VF Corp reorganizes operations in Asia-Pacific
Following its acquisition of Supreme, VF Corporation, the Denver, Colorado-based owner of brands including Vans, The North Face and Timberland, is reorganizing its operations in the Asia-Pacific zone. With this restructuring, the group hopes to accelerate the growth of its brands in the region, where, even in the midst of the Covid-19 pandemic, the company saw its sales rise 2% in the second quarter ended September 26, 2020, with revenues increasing 21% in continental China alone.
VF Corp's portfolio includes The North Face, Vans and Timberland
As part of this transformation, VF Corp is moving its regional center of operations from Hong Kong to Shanghai, where the group currently employs around 900 collaborators between its corporate office and retail network. VF's Asia product supply hub, which is the base of operations for the company's global supply chain in the region, will also be moving from Hong Kong to Singapore. In parallel, the group will be opening a new shared services center in Kuala Lumpur, Malaysia. The first relocations will take place in April, with the entire process expected to take between 12 and 18 months.
"We established our presence in Asia 25 years ago and have continually shaped our business around the region’s many evolving opportunities. Now, we’re further transforming our Asia operations so we can better serve this fast-moving, technology-driven market with increased speed and capabilities," explained VF chairman, president and CEO Steve Rendle in a release.
By moving the center of its brands' operations to Shanghai, VF is seeking to get closer to its Chinese consumers, while the relocation of the product supply hub to Singapore should allow the company to better integrate the region into its global supply chain, which also includes key hubs in Europe and the Americas.
Due to the impact of the ongoing Covid-19 pandemic, VF saw its revenues fall 18% to $2.6 billion in the second quarter, compared to $3.2 billion in the prior-year period.