The U.S. headquartered apparel group, VF Corp., said the transformation plan for its Asia Pacific operations is focussed on evolving the region’s organisational design and footprint as well as building new capabilities to accelerate growth for its brands. Report by ILM.
As part of its transformation initiative, VF said it will move the centre of its brand operations from Hong Kong to Shanghai, where the company currently employs approximately 900 office and retail associates. VF’s Asia Product Supply Hub, which serves as the base of operations for its global supply chain in the region, will also move from Hong Kong and relocate to Singapore. An additional shared services center for the region will be established in Kuala Lumpur, Malaysia. VF said it will activate a phased transition plan to guide these relocations over the next 12 to 18 months, with the first moves expected in April 2021.
By placing its brands’ centre of operations in Shanghai, VF said it aims to forge stronger and more relevant relationships with Chinese consumers. By relocating its Product Supply Hub to Singapore, the Group expects the move will enable greater integration across VF’s global supply chain network, which also includes key hubs in Europe and the Americas. Additionally, VF is to redeploy some of its “product supply talent and resources throughout its primary sourcing countries in the region to work more closely with key suppliers and drive greater efficiency.”
According to VF, its additional shared services centre in Kuala Lumpur will help the Group to further expand the footprint of the back-end business functions that support its brands and supply chain operations across the Asia Pacific region. The new centre is to house various functions, including digital technology, finance, human resources and logistics. Hong Kong is to remain a key retail market for VF and its brands.