Victoria’s Secret brings cosmetics business to Amazon in wholesale test
Starting Friday, shoppers will find an assortment of approximately 120 Victoria’s Secret beauty products on Amazon, including lotions and fragrances.
Source: Victoria Secret
Victoria’s Secret is moving its beauty business to Amazon, marking the lingerie company’s first major collaboration with another retailer to sell its wares.
With Friday’s launch, about 120 different products, including branded perfumes, lotions, body scrubs and body washes, will be available in the new Victoria’s Secret “store” on Amazon, the company said.
According to Greg Eunice, CEO of Victoria’s Secret’s cosmetics business, the intention will be to expand offerings over time based on what customers are looking for. And that may eventually entail adding some of the company’s bras, underwear and loungewear, though Victoria’s Secret has no immediate plans to do so.
Victoria’s Secret’s transition to wholesale symbolizes the momentum many retailers are struggling with today. Brands that for years have operated solely through direct-to-consumer sales—through their own stores and their own websites—are looking to partner with big-name retailers like Target or department stores like Nordstrom to offer their merchandise as well. .
At the same time, wholesale retailers such as Nike and Ralph Lauren are trying to cut costs in an attempt to regain control over pricing and profits. But everyone seems to agree that a little bulk is better than nothing.
According to Unis, many shoppers are already visiting Amazon looking for Victoria beauty products, such as the popular Bombshell fragrance line, only to find a huge number of products sold by third parties.
“Amazon is a free marketplace and anyone can sell [there]Unis said in an interview. “We knew we had a big appetite just by looking at the range of products already on sale.”
Logistically, he added, it was also easier for Victoria’s to sell cosmetics rather than lingerie and clothing because there is no sizing element in lotions and perfumes. .
Cosmetics sales in fiscal 2021 were about $900 million, roughly 15% of the company’s total North American revenue. according to the June presentation to investors. About 40% of beauty transactions were made online.
Since Victoria split from Bath & Body Works to become an independent company last August, it has taken a number of new initiatives to try and increase sales and attract customers. The company invested $18 million in a minority stake in popular women’s swimwear brand Frankie’s Bikinis and launched a gender-neutral brand for teens called happy nationtargeted at an even younger audience than the Pink brand.
There is hope that the Amazon deal could take Victoria’s Secret’s beauty business to the next level. Currently, customers can find in-store beauty salon at all retailer stores.
To be sure, for a number of retailers, the Amazon selling strategy has not always worked.
In recent years, companies such as Ikea, Nike, Birkenstock and PopSockets have drifted away from the e-commerce giant. Companies often try to partner with Amazon to crack down on counterfeiters and unverified third-party sellers. But it also means they lose access to certain consumer data and possibly how their brands are positioned on the Amazon website.
However, Victoria’s Unis sees the e-commerce giant as the retailer’s most appropriate and sensible next step. He said it was a chance for Victoria’s to increase brand awareness in the beauty field, which is still “relatively low” compared to its underwear.
“We are expanding our consumer universe,” he said. “And the way we set up the store on the Amazon site is like extending our own direct-to-consumer website.”