(Yicai Global) Dec. 1 -- The Victoria's Secret Fashion Show has seen a continuous drop in the ratings in recent years, and the US TV network CBS ratings of the latest show held in Shanghai on Nov. 20 slumped by 30 percent, said the Hollywood Reporter. The total number of viewers dropped to less than 5 million, hitting an all-time low. Apart from the fall in popularity, the show's sales revenues have also been on a downward trend, according to Chinese online financial media outlet guancha.com.

Founded in 1977 as a niche fashion brand, Victoria's Secret has grown into a first-tier designer, manufacturer and marketer of premium lingerie and beauty products. However, its sales went downhill since 2015. During the first three quarters, the total sales revenue of the brand declined by 9 percent to USD4.7 billion, its parent L Brands, Inc. [NYSE:LB] disclosed in the latest financial report.

L Brands attributes the slump in earnings to the decision to phase out swimwear and clothing from the brand's business lines. The move was intended to allow the firm to refocus on its core businesses, but it failed to deliver the expected results. Victoria's Secret's brand image suffered another blow after the customs in Shanghai seized and destroyed a shipment of Victoria's Secret underwear that contained excess levels of the toxic chemical formaldehyde earlier this year.

Consumers' perception of women's lingerie has changed. In the past, 'sexy' underwear products were the favorites among female consumers. Premium lingerie that shows off the sexy curvy figures of Victoria's Secret angels was extremely popular. However, 'sexiness' has gradually lost its appeal on young consumers, especially 'Millennials' in the US. At least, the younger generations don't think that sex appeal is the only criterion of beauty.

The American upscale lingerie retailer once said that it would not go anywhere outside the US, but it went back on its word to shore up earnings. It entered the Canadian and UK markets in 2012, and opened the first Chinese flagship store in Shanghai in March 2016.

The Chinese underwear market has been growing by almost 20 percent every year, and the annual sales have exceeded CNY100 billion (USD15 billion), of which more than CNY60 billion come from lingerie products, accounting for about 60 percent of the total, Cntac.org.cn reported. Such a huge market is the natural choice for the firm, especially considering its dwindling earnings on the home market.

Victoria's Secret invited the first Chinese fashion model to take part in its annual show in 2009. The number of Chinese supermodels increased to four last year. Furthermore, by incorporating such Chinese elements as Chinese knots, Chinese style stripes and dragons into underwear designs, the firm managed to build a closer bond with Chinese consumers.

Victoria's Secret held its first Chinese fashion show this year. For market insiders, the decision was apparently intended to 'ingratiate' itself with Chinese consumers. A record number (seven) of Chinese models appeared at the show, and the company mounted a marketing onslaught across China. All these suggest that it has long had an eye on the Chinese market.

However, market has its own rules. Victoria's Secret wants to sell underwear designed for the US market to Chinese consumers. Will it work? "Chinese women are different from their American counterparts in body shape and size, and selling the products in China might cause problems," said Khalid Rouissi, executive director for Hong Kong and Macau at Valiram, Victoria's Secret's Malaysian distributor, in 2013.

The company opened a store on a Chinese e-commerce website last year, but it only offers products in US sizes. Chinese shoppers have to convert between Chinese and US sizes, and this is only one of the obstacles encountered by the US brand in China