Dubai-based retailer and distributor GMG and US-based apparel and footwear company VF Corporation recently announced a significant expansion of their long-standing partnership to solidify their presence in the growing markets of Southeast Asia (SEA) and the Middle East and North Africa (MENA). The collaboration builds upon over a decade of successful ventures between the two entities and aims to amplify VF Corporation’s iconic brands, including Supreme, Vans and The North Face across key m
y markets in SEA and MENA.
This ambitious undertaking marks a significant milestone in the evolution of both companies, propelling them into a new era of international growth and consumer engagement.
Central to this expansion initiative is the rollout of more than 300 mono-brand stores over the next five years, strategically positioned to cater to the growing demand for quality lifestyle apparel, footwear and accessories.
With GMG spearheading the distribution and retail development efforts, VF Corporation is poised to extend its reach and brand experience to a broader audience, offering unparalleled access to its renowned portfolio of products.
The partnership
According to Martino Scabbia Guerrini, global chief commercial officer and president of emerging brands at VF Corporation, the MENA and SEA regions are growing markets among young people with a passion for sports, the outdoors and an active lifestyle.
“GMG’s well-established presence and deep understanding of the retail landscape in these regions make it an ideal partner for VF to expand its footprint,” he told Inside Retail.
He also said that GMG’s local expertise and network will help VF penetrate these markets more effectively, strengthen its ‘go-to-market approach’, and create a stronger connection with local consumers.
“The enhanced partnership aims to accelerate VF growth, grow international markets, and drive our brand’s regional marketplace strategies with a more streamlined and more focused operational approach,” he added.
Guerrini said this will give its brands, such as Vans, The North Face and Timberland, the chance to focus on innovation across products, marketing, store concepts and digital tools, all instrumental in driving growth.
The vision
According to him, the expansion of mono-brand partner stores will provide local consumers with immersive brand experiences tailored to their preferences, creating custom-fit retail experiences to better drive brand loyalty and growth in these dynamic markets.
This may involve incorporating region-specific marketing initiatives, product assortments, and store designs that reflect the unique preferences of consumers in each market.
Furthermore, Guerrini said that the emphasis on driving e-commerce business for selected VF brands aligns with the growing trend of online shopping in both regions.
“The partnership will be rolled out gradually over the next five years, starting with Saudi Arabia, as its tourism and business opportunities have been growing, followed by Southeast Asia and North Africa,” he explained.
GMG will introduce VF’s brands across key Southeast Asian markets, open mono-brand stores, and drive e-commerce operations for select VF brands.
This will strategically drive brand penetration and presence in growth markets like Hong Kong, Singapore, Malaysia, Indonesia, Philippines, and Vietnam.
In the MENA region, VF’s renowned brands will expand their mono-brand footprint, primarily focusing on the United Arab Emirates and Kingdom of Saudi Arabia.
“VF’s brands will also expand and reinforce their presence in North Africa, strategically focusing on Egypt. This partnership will mark the first time The North Face brand is entering the North African market,” he pointed out.
An ever-evolving marketplace
One of the primary challenges he anticipates is navigating the diverse cultural landscape and understanding the unique preferences of consumers in North Africa.
“We will need to adapt our product offerings to suit local demand. However, these challenges are also tremendous opportunities for growth and expansion,” he opined.
Guerrini reiterated that North Africa represents a rapidly growing market with a growing interest in outdoor products, aligning well with The North Face’s brand strategy.
“By tapping into this demand, we aim to establish The North Face as a leading player in the region, offering innovative products, delivering memorable brand experiences, and enriching the lives of consumers in the region,” he stressed.
Moving on to SEA, he said that VF brands already have a strong presence in the region with a loyal customer base.
“We will continue to leverage the strengths and unique positioning of our brands to drive relevance and to offer exciting products and elevate consumer experience for the growing SEA markets,” he stated.
VF expects the new strategic partnership and business model with GMG will provide fresh insights and agility to strengthen its relationship with existing consumers and bring new consumers into the fold to grow market share.
The future
Guerrini added that the collaboration between GMG and VF will be focused on identifying emerging trends and anticipating customer needs so it can tailor its product offerings and commercial and marketing strategies accordingly.
“By working together, we can capitalize on market opportunities, enhance brand experiences, and drive mutual long-term growth and success,” he said.
As previously stated, he said that VF Corporation’s long-term goals and aspirations for its presence in the MENA and SEA regions are centered around an accelerated return to growth and international expansion.
“These goals align with the company’s broader vision and purpose of driving sustainable business practices, creating value for stakeholders, and promoting active and sustainable lifestyles worldwide,” he concluded.