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Company > L Brands: Business Model, SWOT Analysis, and Competitors 2023

L Brands: Business Model, SWOT Analysis, and Competitors 2023

Published: Jun 26, 2023

Inside This Article


    In this blog article, we will delve into an in-depth analysis of L Brands, a prominent American fashion retailer, focusing on its business model, SWOT analysis, and competitors in the year 2023. L Brands, known for its iconic brands such as Victoria's Secret and Bath & Body Works, has established a strong presence in the market. By examining its strengths, weaknesses, opportunities, and threats, we aim to provide readers with valuable insights into the company's current standing and potential future developments in the ever-evolving retail industry.

    What You Will Learn:

    • Who owns L Brands and the importance of understanding the ownership structure of a company.
    • The mission statement of L Brands and how it guides the company's overall goals and strategies.
    • How L Brands generates revenue and the key sources of income that contribute to its success.
    • An in-depth explanation of L Brands' business model canvas, dissecting the various elements and how they work together.
    • Insight into the main competitors of L Brands and the competitive landscape within the industry.
    • A comprehensive SWOT analysis of L Brands, highlighting its strengths, weaknesses, opportunities, and threats.

    Who owns L Brands?

    Overview of L Brands ownership

    L Brands, a prominent American fashion retailer, is a publicly traded company listed on the New York Stock Exchange (NYSE) under the ticker symbol LB. This means that ownership of L Brands is distributed among various shareholders who hold its publicly available stocks. Let's delve into the details of L Brands ownership structure.

    Major institutional shareholders

    Institutional investors play a significant role in owning shares of L Brands. These investors are typically large organizations such as mutual funds, pension funds, and insurance companies. As of the most recent available data, some of the major institutional shareholders of L Brands include:

    1. Vanguard Group: With a considerable holding of L Brands stocks, Vanguard Group is one of the largest institutional shareholders. As an investment management company, Vanguard Group operates various mutual funds and exchange-traded funds (ETFs) that invest in L Brands.

    2. BlackRock: Another prominent institutional investor, BlackRock, also holds a significant stake in L Brands. Known as the world's largest asset management firm, BlackRock manages a diverse range of investment funds that include L Brands stocks.

    3. State Street Corporation: State Street Corporation, a leading financial services provider, is another major institutional shareholder of L Brands. With a focus on investment management, State Street holds stocks of various companies, including L Brands, on behalf of its clients.

    Insider ownership

    Apart from institutional shareholders, L Brands also has insider ownership. Insiders refer to individuals who are directly associated with the company, including executives, directors, and employees. These insiders often hold shares of the company as part of their compensation or personal investment portfolios. However, the exact extent of insider ownership in L Brands is not publicly available information.

    Retail investors

    In addition to institutional shareholders and insiders, retail investors also own shares of L Brands. These individual investors, like you and me, can purchase L Brands stocks through brokerage accounts. Retail investors may include individuals who believe in the company's potential, fashion enthusiasts, or those looking to diversify their investment portfolios.


    L Brands is owned by a diverse range of shareholders, including institutional investors, insiders, and retail investors. The ownership structure reflects the widespread interest and confidence in the company's prospects. As a publicly traded company, L Brands provides an opportunity for investors of all types to participate in its ownership and potentially benefit from its success.

    What is the mission statement of L Brands?

    The Mission Statement of L Brands: Inspire Customers and Empower Associates

    L Brands, the parent company of popular brands like Victoria's Secret and Bath & Body Works, has a clear and compelling mission statement that guides its operations and growth strategies. The mission statement of L Brands is to inspire customers and empower associates.

    The first part of the mission statement emphasizes the company's commitment to inspiring customers. L Brands aims to create a unique and delightful shopping experience that goes beyond selling products. By inspiring customers, the company seeks to evoke positive emotions, ignite their imagination, and create a strong emotional connection with its brands.

