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Angels. Visions of these ethereal, heavenly creatures are the first thing that comes to mind when you hear the words ¡°³Õ¾±³¦³Ù´Ç°ù¾±²¹¡¯s Secret.¡± For years, the American brand made its name by creating a fantasy ¡ª the sexy image of fancy, fabulous outfits and otherworldly lingerie. The company¡¯s annual fashion show was televised in prime time, featuring the famous wings worn by top supermodels from around the world.

The glamorous spectacle of those feather-festooned costumes from the heyday of the ¡¯90s and 2000s is a thing of the past. Sagging sales have dogged?³Õ¾±³¦³Ù´Ç°ù¾±²¹¡¯s Secret?for years, and the brand saw?losses in 2019. In the new era of modern lingerie, empowered women are looking for strength, comfort, and ease.? While??³Õ¾±³¦³Ù´Ç°ù¾±²¹¡¯s Secret?image of sexy angels in lacy bras and tight-fitting undies??to contemporary consumers.

In 2020, the American brand faced even more challenges: the Coronavirus pandemic led to widespread store closures, the bankruptcy of the UK branch ¡ª which was saved by??in late 2020 ¡ª and the termination of its previous?. What will it take for?³Õ¾±³¦³Ù´Ç°ù¾±²¹¡¯s Secret?to regain the former splendor of its flamboyant, extravagant past??

Overly broad offerings mismatched?with consumer expectations

In its?,?³Õ¾±³¦³Ù´Ç°ù¾±²¹¡¯s Secret?parent company?L Brands?reported a decrease in sales and then losses, which generated much-unsold inventory. The situation led to an expected drop in new arrivals for? 2020.?Retviews?data shows this was indeed the case. In fact,? new arrivals decreased by 41% between 2019 and 2020. When viewed in conjunction with the Covid-19 pandemic, this should be good news for?³Õ¾±³¦³Ù´Ç°ù¾±²¹¡¯s Secret, as they have a smaller inventory to grapple with.

Still,??³Õ¾±³¦³Ù´Ç°ù¾±²¹¡¯s Secret competitors?have way fewer articles compared to the American brand. Whether you look at long-established players in the lingerie game like?Etam, or promising newcomers like?Aerie,?³Õ¾±³¦³Ù´Ç°ù¾±²¹¡¯s Secret?has more than eight times the number of articles of its?competitors.?

Given the??industry, could there be an opportunity for?³Õ¾±³¦³Ù´Ç°ù¾±²¹¡¯s Secret?to curate its assortment further and focus its attention on giving consumers what they want ¡ª and what sells??

In terms of assortment,?³Õ¾±³¦³Ù´Ç°ù¾±²¹¡¯s Secret?carries significantly more activewear articles and underwear than its?competitors. Because both intimates and activewear sectors are highly competitive. If there??in terms of products and technology, consumers have few incentives to choose one brand¡¯s wares over competitors¡¯ offerings.?

Are significant investments in activewear and underwear going to make a big difference for the American lingerie retailer? It might be?³Õ¾±³¦³Ù´Ç°ù¾±²¹¡¯s biggest?secret.

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The fit factor: is size inclusivity relevant for ³Õ¾±³¦³Ù´Ç°ù¾±²¹¡¯s Secret??

?have gone from non-existent six years ago to table stakes today, according to?ThirdLove?CEO Heidi Zak. As other underwear brands are increasingly embracing the change,?³Õ¾±³¦³Ù´Ç°ù¾±²¹¡¯s Secret has only??the need to change its marketing to include appeals to different-sized customers. This acknowledgment is a crucial shift for the company, which had previously not strayed far from the sexy push-up bra aesthetic of the 1990s.

However, according to??data, these planned changes have yet to be put into action. Compared with newcomer?Aerie?¡ª a brand known for embracing all women through inclusivity and empowerment ¡ª?³Õ¾±³¦³Ù´Ç°ù¾±²¹¡¯s Secret?still doesn¡¯t offer much choice in terms of sizing.?

For instance, XXS is present in only 4,1% of?³Õ¾±³¦³Ù´Ç°ù¾±²¹¡¯s Secret underwear?articles and 9,5% for XXL. In comparison,?³Õ¾±³¦³Ù´Ç°ù¾±²¹¡¯s Secret competitor,?Aerie,?offers equal numbers of its assortment in all sizes.?

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Deep discounts compared with competitors reveal an ongoing struggle

In 2020, L Brands¡¯ 2019 financial report stated that?³Õ¾±³¦³Ù´Ç°ù¾±²¹¡¯s Secret¡¯s underperformance was due to reduced store traffic. Those factors resulted in promotions¡¯ increase, negatively impacting its margins.?

While we¡¯re still waiting on the?, the trend seems to be the same for?³Õ¾±³¦³Ù´Ç°ù¾±²¹¡¯s Secret. While the competition discounted less than 30% of their assortments, the American lingerie brand discounted 77% of its assortment ¡ª at a higher average discount rate than?competitors.?

Many discounting combined with a large number of articles on offer at?³Õ¾±³¦³Ù´Ç°ù¾±²¹¡¯s Secret?might indicate that the company needs to reshape its assortment. On a side note, the high level of discounting is also visible in?´¡±ð°ù¾±±ð¡¯s assortment ¡ª which is also an American-based brand. Is there a pattern of heavy markdowns in the American market??

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Communication skews premium ¡ª But pricing tells?a different story

³Õ¾±³¦³Ù´Ç°ù¾±²¹¡¯s Secret¡¯s?price communication leans toward the more glamorous and racy. With advertising featuring the??worn by Miranda Kerr, their branding is geared more toward sexy and seductive than comfortable and affordable.?

Nonetheless, the most frequent price of?³Õ¾±³¦³Ù´Ç°ù¾±²¹¡¯s Secret?is among the lowest. This message can be quite confusing for consumers, but it¡¯s mainly due to the high number of underwear articles priced at around €10,95.?

One question arises: if?³Õ¾±³¦³Ù´Ç°ù¾±²¹¡¯s Secret?aims to be a premium lingerie destination, shouldn¡¯t its prices reflect this positioning??

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A silver lining in declining market share?

³Õ¾±³¦³Ù´Ç°ù¾±²¹¡¯s Secret?saw revenues continuously decline, and business deals fall through over the last year.? The future doesn¡¯t seem so bright for the lingerie brand.?

But the underwear giant is looking to change its marketing and become more aligned with what modern women are looking for. Combined with a readjustment in assortment to better fit consumer expectations, there¡¯s a possibility for?³Õ¾±³¦³Ù´Ç°ù¾±²¹¡¯s Secret to reclaim its position as the go-to for bras and underwear.

Although the brand might be losing relevance, no viable successors have yet emerged. How long will?³Õ¾±³¦³Ù´Ç°ù¾±²¹¡¯s Secret stay undefeated? If the brand manages to recalibrate its offerings, they have the chance to reign supreme once again.