Rihanna’s lingerie line Savage X Fenty has raised $125 million in new funding

2022-07-31 0 By

On January 26, Savage X Fenty, the lingerie company founded by Rihanna, announced that it has closed a $125 million Series C funding round.Just last weekend, Savage X Fenty opened its first physical store at the Fashion Show in Las Vegas.The funding round, led by investment manager Neuberger Berman, will support brick-and-mortar retail and overseas expansion plans, as well as new product lines.To date, Savage X Fenty has raised $310 million in cumulative funding.Previous investors include L Catterton, a private equity fund of LVMH Group, Avenir Growth Capital, a private equity fund based in New York, and Marcy Venture Partners LLC, the Venture Capital arm of rapper Jay-ZAnd asset manager Sunley House Capital participated in the round.Other new investors include LionTree, the boutique investment bank, Abu Dhabi Growth Fund and Multiply Group.Savage X Fenty in Las Vegas is a purple outlet where customers can shop for lingerie, casual wear and accessories.The store is divided into five rooms that display goods and mauve mannequins modeled after real people with different body types.Customers will also be invited to participate in the store’s “interactive experience” and “photo-worthy moments,” according to Savage X Fenty.”Savage X Fenty has seen incredible growth since its debut in 2018, and this new direct-to-consumer experience is the next step that will bring consumers a more comprehensive brand expression,” said Savage X Fenty.According to Christiane Pendarvis, Co-president of Savage X Fenty, since its launch as a direct-to-consumer Internet brand in 2018, Savage X Fenty has seen a 150% cagR in sales revenue.Savage X Fenty plans to open four more stores in the first quarter of 2022, bringing the total to 10 by the end of the year, according to Co-presidents Christiane Pendarvis and Natalie Guzman.The next Savage X Fenty store will be in Culver City, Los Angeles, where Savage X Fenty is based,Next up are Galleria Mall in Houston, King of Prussia Mall outside Philadelphia and Pentagon City’s Fashion Centre in Virginia.Savage X Fenty waited until its loyalty program reached 1 million members before opening its first store, Natalie Guzman said of the store’s location.”Locations are based on areas where we have a high density of VIP customers and need to be close to where they shop,” he said.”Data is very important to us and drives us to expand our business.”In response, Christiane Pendarvis said: “We will start with a limited number of stores that are a small part of our business.This is to make sure we get the right mix of recipes and varieties for our stores.It’s been a curious year of testing and learning for us, and you’ll see where we go next year.”According to market research firm NPD Group, the women’s underwear market has continued to grow since before the COVID-19 pandemic in 2019.In 2021, the U.S. women’s lingerie market reached $15.8 billion, up 34% from 2020.Jessica Ramirez, a retail research associate at Jane Hali & Associates, a market research firm, says Savage X Fenty is benefiting from good timing and strong star power.Savage X Fenty, she says, comes at a time when the lingerie market is challenged to change, taking away the concept of sexiness and giving it a new meaning, “a long-missed opportunity for Victoria’s Secret, leaving market share open for new brands with new ideas.”Meanwhile, Ramirez added, “Rihanna’s fans are a huge part of the brand’s success, and with her huge fan base, everything she touches is gold.”While $310 million in VC funding is impressive for a young brand like Savage X Fenty, Victoria’s Secret, which is expected to generate nearly $6.8 billion in revenue by the end of 2022, still accounts for about 40% of the lingerie market.Speaking about Victoria’s Secret, Simeon Siegel, equity research analyst at BMO Capital Markets, said: “Despite having $5 billion in revenue during the pandemic,But Victoria’s Secret has long been seen as a declining brand.But he’s not dead, just very ill and very big.”He believes Victoria’s Secret is now well positioned to cope with new market trends after spinning off from parent L Brands last year.”Victoria’s Secret is much healthier now because we’re seeing the margins go up,” he says.In February 2021, LVMH and Rihanna closed Fenty’s upscale ready-to-wear line.Meanwhile, Savage X Fenty announced the closing of a $115 million Series B funding round led by L Catterton.(See huali Annals historical report for details:LVMH discontinued its fashion line with Rihanna while its fund invested $115 million in her lingerie line.) Since then, Savage X Fenty has made a clear move into the mass market dominated by Victoria’s Secret, Forbes reports.Rather than following in the footsteps of luxury brands such as Agent Provocateur and La Perla.It’s also evident in the location of Savage X Fenty’s first brick-and-mortar stores, which chose mainstream malls over upscale shopping areas like New York’s Fifth Avenue or Miami’s Design District.Introducing technology and emphasizing inclusiveness inside the store, Savage X Fenty will showcase its various sizes on mannequins of different body types.In addition, Savage X Fenty will work with the app Fit:Match to use 3D full-body scans to measure customers and help them find the most appropriate clothes and styles.Natalie Guzman said: “We want to meet the needs of our customers like we do online.”Of course, Savage X Fenty isn’t the first brand to bring technology to the lingerie industry.True & Co, Knix and Thirdlove, founded around 2013, and since then Aerie and Lively, have been pioneers in using data to make comprehensive models and use online testing and digital tools to make precise matches.Like other lingerie startups, Savage X Fenty emphasizes inclusion and body positivity.Savage X Fenty bras come in more than 50 sizes, ranging from pyjamas and lingerie to XS-XXXL.While many lingerie startups like ThirdLove and CUUP feature the idea of inclusive sizing, Christiane Pendarvis believes Savage X Fenty’s inclusive design ranges from a halter corset to intricate lace jumpsuits and panties,Every fashion item at Savage X Fenty comes in a variety of sizes.”Unlike other lingerie brands, Savage X Fenty caters to all sizes, from petite to plus-size,” says Christiane Pendarvis.We’re not just going to offer 40 percent to plus-size customers, we’re going to offer all categories, even crotch free jumpsuits.””Body inclusion is a real driving force for a lot of brands,” says Kristen Classi-Zummo, fashion analyst at NPD Group, referring to what drives lingerie brands.It’s important for consumers to see themselves in the stores where they shop.”Savage X Fenty has built a strong following since its launch in 2018, hosting an annual fashion show on Amazon Prime, where all customers can purchase products.Savage X Fenty was a hit thanks to the likes of Bella Hadid, Travis Scott, Halsey, Big Sean, Lizzo, and Paris Hilton.Savage X Fenty’s show featured hundreds of other models of all shapes, ages, sexual orientations and skin colors.”The adoption of ESG [environmental, social and governance] values is becoming mainstream and a positive sign of The Times,” said Simeon Siegel, equity research analyst at BMO Capital Markets.But that’s not enough.”For the lingerie industry, he says, “at the end of the day, it’s retail, and it’s not enough to just tell a diversity story.The product still has to be good, it has to resonate.”So far, with Rihanna as founder and CEO, Savage X Fenty has really resonated and made waves.Natalie Guzman said: “We focus on confidence and what it means to be sexy and beautiful.No other brand leans toward sensibility and focuses on what fits our style like we do.”Previously, in August 2021, Us business magazine Forbes announced That Rihanna was the richest female singer in the world with a fortune of $1.7bn, second only to Oprah Winfrey in the list of richest artists.Forbes also points out that the majority of Rihanna’s net worth comes not from her singing career, but from her makeup line Fenty Beauty, in which Rihanna’s 50% stake is worth $1.4 billion, and her lingerie line Savage X Fenty,Its stake in Savage X Fenty brought in $270 million.(See “Luxuriant” history report: beauty underwear business boom, Rihanna topped the Forbes list of the world’s richest female singers with $1.7 billion)