victoria’s secret

victoria’s secret
POP-UP SHOP
SHANGHAI, CHINA
Elva Jiang & Faith Yeh
Fall 2014: FASM 410
Professor Cannata

Table of Content
Comapny Summary
Identity Matrix
Distribution
Marketing Activities
Market Analysis
PESTEL Analysis
Market Size
Competitor Analysis
Target Customer
Demographic
Lifestyle/Psychographic
Behavior Information
Store Location, Design, Product
Trading Area Analysis
Design of the actual space
Assortment Plan
Communication and Promotion
Marketing calendar
Omni-channel Strategy
Financial Plan
Key Performance Indicators
Sales Forecast
Income Statement
IT’S
SHOWTIME
VICTORIA’S SECRET

Executive
Summary
As a leading specialty retailer of
women’s intimate apparel, Victoria’s
Secret (VS) is ready to expand into
the Mainland Chinese market.
By opening a pop-up store in the
world’s one of the most populated
and fashion-sophisticated cities,
Shanghai, VS will be able to fully
leverage its brand equity to build
a strong relationship with the
local demographics. In order to
successfully adapt to the Chinese
culture, the pop-up store will be
launched with the purpose of
celebrating Chinese Valentine’s
Day. The sales potential as well as
foot traffic will greatly increase
in Shanghai during the week due
to the celebration for lovers.
Thus, the merchandise chosen for
the pop-up store will represent
the theme of Valentine’s Day to
provide customers the best gifting
options for their beloved ones.

Victoria’s Secret is the leading specialty retailer of
women’s intimate apparel and other apparel with
fashion-inspired collections, prestige fragrances
and cosmetics, celebrated supermodels and a
world-famous runway show. Leading the brand is
president and CEO Sharen Jester Turney.
Company
Summary
The mission statement for the Victoria’s Secret
retail chain is the same as its parent company,
Limited Brands, and as “captivating” as the
merchandise mix in the Victoria’s Secret stores
and catalog. The Limited mission statement is...
“Limited Brands is committed to building a family
of the world’s best fashion brands offering
captivating customer experiences that drive longterm
loyalty and deliver sustained growth for
our shareholders.”

History of
1977: Roy Raymond established Victoria’s Secret
1982: Limited Brands acquired Victoria’s Secret
1998: Launched e-commerce ‘VictoriasSecret.com’
2004: Launched Victoria’s Secret Pink
2009: Opened stores in Canada
2012: Opened stores in London
2013: Opened stores in Hong kong

Current
Status
Victoria’s Secret currently holds more than
35% share in the 12 billion+ intimates market. It
strives for a long-term earning growth of 12%.
As of May 2014, L Brands’ sales results were better
than analysts’ expectations. The comparable
store sales increased 2% driven by continued
strength in intimates and PINK.

SWOT
ANALYSIS
STRENGTHS
- Brand equity and high Customer loyalty
- social media Marketing -> 2nd most
popular on facebook
- Highly anticipated Annual Fashion show
- Incredible Branding consistency
- Large market share -> 35%
- Global Expansion
OPPORTUNITIES
- International expansion -> Asian Market
- Corporate social responsibility ->
Philanthropic initiatives, women
empowerment
- Collaboration with artists, retailers
- 3D body scanners -> Improve omnichannel
integration
- Personalization -> email
Omni-channel
WEAKNESSES
- Skinny-centric marketing
- Product Quality
- Concerns in Corporate social
responsibility -> Chind labor
- Omni-channel integration -> Lack of
apparel products in store
THREATS
- Exchange rate risk
- Domestic competitors
- Counterfeit -> Shanghai fake Victoria’s
Secret

PRODUCT
SYMBOL
Brand
WORDS
INTIMATE WEAR
PAJAMAS
SWIMWEAR
BEAUTY PRODUCT
Identity
Matrix
PERSON
ORGANIZATION
Sexy
FIt
Active
Sophisticated
Creative
Successful
Global
Passionate

Price Matrix
Intimate wear
Beauty Cosmetic
Victoria’s Secret ($55.3)
Victoria’s Secret ($27)
Aerie ($34.9)
Calvin Klein ($43)
Gap ($37.8)
Aerie ($17)
Calvin Klein ($24.2)
Gap (23.4)
Bra $42.50 - $68
Beauty cosmetic $12 – $42
Fragrance $14 - $55
Swimwear $18.95 - $176
Clothing $29.50 – $69.50
Accessories $12.50 - $35
Bra $38 - $48
Beauty cosmetic $7.50 – $40.95
Fragrance $40 - $90
Swimwear $58 - $138
Clothing $69.50 – $79.50
Fragrance
Apparel
Victoria’s Secret ($49.5)
Victoria’s Secret ($49.5)
Aerie ($27.4)
Aerie ($22.5)
Calvin Klein ($74.5)
Calvin Klein ($74.5)
Gap ($23.4)
Gap ($32.4)
*The charts above compare the price points of the four categories of product (bra, beauty cosmetic, fragrance,,
and apparel) that victoria’s secret and its competitors carry. It can be seen that VS has the highest average price
point for bras and cosmetic producs while Calvin Klein has the highest average price points for fragrance,
and apparel.
Bra $19.95 - $49.95
Beauty cosmetic $14.95 – $20.95
Fragrance $14.95 - $39.95
Swimwear $12.95 - $30
Clothing $19.95 – $24.95
Accessories $14.95 - $24.95
Bra $36 – $39.50
Beauty cosmetic $13.50 – $33.24
Fragrance $13.50 - $33.24
Swimwear $10.50 - $38.95
Clothing $14.95 – $49.95
Accessories none