    L Brands achieves this through its focus on innovation, quality, and customer-centricity. The company constantly introduces new product lines, designs, and concepts to surprise and delight its customers. It emphasizes the importance of offering high-quality products that meet customers' needs and preferences. Additionally, L Brands continuously invests in customer research and feedback to understand their desires, ensuring that its brands stay relevant and inspiring.

    The second part of the mission statement highlights L Brands' commitment to empowering associates. The company recognizes that its success is built upon the dedication and talent of its employees. Therefore, L Brands aims to provide a supportive and inclusive work environment where associates can grow, thrive, and achieve their full potential.

    To empower associates, L Brands offers various professional development programs, training opportunities, and career advancement paths. The company fosters a culture that encourages collaboration, creativity, and innovation. It values diversity and inclusion, ensuring that all employees feel valued and respected.

    Moreover, L Brands understands the importance of work-life balance and wellness. The company provides comprehensive benefits, flexible work options, and wellness programs to support the well-being of its associates. By empowering its employees, L Brands creates a motivated and engaged workforce that is dedicated to delivering exceptional customer experiences.

    In conclusion, the mission statement of L Brands encapsulates its commitment to inspiring customers and empowering associates. Through its focus on creating unique and delightful shopping experiences, offering high-quality products, and fostering a supportive work environment, L Brands strives to fulfill its mission and continue to be a leader in the retail industry.

    How does L Brands make money?

    Retail Sales

    The primary source of revenue for L Brands is through its retail sales. The company operates a portfolio of popular brands, including Victoria's Secret, Bath & Body Works, and Pink. These brands have a strong presence in the fashion and beauty industry, catering to a wide range of customers.

    L Brands generates revenue by selling a variety of products, including lingerie, sleepwear, fragrances, skincare, and personal care items. The extensive product offerings allow the company to appeal to different consumer preferences and capture a larger share of the market.


    In recent years, L Brands has also capitalized on the growing trend of e-commerce. The company has made significant investments in its online platforms, allowing customers to conveniently shop for their favorite products from the comfort of their homes.

    Through its e-commerce channels, L Brands not only reaches a wider customer base but also enhances the shopping experience by providing personalized recommendations and exclusive online-only deals. This digital transformation has proven to be a lucrative revenue stream for the company, as online sales continue to grow year after year.

    International Expansion

    L Brands has strategically expanded its presence beyond the United States, venturing into international markets. By establishing stores in various countries, such as Canada, the United Kingdom, and China, the company has tapped into new customer segments and unlocked additional revenue streams.

    International expansion has allowed L Brands to introduce its renowned brands to a global audience and capitalize on the increasing demand for fashion and beauty products worldwide. This diversification of geographic markets has not only boosted the company's sales but also reduced its dependence on any single market.

    Franchise and Licensing Agreements

    Another way L Brands generates revenue is through franchise and licensing agreements. The company partners with trusted retailers and distributors in select regions to expand its brand presence without directly owning and operating the stores.

    Through franchise and licensing arrangements, L Brands can leverage the expertise and local knowledge of its partners, reducing the risks associated with entering new markets. These agreements provide a steady stream of income through royalties and fees, allowing the company to capitalize on the popularity of its brands while minimizing operational costs and risks.

    L Brands Business Model Canvas Explained


    The L Brands Business Model Canvas provides a comprehensive overview of the company's key elements and strategies. L Brands, a leading retailer in the fashion and beauty industry, is known for its strong portfolio of brands, including Victoria's Secret, Bath & Body Works, and Pink. By analyzing the various components of the business model canvas, we can gain insights into L Brands' approach to generating value and achieving sustainable growth.

    Key Partnerships

    One of the critical aspects of L Brands' business model is its network of key partnerships. The company collaborates with a range of suppliers, manufacturers, and vendors to ensure the availability of high-quality products across its brands. By establishing strong relationships with these partners, L Brands can streamline its supply chain and maintain a competitive edge in the market. Additionally, strategic alliances with celebrities and influencers play a crucial role in enhancing brand reputation and driving customer engagement.

