In an effort to increase its presence and boost sales in China, Victoria’s Secret & Co has announced a strategic partnership with Hong Kong-based lingerie maker Regina Miracle International Ltd. As part of the deal, Victoria’s Secret will sell a 49% stake in its China business to Regina Miracle for a cash investment of $45 million. Additionally, the agreement includes the formation of a joint venture, in which Regina Miracle will take over the operation of all Victoria’s Secret stores and online business in China.

This move comes after Victoria’s Secret became an independent company separate from Bath & Body Works last year. By collaborating with a local partner like Regina Miracle, Victoria’s Secret aims to capitalize on their expertise and understanding of the Chinese market to drive sales and expand its reach.

The Chinese market presents a significant opportunity for Victoria’s Secret due to its enormous population and the growing middle class. To better serve Chinese consumers, the partnership with Regina Miracle provides Victoria’s Secret with access to established distribution channels and market presence.

The finalized deal is expected to take place in the first quarter of fiscal 2022. Through this investment, Victoria’s Secret anticipates improving its competitive position in China and accelerating its growth trajectory. By combining Victoria’s Secret’s brand power and iconic imagery with Regina Miracle’s operational capabilities and local knowledge, the joint venture has the potential to become a major player in the Chinese lingerie market.

Victoria’s Secret has been actively working on transforming its image and refining its business strategy in recent years. With a focus on inclusivity and diversity, the brand has introduced new campaigns and collections to cater to a wider range of customers. The partnership with Regina Miracle aligns with Victoria’s Secret’s commitment to innovation and growth, helping to solidify its position in the global lingerie industry.

In summary, the sale of a stake in its China business and the establishment of a joint venture with Regina Miracle mark a significant milestone for Victoria’s Secret in expanding its international presence and capitalizing on the lucrative Chinese market. With the support of a strong local partner, Victoria’s Secret is in an advantageous position to tap into the growing demand for lingerie in China and drive sales growth in the region. This collaboration between two leading lingerie brands holds great potential for success, paving the way for further expansion and development in the future.

Useful Links:
1. Reuters: Victoria’s Secret to expand in China with $45 million joint venture
2. CNBC: Victoria’s Secret to form joint venture in China, will sell 49% stake to Regina Miracle