the nominal exchange and through the purchasing power. Victoria’s secret has been operating their business in China digitally. The shop has integrated a number of ways to sell to their customers in China online through the various shows where China models are featured in. This has made the headlines of most of these social comments all over in regards to these China models and it has ultimately increased the popularity of the brands in China market. This inspired outfit on the run way has changed the perception of potential and the targeted market in China and through the trending comments in the internet, the company has been able to realize the most appropriate tastes for their target market. This paper, therefore, will discuss on the market mix, the market plan and the strategies that the Victoria’s Secret Company has undertaken in venturing in China.

            Though the company has advertised and launched the products inline in China, still it is not the expected form of growth and profit they are targeting at. This is because of the lack of a single store in China. The flagship of the Shanghai has delayed from the time that it was anticipated to be launched and this has means that there is still no store that sells the Victoria’s secret products such as the bras as well as lingerie. Hence there is no physical touch or sight and no chances to try on the outfits before making a purchase of these outfits. This has thus reduced the number of customers and hence reducing the number of sales as most of the customers wants to try out these outfits before they make their purchases. The need to meet the customers’ demands and wants in China has put in pressure to the company causing the company to take in a different and unusual path so as to enter in China (Donald 2016).

The company has thus faced a lot of challenges in bringing of the products into China. The company has faced challenges of illegal stores, forged outfits and replica Victoria’s Secret runway shows. In order to attract the Chinese customers, the company has to understand the Chinese culture. Therefore in advertising and coming up with runways shows, the company has to choose the best way to advertise their products without affecting the people’s culture (Donald 2016).

            Understanding the market is quite essential as it will enhance the company to better know their target wants and needs and their demands. In this case, the young generations in China are the most interested in lingerie and mostly those who got a chance to grow up in China during the reform and opening. These youngsters have therefore been exposed to the modern life and all the offers that come along with modernity. Hence, they are mostly attracted to the civilized life and the Western lifestyles and clothing and are thus ready to welcome the new brand as compared to the old-fashioned people of China (Donald 2016). Though they identify their culture, they however are not slaves to the old culture but they are willing to rebel and reject the old fashion and the mode of dressing of their ancestors. They are thus in between the pride of their Chinese way of dressing and the Western modern consumerism. Thus the brand that the Victoria Secret Company will bring into China should be able to address the tension concern in relation to the Chinese consumers so as to gain their loyalty.

            Though the lingerie brands and options of the global market for the Chinese in increasing each and every new day, there are only a few market strategies have been able to go to China and especially the lucrative grouping. However, since 2008, the demand for the lingerie products are increasing among women in China with the ultimate overtakes of the dollar in the US. As a result of this it is evident that the Victoria’s secret has a great opportunity to experience growth and expansion in their market in China as they also expand their market share as the luxurious lingerie product. Chinese society has so much love and admiration for the Western brand and the women of this generation are looking for premium brands which they think that will satisfy their personal needs as they do away with the cheap lingerie.

Market research is a must for this company as well as the brands so as to be able to attain a sustainable market in China. Creation of the social media as campaign platforms will greatly enhance the Victoria’s company to be able to win the Chinese consumers. The increasing number of users of the internet and the technological revolution in China, social media campaign platform is the best advertising place for the company onto the Chinese population. This tool will enhance the boosting of the reading of fashion news and thus making known the products that the Victoria Secret sells.

            In their advertisement, they therefore target women through the use of captivating market strategy. Thus in selecting models for the runways shows, the company chooses models whom they are convinced will relate to the women consumers who are targeted. Hence as they strike a balance between the women being sexy and also being approachable, the company achieves its goal of creating a mass appeal. Hence, the women consumers are usually probable to be willing to pay the entire cost for the outfits. The company also strives at providing products that are accessible, affordable as well as all inclusive. This ensures that the brands come in various sizes to fit different body types and shape and thus accommodating all kinds of potential women (Chrisler 2013).

            The price of the products should be kept relatively higher than that of their competitors depending on the value of the imported product.  The products are of higher quality and of higher fashion as per the brand name, Victoria’s Secret. The location of the stores in China should be determined by the Victoria’s Secret brand reputation. The company should also introduce the use of a common language in the business with employment of staff from China so as to be able to understand more about this place and to allow the Chinese people to appreciate the company due to its impact on the society through job creation.  Shipping arrangements into china should be well organized so as to ensure that minimal delays and losses are experienced.

            In the arrival of the company in China, they were not focused on the sale of lingerie brand but they rather concentrated on the sale of accessories, beauty products and perfumes. This was among the market plan as the company was aiming at getting the market feel in China as they also utilized the opportunity to build their products locally just before they entered the market fully through the entire introduction of the lingerie brand. Hey thus partnered with a franchise who run twenty six stores.

            Basing on a single store in China by the Victoria Secret store, a 1000 square feet rent space will amount to $90,500 and the total expenditure for the running of this store will amount to $2000000. So as to cover for the budget cost, the company will have to finance themselves from the savings that they have saved over the years. Increases in sales observe the other regions will increase the profits which they ultimately use to fund their expansion to China. The profit will be shared among the shareholders of the Victoria’s Secret Company.

            The company should adapt to alternative measures as escape plan in case the market plan fails to fully succeed to the expectation of the company. The company should diversify their products through introduction of new products such as the swimming costumes and all kinds of under clothing. Thy company should also have a variety of options for lingerie products with extensive online stores. All this should custom fit in the advise services and hence allowing for less time of searching for the brands. The company should as well adapt to provisioning of extensive style varieties with high accessibility to all classes of customers. The company should consider making market modifications through the products standardization of the prices. They should also integrate the use of promotional strategies such as the provision of coupons as well as offering considerations on the public’s reaction on the social platforms (Verhoef et al 2009).

            It is evident that the company has had bad experience over the past years in their efforts to open up new stores and in the launching of the brands. Therefore to reverse and redress all these challenges, the company should ensure that they follow all the right procedures in making their entry into China. This will minimize cases of illicit entries and the consequences of this entry type. The company should reevaluate their expansion to China so as to ensure that they have the right experience and the right brands in the market. The company should ensure that they offer appropriate customer services thus making them more competitive in the Chinese market. The company should constantly ensure that they provide their customers with the world’s best fashion products as they collaboratively offer captivating customer experiences that ensure that they have a long term loyalty as well as a sustainable growth of the stakeholders. The annual Victoria’s Secret fashion runway show which targets a large customer base in terms of demography is one of the strengths that the company should cultivate on. The company should also consider the social, environmental, cultural as well as local elements. The feminine society is changing and thus their needs and wants are changing and hence changing the demands of the women. In making the right move as the company ventures in China will be the most essential step that will see the company to success.

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