    Key Activities

    L Brands engages in several key activities to support its business model. These activities include brand development and management, product design and development, manufacturing and sourcing, marketing and advertising, and retail operations. By focusing on these core activities, L Brands ensures that its brands remain relevant and appealing to customers. The company invests heavily in research and development to innovate and introduce new products that cater to changing consumer preferences.

    Key Resources

    To execute its business model successfully, L Brands relies on various key resources. These resources include a talented workforce, advanced manufacturing facilities, distribution centers, retail stores, and an extensive digital infrastructure. The company's employees play a crucial role in driving innovation, maintaining brand consistency, and delivering exceptional customer experiences. Moreover, L Brands' physical and digital assets enable it to effectively reach customers across different channels and geographies.

    Value Proposition

    L Brands' value proposition lies in offering a diverse range of high-quality products that cater to customers' fashion and beauty needs. The company's brands are known for their distinct positioning, appealing to different segments of consumers. Victoria's Secret, for example, focuses on lingerie and women's apparel, while Bath & Body Works specializes in personal care and home fragrance products. By consistently delivering on quality, style, and affordability, L Brands aims to create strong brand loyalty and become a top-of-mind choice for customers.

    Customer Segments

    L Brands targets a broad range of customer segments, aiming to capture a significant share of the fashion and beauty market. Victoria's Secret primarily targets women aged 18-35, offering lingerie and apparel that exude confidence and sexiness. Bath & Body Works, on the other hand, caters to both men and women seeking personal care and home fragrance products. By diversifying its brand portfolio, L Brands can reach a wider customer base and mitigate risks associated with relying solely on one segment.


    L Brands utilizes a multi-channel distribution strategy to reach its customers effectively. The company operates an extensive network of retail stores, both standalone and within shopping malls, where customers can experience the brand's products firsthand. Additionally, L Brands leverages e-commerce platforms to provide customers with convenient online shopping experiences. The company also utilizes social media platforms and traditional advertising channels to create brand awareness and drive customer engagement.

    Revenue Streams

    L Brands generates revenue primarily through the sale of its products across various channels. The company's revenue streams include the sales of lingerie, apparel, personal care products, and home fragrance items. Additionally, L Brands earns revenue through licensing agreements and collaborations with third-party brands. By diversifying its revenue streams, L Brands can mitigate risks and capitalize on emerging market opportunities.


    The L Brands Business Model Canvas provides a holistic view of the company's approach to creating value and driving growth in the fashion and beauty industry. By focusing on key partnerships, activities, resources, and customer segments, L Brands maintains a strong market position and continues to evolve its brand portfolio. With a diverse range of products, a multi-channel distribution strategy, and a commitment to customer satisfaction, L Brands is well-positioned to thrive in the ever-changing retail landscape.

    Which companies are the competitors of L Brands?

    Competitors of L Brands

    L Brands, a renowned retail company, faces tough competition in the market. Here are some of its main competitors:

    1. Hanesbrands Inc.: Hanesbrands is a leading competitor of L Brands, particularly in the intimate apparel and hosiery segments. With popular brands like Hanes, Champion, Bali, and Maidenform, Hanesbrands has a strong presence in the market, offering similar products to L Brands.

    2. Gap Inc.: Gap Inc. is another significant competitor, known for its diverse portfolio of brands including Gap, Banana Republic, Old Navy, and Athleta. Gap Inc. competes with L Brands in various segments such as casual clothing, activewear, and accessories, attracting a similar customer base.

    3. PVH Corp.: PVH Corp. is a global apparel company that owns renowned brands like Calvin Klein, Tommy Hilfiger, and Van Heusen. Its portfolio encompasses clothing, accessories, and fragrances, making it a fierce competitor to L Brands in the fashion and lifestyle segments.

    4. American Eagle Outfitters Inc.: American Eagle Outfitters is a popular retailer focusing on casual wear and accessories, particularly in the young adult market. With its flagship brand American Eagle and Aerie, it competes directly with L Brands' Victoria's Secret and Pink, offering similar products and targeting a similar demographic.

