Roy Raymond had an inspired idea back in 1977. But it wasn't enough to build a $6bn empire. As the fashion giant prepares for its 2013 show, Naomi Barr tells its story
To understand how novel Raymond's idea was, it helps to have a little context. In the 1950s and '60s, underwear was all about practicality and durability. For most American women, sensual lingerie was reserved for the honeymoon trousseau and anniversaries. For the most part, underwear remained functional, not fun.
Victoria's Secret changed all that, thanks in large part to its catalogue, which reached customers across the country. Nowadays it also has stores across the Americas and has expanded into the Middle East and Europe, with a store opening in London last summer. Its annual fashion show, which takes place in New York tonight, costs $12m, is televised on CBS and makes international stars of its models, known as Angels.
Within five years of founding Victoria's Secret, Raymond had opened three more stores in San Francisco. By 1982, the company had annual sales of more than $4m – yet something in Raymond's formula was not working. According to Michael J Silverstein and Neil Fiske's book Trading Up, Victoria's Secret was nearing bankruptcy.
Wexner quickly saw what was wrong with the business model: in focusing on a store and catalogue that appealed to men, Raymond had failed to draw a large following among women.
