Lingerie not focus of Victoria's Secret in China

Victoria's Secret officially entered the Chinese market this week, but the US company famous for its lingerie will focus on selling beauty products.

The first official Victoria's Secret Beauty and Accessories stores opened Monday in Shanghai's Raffles City, Shenzhen's Yitian Holiday Plaza and Guangzhou's Taikoo Hui.

Five more stores will open in Chongqing, Guangzhou and Chengdu later this month, parent company L Brands wrote in an e-mail to China Daily on Tuesday.

"These stores will focus on an iconic, fashion-forward range of beauty products and accessories designed for the modern jet-setter," L Brands said in a statement. "Beauty shoppers will find fragrances like the FiFi Award-winning Victoria's Secret Bombshell and VS Angel, and perennial favorites like the most-loved VS Fantasies. … These stores will also feature a unique collection of luxury accessories, including cosmetic cases, bags, small leather goods and luggage.

"We look forward to entering this important global market to enable consumers to buy and experience our products and services through authorized channels," the Columbus, Ohio-based company said.

Saleswomen at the Victoria's Secret stores in Shanghai and Shenzhen said that the stores sell panties but not bras, and declined to explain why. One of the salesclerks hinted it could be a training issue.

"I do not have inside information about Victoria's Secret's thinking, but I would guess that, if the Chinese government would allow the importation of apparel that is not produced in China, then brands would create retail space for lingerie as well," said Ilse Metchek, president of the California Fashion Association. "The issue is usually about trade policies."

It is not easy for US designer brands to enter the Chinese market, as the Chinese distribution systems differ from Western supply chains.

"Retailing in the US and Europe is mainly based on multibrand retailers like Macy's and Bloomingdale's," Metchek said. "In China, stores only show the brand names of the stores themselves, not the individual designer brands."

"The West must come to terms with China's method in order to be successful," said Metcheck, who sees a "big future" for Victoria's Secret in China.

Chinese consumers are increasingly aware of global fashion and the US companies that create these styles, she said.

The stores in China will also have a black-and-white photo gallery of Victoria's Secret models, and a video wall that broadcasts footage of the Victoria's Secret Angels.

The stores will be operated by Valiram, one of Asia's leading retailers and brand managers. Valiram is the only authorized partner of Victoria's Secret on the Chinese mainland, according to a spokesperson for L Brands.

Victoria's Secret had registered a trading firm in the Shanghai Free Trade Zone (FTZ) in December to import products. The registered capital is about $1.05 million, reports Paper.com.

However, L Brands' announcement may confuse many Chinese customers, who had already seen Victoria's Secret stores in China last year.

The company said those stores were not authorized by Victoria's Secret.

In 2014, Victoria's Secret was involved in trademark infringement and unfair competition disputes with Shanghai Maisi Investment Management, which sold VS products at its stores in China's shopping centers.

In the filing, VS alleged that Maisi used the logo "VICTORIA'S SECRET" prominently on Maisi's store signboards and lingerie fashion shows without its authorization and announced itself as VS' Chinese headquarters for franchising and partnership.

VS won the lawsuit and was awarded $82,000 in damages.

Victoria's Secret, founded in 1977, is the largest US retailer of lingerie now. The company sells lingerie, women's wear and beauty products through its website and stores.