Although the products are minimalist with good quality, Victoria Beckham’s brand is still on red alert.
Victoria Beckham – a former member of the hit group Spice Girls and wife of famous football player David Beckham – founded her eponymous fashion brand in 2008. When she introduced her first collection At LFW, all those antis who had been waiting to get ready to disparage another brand from an artless celebrity had to rethink their contemplation with minimalist creations that would suit everyone. and still attractive.
The style of the Victoria Beckham brand, almost unchanged throughout the years, is based on a blend of femininity and minimalism in fashion and is very stylish, perfect for both work wardrobes and dresses. exquisite prom. However, despite having quality products and good reviews by the trade press, the brand has not been able to turn on its head during its 14 years of operation.
The numbers tell a completely negative story. In 2018, the company posted a drop in revenue from £41.7 million to £35 million (with a 16% increase in losses compared to 2017), followed by a 2019 budget cut. 2019 marked a 7% increase in revenue to £38.3 million, but still a loss of £16.6 million. In 2020, revenue continues to be adversely affected by Covid-19. The latest Victoria Beckham Holdings Ltd accounts show a loss of £5,887,036 in 2021 (despite the fact that in that year shareholders provided the group with an additional £0.6 million in loan. UK), down from £8,581,944.
According to The Mirror, the main reason may be due to the pandemic slowing down purchasing activity, along with overpriced garments. However, the British tabloid shows that over the years the debt at the brand has worsened and has never been so high. In fact, figures from the start of 2023 show the company’s total losses now at £66.3 million. Despite the more worrisome numbers, a company spokesperson told Daily Mail Online that shareholders continue to support the company and invest in the business, stressing that the balance sheet is in good shape. and no debt. So where is the truth?
The situation seemed so dire that rumors began swirling around “doubts” about the company’s ability to continue, with accountants suggesting the company would need ongoing financial support from shareholders. winter to continue operations, and other rumors that David Beckham has expressed skepticism about whether he should continue to invest in a business that is struggling and is no longer responding as well as expected. or not. Suddenly, Victoria finds herself facing people who have accused her of founding a vanity line, a brand that is not based on her true skills as a designer and a businesswoman, which is based solely on the love of fashion. So last March, she declared, “If I want this brand to be around in 10, 20, 30, 40 years, I have to break even and then I have to be profitable.”
In an effort to grow the brand, Victoria has expanded its business in Europe and the Middle East; opening new product lines such as leather goods and VB Body product line; launch its own cosmetic line; and established a partnership with Reebok; but more importantly, rely on a new management team. Ralph Toledano, former head of the fashion division of the Puig Group and now president of the Fédération Française de la Couture, has been appointed president and Marie LeBlanc de Reynies replaces outgoing CEO Paolo Riva with the mandate. service to accelerate the company’s process of achieving profitability.
LeBlanc’s strategy involved merging two main product lines, Victoria by Victoria Beckham and Victoria Beckham, into one signature collection and, most importantly, drastically reducing product prices (about 40%). “We saw a huge opportunity in the market, which is the space for a premium brand at an affordable price. It’s perpetuating our DNA, but providing greater simplicity and ensuring consumers can feel a connection with the brand in terms of both usage and price.”
Although the brand intends to maintain its position of luxury and aesthetics, Victoria Beckham and CEO Marie Leblanc are focusing on affordable prices and more refined designs to attract new buyers. The goal is to provide designer luxury at a fair price. The reason for this innovation? Apparently, experts say, the brand’s minimalist aesthetic has struggled to appeal to shoppers who tend to prefer pure luxury, who tend to shop at brands like The Row or was crazy about Celine in Phoebe Philo’s time.
While Beckham’s clothing offers equally top-notch style and quality, the fact that the brand is owned by a celebrity tends to startle one when faced with a 1,500 crossbody bag. pounds or a similarly priced dress. Despite their exceptional feats, for many buyers, these products still don’t match well-known fashion houses. And in an effort to restore the prestige of designer Victoria Beckham, the brand recently debuted at Paris Fashion Week.
Will this new strategy succeed? Only time can tell.