Current
Distribution
L Brands in the first-six months of
fiscal 2014 has opened 22 Victoria’s
Secret Stores in total and closed 3
outlets, thereby taking the count
to 1,113 stores. Two Victoria’s
Secret U.K. stores were opened,
while 4 Canadian stores were
closed, resulting in 7 and 153
stores, respectively. As of August 2
2014, L Brands operated 2,942 stores
with net sales of $1,363.0 (millions).
Total franchised stores as of Aug 2
were 238, comprising 230 Victoria’s
Secret Beauty & Accessories, 8
Victoria’s Secret International
(Full Assortment).

Communication &
Promotion
Marketing Activities (traditional & Digital)
Social Media: Vs is extremely active on social media; their
facebook page is the 2nd most popular retail store with 26
million fans. They are also popular on Twitter, Pinterest,
and Youtube.
Annual Marketing
Spend Figures
Advertising Budget:
$66 million
Fashion Show:
$13 million
Direct Marketing
(catalogs):
$220 million
Email Marketing: VS “email blast” their customers by sending
them multiple emails
word
a day when a new style is produced.
Mobile Marketing: VS has an application for Android,
iPhone, iPad, and iPod. On the app, their online selection
can be browsed and shopped.
Television Commercials: Their Super Bowl commercials are
always very popular and sells the idea of Victoria’s Secret.
Victoria’s Secret Fashion Show: One of the most anticipated
fashion shows every year with men and women tuning in to
view.
VS All Access: The page encompasses additional information
such as make up tips, supermodel biographies, and insider’s
look at the Victoria’s Secret fashion show. It gives the
consumer a more personal experience witht the brand.
Promotional Activities
- Promotional Offers
- Semi-Annual Sale
- Coupons
- Online Deals
Annual Fashion Show
Super Bowl Commercial

PESTEL Analysis: China
Market
Analysis
China, or People Republic of CHina, is a single-party country
governed by the Communist Party, with its seat of government
in the capital city of Beijing. Since the introduction of
economic reforms in 1978, China has become one of the
world’s fastest-growing major economies. It is the world’s
largest exporter and importer of goods.

PESTEL Analysis: China
PESTEL Analysis: China
POLITICAL
China is able to carry out policy without hindrance
Strong geo-political relationship with Africa
Roiled relationship w/Japan due to conflict over the Diaoyu Island
Unstable relationship with Philippines due to disputes over the Scadborough Island
New political leadership- Xi Jinping
Lack of freedom of expression
ECONOMIC
Strong economic fundamentals with average GDP over 10%
High inflow of foreign investment
Lopsided growth- private consumption is extremely low comparatively
High dependency on manufacturing exports- vulnerable to external shocks
12th five year development plan for the textile industry
Increased concern on the high Off budget debt of local government
Overheated property markets
SOCIAL
Increase in life expectancy- 32 years (1950s) to 74.99 years (2013)
Extension of social safety net- welfare payments, improving wages and healthcare
Large pool of labor- labor force is around 780 million
Gender imbalance- sex ratio is 117,7 boys for every 100 girls; highly skewed
Urban migration- causing increase of unemployment in cities as well as rural areas
Aging population (Baby boomers)- one child policy
TECHNOLOGICAL
Large number of R%D Institution- 5,500 state-owned R&D institution, 3,400 research
associated with universities, and around 13,750 institutions associated with large
industrial enterprises.
International co-operation- over 1,000 international scientific organizations
ENVIRONMENTAL
High pollution level- Use of coal as a primary energy source
Water contamination- 40% of rivers were polluted
Soil contamination- arsenic and heavy metals cause to excessive mining and dumping
Balance between growth and environmental sustenance
LEGAL
Weak intellectual property rights enforcement
Lack of information sharing and transparency- credibility in both scientific data and
data used to evaluate policies are lacking in China.

Intimate Apparel Market
Market
Size
There are approximately 2,000 intimate apparel
enterprises in China. Spending on intimate apparel
stands around 8% of total clothing consumption
budget for Chinese consumers. The intimate industry
in China is growing at a steady pace of 15% annually
with a turnover rate above 100 billion RMB ($16.3
billion).
E-commerce
In 2013, China’s mobile transactions totaled US$7.8
billion, representing 3.7% of all e-commerce. It is
estimated that by 2015, e-commerce will hit US$540
billion, 7.5% of total retail transaction.

