Frederick's of Hollywood Needs to Play Dress-Up to Snag Market Share
While all the players in the intimates market give Frederick's of Hollywood (FOH) a run for its money, the 64-year old brand is fearlessly getting into the licensed apparel and accessories business. The problem is that there's no shortage of fragrance, jewelry, footwear and handbags available from its competitors either.
In order to make this new tactic work, Frederick's is going to have to focus on what the competition doesn't have -- costumes. Think sexy policegirl (complete with rhinestone handcuffs), naughty nurse, and the like. Frederick's currently offers a limited selection of such fantasywear and frankly, that's the only segment that's going to give it an edge.
Frederick's dipped a toe in the licensing waters last month with a debut line of swimwear from Blue By Yoo. The California-based manufacturer will distribute the limited edition Frederick's line in department stores, specialty retail chains, boutiques and resort outlets. The company's probably buoyed by the fact that its major competitor Victoria's Secret (LTD) is only sold online and in the brand's stores. And that Blue By Yoo is a swimwear specialist.
But Victoria's Secret is enjoying a major comeback from the recession. Comps are up 12 percent and sales are "up significantly" to over $1.2 million for the first quarter 2010. If the trend continues (and it should as wallets loosen over the summer months), VS will prove to be a formidable opponent. Oh, and it's got plenty of fragrance, footwear, and other accessories to boot. Did I mention makeup? And the teen-driven brand Pink? Frederick's currently only caters to the adult woman.
And let's not forget up-and-comer Agent Provocateur. The U.K. luxury brand is also doing swim -- in sizes A through F for tops with mix-and-match bottoms. Agent's also become rather accomplished at serving up corsets, gloves, even whips for the fetish set.
Another way for Frederick's to set itself apart as a purveyor of more than just provocative panties would be to take its recent digital strategy (developed by WhittmanHart Interactive (WHi) and responsible for boosting sales by 4 percent during the first few months) and push the dress-up games online. Frederick's already has plenty of price points under $50, plus-size options, and the convenience (and privacy) of click-to-buy as opposed to a (sleazy) local porn flick/fetish shop. A little word of mouth and community spirit can go a long way to push those profits back into black.
Image via Fredericks.com
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