In this story:

• A sexual revolution?
• Changing lingerie's image
• Created by women for women

From CNN Financial Correspondent Sissel McCarthy

LONDON (CNN) -- As they say, sex sells, but in the case of Britain's chic Ann Summers retail outlets and mail order businesses, sex sells a lot, thanks in large part to the company's marketing breakthrough -- the lingerie party.

As Britain's leading independent party plan company, Ann Summers offers customers the opportunity to shop for lingerie and sex aids in their own homes.

The party plan is Ann Summers' most profitable segment, making up 85 percent of total revenues of $65 million last year. Four thousand parties are held every week across Europe, entertaining 2 million women annually.

"It's a fun environment," said party organizer Jacqui Barham. "There's games, and they can order their personal products that they may feel uncomfortable buying in a store."

Chief Executive Jacqueline Gold may be responsible for Britain's sexual revolution. The Ann Summers concept of targeting women was her brainchild.

"We certainly have contributed to changing people's attitudes to sex, certainly the women's attitudes," she said. "Over the last 10 years, women here in the United Kingdom are much more aware of their sexuality; they're more comfortable talking to their partners about what they want from a relationship. They're all positive changes."

Ann Summers has seen a radical transformation over the last 20 years. In the early 1970s, Jacqueline's father, David Gold, and Uncle Ralph bought a small chain of sex shops called Ann Summers.

Jacqueline joined the business in 1979 at the tender age of 19.

"I had no intention of staying here," Gold said. "But I somehow got myself invited to one of those Pepperdee parties, which is ladies clothes selling in a private home.

"These people there knew I worked for Ann Summers and said what a wonderful idea it would be to have a party plan selling sexy underwear for women. We want to buy sexy underwear as well. We want to buy sex aids, but we're too embarrassed to go to a sex shop."

Creating a female-friendly environment was a revolutionary idea in the male-dominated sex industry. Gold took her concept to the all-male board, asking for $70,000 to launch the party network.

"It took a lot of convincing to pursue the board," she said. "Particularly I remember comments like 'this won't work, women aren't even interested in sex,' which made me even more determined to pursue the idea."

Within a year, the operation grew from eight sales organizers to more than 1,000. Today, Ann Summers runs a network of 7,000 self-employed women who earn 30 percent on every item sold.

"The business tends to double all the time," said Barham. "We try at every party to get another two ladies to book parties, so the business is just growing and growing all the time."

The next step was to extend the idea of catering to women from the parties to the retail and catalog business.

"I had a great difficulty in persuading newspapers to run our ads or hotels to run our seminars," Gold said. "There were a lot of difficulties, and it was constantly about educating people that we were changing our image."

Ann Summers' collections are created by an all-women team which designs lingerie, bedroom wear, personal products and novelties.

"The key to Ann Summers' success is giving women what they want, listening to them and delivering it," said senior garment designer Julie Davis. "Not giving them what men perceive they want but giving them what women want."

According to Gold, 60 percent of Ann Summers' retail customers are women, 20 percent are men and 20 percent are couples.

"Everybody likes sex; certainly most people enjoy sex," Gold said. "I think it's just creating the right atmosphere."