Year 1: Focus on Product Strategy
In order to penetrate into the Asian market, Victoria’s Secret should focus on product strategy, as the pressure for customization is high in order to offer points of difference to Asian consumers. This can be carefully managed by establishing an R&D team in Singapore to focus on the Asian market. By setting up a human engineering research centre which carries out detailed research into body shapes and sizes and other related areas such as human sensibilities and physiology, centering its research towards Asians, Victoria’s Secret could successfully tailor its products to suit the local market.
Year 2 – 4: Product testing and performance evaluation
With new innovations, Victoria’s Secret can subsequently test its new products via its official website or a new website catered to the Asian market. This allows the company to track and analyze sales, which in turns helps to improve research. In addition, it is important to use the existing physical stores at Resorts World Sentosa and Changi Airport to showcase new products catered specially to the local market.
Performance audit and brand tracking can be done to identify areas of improvement as well as testing the feasibility of the strategies used. Evaluating the performance would help Victoria’s Secret to decide if the company should continue with the geographic expansion strategy and also identify areas that may enhance its expansion efforts.
Year 5: Establish strong brand presence in the region
Full penetration into the Asian market can be done through setting up of physical stores in prime shopping district in the region, namely, Hong Kong, Korea, Japan, Singapore and Shanghai. Victoria’s Secret can also adopt a transnational strategy which strives to optimize the trade-offs associated with efficiency, local adaptation and learning. Local responsiveness can be maintained through periodic brand audits to ensure success in the geographic expansion strategy.
Undertaking geographic extension can be slow and time consuming. Much effort would be required for a successful implementation. However, by introducing high control, brand value would be carefully managed and positive brand equity can be built to cultivate positive responses from the new market. Risk associated with the high initial investment could also potentially affect the parent company in the first few years. However, with the success of expansion, Victoria’s Secret could potentially build strong brand equity in the region and continue to rip profits from such associations in many years to come.