North Face 1999 Annual Report Download - page 7

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NORTH & SOUTH AMERICAN
JEANSWEAR
Overview
Our Jeanswear coalition is comprised of six business units:
Mass Market, which includes our Wrangler, Rustler,
Riders, Brittania and Timber Creek brands; Lee; Western,
including the Wrangler Western and Rugged Wear brands;
Canada; Mexico; and Latin America. VF’s jeans’ unit
market share is approximately 25% in the U.S.
Market Trends
The U.S. market for jeans continues to grow approximately
5% annually, driven by consumers’ more casual lifestyles and
a growing range of styles, fits and finishes to suit a variety
of preferences. Currently, the growth of specialty store and
private label brands poses one of the biggest competitive
challenges we face. In response, we’re leveraging our portfolio
of brands and introducing innovative products to strengthen
our reach in nearly every retail distribution channel.
Focus 2000
In 2000, Lee will work with its retail partners to strengthen
its in-store presence and generate increased excitement
within the jeans category. In addition to a revamped Lee
Riveted line, Lee will also continue to build on its men’s
Dungarees line. Lee’s popular ad campaign featuring Buddy
Lee will continue in 2000, providing a focal point for new
point of sale marketing. Our Mass Market business will
concentrate on its Wrangler and Riders brands to build its
share of the women’s market and on expanding its casual
pants programs. VF’s Wrangler Western unit expects
progress in extending its strong western franchise with
products targeted to a broader consumer base. Proprietary
new inventory micromarketing programs are also slated
to roll out this year.
INTIMATE APPAREL
Overview
Our Intimates coalition includes our Vanity Fair, Lily of
France, Vassarette, Bestform and Exquisite Form brands.
Through license agreements, we also make and market
Nike, Josie and Natori intimate apparel. Victoria’s Secret,
Sears, JCPenney’s and Target are among our Private Brands
customers. Vanity Fair is a top player in department stores,
while Vassarette bras have captured the lead share position
in mass market stores. Bestform likewise leads in sports
bras in mass stores. This coalition also includes our
JanSport daypack and Jantzen swimwear businesses, both
leaders in their respective categories.
Market Trends
Continuous product innovation, particularly in bras, pro-
pels today’s intimate apparel market. New fabrications and
styles, including microfibers, seamless and figure-enhancing
products, are adding excitement to the category. New
product development also plays a critical role in daypacks
and swimwear. In 1999, JanSport introduced its Airlift
daypack line, featuring a comfortable padded strap system.
Focus 2000
Our licensed Tommy Hilfiger lingerie line will debut this
summer, and we will be adding new sports bras and pants
to our Nike licensed business. In August, Vanity Fair
will launch Body Sculpting, a bra that replaces traditional
underwires with a revolutionary foam support frame.
Lily of France will introduce its X-bra and Strappies bra.
JanSport will expand its successful Airlift line and intro-
duce a new line of luggage, while Jantzen will begin work
on a line of Tommy Hilfiger swimwear.
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