Vision 2013Vision 2013
VansOctober 1, 2008October 1, 2008
Presented by:Presented by: Steve Murray - President
VIDEO
Agenda
• Brand Positioning• Sales OverviewSales Overview• Segmentation Strategy
P d t & M k ti• Product & Marketing• Growth Drivers & Opportunities
Vans Sales Growth2004 20082004-2008
22% CAGR
$770$770
$350
2004 2005 2006 2007 2008
Vans Success FactorsAthleteTeamCulture of
Winning
Enhanced CustomerService
EmployeeCreative
Marketing
Vans RetailUpgrade
Employee MotivationalPrograms
Marketing
Consumer-Driven
RestructuredSales Force
VF VendorRelationships
Consumer DrivenProduct, Sales and
MarketingSales Force
IncreasedRD&D
Proprietary Events
Optimal Disciplined
Segmentation by Channel
Visual Merchandise
RD&DFinancial Disciplines
& Controls
Optimal, DisciplinedBrand Management
Visual Merchandise
InvestmentIn Apparel
GreatProduct
Vision Statement
Vans is the original action sportsVans is the original action sports footwear company grounded in p y g
youth, authenticity and individual styleindividual style …
The Vans Brand: Rooted in Boards and Bikes
Action sports, including surfing, skateboarding, snowboarding, BMX, wakeboarding and motocross, provide an outlet for individual athletic
expression in an unstructured format.
Vans: Expanding the Brand from an Action Sports FoundationAction Sports Foundation
Action Sports
Street/FashionArtMusic
Vans Sales by Product
20047% 2008
4%2%
8%
6%7%
Footwear18%
4%2%
Footwear
Apparel
Equipment
79% Other
76%
Vans Sales by RegionVans Sales by Region2004-2008
500
600
300
400
500
North America
200
300International
0
100
2004 2005 2006 2007 20082004 2005 2006 2007 2008
Vans Sales by RegionVans Sales by Region2004-2008
2004 2008
4%
18%
US &Canada
25%
1%Canada
Central/SouthAmerica 4%
3%
77%
AmericaAsia
68%
Vans Sales by ChannelVans Sales by Channel(US Wholesale)
20045%
2008
0%
9% Core
Boutique
15%
1%32%
9% Mall Specialty/Lifestyle
Sporting Goods
2 %59%
18%
Family Footwear
Mid Tier/Moderate
27%
19%6%
19%
Vans US Distribution Model
DestinationTrend Setter
Mall Specialty
CoreCore BoutiqueBoutique
Vans RetailEarly Adopter Mall Specialty
Mall Specialty
Early Adopter
Off Mall Sporting Goods & Family FootwearSporting Goods & Family Footwear
MidMid--Market Dept StoresMarket Dept Stores
Emulator
Product Hierarchy - Footwear
Authenticity
Authenticity Aspiration
DestinationBoutiqueBoutique
Trend Setter CoreCore
Mall SpecialtyEarly AdopterVans Retail
Mall Specialty
Off Mall Emulator
Mall Specialty
Sporting Goods & Family FootwearSporting Goods & Family Footwear
MidMid--Market Dept StoresMarket Dept Stores
Signature$70 MSRP
Geoff RowleyROWLEY [ X ]
Share of US Core Market2008 Brand Unit Share - Footwear * Source - ActionWatch POS data
2008 Brand $ Share - Footwear * Source - ActionWatch POS data
White Space
• Extension of skateboarding into mainstream• Growth outside of CA• Product extensions
Sk8 LS Strategygy
Skate LS category…A multi action sport category supported by athletes in
skate bmx and moto Distribution includes mall basedskate, bmx, and moto. Distribution includes mall based specialty, better sporting goods, and better family footwear
Surf Strategy
Surf footwear categorySurf footwear category…A footwear and sandal category grounded in surf and supported by surf athletes Distributionsurf and supported by surf athletes. Distribution includes boutique, core boardshop and better lifestyle accounts
Aspiration
Authenticity Aspiration
DestinationBoutiqueBoutique
Trend Setter CoreCore
Mall SpecialtyEarly AdopterVans Retail
Mall Specialty
Off Mall Emulator
Mall Specialty
Sporting Goods & Family FootwearSporting Goods & Family Footwear
MidMid--Market Dept StoresMarket Dept Stores
Classic Slip-OnClassic Slip On
Vault Account Strategy
0 %
Collaborations/Special ProjectsCollaborations/Special Projects
Marc Jacobs
The Simpsonsp
AvrilLavigne
Ashley Simpson Fergie
Vans Classics Opportunities
• Organic Growth With Strategic Partners• Owned Retail PlatformOwned Retail Platform• Evolution of Classics Internationally
E i f V lt i t N M k t• Expansion of Vault into New Markets• Expanded Custom Footwear On Web
V A lVans Apparel
Presented by:Presented by: Michael Schulam – Vice President Apparel
• 40-plus years of action sports heritage
• 100 years of VF• 100 years of VF sourcing expertise
Global Apparel Channel Mix
US Whls
31% EMEA
EMEA
16%
US Retail
27%US Retail
84%40%Central /
South
Americas
84%
2008 2%2004
Steps in Achieving Apparel’s Increase
Inject DNA and target consumer into productTransition of Men’s & Girls product to be trend right
Invested in apparel specific staffSegment the line between core and mid-tier
Men’s Target Consumer
CORE SKATERCORE SKATER
Men’s Target Consumer
INDIE KIDINDIE KID
Men’s Target Consumer
SO CAL BROSO CAL BRO
Girl’s Target Consumer
VANS GIRL
Mid-Tier Target Consumer
Vans GirlEMULATOR
Points of Differentiation
