Vans Ploughing Young People'S Consumer Market Is Expected To Achieve Revenue Of $5 Billion In 2023.

Vans, whose recent performance is soaring, is not satisfied with the status quo.

According to CNBC reports, in the field of sports and life, Vans has recently said that it will plan products and brand image around the lifestyle lifestyle, accelerate international expansion and direct investment, and deepen young people's consumer market.

Under this layout, Vans predicts that by 2023, global sales are expected to exceed $5 billion, and the average annual growth rate will remain between 10% and 12% in the next 5 years.

The company expects to benefit from the continuous improvement of the direct channel, which will earn $3 billion in 2023 and account for 60% of global sales, which means that the annual compound growth rate will reach 13% to 16%.

As the parent company of Vans, VF group includes many brands such as The North Face, Timberland and so on. In the 2017 fiscal year, sports brand annual sales increased by 8% to 8 billion 212 million US dollars.

CNBC reported that in the fiscal year, Vans's sales amounted to about $3 billion 400 million, which was originally the sales target of VF group to Vans in 2021, which is now 4 years ahead of schedule.

To this end, the movement tide card continues to advance, set a goal of breaking the new performance target of US $5 billion in five years.

At the same time, Vans, who started by skateboarding, claimed that the future will be guided by young people and become a lifestyle brand.

"Relevant departments are conducting in-depth research to really understand everything about our consumers," said Kevin Bailey, President of Vans brand, at the analysts' conference in mid September.

In 2004, Vans was bought by VF group for $396 million.

Unlike the popular line of outdoor brands such as The North Face, Vans quickly broke through the initial positioning of "skateboard shoes", aimed at the young market and brought more popular elements into the brand.

After the pformation movement, Vans avoided the positive confrontation with Nike, Adidas and other giant brands in the professional sports market, and gained the popularity of the consumer market in recent years.

Since 2015, Vans has become the "top card" to boost revenue growth of its parent company. Sales account for 17% of VF group's total revenue and become the most successful sub brand.

In 2017, Vans continued to be strong, sales grew 19% year on year, and the two core brands The North Face and Timberland contributed only 4% and 2% of sales growth.

It is worth noting that Vans's performance has continued to grow over the past 10 years.

Since 2004, its global sales have increased from 360 million to more than $3 billion, and gross margin has increased from 48% to 60%.

Footwear industry analyst Sam Poser, when discussing the strong trend of Vans, pointed out: "the sales of sports shoes are very hot now, but not everyone likes Nike basketball shoes. Different consumers love different styles. Vans is a brand that can make consumers younger, cooler and more sexual."

Since last year, the VF group has entered the 5 year strategic reorganization plan, and the continuous growth of Vans has given hope to sports products.

To this end, in 2018, the group began to expand sports category formation, has acquired New Zealand sportswear brand Icebreaker and running shoes brand Altra.

In August, VF group even announced plans to divest the $2 billion 500 million annual denim clothing business, including its well-known brands Lee and Wrangler.

This means that the group will focus on sportswear, outdoor clothing and footwear business, and Vans will receive more attention.

"Separating this part of the business enables the group to focus on consumer centered, develop in accordance with retail thinking and evolve into a lifestyle brand," said Steve Rendle, chief executive of VF group.