The North Face targets 16% revenue growth rates
Californian outdoor apparel brand The North Face presented its five-year vision and growth strategies at an investor meeting in New York City on 15 December 2010. The company is owned by the VF Corporation and produces technical products for mountain sports and pursuits.
Steve Rendle, president of VF’s Outdoor Americas Coalition and president of The North Face, stated that the brand will build upon its 40-year heritage and commitment to premium and technical outdoor gear to maintain its position as the global outdoor leader. The North Face is targeting a five-year compounded annual growth rate in revenues of 16% to reach $3 billion by 2015.
The North Face has laid out strategies which include: reaching new consumers by focusing on their needs; investing in technology and innovation; driving growth in key geographic markets including Europe and Asia; expanding its global direct-to-consumer platform and promoting outdoor participation.
The North Face product strategy is athlete-tested and expedition-proven. The brand partners with innovative textile companies to develop proprietary and branded materials that deliver specific product solutions for specific consumer activities.
One current example product innovation is the Kishtwar jacket, introduced for autumn-winter 2010, that incorporates an exclusive new fabric, Polartec Power Shield Pro, which delivers a combination of weather protection and breathability.
To drive greater awareness of the brand's stories and products, investments in marketing were increased by 45% in 2010. A media and television campaign to promote the brand's presence during the 2011 Winter X Games was launched in November 2010 and will continue through January 2011.
“In 2010 VF’s Outdoor & Action Sports Coalition will comprise more than 40% of VF’s total revenues and we expect these will continue to be our fastest growing businesses over the coming years,” said Eric Wiseman, chairman and chief executive officer of VF Corporation. “The power and potential of The North Face brand will be a key driver of our growth. The North Face is connecting with its customers in innovative ways and leveraging the full strength of the brand to inspire and enable the next generation of outdoor enthusiasts.”
