COSTS
The main thing to consider when considering making a new area of sales is the cost. The added risk of starting a plus-size range, and one of the reasons that brands argue against starting plus-size ranges, is that more fabric is needed in manufacture to cater to the larger sizes. This is therefore an important factor to consider. This Racked article discusses the costs and other factors of adding a plus-size range. The graph below, created by fashion design consulting firm Stateless, shows the difference in fabric cost:
Graph created by Stateless (2018)
This is obviously a main concern for brands as it does mean an increase in production costs. However, designer Trudy Hanson estimates that these production costs "for a mass retailer like Gap or Zara, it can be as little as 5% more" - (Refinery 29, 2014). These production costs need to be considered against the profit that would be gained from opening up the availability of products to a whole new demographic. "According to the most recent figures available from market research firm NPD, US sales of women’s plus-size apparel reached $21.4 billion in 2016. The category is also growing substantially faster than the overall US apparel market, at a rate of 6 percent versus 3 percent year over year." - (Racked 2018). This shows that adding a plus-size range would be met by a demographic that are eager to spend.
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For eShakti, a “mass customization” online retailer that offers made-to-measure clothing as well as sizes 0 to 36W, sizes 14 and up account for 52 percent of the company’s sales. - Racked Article (2018)
Another positive of Victoria's Secret creating a plus size range would be that it would be cornering a gap in the market. This is because not many other major brands are catering to plus size needs. "Of the 300 or so brands that showed at New York Fashion Week last season, our analysis found that only 32 offer up to at least a size 16, and 14 produce sizes 22 or above, mostly through partnerships with plus-size retailers or subscription services, and often only in select pieces. Plus size makes up just 0.1% of the luxury market." - (Racked, 2018). Creating a new plus-size range would therefore also be creating a point of difference between most of Victorias Secret market competitors.