US: VF aims to double Asia revenues to US$2bn
Unveiling the expansion strategy at an investor meeting in Shanghai, the US company said its goal was to add $1.1bn in revenues from the region over the next five years, mainly through growth from its five marquee brands: Timberland, Lee, The North Face, Vans and Kipling.
The target, if reached, would represent an annual revenue growth rate of 17%, based on forecast revenues from the region this year of $900m.
Meanwhile, VF confirmed that it expected revenues from Asia to be up about 20% this year, while revenues from Europe are forecast to increase by low double digits.
“Our Asia Pacific revenues have grown nearly five-fold since 2007 and we continue to see tremendous opportunities for growth in all our brands,” said Eric Wiseman, VF chairman and CEO.
China, which currently comprises about half of VF’s revenues from the region, is expected to take a 60% share by 2017, growing at an annual rate of about 21% on the back of an emphasis on outdoor, youth culture, jeanswear and casual bags.
Meanwhile, revenues from India are expected to grow 22% annually, Japan is forecast to increase by 8% a year, and Korea is scheduled to achieve the highest growth of all – 52% a year.
“Our strategies for growth in Asia Pacific – winning big in China, expanding our footprint within other countries in the region, leveraging our scale and focusing on our largest brands – give us confidence in our ability to reach $2bn in revenues by 2017 in this growing and dynamic market,” said Aidan O’Meara, president of VF Asia Pacific.
“VF has invested heavily and consistently in consumer research in China, which has helped us better understand Chinese consumers and position our brands in a way that speaks to their desires and aspirations.”
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