Preface
Let me begin by saying that I’m a believer in this book. I’ve been practicing the principles Michael and Neil describe in it since I opened my first Limited store in Columbus, Ohio, in 1963. I know their ideas work, and I believe they define the “sweet spot” in virtually every significant brand success today, and will continue to do so well into the future.
A little background on my relationship with Michael, Neil, and The Boston Consulting Group (BCG). Several years ago, I could see that the business model that my colleagues and I had used so successfully for over twenty years—a model that revolved around fast fashion, significant promotions, and dominant real estate positions—would not sustain us into the future. The future was in brands.
At that time, I had never seriously talked to any business consultant or group. A classic entrepreneur, I had relied on my instincts and the lessons of experience. But, having determined that fundamental change was a must, and looking for some outside objectivity, I met with a few of the major business consultancies. Michael Silverstein came from BCG, and I liked him immediately. He is wise, pragmatic, funny, and practical. He gets right to the heart of the issue, and he has sound business judgement. Michael brought in Neil, and they—along with a number of other bright, energetic BCG people—became solid contributing strategic partners. Our business successfully made the shift to brand, and, in 2003, Fortune named us the “world’s most admired specialty retailer.” Our business model works, and we continue to make progress.
One of the major reasons for our success is that we believe in the taste and good sense of the consumer. Nothing is more annoying to me than hearing a buyer say, “I like it, but the customer won’t.” I’ve been shopping the world for over forty years, and I’ve never overreached our customers. They stay with you if you pay them the compliment of acknowledging their good taste. They will reach, in virtually any category, if you create demand. And the consumer is more sophisticated than ever.
In this book, you’ll find this truth in the story of Victoria’s Secret, the world’s best-known, bestselling, and most-profitable lingerie brand. Analysts thought we were crazy when we bought the business. They believed that because American women had always shopped for underwear in department stores, they always would. But I had seen women in Paris, London, Vienna, and Milan buying lingerie in marvelous little boutiques. Those women understood underwear as fashion. I was convinced that American women would, too, and I was determined to design and market a specialty lingerie boutique that would become the best in the world. Over the past twenty years, I believe we’ve done just that. And, as the business has grown, we’ve continued to increase margins by constantly presenting fresh lingerie, fashion, and beauty offerings by creating demand.
The book contains many stories of entrepreneurs and companies that have achieved success with a philosophy similar to my own. I found myself imagining that Howard Schultz of Starbucks had been sitting in the same Italian coffee shop where I had sat many years ago, thinking as I had thought, This is great. They’d love this in America. His insight was about coffee. Mine was about lingerie.
We were both right. American consumers do love wonderful goods and will pay a premium to buy them. They’ll trade up. All you have to do is give them the opportunity.
Leslie H. Wexner
Chairman and CEO
Limited Brands