North Face 2000 Annual Report Download - page 14

12
Te r r y L a y
VP and Chairman –
International Jeanswear
Coalition
Lee
Wrangler
Hero by Wrangler
H.I.S
Maverick
Old Axe
A mass market for branded jeans
is still developing in Europe, but we’re
taking the lead in this channel with
the launch of the Hero by Wrangler
brand. We expect the mass market to
develop rapidly over the coming years,
as it has in the U.S., and we fully expect
to benefit with our Hero by Wrangler,
Maverick and Old Axe brands.
Japan proved to be a particularly
challenging and volatile market. In
2000 we decided to change tactics,
closing our Tokyo office and transfer-
ring the Wrangler brand to the licensee
that manages our Lee brand there. With
both brands under a single licensee,
we’re much more confident about our
prospects in 2001.
Technology’s a Key Ingredient
Technology is playing an important
role for us in Europe, as we’re starting
to benefit from the implementation of
pan-European systems, which have
improved our planning and forecasting
abilities while reducing costs. Bringing
retail floor space management capabili-
ties to European retailers will be a focus
for us, as we continue to find ways to
leverage the strength of our brands and
technology for our customers.
Well-known brands give
International
Jeansweara solid presence around the globe.”
“
Everything we do is geared to making
sure we get the right products to the
right place at the right time. That was
critical in 2000, which turned out to
be a solid year for us despite a tough
marketplace.
Following a tumultuous 1999
when jeans demand was generally soft,
markets stabilized in most of Europe.
We also saw healthy unit growth
beginning to take hold in emerging
markets such as eastern Europe, Turkey
and China.
Sparking Interest in Denim
To bring consumers back to denim,
we’ve focused heavily on innovation.
New fabrics, such as a broken twill
denim for our Wrangler brand and our
Denim 42 program for the Lee line,
have really sparked interest in our
brands. Backed by smart, hip advertising
and well-executed in-store promotions,
both brands are off to a good start
in 2001.
Two other big initiatives are
underway in Europe this year. First is
the integration of the H.I.S brand,
acquired late in 2000. It’s the number
one female brand in Germany and is
strong throughout eastern Europe.
It’s our goal to extend the H.I.S
brand across Europe, where it will
complement our more male-oriented
Wrangler and Lee businesses.