Strateg ic Review of V F Corporation
On May 20, 202 4, it was announced that the global appar el gi ant V F Corporation has partner ed with investment bank Goldman Sach s to begin a compre hen sive evalu ation of the company ' s investment portfolio . The move sugg ests that the company may be consider ing re organi zing the portfolio of brand s it currently own s .
Parti cular ly attra cting attention is the report that the American street wear brand " S upr eme , " a subsidi ary of V F Corporation , is in contact with potential buy ers . According to industry ins iders , V F Corporation is consider ing strateg ic options for multiple brand s , including Supreme .
History and current state of the Supreme acquis ition
In 2020, V F Corporation ac quir ed Supreme for approximately 2.1 billion yen (appro ximately 220 billion yen at the time). The acquis ition was seen as a strateg ic step to bo ost the company ' s presence in the street wear market . However , it has been point ed out that the growth of the Supreme brand has slo wed down in recent years , with changes in the appar el market and diversi fication of consumer prefer ences .
Analy sts are increasing ly convin ced that " V F Corporation ' s consider ation of selling Supreme is not only due to the dec Whatsapp in prof ita bility of the brand , but also because it wants to concentr ate management resources on core brand s such as The North Face and V ans . "
Industry experts ' view
Fashion industry analy st H iros hi Tan aka point ed out that " S upr eme still has strong brand power , but with the matur ation of the street wear market , it has reached a stage where it needs to review its growth strategy . "
Further more , " For V F Corporation , the acquis ition of Supreme may not have gener ated as many syn er gies as we origin ally expected . Es peci ally in the digital sector , the slow dep lo yment is a challenge . "
Ex pect ed future develop ments
At this time , V F Corporation is with hold ing any formal comment . Although Beijing Business Today asked the company for an interview , it has not received a response at the time of writing .
Some obser vers in the market say that " th ere may be some anno unc ement by the end of June . " In particular , private equ ity funds and major Asian appar el companies appear to be list ing names as potential buy ers .
The move is being watch ed by the entire industry as it sugg ests the beginning of a re organi zation of the entire street wear market . If the sale of Supreme comes to fru ition , it could be one of the largest M & A de als in the appar el industry in 202 4.
The consumer ' s reaction
On social media , there are vo ices such as " S upr eme is welcome if it becomes independent again " and " It has lost its origina lity since it became a V F subsidi ary . " On the other hand , there are concerns that " the brand will be further commer cia lized by the new own ers . "
De pend ing on the future development , Supreme ' s brand strategy and collabor ation policies may also change , which is attra cting a lot of talk among street wear ent h usias ts .