Wei Mi’s expansion in China was due to local defeat.

Since 2016, the company's parent company, L Brands, has recovered the rights to operate more than 20 Chinese stores from its Chinese agents and intends to operate it personally. In March, Shanghai and Chengdu opened two stores, and the Shanghai store is known as “the first flagship store in Asia”. In addition, its opening plans in Hong Kong, Beijing, Chengdu, Guangzhou, Nanjing and other cities are also in preparation. Even this year's Wei Mi big show is sure to be held in Shanghai.

Why did Wei Mi suddenly accelerate the process after years of unswerving business in China?

L Brands released its first quarter earnings report for the new fiscal year. The data showed that the company's sales fell, down 6.8% year-on-year; net profit fell 38% year-on-year. Among them, the same store sales of the brand of Wei Mi fell 14%.

L Brands' explanation for this is that Vimy's withdrawal from the swimwear and ready-to-wear business has had a negative impact on the group's sales. In the first quarter, the company paid $34.5 million for severance payments related to business restructuring, cancellation of fabric contracts, and cancellation of catalogue documents. In addition, the cost of opening stores in China and upgrading US stores have increased the cost in the first quarter.

This is not the decline that occurred in this quarter. In fact, in the past year, L Brands' share price was dragged down by Weiwei's weakening, and the stock price fell more than 30%.

It is understood that in the native United States, Wei Mi is currently being involved in a war of underwear, more and more brands are joining the manufacturing and sales of this market, which means that the loss of brand market share is accelerating, The dominance of the past will not be guaranteed. Therefore, tapping the purchasing potential of emerging markets is particularly important nowadays, especially in the highly-purchasing Chinese market.

When it comes to Wei Mi, it is impossible to mention the Wei Mi show that it has been holding since 1995. Today, Wei Mi has turned this annual lingerie fashion show into a big IP across the fashion and entertainment world. The high-profile "Victoria Angel" models extended by the Vimy brand, as well as the high-volume content generated around the "Victoria Angel", add a lot of added value to the Vimy brand.

It is undeniable that Wei Mi's big show quickly opened its name in the new market and attracted fans. But how long can such curiosity last? Because of its similarity, the annual Vimy is lost, and the sense of existence is getting lower and lower. Even on weekends, there are few people waiting in line at the door of the secret flagship store of Victoria, the American lingerie brand in Lippo Plaza, Huaihai Road, Shanghai. How to use such a good foundation to firmly grasp the hearts of Chinese consumers? At present, it seems that Wei Mi has not found a good solution.