Competitor
Analysis

La Perla: A luxury Italian women’s clothing
company specializing in lingerie. La Perla was
founded in 1954 in Bologna, Italy by corset-maker
Ada Masotti. The company began manufacturing
swimwear in 1971 and in 1993, it expanded into
perfume. The Spring/Summer 2013 campaign
featured models Cara Delevingne, Liu Wen and
Malgosia Bela, to represent the many facets of a
woman’s world.
Embry-Form: The Embry Group, which established
a strong presence in China quickly became a
well-known a dn reputable brand by producing
lingerie especially designed for Asian women.
Founded in Hong Kong by Cheng Man Tai in
1970s, the Group quickly expanded by relocating
its production facilities in Shenzhen in 1987.
Calvin Klein Underwear: Founded by the fashion
designer Calvin Klein, the highly successful line
of boxer shorts for women and men’s underwear
collection changed the American market of
underwear and made stunning growth through
the early eighties.
Triumph: Triumph International is a multinational familyowned
underwear and lingerie manufacturer founded in 1886
in Heubach, Germany. It expanded into the United Kingdom,
Japan, Australia, the Philippines and others in the 1960s and
1970s. Many Chinese consumers make the mistake in thinking
that Triumph is a Chinese brand due to its long presence in
China.
Aimer: Founded in 1993 in China, Aimer has ever sicne been
dedicatedly supplying high-quality lingerie to urban women.
It founded its “Aimer Human Engineering Research Center”
with the Beijing Institute of Fashion Technology. The
research center has developed a database with data on more
than one million oriental women’s body shapes, and has
therefore assisted Aimer in developing lingerie tailored to
oriental women.
Aerie: Launched by American Eagle as the lingerie sub-brand,
Aerie targets the American 15-21 years old female demographic
segment. In addition to lingerie such as a wide variety of bras
and other undergarments, the aerie line also sells dormwear,
active apparel, loungewear, accessories and sleepwear.

Accessibility
Matrix
Weighted Competitive
Strength Assessment
Price
Customer Review
La Perla- “Gorgeous well made
lingerie, but it’s just too expensive.”
Triumph- “I have worn this style for
a long time. It’s a bit old fashioned
but it is the most comfortable out
of all styles I have tried.”
Embry-Form- “Really comfortable
and supportive.”
Accessibility
Calvin Klein- “I’ve never purchased
a Calvin Klein bra that didn’t fit
perfectly, and this is no exception.
*La Perla, Triumph and Aimer have the most number of physical stores as well as a developed online
shoppable website. On the other hand, Enbry-form and Victoria’s Secret still lack the e-commerce platform
as a distribution channel in China.

Spa
$21-$42
Movie
$7-$11
Indirect
Competition
Afternoon tee
$14-$57
Bookstore
$7-$70
KTV
$14-$30
Yoga/Gym
$15-$42

Demographics
Adults (61%female, 39%male)
Aged 18-49
Middle and Upper-middle class
Married (51%), Single (44.1%), Divorced/separated (4.9%)
Target
Customer
Urban (Shanghai, Beijing, HongKong, Taipei)
Financial independent
Psychographics
High brand loyalty
Heavy Shopper, impulsive shopper
Tech savvy, high TV, Internet, and magazine
involvement
Conscious about their fitness and physical appearance
VALS: Experiencers, Achievers

Lifestyle Board
Media Access
As a modern, stylish
women, she reads Vogue
China on a regular basis to
receive the latest updates
on fashion trends. She
also is a frequent user
of the social media
platform, Weibo, on on
which she connects with
her favorite brands and
bloggers. On the mobile
platform, she uses Wechat
to view the latest news
and to chat with her
friends and family.

Alice Tien
Lydia Zhou
Age: 38
Education: Shanghai Nornal
University
Income (annual): $80,000
Marital Status: Married
Hobbies: travel, tennis, yoga,
shopping
Alice is a native-born shanghai
woman who works at a fashion
boutique as the store manager.
When she is not working, she
enjoys hanging out with her
friends or practicing yoga. She
has a simplistic yet sophisticated
and modern sense of style.
Her favorite products from
victoria’s Secret are the yoga
pants and accessories.
Age: 24
Education: Shanghai Film Art
Academy
Income (annual): $28,000
Marital Status: Single
Hobbies: Photography, Reading,
travel
Born in SiChuan, Lydia stays in
Shanghai after college to pursue
her dream in the movie industry.
She is subscribed to fashion
magazines such as Bazaar and
Vogue since she has a great passion
for styling. In her free time, she
enjoys going to the movies by
herself. She loves to use the body
care products from Victoria’s
Secret.

Xujiahui, Shanghai China
Store
Location
Analysis
Xujiahui is a locality in Shanghai, China. It’s a historic
area of commerce and culture administratively. The area
is well-known for shopping and entertainment for the
young generation. Transportation around the area is wellorganized
as there are dozens of bus routes and subway lines.
Its population was 76,374 in 2000, and increased 24.22% to 94,
872 in 2008. It then recorded a massive increase of 48% to
140, 293 from 2008 to 2010. In 2013, Xujiahui has a population
of 154, 952, and a household base population of 101,624. The
potential customers living in this area are having a higher
quality of lifestyles as there are comprehensive facilities
like recreational park, quality supermarket and shops. This is
also a wealthy neighborhood as the majority of the driven
cars are by European brands such as BMW, Mercedes Benz and
Volkswagen. This area is popular residential neighborhood
among designers, financial officers and celebrities.

PRIZM Segmentation/ Most common
segment for Zip Code 200030

Population by Age
Household by Income
Household Composition
(Number of Children)
Household Composition
(Number of people)

In Xujiahui, over 20% of the population
is between 21-34 years old, followed by
age between 35 to 44 and age between
55-65 at around 16% . The smallest age
groups are 0-9 years old and 10 – 20 years
old, which is 10.5% and 6% respectively.
The household income shows a more
deviated result. Household income
above 150k RMB is the majority at
around 36%. The second largest group
is has less than 25k RMB which is 15% of
the HHS, while the rest income group
are all around 10% or less.
Household composition in Xujahui
again shows a deviated result, with 57%
of them are 1 person, 22% are 2 people
and 10 % are 3 people.

