In 2008, when Victoria Beckham presented her first collection of just 10 dresses in a luxury hotel suite at New York's Waldorf Astoria, she was met with skepticism by some of the world's most influential fashion editors. “I've spent my whole life wanting to do this,” he told the crowd. ”
“It's something I've always dreamed of ever since I customized my school uniform when I was 7 years old,” she said. “Then the Spice Girls came along and opened a lot of doors for me. And to be honest, a lot of things closed down. But those days are over. The World's Greatest Singer I didn't plan on becoming one, but I hope I can become a good designer.”
The debut dress immediately impressed editors, who called the design “classy” and “sophisticated.” trend' Runway Editor said that Beckham's sheath and shift dresses “will sell not on the power of her name but on the sophistication of their cut and fit.”
Since then, Beckham's designs have been worn by Lady Gaga, Meghan Markle, and Kendall Jenner, to name a few of her celebrity fans.
But it hasn't always been smooth sailing for the business, which has posted a loss every year since launching in New York 16 years ago. Victoria Beckham's losses totaled more than £65 million (about $82 million), with David Beckham's company injecting millions of dollars to keep it afloat.
Now, Victoria Beckham's designs, previously out of reach for most, have hit the high street in a capsule collaboration with Mango.
The deal is expected to make Victoria's business profitable for the first time, and there is also speculation that Victoria, known simply as VB in the fashion industry, could one day surpass her husband in money-making potential. .
It's impossible to know how wealthy the Beckham family is. The couple primarily live in a £30 million whitewashed townhouse in west London, but also own an apartment in Dubai's Burj Khalifa, a villa on nearby Palm Jumeirah, and a supermarket called Seven. He also owns a yacht, which together makes him rich. 425 million pounds ($600 million). This puts them in 325th place in the latest comprehensive estimates by the Sunday Times Rich List.
The report said the bulk of David's wealth came from selling a 55% stake in his brand management company DB Ventures to US company Authentic Brands for £200m.
David joins the names of stars such as Elvis Presley and Marilyn Monroe. Their brand is part of the Authentic Group, which also includes Reebok, Juicy Couture, Hunter Wellington Boots, and more.
The latest accounts of his company DRJB Holdings (short for David Robert Joseph Beckham) show that pre-tax profits have fallen from 23.6 million pounds, but 2022 sales will start at 34 million pounds (approximately $43 million). This has more than doubled to £72.6 million (approximately $91.7 million). million ($29.8 million) to £10.8 million ($13.6 million) due to increased administrative expenses. The company paid a dividend of £827,500, down from £6.3m in the same period last year.
DRJB includes Studio 99, his TV production business that produced Netflix's four-part “Beckham” documentary, which reached the top spot in 59 countries, and the Ronnie O'Sullivan biopic “The Edge of Everything.” contained.
Victoria Beckham, which has expanded beyond fashion to include bags, fragrances and beauty products, will see revenue rise 44% to £58.8m ($74.3m) in 2022, with a pre-tax loss of £5.9m to £3.10m. It was reduced to 10,000 pounds.
At an operating level, losses fell from £3.9m to £0.9m, indicating progress on the path to profitability. The directors declared, “2022 will be a turning point for the group to become profitable.'' However, the couple and their minority investor private equity firm NEO Investment Partners have injected a further £6.9m since the end of the year.
David Belhassen, founder and managing partner of NEO, who invested £30m in VBL for an undisclosed but significant minority stake in 2017, said: WWD It recently reported a 50% increase in sales and a “significant doubling” of profit before expenses in 2023.
“VB House is now fully operational and a reality. When Victoria and I partnered, it was a dream and it has become a reality. We now have only the sky as our limit. “We are embarking on a new phase,” he said.
Her Victoria Beckham Beauty business reported tripling its customers in 2022 and won 28 industry awards. The best seller is her satin kajal liner, currently available in 17 colors.
Jonathan Siboni, chief executive of data intelligence firm Luxurinsite, said many in the fashion industry were premature in dismissing Beckham as “just a Spice Girl, not a businessman”.
“But they couldn't have been more wrong,” he said. “The brand succeeded because of her. She fought back, evolved, and showed tremendous resilience.
“There was definitely a time when brands were lame and produced things that didn't work,” he said. “But just like David Beckham as a footballer, you can't be the best all the time. It's not one game or one season that matters, it's the big picture.”
Mr Siboni said Victoria had managed to create a brand that was “her vision, but also more than just her”. “In fashion, some brands cannot survive without their founders, while others, like Dior and Chanel, continue to thrive,” he said.
“She has already taken steps to separate the Victoria Beckham brand from herself, and even if she doesn't appear on TV or social media for months, people will still buy her clothes.”
It's unlikely that she will disappear from our screens any time soon. More than 30 years after the Spice Girls were formed in a stage newspaper ad aimed at 18- to 23-year-olds who were “street-minded, gregarious, ambitious and committed,” Beckham is still a social It is regularly discussed in the media.
Most recently, all five gave an impromptu performance in front of Tom Cruise, Salma Hayek and Eva Longoria at Beckham's 50th birthday party at Oswald's private members' restaurant in Mayfair over the weekend. regrouped for the purpose. On her Instagram she has 39.2 million followers and on TikTok she has 2.2 million followers.
Andy Milligan, founder of branding consultancy The Caffeine Partnership and author of Brand It Like Beckham, attributes much of the couple's success to their authenticity on social media and television. He said that. “Despite their very glamorous lifestyles, they project an image that feels relatable and we can really relate to,” he says.
“There are scenes in the Netflix documentary where David teases her by claiming to be working class, even though her father drives her to school in a Rolls Royce, and a scene in which David teases her by claiming to be working class, even though her father drives her to school in a Rolls Royce, You've probably seen the scene of queuing up.”
Mr Milligan said he expected the Beckhams' business to continue to grow and “will look back on it as a great British export”.
“What they have as a couple is very unusual because they have sports, fashion and popular culture that allow them to dominate both the front and back covers.”
He said the partnership with Mango is likely to significantly strengthen Victoria's brand, as it will “make more of our products available in brick-and-mortar stores in every city I can think of.” said.
Milligan said Victoria has a reputation for choosing effective brands and business partners, and that Mango is an “attractive brand, affordable rather than high-end, that will keep it relevant to younger generations.” He says he works because he can do it.
“Victoria hasn't gotten the credit she deserves as a very smart businesswoman. She's not just a Spice Girl, she's clearly a talented designer and has a great business mind.”
Written by Rupert Neet Wells
