When Victoria's Secret left the swimsuit business, direct-to-consumer brands began to thrive

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When Victoria's Secret exited the swimsuit business in 2016, it opened the floodgates for start-ups to conquer that market.

Victoria's Secret exiting the swim business in 2016 has given young brands such as Andie and Summersault a chance to thrive.No one retailer dominates the swim category today.

Then, for the next few days, Merrill said, the ads seemed to get more frequent. With her trip to Belize looming, she went back to Andie's website again, noticed the swimsuit brand offered free shipping and free returns, along with a tool to suggest the best-fitting pieces, and she ended up buying three suits. She kept two of them and sent one back, thanks to a "very easy" returns process, she said.

Lively started as an online lingerie business in April 2016. It launched swim in May 2017, when Grant said she noticed customers were wearing Lively's bralettes, meant for day-to-day attire, on the beach. "Couple that with at that exact same time Victoria's Secret was exiting a half-a-billion-dollar business," she said.

"The most effective direct-to-consumer brands are going after certain demographics," said Web Smith, founder of retail research platform 2PM. "Companies like Andie are going after particular customers, whereas Victoria's Secret is going after all women." "If you make a product women don't want, you can pay all the money in the world to Facebook and Instagram, and people won't buy it," Travis said. "A lot of brands fail when they fail to understand the customer."

 

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