    5. Fast Retailing Co., Ltd.: Fast Retailing, a Japanese multinational retail holding company, is the parent company of brands like Uniqlo, GU, Theory, and J Brand. Uniqlo, in particular, competes with L Brands in the affordable fashion segment, offering basic apparel and casual wear to a wide customer base.

    These are just a few examples of the companies that pose strong competition to L Brands in the retail industry. Each competitor brings its own unique strengths and strategies to attract customers, making the market highly competitive. L Brands must continuously innovate and adapt to stay ahead in this challenging landscape.

    L Brands SWOT Analysis


    L Brands, the parent company of popular brands like Victoria's Secret and Bath & Body Works, has several key strengths that contribute to its success in the retail industry.

    1. Strong brand portfolio: L Brands owns well-established and recognized brands that have a loyal customer base. Victoria's Secret, known for its lingerie and beauty products, and Bath & Body Works, known for its fragrances and personal care items, have built a strong reputation over the years.

    2. Extensive retail presence: L Brands operates a large number of retail stores across the United States and internationally. This extensive retail presence allows the company to reach a broad customer base and generate significant revenue.

    3. Omni-channel strategy: L Brands has embraced an omni-channel approach, integrating its online and offline channels seamlessly. This strategy allows customers to have a consistent shopping experience across various platforms, enhancing convenience and customer satisfaction.

    4. Product innovation: L Brands continuously invests in product innovation to meet changing consumer preferences. The company regularly introduces new product lines and collaborates with renowned designers to offer unique and on-trend merchandise, keeping customers engaged and interested.


    Despite its strengths, L Brands faces certain weaknesses that can hinder its growth and profitability.

    1. Overreliance on Victoria's Secret: While Victoria's Secret has been a major revenue driver for L Brands, the brand has experienced declining sales in recent years. L Brands' overreliance on Victoria's Secret makes it vulnerable to changes in consumer preferences and increasing competition in the lingerie market.

    2. Limited international presence: Although L Brands operates internationally, its presence is relatively limited compared to some of its competitors. This limits the company's exposure to global markets and potential growth opportunities.

    3. High fixed costs: L Brands' extensive retail store network comes with high fixed costs, including rent, utilities, and employee expenses. These costs can put pressure on the company's profitability, particularly during periods of economic uncertainty or declining sales.


    L Brands has several opportunities to leverage its strengths and drive future growth.

    1. International expansion: L Brands has the opportunity to expand its international presence by entering new markets or increasing its footprint in existing ones. This would allow the company to tap into new customer segments and reduce its reliance on the U.S. market.

    2. E-commerce growth: The increasing popularity of online shopping presents a significant opportunity for L Brands. By further enhancing its e-commerce capabilities and investing in digital marketing, the company can reach a wider audience and capitalize on the growing trend of online retail.

    3. Diversification into new product categories: L Brands can diversify its product offerings beyond lingerie and personal care products. Exploring new product categories or expanding existing ones can help the company attract a broader customer base and reduce its dependence on Victoria's Secret.


    L Brands faces certain threats that could impact its performance and market position.

    1. Intense competition: The retail industry is highly competitive, with numerous competitors vying for market share. L Brands faces competition from both traditional brick-and-mortar retailers as well as online retailers, which can impact its sales and profitability.

    2. Changing consumer preferences: Consumer preferences are constantly evolving, and L Brands needs to stay ahead of these changes to remain relevant. Failure to adapt to shifting trends and preferences can result in loss of market share and reduced customer loyalty.

    3. Economic downturns: L Brands' performance is closely tied to the overall health of the economy. During economic downturns, consumers may reduce discretionary spending, impacting the company's sales. Economic uncertainties and recessions can also lead to increased competition and pricing pressures.