There are 9 famous shopping centers in the area: Grand Gateway, Orient Shopping Center,
Pacific, Shanghai LiuBai, HuiJin Department store, Pacific Digital Plaza, Metro City, Sunrise
Department store, HuiLian Department store. For the numbers of direct retail competitors in
the area as well. They include La perla, Embry Form, Calvin Klein, Triumph, Aimer and Aerie.
By the end of November, seven department stores in Xujiahui shopping circle including the Pacific
Department Store, Metro City, Grand Gateway and Huijin will carry out the joint promotion
and launch the map “Happy Tour in Xujiahui.” During this week, Xujiahui shopping circle will
host a novel darts contest to introduce the fashionable bar culture into the department
stores to attract consumers. Meanwhile, Xujiahui Centre, which with total investment of
RMB20 billion (32.6 million), has become the tallest building in the west bank of the Huangpu
River. As planned, the project will integrate diversified functions, including a Grade-A office
building, a five-star hotel, characteristic hotels, international fashion industry and culture,
etc. By landscaping along the roads, small squares, humanistic and architectural sceneries,
the project will connect all public space as a whole. According to sources of the district,
Xujiahui will further tap its cultural, religious and historical architecture resources and
consolidate them into tourism resources within Xujiahui shopping circle to create a relaxing
atmosphere for shopping

Area attractions
Xujiahui Street is the popular commercial
area of Shanghai’s Xuhui district. The main
Xujiahui shopping district is centered on the
intersection of the streets Hongqiao Road,
Huashan Road, Zhaojiabang Road and North
Caoxi Road.
As Diverse as the goods in the Xujiahui malls
are, visitors can find many brands in the
shopping centers in Xujiahui, such as Armani,
Diesel, Versace, Adidas and many more. Another
feature of Xujiahui is that it has a popular
market of electronic products, the Pacific
Digital Plaza and Buynow stand where people
can get electronic equipments.

Area
Factors

Traffic
The traffic flow in Xujiahui is around 200,000 vehicles per day. The most popular brands of the
vehicles are Mercedes-Benz, BMW, Volkswagen, Audi and Buick. The number of traffic flow in
the area is around 1 million per day. The most popular jobs of the population are managing
director, product engineer, finance director, fashion designer and real estate investor.
The address of the Grandgateway66 is 1 Hong Qiao Lu, Xujiahui, Xuhua District, Shanghai.
It is a commercial area, a well known prescient for shopping and entertainment. It is also a
transportation hub that you can easily get in from anywhere in Shanghai.
There are two main international airport, Pudong and Hingiao, in Shanghai. There are also
four main train stations connecting to other cities in China. There is also a weekly boat to
Hong Kong, Kobe and Osake in Japan. Within the city, there is Shanghai Metro which has 12
lines with another 7 under construction.
Private car ownership in Shanghai has been rapidly increasing in recent years, but a new private
car cannot be driven until the owner buys a license in the monthly private car license plate
auction. Around 8,000 license plates are auctioned each month and the average price is about
45,291 RMB (7400USD). The purpose of this policy is to limit the growth of automobile traffic
and to alleviate congestion.

Grand gateway 66
1 Hong Qiao Lu, Xujiahui,
Xuhua District, Shanghai
8000 employees
70,000sq m. B1-F1-F6 (7 floors)
A 35m. high dome in the atrium and the two wings that radiate
off the atrium are all glass roofed so the entire shopping mall
is flooded w/ natural light, giving a great sense of openness
and a relaxing ambience. The mall is equipped w/ more than 94
elevator and escalators

Mass Transportation
Subway: There are
three lines (No.
1,9,11) that get to the
Grand Gateway 66
shopping Mall.
Bus: There are seven
different routes and
52 buses in total one
can take to get to
the Grand Gateway 66
shopping mall.
* The XuJiaHui area has a great public transportation system that allows people to travel
easily to the shopping center.

PARKING GARAGE
1400 parking spaces
distributed on F1,
B1, B2, and B3
Two exits, to
Hongqiao Rd. and
Gongcheng Rd.

LEGAL ISSUES
Product Liability
Product Quality Law in China imposes strict liability on a manufacturer of a product for damage
or injury to persons or property caused by a manufacturing or design defect. Strict liability applies
regardless of whether the manufacturer is a foreign company or domestic Chinese company. Also,
China’s Tort Law provides for compensation to be paid for negligence causing damage or injury.
This includes compensation for damage and injury when a company appears to be the manufacturer.
Product Quality
A manufacture is responsible for ensuring the goods that it supplies pose no unreasonable danger
to individuals or property under China’s Product Quality Law, meeting all applicable national and
industry standards and fitting their intended purpose. Their packaging and labeling of the goods
have to be in conformity with the standards.
Distributors, on the other hand, have to adopt measures to maintain the quality of the products
that it sells. They also have to examine the packaging of products sold to ensure information
concerning product specifications, warnings and facility location are included.
Trademark Licensing
Trademark Licensing is a common means through which foreign companies conduct business in
China. It can help the parent company retain ownership of the mark and control the use of it.
Licensing can help its local partner obtain proper authorization to use the mark.
However, according to China’s Trademark Law, trademark rights are regional and only the owner
of a trademark successfully registered in China is entitled to the exclusive right of that trademark.
Therefore, if the trademark was not properly registered in China, it would still be difficult for
the company to obtain protection for the trademark.
There are two models of exclusive trademark licensing. One is the traditional exclusive license,
under which only one licensee has the right to use the trademark under license within a certain
scope of use and during a certain period. Another model is a sole license, where both license and
the trademark owner have the right to use the trademark.

