Style
Why does Victoria Beckham’s fashion brand lose money?
Jan
Since starting to operate her own brand in 2008, the British designer’s 14-year-long introductory lesson is that high-class crafts and big names can be priced “in the sky” not a single price. Optimal business strategy.
Why does Victoria Beckham’s fashion brand lose money?
Over the past five years, the financial situation of the Victoria Beckham brand is in an alarming state, with the most recent recorded loss in August 2022 of £54 million. Although the spokesman said shareholders will continue to maintain financial support, the company’s balance sheet has sent negative signals about the return to investors.
Founded with a true believer’s love of fashion, Victoria Beckham has wowed fans since the launch of her first collection, which includes minimalist designs created from the latest in technology. “high-end” tailoring techniques. For the past 14 years, the designer has been working hard to present products that express trendy femininity through the perfect mix of office wear and evening dresses.
But the brand has never “fished” in revenue for more than a decade despite its artistic success, and consecutive losses in recent years have not only made financial analysts but also Victoria Beckham also has to worry about the future of her “brainchild”:
“IF I WANT THE BRAND TO CONTINUE TO EXIST IN 10, 20, 30, OR 40 YEARS, I HAVE TO FIND A WAY TO BREAK EVEN, THEN I HAVE TO MAKE A PROFIT.”
The reason stems from Victoria Beckham’s vision of minimal fashion, which is no more outstanding when placed on the scale with pre-existing brands such as The Row, and Celine. Consumers are also skeptical about the price of 1,500 euros for a crossbody bag because they are not sure whether the expensive price comes from the outstanding quality or the media power of a famous founder. While Victoria Beckham’s products are indeed crafted with care, the brand’s clientele thinks they have better shopping options at the same price.
In an effort to find the answer to the difficult profit problem, the British designer “changed the blood” of the operation team. Newly appointed CEO, Marie Leblanc, immediately launched a new pricing strategy to reshape Victoria Beckham into an “affordable luxury brand”. Still maintaining the creative and quality lifeblood of a luxury fashion house, the brand will reduce the list price by 40% to reach more consumers. Designs will also be adjusted to be more usable.
A future where high-end designs come closer to consumers through “soft” prices is the finish line that Victoria Beckham focuses all her energy on. If this strategy explodes commercially, it is likely that the luxury fashion sector will be increasingly expanded.
You can click on the links below to own our products
[Best Selling Product] Personalized Name Xmas Memphis Grizzlies For Fans All Over Print Shirt
[Best Selling Product] Personalized Name Xmas Los Angeles Lakers For Sport Fans 3D Shirt
[Best Selling Product] Personalized Name Xmas LA Clippers For Sport Fans Full Printing Shirt
[Best Selling Product] Personalized Name Xmas Indiana Pacers For Fan 3D Shirt
[Best Selling Product] Personalized Name Xmas Houston Rockets For Sport Fan 3D Shirt
[Best Selling Product] Personalized Name Xmas Detroit Pistons For Fans All Over Printed Shirt
[Best Selling Product] Personalized Name Xmas Denver Nuggets For Fan All Over Print Shirt
[Best Selling Product] Personalized Name Xmas Dallas Mavericks For Fans Full Printed Shirt
[Best Selling Product] Personalized Name Xmas Cleveland Cavaliers For Sport Fans 3D Shirt
[Best Selling Product] Personalized Name Xmas Chicago Bulls For Sport Fans All Over Printed Shirt
[Best Selling Product] Personalized Name Xmas Charlotte Hornets For Sport Fan All Over Printed Shirt
[Best Selling Product] Personalized Name Xmas Brooklyn Nets For Sport Fan 3D Shirt
[Best Selling Product] Personalized Name Xmas Boston Celtics For Fans Full Printing Shirt
[Best Selling Product] Personalized Name Xmas Atlanta Hawks For Fans 3D Shirt
[Best Selling Product] Personalized Name Mark Messier Edmonton Oilers For Sport Fans 3D Shirt
[Best Selling Product] Personalized Name Guy Lafleur Montreal Canadiens For Sport Fan 3D Shirt
[Best Selling Product] Personalized Name Gordie Howe Detroit Red Wings For Fan Full Printed Shirt
[Best Selling Product] Personalized Name Bobby Orr Boston Bruins For Sport Fans Full Printing Shirt
[Best Selling Product] Personalized Name Bobby Hull Chicago Blackhawks For Fans 3D Shirt
[Best Selling Product] Personalized MTN Dew You Laugh I Laugh 3D All Over Print Shirt
[Best Selling Product] Personalized Mountain Dew Groot All Over Print Shirt For Sports Fan 3D Shirt
[Best Selling Product] Personalized MLB Toronto Blue Jays Sport Fans All Over Print Shirt
[Best Selling Product] Personalized MLB Toronto Blue Jays For Fans All Over Print Shirt
[Best Selling Product] Personalized MLB Toronto Blue Jays All Over Printed Shirt
[Best Selling Product] Personalized MLB Toronto Blue Jays All Over Print Shirt
Connect us at:
Collection https://swagtshirt.com/shop/hot-trend-shirt/
Homepage: SWAGTSHIRT Store