    In conclusion, while L Brands has several strengths that contribute to its success, the company also faces weaknesses and threats that need to be addressed. By leveraging its brand portfolio, embracing e-commerce growth, and diversifying its product offerings, L Brands can seize opportunities and navigate the challenges in the competitive retail industry.

    Key Takeaways

    • L Brands is primarily owned by its founder, Leslie H. Wexner, who has a significant stake in the company.
    • The mission statement of L Brands is to create an environment where customers can find a range of high-quality, fashionable products and brands that cater to their personal style and beauty needs.
    • L Brands generates revenue through various channels, including the sale of apparel, personal care products, and accessories through its retail stores and online platforms.
    • L Brands' business model canvas involves key elements such as customer segments, value propositions, channels, customer relationships, revenue streams, key resources, key activities, key partnerships, and cost structure.
    • L Brands faces competition from companies like Gap Inc., Hanesbrands Inc., and PVH Corp. in the retail industry, specifically in the areas of apparel, personal care, and beauty products.
    • In terms of SWOT analysis, L Brands has strengths such as a strong brand portfolio and customer loyalty, opportunities like international expansion, weaknesses such as dependence on a few key brands, and threats such as increasing competition and changing consumer preferences.


    In conclusion, L Brands is a well-established company, and its ownership lies in the hands of its founder, Leslie Wexner. The mission statement of L Brands is to create an emotional connection with customers around the world through iconic and beloved brands. As for their revenue generation, L Brands primarily makes money through its various retail stores and e-commerce platforms.

    Analyzing their business model canvas, it is evident that L Brands focuses on building strong relationships with customers, offering a wide range of products, and emphasizing on brand loyalty. Their success lies in their ability to create a unique shopping experience and maintain a strong brand image.

    However, L Brands faces tough competition in the retail industry. Some of its main competitors include companies like H&M, Gap Inc., and Inditex. These companies pose a challenge to L Brands' market share, as they also offer trendy and affordable fashion options.

    In terms of a SWOT analysis, L Brands has several strengths that contribute to its success, such as a strong brand portfolio, loyal customer base, and a well-established retail presence. However, they also face weaknesses such as declining sales in certain brands and the need to adapt to changing consumer preferences.

    Opportunities for L Brands include expanding into new markets and diversifying their product offerings, while threats include increasing competition, economic uncertainties, and changing fashion trends.

    Overall, L Brands is a formidable player in the retail industry, but it must continue to innovate and adapt to stay ahead of the competition and meet the evolving needs of its customers.


    What is SWOT analysis for a brand product?

    SWOT analysis for a brand product is a strategic planning tool used to assess the strengths, weaknesses, opportunities, and threats associated with a particular brand product. It helps in understanding the current position of the brand product in the market and identifying areas for improvement or potential risks.

    1. Strengths: These are the internal factors that give the brand product a competitive advantage. It could include factors such as a strong customer base, unique features or benefits, superior quality, brand reputation, strong distribution network, or effective marketing strategies.

    2. Weaknesses: These are the internal factors that may hinder the success or growth of the brand product. It could include factors such as limited resources, poor product differentiation, lack of brand awareness, weak distribution channels, or negative customer perception.

    3. Opportunities: These are the external factors that can be leveraged to the brand product's advantage. It could include factors such as emerging market trends, untapped customer segments, technological advancements, changes in consumer preferences, or new market opportunities.

    4. Threats: These are the external factors that pose challenges or risks to the brand product's success. It could include factors such as intense competition, economic downturns, changing regulations, negative publicity, or shifts in consumer behavior.

    By analyzing these four elements, a company can identify its strengths to capitalize on, weaknesses to address, opportunities to explore, and threats to mitigate. This analysis helps in developing strategies to enhance the brand product's competitiveness, improve its market position, and achieve sustainable growth.

    How to do a SWOT analysis on a brand?

    To perform a SWOT analysis on a brand, follow these steps:

    1. Identify the brand's strengths: Determine the unique qualities and advantages that the brand possesses over its competitors. Consider factors such as brand reputation, customer loyalty, product quality, market share, financial stability, and any other attributes that give the brand an edge.