Store
Design

Victoria’s Secret
Shanghai pop-up store
Side view
Front view
The area around Grand gateWay 66 shopping mall has a daily visitors flowrate of approximately
240,000 on weekdays and 420,000 on weekends. With the established brand equity and popularity,
Victoria’s Secret estimates that the pop-up shop will be able to attract around 65,000 customers
for the first week and 67,000 customers for the second week, with a conversion rate of 30% and
40%, and an average basket of around $60 and $80, respectively.
To celebrate Chinese Valentine’s Day, Victoria’s Secret will build the store environment with
fixtures and decorations that symbolize love. The exterior of the shop is in the shape of a
gift box, designed to suggest that the products of Victoria’s Secret are the best gifts for the
beloved ones. The main fixtures in the shop will be shelves and drawers for displaying the
numerous body care products and beauty cosmetics. Other accessories will be displayed on
the rounded tables in the center of the store.

Sensation
Romance
Ambiance
Sweet
Roses
ENTRANCE
Love
Pink
In-store poster
Store perfume
In-store poster

iPhone
ACCESSORIES
Leopard Patterned
Victoria iPhone Case/Earbud Case/Earbud Pink iPhone Pink Tech
PRODUCT Case Set Set Case Wrislet
PRICE $10.0 $25.0 $25.0 $10.0 $10.0
UNIT (17675) 3635 3385 3385 3635 3635
BODY CARE
PRODUCT
Hydrating Body
Lotion
Sweet Hand
Lotion
Shimmering
Body Mist
Signature
Perfume
Fragrance
Lotion
PRICE $12.0 $12.0 $20.0 $20.0 $12.0
UNIT (45087) 8848 8848 9545 9000 8846
Product
Plan
Home
SOCKS
Angel's Knee Leopard Stipes Knee Sky Blue 3-­‐Piece Sock
Sweet Dream Geometric Pink Storage Geometric
PRODUCT
Socks Knee Socks Socks Knee Socks Set
PRODUCT Throw Pillow pillow Pillow Bin Storage Bin
PRICE $12.0 $12.0 $12.0 $12.0 $12.0
PRICE $60.0 $60.0 $60.0 $60.0 $60.0
UNIT (13808) 2762 2762 2762 2762 2760
UNIT (4971) 994 994 994 995 994
BEAUTY
PRODUCT
Sugar flavored
Gloss
Valentine's
Lipstick
Eyeshadow
Dual Nail Paint
Epic Lash
Mascara
PRICE $10.0 $10.0 $10.0 $10.0 $10.0
UNIT (49710) 10905 9900 9500 8500 10905
BAGS
PRODUCT
Pink Campus
Backpack
Black
Campus
Backpack
Quilted
Duffle
Floral
Backpack
Leopard
Backpack
PRICE $50.0 $50.0 $50.0 $50.0 $50.0
UNIT (6628) 1326 1326 1325 1325 1326
GIFT BOX
PRODUCT
Bombshell Gift
Box
Heavenly
Gift Set
Angel's Gift
Set
Seduction
Gift Set
Lover's Gift
Set
PRICE $60.0 $60.0 $50.0 $50.0 $25.0
UNIT (11930) 2500 2500 2500 2500 1930
SPORTS
ACCESSORIES
Pink Water Green Water Leopard Pink Victoria's
PRODUCT Bottle Bottle Headband Headband Hairband
PRICE $10.0 $10.0 $10.0 $10.0 $10.0
UNIT (19710) 3942 3942 3942 3942 3942
SOCKS
Angel's Knee Leopard Stipes Knee Sky Blue 3-­‐Piece Sock
PRODUCT
Socks Knee Socks Socks Knee Socks Set
PRICE $12.0 $12.0 $12.0 $12.0 $12.0
UNIT (13808) 2762 2762 2762 2762 2760

Promo. Calendar
Promotional
Plan
Pre-Lauch
DURING
Post-Launch
COST
June July Aug 1-22 Aug 23 - 30 September October
Print Advertising
Vogue China $299,000.0
Bazaar $42,000.0
Marie Claire $42,000.0
PR $800.0
Social Media Marketing
Twitter $500.0
Facebook $3,000.0
Weibo $3,000.0
RenRen $500.0
Wechat $500.0
Bloggers $500.0
Pinterest $500.0
Instagram $500.0
Event Marketing
Launch Party $1,000,000.0
One-Day Manager $60,000.0
Total $1,452,800.0
2.20% $66,000,000.00
Prior to the launch, the focus of marketing will be on print
advertising via fashion magazines as most of VS’ Chinese target
customers are fashionistas who pay close attention to fashion editorial
magazines like Vogue and Bazaar.
VS will hold a launch party featuring Angela Yeung, who is a Chinese
model, actress, and singer based in Hong Kong.
VS will adapt to the CHinese demographics by utilizing more of the
Chinese social media platform, Weibo and Wechat, to promote the event.
VS will invite numerous Chinese bloggers and fashion icons to the
party to celebrate the launch as well as Chinese Valentine’s Day.

