Action Sports Brand with new strategy for growth
American Vans, the original action sports footwear and apparel company under the umbrella of VF Vanity Fair Corporation (USA) has been providing details on its strategy to add USD one billion in revenues over the next five years
Vans expect to reach revenues in the order of USD 2.2 billion by the end of 2016 which translates into an annual growth rate of 13 %. Since Vans was acquired in 2004 revenues were tripled and proves the power of VF’s business model allowing brands to grow profitably and globally while protecting their unique cultures. VF Corporation has invested at Vans in product innovation, geographic expansion and direct-to-consumer platforms to support the future enhancement of Vans as indicated before.
The geographical developments in the major regions will be impressive over the next five years. Growth for the Americas – today responsible for around 70 % of total revenues – is earmarked to generate nearly half of the anticipated USD one billion more sales and will entail a balanced growth across both wholesale and direct-to-consumer channels and a key focus will represent the expansion outside Vans’ core West Coast Market, e.g. New York City and Mexico City where Vans has demonstrated already great success and this will be utilised as epicentres to drive brand awareness. As an example, in New York exists the House of Vans in Brooklyn, a 24000 square feet skate park and event space where special events can take place. In The EMEA (Europe/Middle East/Africa) region Vans is to add USD 350 millions in revenues by 2016 and in 2011 this region generated an exceptional growth rate of 55 % in constant USD. The successful strategy was implemented firstly in Great Britain based on investments in social media, traditional advertising and grassroots events and will now serve as a catalyst to drive continued growth across Europe. Earmarked as the fastest growing region, Asia Pacific (APAC) – in 2011 China accounted for eight percent for Vans’ revenues – that region will triple sales up to 2016 and adding USD 170 million in growth and especially wholesale activities will expand as well as E-commerce.
Across the board also product innovation is important and the new line of LXVI footwear is a corner stone for these projected growth rates