    2. Evaluate the brand's weaknesses: Identify the areas where the brand may be lacking compared to its competitors. Assess aspects such as poor customer service, limited product range, weak distribution channels, outdated technology, or any other weaknesses that may hinder the brand's growth or market position.

    3. Analyze the brand's opportunities: Identify external factors that could potentially benefit the brand. Look for emerging market trends, changes in consumer behavior, new market segments, technological advancements, or any other opportunities that the brand can leverage to its advantage.

    4. Assess the brand's threats: Identify external factors that could pose risks or challenges to the brand. Consider competitors' strategies, changing market conditions, economic fluctuations, legal or regulatory issues, or any other threats that could impact the brand's performance or market position.

    5. Prioritize and strategize: Once you have identified the brand's strengths, weaknesses, opportunities, and threats, prioritize them based on their significance and relevance. Develop strategies to capitalize on strengths and opportunities, while mitigating weaknesses and threats. This may involve leveraging the brand's strengths, addressing weaknesses, exploiting new opportunities, and developing contingency plans to overcome potential threats.

    Remember, a SWOT analysis is an ongoing process, and it is important to regularly review and update it to adapt to changes in the market and business environment.

    What are the 5 elements of SWOT analysis?

    The 5 elements of SWOT analysis are:

    1. Strengths: Internal factors or capabilities that give an organization a competitive advantage over others. These can include unique resources, skills, or market positioning.

    2. Weaknesses: Internal factors that place an organization at a disadvantage compared to others. These can be areas where the organization lacks resources, skills, or has poor market positioning.

    3. Opportunities: External factors or market conditions that can be leveraged to the organization's advantage. These can include emerging trends, new market segments, or favorable economic conditions.

    4. Threats: External factors or challenges that can potentially harm the organization's performance or competitive position. These can include competition, changing customer preferences, or regulatory changes.

    5. Trends: Ongoing patterns or developments in the external environment that can impact the organization. These can include technological advancements, demographic shifts, or social changes.

    What is Nestle SWOT analysis?

    Nestle SWOT analysis is an assessment of the strengths, weaknesses, opportunities, and threats of Nestle, a multinational food and beverage company. Here is a breakdown of each component:


    1. Global presence: Nestle operates in more than 180 countries, providing it with a strong global footprint.
    2. Brand portfolio: The company owns a wide range of popular and trusted brands, such as Nescafe, KitKat, and Maggi.
    3. Research and development capabilities: Nestle invests heavily in R&D, allowing it to innovate and create new products that meet consumer demands.
    4. Distribution network: The company has an extensive distribution network, enabling it to reach a large customer base effectively.
    5. Financial strength: Nestle is financially stable, with a strong revenue stream and profitability.


    1. Controversies: Nestle has faced controversies related to its marketing practices, water usage, and labor rights, which have negatively impacted its brand image.
    2. Dependence on developed markets: The company relies heavily on developed markets for its sales, making it vulnerable to economic downturns in those regions.
    3. Product recalls: Nestle has experienced several product recalls in the past, which can damage its reputation and consumer trust.


    1. Growing health consciousness: There is an increasing demand for healthier food and beverages, providing Nestle with opportunities to expand its portfolio of healthier options.
    2. Emerging markets: Nestle can focus on expanding in emerging markets, where there is a rising middle class and increasing disposable income.
    3. Acquisitions and partnerships: The company can explore strategic acquisitions and partnerships to expand its product offerings and enter new markets.


    1. Intense competition: Nestle operates in a highly competitive industry, facing competition from both global players and local brands.
    2. Changing consumer preferences: Consumer tastes and preferences are constantly changing, requiring Nestle to adapt its products to meet evolving demands.
    3. Regulatory challenges: The company operates in various countries, each with its own regulatory framework, posing challenges in terms of compliance and legal requirements.

    It is important to note that this SWOT analysis is a general overview and may not capture all the specific factors affecting Nestle's business.

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