Amer Sports’ new accelerated glidepath toward 2020 sets ambitious growth targets for the Apparel and Footwear business,
"All sourcing and operations are completely integrated. Now we can work with the specific needs of the brands", says Vincent Wauters, President of Amer Sports Apparel.
According to the renewed financial targets, Apparel and Footwear is growing toward 1.5 billion Euros sales in 2020, over 0.5 billion Euros more than what was the end target of the previous glidepath.
“We are ready for it”, says Wauters.
“We have two very strong brands, Salomon and Arc’teryx, we have a good momentum and an attractive market.”
Here are some reasons why Wauters is very confident about the future:
Excellent track record
Since 2009, Apparel and Footwear have tripled their sales. Furthermore, the sales of Arc'teryx are now four times bigger than in 2009. In Salomon, softgoods generate today 70% of the sales compared to 50% in 2009, and at the same time the net sales of the Salomon brand has doubled.
Key investments in operations are completed
A repeatable business model is close to be finalized. All sourcing and operations are completely integrated. Now we can work with the specific needs of the brands.
Strong development in Business to Consumers
Amer Sports has already some 260 own retail stores and 60 web stores. Apparel and Footwear are the main drivers for the growth in B2C sales.
"E-commerce is very important for us, because we can interact with the consumer directly and create a very rich and true shopping experience", Wauters points out. "The number of our E-commerce sites is increasing, and we are increasing our conversion rates."
Arc'teryx is in full acceleration across consumer geography, segments, and channels.
"We have had strong growth in every channel and every region. We are very well balanced", says Wauters.
Arc’teryx brand momentum is very strong thanks to a very consistent focus on the brand DNA of design, craftsmanship and performance.
"Our very genuine and clean design appeal to consumers around the world. We grow in every region, and our sales are geographically balanced. We are well in line with the corporate focus on USA, which is our biggest market, and China, both running at high growth rate."
Expanding into city life
Arc'teryx has successfully launched two urban lifestyle product lines, the Veilance collection that speaks to the consumer with its design and quality, and the 24 line that brings Arc’teryx closer to the active, urban lifestyle.
True to the brand DNA, the Veilance collection offers the best possible material, construction and genuine design translated into urban minimalist aesthetic. ‘
“With Veilance, the brand enters lifestyle from the top and is well positioned to leverage two global macros trends: the blending of performance and fashion and the urbanization.’’
Arc'teryx has also launched a strategic focus to engage with the female consumer to offer an enriched product and brand interaction experience. ‘’Our spring-summer online campaign ‘’Define Feminine’’ has been a great success’’.
‘’The global relevance of the brand with outdoor expert and urban astute consumers and our strong design appeal allow us to position our retail development in the outdoor and global city epicenters. We have developed our own retail concept successfully over the last three years and we are now in acceleration phase with openings by the end of the year in London Piccadilly, New York Soho, Shanghai Hong Kong Square and also in Outdoor resorts like Verbier and Vail.’’
Salomon has a very strong position in the market. The brand offers a complete selection for both men´s and women´s activities and has a solid heritage of technical innovation and dedication to the sports since 1947.
Salomon’s credibility and engagement with the snow sport and trail running communities is impressive.
“We will focus on the brand core to base the profitable growth on the brand strength. One of the exciting development is the launch of a new brand E-com web site with multi entry by gender and by sports which will offer cross category merchandising and selling enhanced capabilities.”
Commitment to innovation
Amer Sports’ apparel brands have a long and lasting tradition in innovation.
“We have kept the capability to design in-house. Besides this, we have one own factory with Arc’teryx that we are expanding next year. We have very good understanding of production and excellent control over our products.”
Source Amer Sports Text and pictures. ©
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