Di t t il f t• Direct retail format
Points of Differentiation
• Apparel Athletes
Points of Differentiation
• Black and White• Black and White checkerboard
Points of Differentiation
• Music influence• Music influence
Points of Differentiation
• Direct footwear tie backs
Points of Differentiation
Apparel-Specific Ads in Core Mags
Vans Apparel Opportunities
• Expanded Real Estate in Core Channel• Penetrate Lifestyle ChannelPenetrate Lifestyle Channel• Growth at Vans Retail
K P t G th t Mid Ti• Key Partner Growth at Mid-Tier• International Expansion• Product Extensions-Boys, Juniors
Vans MarketingVans MarketingPresented by:Presented by:
Doug Palladini – Vice President Marketing
V Athl tVans Athletes
Vans Skate Team: Signature, Pros, Ams, Legends, and Groms
Vans Snowboard Team: Halfpipe, Big Mountain, Slopestyle, Rails
Vans Surf Team: Travel, Contests, Big Waves, Beach Culture
Vans BMX Team: Street, Dirt, Park, Vert, Freestyle
Vans Motocross Team: Freestyle, Lites, Supercross, Outdoor
Vans Proprietary Eventsp y
15th th ld’ l t• 15th year as the world’s longest running rock tour
• 49 stops nationwide Jun-Aug
• 650,000 tickets sold annually
Warped Tour GraduatesWarped Tour Graduates
• Green Day
• Weezer
• My Chemical Romance
• Eminem
• Social Distortion• Social Distortion
• The Offspring
Wangl Tangl (Pan-European – Snow & Skate)(Pan European Snow & Skate)
Vans Tour (Spain – Music)
Fuel TV
Each Proprietary Vans Event Yields 100s of Content Pieces
WebcastsBlogs
Vans Events Drive Content Maga inesiT nes Drive Content Syndication
MagazinesiTunes
WebsitesBoard Shops
Rush HDTV
Vans Dustin Dollin and The DowntownVans, Dustin Dollin, and The Downtown Showdown in Tony Hawk’s Proving Ground:
4 Million Units4 Million Units Delivered in 20074 Million Units4 Million Units Delivered in 2007
Vans Interactive MarketingVans Interactive Marketing
As Young People Shift to Interactive Media, Vans Delivers
Vans Widgets
Daily BlogsBlogs
Mobile AppsApps
ContentContent Sharing
Vans Industry-Leading Web Presence Drives Brand Affinity
Among Skate Sites
V PRVans PR
Vans PR and Organic Product Placement Lead ROI
Steve Nash/NBA All-Star/Slip-Ons
Iron Man Wears Vans: Robert DowneyIron Man Wears Vans: Robert Downey
Owen Wilson/Movie Set/Vault Slip-Ons
Vans PR and Organic Product Placement Lead ROI
Canvas/Spain/Waffle SoleOwen Wilson/Movie Set/Vault Slip Ons Canvas/Spain/Waffle Sole
Vans PR and Organic Product Placement Lead ROI
Michael C Hall/Dexter/Showtime Network Zac Efron/People Mag/CheckerboardsMichael C. Hall/Dexter/Showtime Network Zac Efron/People Mag/Checkerboards
Vans PR and Organic Product Placement Lead ROI
The Governator/The Senate/Slip-Ons Reese Witherspoon/Kids/Old Skools
Vans Visual MerchandisingVans Visual Merchandising
Jack’s Surfboards-Huntington Beach
Classic Kicks-NYC
Sun Diego-Carlsbad Freedom-Phoenix
France (Colette – Paris)
UK (50/50 –Bristol) & (The Mole – Brighton)
And at the End of the Day, Vans Owns a Brand Position that is Both Ownable and Highly DefendableBoth Ownable and Highly Defendable…
Vision 2008-2013Steve Murray - President
Vans Sales 2008-2013 10% CAGR
$1235
$770
$
$770
2008 2009 2010 2011 2012 20132008 2009 2010 2011 2012 2013
Geographic and ChannelGeographic and Channel Growth 2008-2013
• US Wholesale – primarily higher distribution channels O d R t il i il t id C lif i• Owned Retail – primarily outside California
• E-CommerceE i d E t bl k• Europe – organic and Eastern block
• Asia Pacific – driven by China, Japan and KoreaKorea
• Central & South Americas – driven by Mexico and Brazil
SGB Sporting Goods
Vans Heritage Store -Tustin
North America – Vans RetailNorth America Vans Retail
2008 Full Price Stores 2013 Full Price Stores
S G h SStore Growth Strategy•Calculated National growth that positions Vans in markets that have an Action Sports culture and affinity for the Vans Brand.•50% of new stores will be in “mature” and “developing”
Representation
None
Minimal
A t bl 50% of new stores will be in mature and developing markets.•50% of new stores will be in “new” markets using a cluster strategy.•Target “A” and “B” centers only.
Acceptable
Moderate
High
Vans Europe Retail StoresLONDON
AMSTERDAM
ANTWERPANTWERP
FULL PRICE
OUTLET
PARTNERSHIPPARTNERSHIP
Vans RetailNew Vans Retail Store, Santiago, Chile
Japan Stores
China Stores
E-Commerce
Vans Sales by Geography 08-13
201322%
200822%
25%
4%7%
4%
3%
US & Canada
Central/SouthAmericaA i 67%4%4%
68%
Asia
Europe
Vans Sales by Product 08-13
20133%6%
20084%2%
21%18%
FootwearApparelEquipmentOther
70%76%76%
Summary• Confidence bred from success• Confidence, bred from success• Clear direction
Brand momentum• Brand momentum• Increasingly influential market sector• Solid platform for growth• Geographical and brand extension
opportunities• Not looking for a “silver bullet “• Winning, results orientated culture