Victoria’s Secret Facebook
Vogue China
Marketing
Assets
Victoria’s Secret Weibo
Launch Party Flyer

As the goal of the pop-up shop is to increase awareness of Victoria’s Secret among
Chinese consumers, The success of the shop can be measured by the following
three KPIs:
Key Performance
Indicators (KPI)
1. Number of transaction
Total of 46,300 transactions in two weeks
2. People per Day
9,430 footfall per day or 132,000 in two weeks
3. Traffic/Popularity on social media platform (Facebook, Weibo)
More than 25,000 “likes” on Facebook
Increase 20,000 followers on Weibo

Budgeting Plan
Income Statement & Inventory
REVENUES Week 1 Week 2
Merchandise 1,170,000 2,144,000
Financial
Plan
Week 1 Week 2
Footfall 65,000 67,000
Conversion Rate 30.0% 40.0%
Average Basket $60.0 $80.0
Product Categories % Week 1 Week 2
Body Care 20.0% $41,958.0 $428,800.0
Beauty 15.0% $175,500.0 $321,600.0
Gift Box 18.0% $210,600.0 $385,920.0
Socks 5.0% $58,500.0 $107,200.0
Bags 10.0% $117,000.0 $214,400.0
Sports Accessories 15.0% $175,500.0 $321,600.0
iPhone Accessories 8.0% $93,600.0 $171,520.0
Home 9.0% $105,300.0 $192,960.0
Total 100.00% $1,170,000.0 $2,144,000.0
Product Categories Average Price Week 1 Week 2
Body Care $15.0 2797.2 28587
Beauty $10.0 17550 32160
Gift Box $50.0 4212 7718
Socks $12.0 4875 8933
Bags $50.0 2340 4288
Sports Accessories $10.0 17550 32160
iPhone Accessories $15.0 6240 11435
Home $60.0 1755 3216
Total 57319 128497
Product Categories Average Cost Week 1 Week 2
Body Care $6.8 $19,021.0 $194,389.3
Beauty $4.5 $78,975.0 $144,720.0
Gift Box $22.7 $95,612.4 $175,207.7
Socks $5.4 $26,325.0 $48,240.0
Bags $22.7 $53,118.0 $97,337.6
Sports Accessories $4.5 $78,975.0 $144,720.0
iPhone Accessories $6.8 $42,432.0 $77,755.7
Home $27.3 $47,911.5 $87,796.8
Total $442,369.9 $970,167.1
EXPENSES Week 1 Week 2
COGS $529,428.9 $970,167.1
DESIGN OF SPACE $500.0 $500.0
BUILD OF SPACE $75.0 $75.0
FIXTURES $1,000.0 $1,000.0
WAGES $680.0 $874.2
RENT & UTILITIES $650.0 $650.0
LOGISTICS $780.0 $780.0
PROMOTIONAL ACTIVITIES $726,400.0 $726,400.0
LEGAL & PERMITS $250.0 $250.0
HOTEL & FLIGHT $1,500.0 $1,500.0
TOTAL EXPENSES $1,261,263.9 $1,702,196.3
EARNINGS (BEFORE TAX) -­‐$91,263.9 $441,803.7
$350,539.8
UNITS
Product Categories Week 1 Week 2
Body Care 15600 28587
Beauty 17550 32160
Gift Box 4212 7718
Socks 4875 8933
Bags 2340 4288
Sports Accessories 17550 32160
iPhone Accessories 6240 11435
Home 1755 3216
AVG UNIT PRICE
Product Categories Week 1 Week 2
Body Care
Beauty
Gift Box
Socks
Bags
Sports Accessories
iPhone Accessories
Home
$15.0
$10.0
$50.0
$12.0
$50.0
$10.0
$15.0
$60.0
REVENUES
Product Categories Week 1 Week 2
Body Care $234,000.0 $428,805.0
Beauty $175,500.0 $321,600.0
Gift Box $210,600.0 $385,920.0
Socks $58,500.0 $107,200.0
Bags $117,000.0 $214,400.0
Sports Accessories $175,500.0 $321,600.0
iPhone Accessories $93,600.0 $171,520.0
Home $105,300.0 $192,960.0
Tot. Projected Revenue $1,170,000.0 $2,144,005.0

PESTEL Analysis of China
Political Analysis
China is able to carry out policy without hindrance
China is a socialist states and endorsing communism. It is under the leadership of the
Communist Party of China since 1949. The decisions on the country have been imposed
smoothly without going through negotiation and deliberation. There are over 70 million
members in CPC in the country and the party is presence in every part of the government
and even in grassroots levels. Therefore CPC is able to influence any policy from policy
framework to implementation.
Appendix
Strong geopolitical influence
China has a close relationship with many countries, especially in Africa. The value of
trade between China and Africa rose from $40 billion in 2005 to $200 billion in 2012.
Furthermore, China has been given the access to oil reserves in many African countries.
Many developing nations like Nigeria and Chile keep the Chinese currency as a reserve.
Thus showing the importance of China in global economy. China is also gaining its
influence in South and Southeast Asia as China is building ports and roads in order to
access the natural resources. It has also established seaports and naval bases in South
Asia to enhance its dominance.
Roiled Relationship with Japan
China’s relationship with Japan has always been rocky due to the conflict over the
ownership of the Diaoyu Island in the East China Sea. The water around the island is
reported to be rich in fish and contain oil and gas reserves. The conflict between two
countries influences both people and aroused nationalistic sentiment. Incidents like
Chinese boycotting goods and components from Japan. The relationship is unlikely to
improve in the near future.

