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.”
Generally, 2013 is seen as being another challenging year for the apparel industry - although there is cautious optimism for an improved business environment. Issues such as compliance, sustainability...
The growing interest in nature and outdoor activities coupled with an increased awareness of the importance of maintaining a healthy lifestyle has raised the profile of the performance outdoor apparel...
Opportunities the apparel industry should focus on this year include developing strategic relationships to improve flexibility across the supply chain; a focus on adding value through design, innovati...
What should apparel firms have learnt from the upheaval of the past couple of years - and what should they be doing now if they want to remain competitive into the future? They need to remain nimble e...
Uncertainty is perhaps the biggest challenge facing the apparel industry in 2013. The economic situation in Europe and the US, a combination of rising production costs and flat prices, the pressure to...
Apparel maker VF Corp has admitted revenue in the year ahead is likely to fall short of long-term expectations, with performance hindered by unseasonably warm weather affecting sales of the North Face...
European activists have been detained by Cambodian police after taking part in a protest outside the E Garment clothing factory near Phnom Penh....
Leading apparel brands from the US are urging the Peruvian government to repeal legislation which allows suppliers to use short-term contracts to employ their workers....
- MYANMAR SNAPSHOT: Textile and apparel industry
- Indian apparel exporters discuss policy changes
- Clothing seen as central focus for new Tesco CEO
- Alliance members buy more products from Bangladesh
- VF Corp bullish for second-half growth
- Crystal Group improves worker communication
- TIMELINE: Charney ousting from American Apparel
- VF Corp books "solid" Q2 performance
- Weatherproof jackets release harmful chemicals"
- UN rights expert urges further Cambodia reforms
- Global market review of denim and jeanswear – forecasts to 2020
- Management briefing: Sourcing shifts: Changes and challenges
- American Eagle Outfitters, Inc. : Reacting to a need for change
- Ethiopia – the emerging textile and clothing industry
- Plunkett's Apparel & Textiles Industry Almanac 2014: Apparel & Textiles Industry Market Research, Statistics, Trends & Leading Companies