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VF Corp hikes spending on China

VF Corp plans to divert more investment toward Asia, with a specific focus on China. China is the company’s fastest growing market. VF Corp’s China revenue jumped by an annual 22 per cent in the year ending March 30, compared with 11 per cent growth for the Asia-Pacific region overall. The company has unveiled a new Asia-Pacific head office on the doorstep of mainland China, where an ecosystem of long-term suppliers and manufacturers enables it to produce some of its high-quality outdoor gear. VF Corp has a network of supply chain partners throughout the Asia-Pacific region, with a significant presence in Vietnam, Cambodia, India, Bangladesh.

VF Corp owns popular brands like The North Face, Vans, and Timberland. Though there is significant room for the growth of VF Corp’s brands in China the amount will depend in part on designing products tailored for the market. The growth in China revenue, and the opportunity to meet Chinese demand with products made domestically, is one reason why VF Corp has no plans to alter its supply chain or manufacturing partnerships in response to the trade war. That is despite the threat of US tariffs on a broad range of consumer goods including those that make up the bread-and-butter of VF Corp’s brands.

 
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