Unstable Relationship with Philippines
China and the Philippines have disputes over the Scarborough Shoal island recently with both nations’
ships and fishing boats sailing near the island constantly. The risk of armed conflict increases as the
US is studying a military presence in the area in response to prevailing tensions. Disputes have led China
a target for international criticism.
New political leadership
In March 2013, a new generation of leadership started in China as Xi Jinping was made the chief of state
and Li Keqiang was made the premier. Hopefully this will bring a new dimension to economic reforms
and policies. The government has already set up task forces to reforms. Reforms are in the fiscal
system, income, production prices, land ownership and the financial sector. These moves will help the
economy to move towards sustainable and equitable growth in the future.
Lack of freedom of expression
China has been criticized of taking severe action to the people who have any anti-government activities.
CPC officials have been accused of using abduction, home confinement and physical torture against
activists. Besides, the government strictly blocks and monitors websites that involve discussion of
Tibet, the Tiananmen Square protests, Falun Gong and other sensitive topics. The lack of freedom in
express is likely to affect innovation and creativities in the medium term.
Economic Analysis
Strong economic fundamentals
China has maintained strong economic growth for years with average GDP over 10% from 2004 till
2012. Besides, its foreign exchange reserves were $3.66 trillion in 2013. This impressive number helps
an economy to mitigate external shocks emanating from the global macroeconomic environment.
Government debt stood at a healthy 22.3% of GDP in 2013. While external debt was around 9% of GDP,
which reduces exposure to volatility in the global market. In January 2014, China’s unemployment rate
at 4.1%, which is reasonable considering the global economic environment. Cheap and enormous pool
of labor has given the strength in manufacturing competitiveness. China is now the world’s largest
exporter and the second largest economy. It has very good economic fundamentals that can reduce
any impact from international crisis if any.
High inflow of foreign investment
Foreign investment is the major force in driving China’s rapid economic growth. China has been
shifting the deployment of foreign funds from quantity to quality, wanting to optimize the existing
utilization structure.
The total FDI stock of China (a measure of foreign direct investment) has reached $1.8 trillion in 2011,
which is one of the largest recipients of FDI in the world. Majority of the FDI goes to manufacturing,
real estate and service sector. The Chinese government has been carried out measures to ensure it is
one of the favorite destinations for FDI.
Lopsided growth
Gross fixed investment is the largest component of China’s economy. It accounts for 45.16% of GDP in
2012. Private consumption is extremely low comparatively. The level of private consumption has dropped
sharply during the past decade. As a result investment spending has become another major reasons
alongside with export for economic growth. If China wants to maintain the growth in long run, a
more balanced growth from different sectors is necessary.
High dependency on manufacturing exports
China is highly dependent on manufacturing exports. The exports value added by manufacturing is
one of the highest in the world. The downside of manufacturing exports is that it is more sensitive
to factors like over capacity during economic downturns. In other words, China’s economy is more
vulnerable to external shocks. Besides, shortage in service supplies constraints consumption. If the
service sector is going to develop, it will create far more job opportunities compares to others due to
its nature
Textile Industry and Textile Industry 12th Five Year Development Plan
In January 2012, China issued Textile Industry 12th Five Year Plan. The plan includes developing new textile
material industry, high-end textile equipment manufacturing industry, high-performance technical
textile industry and some traditional industries. Besides, it also emphasize industries transfer and
encourage textile industries to transfer from eastern to middle and western areas of China. Some local
government in middle and western areas have launched support policies. In addition, the government
also encourage private textile enterprises to go abroad by strengthening overseas investment service
and administration, simplifying the application process, encouraging domestic financial institute to
increase financial support, as well as providing taxation incentives.

