North Face 2002 Annual Report Download - page 23

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37
DEPARTMENT STORES
VANITY FAIR
LILY OF FRANCE
TOMMY HILFIGER*
NATORI*
LOU
BOLERO
GEMMA
MASS MARKET
VASSARETTE
BESTFORM
CURVATION
CHANNELS OF DISTRIBUTION (*LICENSED BRAND) > UNITED STATES
BOUTIQUES AND
DEPARTMENT STORES
LOU
BOLERO
GEMMA
INTIMA CHERRY
BELCOR
VANITY FAIR
MAJESTIC
MASS MARKET
VARIANCE
BESTFORM
VASSARETTE
CHANNELS OF DISTRIBUTION > INTERNATIONAL
a lack of intimate apparel products that combined both beauty and
function while meeting their fit and comfort needs. CurvationTM lingerie
will fulfill these needs, beautifully.
A big accomplishment in 2002 was the integration of our Bestform and
Vanity Fair Intimates businesses, which contributed to an improvement
in profitability for the year. Product development, operations and finance
were consolidated, allowing for closer collaboration among our brands
and a more efficiently managed organization. We also extended our
systems capabilities in such areas as product development, Retail Floor
Space Management (RFSM) and production planning, resulting in a big
improvement in inventory management.
Our strong portfolio of brands in France and Spain continues to meet
the fashion demands of European customers. We made substantial
changes in 2002 to improve customer service from a lower cost
business platform.
Our Global Intimates coalition management team is energized and
looking forward to a very successful 2003.
LILY OF FRANCE
VANITY FAIR
36
Despite generally lackluster industry conditions in the U.S. that
resulted in a slight decline in sales, our brands’ focus on continuous
product innovation generated market share gains in both department
and chain stores. We also added more marketing muscle to our
brands, with a 25% increase in advertising spending in 2002.
Our department and chain store business grew in 2002, with market
share gains in the bra, panty and daywear categories. Our biggest
brand, Vanity Fair®
,enjoyed strong growth in the bra and panty
categories. The Lily of France®brand saw success from its Value
In Style®collection, featuring everyday, value-priced bras.
Our licensed Tommy Hilfiger ®business had a spectacular year, with
sales fueled by a national advertising campaign featuring two new
bra introductions: the Oxford Collection and Tommy Essentials.
MASS APPEAL
Our mass market Bestform®and Vassarette®brands had mixed results
in 2002. The Bestform®brand, which features casual, cotton-based
bras, had a very good year. On the other hand, our Vassarette®
brand has faced challenges during the past couple of years. We’re
responding on both the product and marketing fronts. A significant
update to the Vassarette®brand’s assortment is planned this year,
including an innovative stretch foam pad product. New packaging
and print advertising will put a fresh face on the brand in 2003.
We’re building new business in the mass market with our launch
of the CurvationTM brand. Real women with real curves were the
inspiration behind the line. These women were often frustrated by
GLOBAL INTIMATE APPAREL VANITY FAIR
LILY OF FRANCE
VASSARETTE
BESTFORM
CURVATION
NATORI*
TOMMY HILFIGER*
LOU
BOLERO
GEMMA
INTIMA CHERRY
BELCOR
VARIANCE
MAJESTIC
*LICENSED BRAND
Intimate apparel is VF’s
second largest product
category, accounting
for 17% of total sales.
CURVATION