CURT HOLTZ PRESIDENT, WORKWEAR, JEANSWEAR & SPORTSWEAR BRANDS
$800M IN 2016
PROTECTOR OF COMFORTABLE, EQIPPED TO A BETTER WAY PEOPLE WHO TOUGH ALL DAY CONQUER YOUR TO WORK POWER THE LONG WORKDAY WORLD #1 brand in #2 brand in work #1 brand in #1 flame- men’s denim footwear automotive & resistant brand laundry Retail & Footwear & Safety apparel At-once B2B apparel apparel expertise expertise expertise service model
WHY INVEST IN WORKWEAR? EXPLOIT FRAGMENTED FINANCIALLY ECONOMIC / UNIQUE MARKETPLACE ATTRACTIVE FISCAL CAPABILITIES CONDITIONS
VF WORKWEAR PORTFOLIO: STRONGER TOGETHER UNMATCHED CAPABILITIES: Strong B2B and B2C brands Retail relationships Supply chain service model Head-to-toe expertise Insights and innovation Scalable digital platform Geographic platform
UNLOCK GROWTH BY LEVERAGING VF EXPERTISE TODAY FUTURE APPAREL EL FOOTWE WEAR B2B APPAREL EL FOOTWE WEAR B2C B2B B2C + + + + + + + + =CAPABILITY FROM ONE + BRAND NOW LEVERAGED ACROSS PORTFOLIO
LEVERAGING INSIGHTS AND INNOVATION INNOVATIONS DOVER, NH GREENSBORO, NC ALAMEDA, CA GLOBAL INNOVATION CENTERS
GLOBAL WORKWEAR MARKET • LARGE $30B • GROWING FOOTWEAR APPAREL $6B TOTAL $24B • UNDER-PENETRATED Sources: IPSOS, VF Workwear Foundation Study & Internal estimates
MARKETPLACE IS HIGHLY FRAGMENTED… A SEA OF A FEW LARGE “OTHER” VF PORTFOLIO COMPETITORS BRANDS
…ACROSS A BROAD SET OF INDUSTRIES… Construction Automotive Healthcare Mining & Utilities Transportation Manufacturing
… AND A DIVERSE SET OF CONSUMERS… WORKWEAR EMOTIONAL KEY UNMET FUNCTIONAL NEEDS SELECTION NEEDS NEEDS Comfort, fit Worry free Breathable Employer at work provides Easy to clean Durable Look and Employee Durable Comfort perform at your chooses Stain best Off the job Source: IPSOS VF Workwear Resistance Foundation Study
…AND TWO MAJOR CHANNELS B2B B2C
INDUSTRIAL ECONOMIC INDICATORS IMPROVING Oil & Gas Rig Count Oil & Gas Rig Count +60% vs. last year Source: Baker Hughes U.S. Rotary Rig Count, Feb 2017 MAR-15 AUG-15 JAN-16 JUN-16 NOV-16 ISM Purchasing Managers Purchasing Index Managers Index 50%+ JAN-15 JUL-15 JAN-16 JUL-16 JAN-17 Source: Institute for Supply Management, Jan 2017
2021 GLOBAL TARGET +4% to +6% CAGR
2021 TARGET BY BRAND OTHER OTHER 20% 22% RED KAP RED KAP 33% 33% GLOBAL WRANGLER 2016 2021 7% WRANGLER +4% to +6% CAGR 6% TBL PRO TBL PRO BULWARK BULWARK 23% 23% 16% 17% RED KAP BULWARK TIMBERLAND PRO WRANGLER WORKWEAR +4% to +6% CAGR +4% to +6% CAGR +4% to +6% CAGR +6% to +8% CAGR
2021 TARGET BY CHANNEL DIGITAL DIGITAL 1% 2% B2C B2C 21% 22% GLOBAL 2016 2021 +4% to +6% CAGR B2B B2B 76% 78% B2B B2C DIGITAL +3% to +5% CAGR +4% to +6% CAGR +34% to +36% CAGR
WHY INVEST IN WORKWEAR? EXPLOIT FRAGMENTED FINANCIALLY ECONOMIC / UNIQUE MARKETPLACE ATTRACTIVE FISCAL CAPABILITIES CONDITIONS
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