Rihanna’s Savage x Fenty isn’t slowing down anytime soon and she has big plans for the brand’s growth. The entrepreneur is partnering with Goldman Sachs to seek 100 million dollars of investment money to scale the brand. The plans are to expand product categories, potentially getting into activewear, and expanding into Europe. The news was reported by The New York Times Dealbook.
Savage x Fenty has both Rihanna’s star name to help catapult it to success, in addition to the waning popularity of Victoria’s Secret, which has been struggling over the past several years, leaving plenty of room for new players in the lingerie market. Savage x Fenty was originally projected to see 150 million dollars in revenue els year, but according to Dealbook the brand still hasn’t turned a profit.
Rihanna launched Savage x Fenty in 2018 as a joint venture with Techstyle Fashion Group. To date, Savage x Fenty has raised 70 million dollars.
Despite the success of her fashion line, Rihanna has received complaints for deceptive billing tactics. Truth in Advertising, a nonprofit organization said that Savage x Fenty “ensnares consumers into unwanted monthly charges,” through a membership plan very difficult to opt out of. Truth in Advertising says they have alerted the Federal Trade Commission about this business practice believing that it violates the Restore Online Shoppers’ Confidence Act.
Still, people are buying Savage x Fenty, as products are known to quickly sell out. Consumers are begging the brand to restock items that typically sell out in a matter of days.