Victoria’s Secret has partnered with China-based Regina Miracle International to form a joint venture that will operate all Victoria’s Secret stores and its related online business in China. Under the terms of the agreement, Victoria’s Secret will control 51% of the organization and receive $45 million in cash from Regina Miracle as consideration for its investment.
Victoria’s Secret and Regina Miracle have worked together as retailer and supplier for more than 20 years. The launch of a deeper partnership is part of multi-year repositioning of Victoria’s Secret’s international business, with the goal of boosting sales and earnings in China over the next several years. The retailer currently operates 29 full-assortment stores and 36 Beauty & Accessories locations, which feature a more focused selection of products, in the country.
“Together with Regina Miracle, we aim to grow the China business through joint investment in product development, distribution and marketing,” said Martin Waters, CEO of Victoria’s Secret in a statement. “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.”
“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,” said YY Hung, Chairman, CEO and Executive Director of Regina Miracle in a statement.
Working with international partners was one of the key strategies Alibaba outlined for U.S. retailers looking to expand in China during its session at NRF 2022. Christina Fontana, Director, Strategic Partnerships at Alibaba Group, noted that selling to a massive country like China requires retailers to target shoppers who share their values — and no one knows a population’s preferences like a local company.