VF targets two billion dollars in sales in Asia by 2017
VF switches into turbo gear in Asia. During a meeting in Shanghai, the U.S. group's management announced its ambitious goals for the region.
By 2017, the company aims to reach the $2 billion sales mark versus the $900 million expected in 2012. That would work out to an annual growth rate of about 17%. The company will push its Lee, Timberland, The North Face, Vans and Kipling brands. And it comes as no surprise that China will be the growth driver.
Also by 2017, the group projects China to comprise 60% of its business in the Asia Pacific region. The group's brands will be available in 6,000 points of sale compared to their current 2,300 door count.
"We have 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," said Aidan O'Meara, president of VF Asia Pacific.
Compared to China, India is considered to be a new market and will only represent 10% of the group's activity in the region by 2017. In Japan, VF expects an annual increase of 8% and in Korea, where the group will open a new subsidiary, they estimate a 52% increase on a yearly basis. "In 2012, we expect international sales to comprise about 37 percent of VF’s total revenues. With the addition of Timberland and the continued strong growth expected in our Asia Pacific and European businesses, we now believe international revenues could account for 45 percent of total revenues by 2017," said Karl-Heinz Salzburger, VF International Group President.
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