Off budget debt
There is an increased concern on the high off-budget debt of local government. Companies owned
by local government undertook most of the infrastructure projects under the stimulus package by
the central government. These companies borrowed money from the banks to finance the projects.
Moreover, the debts of local government agencies in running schools, health care centers are not
included in official records. According to estimates by OECD, the stock of local authorities off budget
debt doubled to 10% of GDP in 2009.
Social analysis
Increase in life expectancy and decrease in infant mortality
China’s average life expectancy rose from 32 years in the 1950s to 74.99 in 2013. The infant mortality
rate dropped from 0.032% to 0.0152 over the same period. The collective medical care system has been
gradually replaced by a more individual-oriented approach.
Extension of the social safety net
The 12th five-year plan intended to extend the social safety net by increasing social welfare payments,
raising wages and improving healthcare. It plans to increase wages by 40% by 2015 to bridge the income gap.
This can reduce the need for preventive saving and boost spending and consumption. The government
was successful in expanding the new rural pension scheme to over 60% of the provinces and has raised
the payments in basic pensions and unemployment benefits.
Large pool of labor
China has a population of over 1.3 billion and is the largest in the world. Currently the active labor
force is around 780 million which is an advantage for its economy type which requires huge labor
force.
Urban migration
As a result of rapid industrialization, the rural labor force has shifted toward urban areas to search
for better opportunities. Labor migration has become vigorous. However, employment in agriculture
in rural areas has fallen as a result and less people are dependent on income from agriculture. Besides,
because of the large-scale migration to urban cities, many of them became the most populated cities in
the world, with large number of unemployment as well.
Migrants work for an average 54 hours per week, which is above the statutory limit of 40 hours per
week. Furthermore, employment and working conditions of migrant are worse than local residence
and are excluded from social security as the schemes are linked to one’s residence status within the
Hokou system.
Due to urban migration, there is a huge gap in terms of economic development and regional GDP per
capita. East and southeast China are much more developed than the north and the west. The government
should act more aggressively to develop various provinces in order to tackle the challenge of
migration.
Aging population
The one child policy in China is creating an increasing number of problems. Aging population is
one of them as the growth in elderly population is much faster than the birth rate. This will put
pressure on the social security and healthcare system. By 2050, the number of people aged 65 or over
will increase to 38%, a substantial increase from 11% in 2011. From the economic point of view, it will
reduce productivities and create a huge problem as the Chinese economy relies heavily on young and
cheap labor. China may lose it competitiveness and become huge obstacles in economic growth.
Gender imbalance
According to the census date by the National Bureau of Statistics, the sex ratios is 117.7 boys for
every 100 girls in 2012. It is highly skewed by international standards. There are concerns that gender
imbalance will lead to an increase in sexual violence, human trafficking and crime that ultimately lead
to social unstable. It is estimated that by 2020, the number of men aged 20 - 45 will exceed the number of
women of the same age by 30 million. This could result in serious social impact.

Technological Analysis
Large number of R&D institutions
In China, there are around 5,500 state-owned R&D institution, 3,400 research institution associated
with universities, and around 13,750 institutions associated with large industrial enterprises. China
also spent CNY 1.02 trillion on R&D in 2012 and R&D expenditure was at 1.97% of GDP in the same year.
The abundance of R&D institution and the support from the government will be positive for the
technological future.
International co-operation
China is a member of over 1,000 international scientific organizations. A number of scientists in the
China Academy of Science hold key position in that organization. Chinese researchers also hold close
to 300 advance level positioning international scientific and technological organizations, which
shows that China has an increased international influence in the field.
Environmental Analysis
High pollution levels
Coal is the China’s primary energy source and is the biggest cause of its high levels of environmental
pollution. Thus, increase in the manufacturing capacity has contributed a great deal to worsening of the
situation. The developmental approach has resulted in soil erosion, deforestation, and desertification,
making a severe ecological imbalance. Even though repeated government intervention, this situation
has not improved a lots. According to some evaluate, China surpassed the United States of America as
the largest emitter of Carbon Dioxide that is one of the main greenhouse gases believed to result to
global climate change. According to MarketLine, China’s Carbon Dioxide emissions rose by 15.49% in
2010.
Water Contamination
According to Ministry of Water Resources, about 40% of rivers were polluted; tons of sewage and
wastewater were released in 2011. This highlights the lack of oversight by sovereignty like a lack
of monitoring have a very deep impact of water quality. This highlights the lack of oversight by
sovereignties like lack of monitoring have deep impact on water quality.
The water contamination has also led to higher incidences of cancer along waterways and according
environment ministry in China has reported about 118 cities, and the groundwater 64 cities was
dangerously contaminated. Furthermore, the vice minister of Ministry of Water Resources reported
that 20% of the country’s rives had become venomous, and contacted with them could be baneful to
life. Thus, Chinese government has imitated steps to tackle this problem.
Soil contamination
China suffers from soil contaminations, mainly from arsenic and heavy metals cause to excessive mining
and dumping. In China, around 70% of the world’s arsenic is found and arsenic contamination has
been exasperated by heavy mining for coppers, gold, and other minerals that could effected arsenic to
rise to the surface. People also concern about use a lot of pesticides, fertilizers and chemicals moving
up the good chain.
According Economic information Daily in 2012, pollution is making losses of $3.23 billion USD and
agricultural proceeds loss of 12 billion kilograms every year. Only if the Chinese government takes
concrete steps to lighten soil contaminations cause the solid damage could be hit China hard in the
medium term.
Balance between growth and environmental sustenance
In China, the industrial and technological advances made in recent years have contributed immensely
to its aspirations for growth. At once, agricultural land has been used to set up a large number of
factories could effect in the production of venomous waste, chemicals and other hazardous materials,
which pose a great threat to the country’s environment. The Chinese government will soon be facing
serious problems if growth is not balanced with ecological conversation.
Weak intellectual property rights enforcement
China has a very bad record in protecting intellectual property rights. Its poor IPR practices were
submitted to the Office of the United States Trade Representative in February 2013 by the International
Intellectual Property Alliance and the National Association of Manufacturers. There is prediction
that if China IPR protection improves, the U.S. economy will gain about $107 billion and create over 2.1
million jobs.
Lack of information sharing and transparency
Credibility in both scientific data and data used to evaluate policies are lacking in China if people want
to evaluate policies. Lacking in transparency and credibility is reducing the efficiency and effectiveness
of government funding. Besides, lacking in transparent data and facilities for centralized information
sharing is a huge obstacles to implement effective policies.

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