Learn about the mysterious Victoria’s Secret chain plan to revive the brand

If L Brands Inc. is going to recover part of the $ 16,000 million market value it has lost in the last three years, there is no doubt as to where it should start: revive its flagship Victoria's Secret chain.

The lingerie retailer has been reeling as it did not take advantage of major fashion trends and clung to an outdated glamorous atmosphere in its marketing strategy. On Tuesday, at an event for investors, Victoria's Secret CEO John Mehas presented his vision for a resurgence. Unfortunately, it was frustratingly unclear, which complicated interpreting whether things will be positive again in the short term for Victoria's Secret.

Advertising is one of the areas in which Victoria's Secret needs an urgent reorganization and the recent departure of veteran marketing chief Ed Razek provides a glimmer of hope that change is imminent. The brand should be seen as "for her, for her," Mehas said, without providing too much detail. (There was also some irony in the fact that, as noted by my colleague Jordyn Holman, the company announced this concept during an event in which most of the exhibitors were men).

If the new mantra signals the intention of delivering a more enriching message, then it is an encouraging sign. Again, however, details were missing. Would the company replace its festive fashion show, which it has said it is reconsidering? Mehas did not mention it.

He showed a video presentation of Victoria's Secret's new collaboration with the For Love & Lemons brand. He introduced racially diverse models that did not necessarily have Barbie doll bodies from previous Victoria's Secret campaigns, suggesting a new and much-needed approach to inclusion. However, the product in the ad was more frivolous than functional.

Mehas also spoke about the need to put emphasis on bras again and that innovations must be made in this area of ​​commodities to recover women. This is surely the right idea, although a single new product that could really make a difference against the competition was not described.

While, El Secreto de Victoria He has been working to change his pricing strategy to offer a combination of "good, superior, the best" items that would induce buyers to pay higher prices. It is a sensible choice, as it would make Victoria's Secret differ from its sister chain, Pink, and could help raise profit margins.

The problem is that the lingerie chain has relied too much on discounts for such a long time that it will be hard for buyers to pay higher prices. The executives did not have a particularly satisfactory explanation on how they will succeed.

Despite all this vague talk about what will come at Victoria's Secret, investors sent L Brands shares about 3% on Tuesday. This probably reflects the faith in the company's Bath & Body Works chain, which seems ready to continue a streak of solid performance, as well as optimism about Pink, its lingerie and clothing store aimed at the university community. Pink's new leader, Amy Hauk, described her vision to restore that chain with a focus on sportswear, far from big logos and ostentatious ornaments, and a marketing campaign with college students with "real bodies."

However, these chains can only take the company to this point. Victoria's Secret needs to start working hard. It is not clear that he is changing fast enough to achieve his goals.

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