Blog: Global growth in VF's sights
Leonie Barrie | 24 September 2012
Apparel giant VF Corporation aims to leverage leading brands such as Timberland, Lee, The North Face, Vans and Kipling to more than double its revenues in the Asia Pacific region to US$2bn by 2017.
Unveiling the expansion strategy at an investor meeting in Shanghai last week, the US company said its goal was to add $1.1bn in revenues from the region over the next five years. The target, if reached, would represent an annual growth rate of 17%, based on forecast revenues of $900m from the region this year.
But Adidas has been forced to make dramatic cuts to the long-term revenue targets for its Reebok brand, which has been impacted by lost business in the US and fraud allegations in India. The group now expects Reebok to post revenues of EUR2bn in 2015, down from a target of EUR3bn.
The company has also been dealt another blow after Cornell University said it would end its eight-year contract with the sportswear firm over what it describes as a "gap" in the approach to worker rights following the non-payment of severance to workers at former Indonesian supplier PT Kizone.
There have also been changes to a sourcing deal inked more than two years ago between Li & Fung and Wal-Mart Stores. The shift from a buying agent agreement to a supplier relationship allows the global supply chain manager to offer a range of new services to the retail giant's international markets, including design and replenishment.
The European Commission has taken a step towards reinstating trade preferences for Burma/Myanmar, in a move that would give clothing duty and quota-free access to the European market for the first time since 1997. The plan is to bring the country back into the EU's Generalised System of Preferences (GSP).
But the European textiles industry has expressed concern about the potential impact of an EU decision to temporarily waive import duties on a range of textiles, apparel and footwear products from Pakistan. The move, which is aimed at helping Pakistan's recovery following floods in 2010, would "boost the exports of an industry that doesn't need it," critics claim.
And the Indian government has finally eased rules for foreign ownership in multi-brand store chains - despite widespread protests throughout the country and opposition from within India's ruling coalition. The moves will allow overseas investors to own 51% of multi-brand retail outlets - but come with so many restrictions they may well deter overseas firms from investing in the country.
Confirmation that digital supply chains are top of mind for apparel industry executives came last week with the latest plans from global sourcing specialist Li & Fung....
As a barometer of the issues top of mind for apparel sourcing executives, it is hard to beat the annual Prime Source Forum in Hong Kong. ...
Over the past month, Donald Trump and his team failed to offer any clear plan to ensure Americans would "Buy American, Hire American" - while the British government's attempts to clarify the specifics...
The Bangladesh government was forced to respond late last week to pressure over its crackdown on labour activists after a number of global brands and retailers, including H&M and Inditex announced pla...
- No US rush to Myanmar despite end to sanctions
- Using worker surveys to drive supply chain change
- Where does VF supply chain sit in growth strategy?
- Investment continues in Ethiopia clothing sector
- Rana Plaza four years on – Timeline of change
- Driving ban intensifies Myanmar logistics hurdles
- Amazon wins on-demand apparel manufacturing patent
- Trump bolsters "buy American" with executive order
- Start-ups chosen to re-think fashion industry
- Inditex, Adidas and Patagonia top ethical report
- Global market review of denim and jeanswear – forecasts to 2022
- When Things Go Wrong - A Practical Guide to Managing Common Problems in Apparel Sourcing
- Myanmar - ISA Country Report
- Southeast Asia strategic sourcing review – a focus on Cambodia, Vietnam and Myanmar
- Clothing Market in the Top 5 American Countries to 2021 - Market Size, Development, and Forecasts