Victoria’s Secret Case Study

Categories: Fashion Industry

Victoria’s Secret has made a name for itself in the lingerie industry. To millions of women, Victoria’s Secret represented femininity. It was famous touchstone for its catalogue and fashion shows. Victoria’s Secret was founded by Roy Raymond and his wife. It is a store which attracts both men shopping for ladies lingerie and it became a multi-million dollar business. From then on, it climbs to being a multi-billion dollar business when Leslie Wexner, the new owner, shifted its aim to appeal women, not men.

The reason why it started as a store specifically for men to purchase ladies’ lingerie was because Roy Raymond did not want to be viewed as a suspicious person when purchasing underwear for his wife. Therefore, he had a crazy and brilliant idea which is to start a company that facilitate shopping mall for underwear. The main reason of establishing Victoria’s Secret is to avoid letting men feel uncomfortable when they are buying lingerie for ladies or to be viewed negatively by others.

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Roy Raymond named the company Victoria’s Secret as he had imagined a Victoria boudoir. Outwardly refined, the word ‘secret’ in the name means hidden or unseen. In 1977, with only $80,000 of savings and loans from family, Raymond and his wife leased a space in a small shopping mall in Palo Alto, California, and thus the first Victoria’s Secret store was born.


There are several political factors that may affect Victoria’s Secret profitability and chance of survival in the industry.

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One of the factor is the laws enforced by the country, particular against business such as business contracts which means they can determine what is or not allowed to. For example, some country bans alcoholic drinks or might have certain requirements that need to be reached, while some government system have excessive amounts of red tape that could hinder the company. Besides that, low minimum wage would mean higher income, which would mean higher chances of survival for the company. In fact, Victoria’s Secret employees earn $28,000 annually on average, which is 78% lower than other employees’ average salary of $64,000 per year. Political factors which affect not only the host country but also all country which have business operations or which may engage in trade with Victoria’s Secret.


Economy factors of the country can have impact on aggregate demand. Aggregate investment and overall business environment has the potential to make a company highly profitable or the opposite. Like, the gross domestic product ,which is the GDP, of the country can affect the general growth of Victoria’s Secret. In fact, purchasing of lingerie within the teenager age group had dropped from 45 to 38 percent. In general, Generation Z spends lesser after the 9/11 incident and economic recession.


The social factors that can impact Victoria’s Secret are directly reflection of the society where the company is operating in. Culture, religion, beliefs, attitudes and values that majority of the people in the community or country can have impact on the company as well. Also, the impact of the social factors plays an important role on the marketing aspect of the organization. For instance, the population dynamics can have effect on whether a particular product may or may not be marketed to them. Other than that, technology can easily dismantle an industry’s price structure and competitive landscape within a very short time frame.


Technological not only can maximizing profit for the company, but also to prevent degeneration in the near future. The effect of the technology on the costs to which most manufacturing businesses are subject has the potential to greatly increase or reduce the resulting profits. When Victoria’s Secret meets a new technology that is gaining popularity in the market in question, it is important to monitor the level of popularity and how fast it expands and eventually disrupts the profits of its rivals. In truth, Doubling its technology infrastructure investments on inventory management and point-of-sale systems may have helped Limited Brands, owner of Victoria’s Secret and Bath & Body Works, to become one of a few major retailers to beat sales expectations in April. According to a story on CIO Journal, the technology is helping to company to do a better job re-stocking the lingerie and skin care products that are hot and dumping the ones that are not, said John Morris, a retail analyst at BMO Capital.

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Victoria’s Secret Case Study. (2021, Aug 16). Retrieved from

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