Victoria's Secret is expanding its business in China through a new joint venture (JV) with manufacturing company Regina Miracle International Holdings.
Building on the companies' existing partnership, the agreement will see the L Brands-owned lingerie and beauty brand receive a US$45m cash injection from Regina Miracle to expand its product development, distribution and marketing in the region.
The JV will also operate all of Victoria's Secret's stores and online business in China to better serve its growing customer base.
Martin Waters, CEO of Victoria's Secret, commented: “I am delighted to announce this partnership with Regina Miracle, who has been a valued merchandise supplier partner for more than twenty years.
“Together with Regina Miracle, we aim to grow the China business through joint investment in product development, distribution, and marketing.
“We expect the partnership will positively impact the speed and agility of the business to benefit consumers and provide us with a platform for a strong future in this important market.
“This JV with Regina Miracle in China completes a multi-year repositioning of the International business of the Company and we believe establishes a platform for accelerated sales and earnings growth in the market over the next several years.”
The venture follows a rebound in sales for Victoria's Secret last year after a tumultuous period for the business, achieving sales of US$151m in Q2 2021, following its split from Bath & Body Works earlier in the year and a repositioning of brand purpose centred on empowering women and driving positive change.
YY Hung, Chairman, CEO and Executive Director of Regina Miracle, added: “We are honoured and excited to be elevating our long-standing partnership with Victoria’s Secret through the formation of this joint venture in the promising China market.
“We are confident that our highly complementary strengths – Regina Miracle’s industry-leading innovation capabilities and market foresights as an innovative design manufacturer, and Victoria’s Secret’s undisputed brand leadership, retailing and marketing expertise – will perfectly position this partnership in capturing the growth opportunities in China.”
Alongside its lingerie, sleepwear and athleisure offering, Victoria's Secret's fragrance and body care offering includes its Angel, Bombshell and Tease scents.
Subject to regulatory clearance, the deal with Regina Miracle is expected to close in the first quarter of fiscal 2022.