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vf brands VF Brands Global Supply Chain Strategy Operations Strategy Academic Group Amit Mehta PGP- - Gayatri Jaisinghani PGP- - Gurbeer Singh PGP- - Jasdeep Singh PGP- - Vartika Upadhyay PGP- - Archan Thakker PGP- - CIntroduction ? In VF Corporation had

VF Brands Global Supply Chain Strategy Operations Strategy Academic Group Amit Mehta PGP- - Gayatri Jaisinghani PGP- - Gurbeer Singh PGP- - Jasdeep Singh PGP- - Vartika Upadhyay PGP- - Archan Thakker PGP- - CIntroduction ? In VF Corporation had a total revenue of just over billion ? One of the world ? s largest publicly owned apparel company ? Portfolio of powerful brands Lee Wrangler The North Face etc Expanded into Lingerie Entered Jean business through acquisition of Lee Company Reading Glove Mitten Company Changed its name to Vanity Fair Series of acquisitions Blue Bell Jantzen Redkap Blue Bell- Jeans company Jantzen- Sportswear Backpacks Redkap- occupational apparel uniforms CBusiness Growth Expand sales outside US Expand direct to consumer In rapidly developing business countries like Russia India In single brand and China stores In international sale ?? By target of Global lifestyle apparel company with strong of revenues stores globally brands In it grew to - stores annually Acquired new brands with global appeal through series of acquisitions Continue investment in growing ??heritage brands ? like Wrangler Lee Basic apparel Like Jeans CIn keeping with its international expansion strategy the company was emphasizing on the Asian markets for the location of new stores Di ?erent types of Channels Specalty store Domestic international retailers Department stores Di ?erent Coalitions Chains Upscale department stores Mass retailers Royalty income International wholesale - Sales Revenue by Coalition CThe Apparel Industry Global sales of trillion It encompasses the design manufacture and marketing of clothing accessories and personal luxury goods Companies like Nike and Adidas dominated sportswear Highly fragmented competition largest players had single digit market shares larger companies branched out from their traditional ??base ? i Substantial Continuous investments to maintain margins - of sales in advertising CThe Apparel Industry - Trends Large Mass retailing chains Wal-Mart High bargaining power Private Labels Wal-Mart Faded Glory Tari ?s and quotas were slowly reduced Tari ?s and Quotas ? Complex and ever changing ? Di ?erent for di ?erent countries ? Companies chased quotas ? Extremely large base of suppliers ? Responsive to changes After WTO accord Left Supply chains highly fragmented and illogical Production outsourced ? Focused on design marketing ? Labor intensive process ? Few scale advantages ? Low barriers to entry ? Large base of suppliers All the vertical steps to be in a region or a country CBirth of Supply chain service companies Supply Chain globalized US companies Asian Manufacturers Challenges of ?nding and managing suppliers increased Started their brands and retail chains e g Li Fung Co As a result fabric producers in CAFTA region lost market share to imports from China Asian Manufacturers shifted their business model Intermediary b w brand companies a network of sub- contractors CImpact of - recession Impact on apparel Industry ? Total industry revenue fell by ? Many small garment contractors ? razor thin margins no ?nancial cushions ? forced to shut down when volumes dropped ? In China more than small contractors closed Sudden closures