It is also relocating its product supply hub from Hong Kong to Singapore.
Apparel and footwear business VF Corporation is moving the centre of its brand operations away from Hong Kong to Shanghai as part of its transformation plan for its Asia-Pacific operations, according to a press release.
VF’s Asia product supply hub, which serves as the base of operations for its global supply chain in the region, will also relocate from Hong Kong to Singapore. An additional shared services center for the region will be established in Kuala Lumpur, Malaysia.
VF will activate a phased transition plan to guide these relocations over the next 12 to 18 months with the first moves expected in April 2021.
VF said it aims to forge stronger and more relevant relationships with Chinese consumers. Relocating its product supply hub to Singapore will enable greater integration across VF’s global supply chain network, which also includes key hubs in Europe and the Americas, the company added.
Additionally, VF will redeploy some of its product supply talent and resources throughout its primary sourcing countries in the region to work more closely with key suppliers.
VF also believes that its additional shared services center in Kuala Lumpur will help the company further expand the footprint of the back-end business functions that support its brands and supply chain operations across the Asia-Pacific region.
The new center will house various functions including digital technology, finance, human resources, and logistics. Hong Kong will remain a key retail market for VF and its brands.
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