Apparel manufacturer VF Corp. has big growth plans in store for its Timberland brand of outdoor footwear. It’s also making e-commerce a bigger priority in achieving that growth.
Over the next five years VF Corp., which manufactures and markets apparel brands such as The North Face, Timberland, Lee, Nautica and others and is No. 110 in the Internet Retailer 2014 Top 500 Guide, intends to grow Timberland’s e-commerce business from $65 million to $245 million, an increase of 277%.
Timberland, which was acquired by VF Corp. in 2011 for $2 billion, also intends to grow total revenue 83% to $3.1 billion over the next six years from $1.7 billion in 2014 and direct sales, which include its factory stores and e-commerce, 91.3% from $575 million in 2014 to $1.1 billion by 2019.
“Our consumer insights-driven strategy has Timberland squarely positioned to become the largest, most sustainable outdoor lifestyle brand,” Timberland president Patrik Frisk told attendees Wednesday at an investor’s day presentation outlining the brand’s future growth strategy.
To grow e-commerce, Timberland will unveil a major redesign of Timberland.com in February, says Timberland vice president of retail/digital commerce Ryan Shadrin. The newly redesigned e-commerce site will give Timberland greater flexibility to introduce more personalized shopping options based on the buyer’s past purchasing history. “We will be offering much more customization and serving up a personalized home page to returning shoppers based on what they previously bought,” Shadrin told attendees.
While not disclosing many details, Shadrin also says Timberland will work to expand its mobile commerce program primarily with tablet computers. “We live in a digital eco-system,” Shadrin said. Timberland also will use more list segmenting and short message service, or text messaging, to reach more consumers. “We will be sending out more personalized messages based on the weather,” Shadrin told attendees. “If it’s snowing in Chicago and you are a customer you may get a triggered e-mail.”
Using digital technology such as text messaging also can generate significant sales. “Short message service now generates $6 million in sales on an investment of $10,000,” Shadrin told attendees.
To grow on a global basis, Timberland over the next five years will open 100 new stores bringing the total count to 230. But the major emphasis will be on e-commerce, the company says. “E-commerce is expected to be Timberland’s highest percentage growth channel, increasing by 31% annually and adding $180 million in revenues over the next five years,” the company says.
VF Corp. includes Timberland in its outdoor and action sports division. For the first six months of the year the division grew revenue year over year 15.5% to $1.27 billion from $1.10 billion, while that division’s net income increased 23.9% to $405.2 million from $327.0 million.
Favorite