VF Business Model

Introduction

VF Corporation, founded in 1899 and headquartered in Denver, Colorado, is an American worldwide apparel and footwear company. The company’s more than 30 brands are organized into five product categories: Outdoor Action Sports, Jeanswear, Imagewear (which includes 7 For All Mankind, Splendid and Ella Moss), Sportswear and Contemporary Brands (including John Varvatos).

VF Corporation is an American worldwide apparel and footwear company founded in 1899, headquartered in Denver, Colorado. The company’s more than 30 brands are organized into five product categories: Outdoor Action Sports, Jeanswear, Imagewear, Sportswear and Contemporary Brands.

VF operates many well-known clothing brands including Lee Jeans, Nautica (men’s and women’s clothing), Timberland (footwear), Wrangler (jeans) and Vans (skate shoes). VF also owns footwear brands Easton Hockey Company and C9 by Champion.

In 2001, VF Corporation acquired John Varvatos, which expanded its contemporary brands portfolio to include 7 For All Mankind, Splendid and Ella Moss.

John Varvatos is a high-end menswear brand offering fashion forward clothing with a rock n roll edge. The brand has a strong presence in the US, Europe and Asia.

In 2002 VF Corporation acquired North Face, expanding its outdoor category to one of the largest apparel companies in the world. Today, North Face is one of the most well known brands in the outdoor industry.

With more than $3 billion in sales and a 10% market share of an $80 billion global industry, North Face is a leading brand in their sector. The North Face has built its reputation by focusing on product quality and customer service as well as environmental stewardship – all while maintaining a strong identity within its core consumer base: 20-40 year old men who value adventure above all else.

As the global active lifestyle market continues to show strength, furthering its leadership position in these categories is a key priority for the company. With a strong presence in the U.S., China and Europe, VF has built an extensive portfolio of iconic brands that are well positioned for continued growth.

In 2017, VF’s P&A segment generated $3 billion in sales (55% of total revenue), up by approximately $400 million from 2016 due largely to its acquisition of Timberland earlier this year and continued strength in international markets.

With a robust retail platform across approximately 1,100 stores globally, VFC has a large brand presence in key markets around the world including Asia Pacific and Europe.

VFC’s robust retail platform of approximately 1,100 stores globally supports a large brand presence in key markets around the world. The Company’s global distribution network includes more than 800 wholesale customers and over 650 exclusive distributors with operations on six continents.

VFC is well positioned to continue to grow its brand awareness and reach new consumers across Asia Pacific and Europe through its network of global retail stores, key strategic partnerships with leading retailers such as ASICS, Dickies and Samba, as well as collaborative relationships with industry-leading licensors such as DC Comics™ & Warner Bros., Marvel®, Star Wars™ & Lucasfilm Ltd., Disney®, Marvel Studios™ & Walt Disney Pictures®, among others.

Approximately 20% of sales come from its controlled retail platform.

You might be asking yourself: How does VF make money? Well, the company has a strong P&A division with 3 billion dollars in revenue – this represents 55% of total revenue for the company which is pretty much on par with Nike.

In addition to its own retail stores and website, VF also sells its products through wholesale channels such as department stores, sporting goods retailers like Dick’s Sporting Goods (DKS), and e-commerce sites like Amazon (AMZN).

VF is well poised for continued success as an active lifestyle leader

VF’s strong, well-positioned business model is well positioned for continued success in the active lifestyle market. VF is a leader in this market and has a large presence within it. The company’s core strengths include a highly integrated supply chain, efficient retailer relationships, leading brands and proprietary retail concepts, as well as proven expertise in product design and innovation.

Conclusion

VF is well poised for continued success as an active lifestyle leader. The company has the right products, distribution channels and brand awareness to continue its strong performance in this market.