VFC is launching two new backpack brands, Wolf Creek and L8R, in an effort to address a broader audience and leverage the company’s strong sourcing structure.

 

The two brands were created to help retailers in both existing and new channels who have been looking for lower price points and fashion-driven designs favored by many of their customers. According to the company, these brands will have additional penetration into the club store channel, which is larger than the specialty and other markets VF Outdoor currently serves.


The move comes as many retailers – from supermarkets to luxury department stores – are looking for new ways to address America’s more frugal buying habits.


“Many of our retail partners have been requesting a value proposition to offer their customers, so this will be a win for all,” said Steve Munn, president of JanSport, a division of VF Outdoor. “We needed to do it right, however, so we applied the full force of our consumer research,  design team and  supply chain over the past nine months to bring this to life.”


The new lines, priced from $19.99 to $29.99, will allow VF to enter the club channel for the first time. However, the primary objective is to help existing VF Outdoor dealers, including those already selling JanSport and The North Face. JanSport packs start at the $30 price point and run to well over $100, while The North Face packs are priced at $50 and up.
“Wolf Creek and L8R will provide retailers with the healthy margins and sales volume they need,” said Steve Rendle, president of VF Outdoor Americas. “This meets a need for junior lifestyle and young men’s consumers in sporting goods, mid-tier, mass and club channels in a way that complements the overall VF Corporation brand portfolio.”


Wolf Creek packs feature “rugged style and details for the future outdoorsman,” and are designed to give “compelling value for the primary purchaser, the parent.” They are designed to address the need for durable, outdoor-inspired packs that go easily from the trail or summer camp to school. Wolf Creek will range in price from $19.99 to $29.99.                  


L8R packs were created with the urban consumer in mind for the price-conscious, trend-conscious teenager. L8R consists of two styles in 14 different colors and patterns ranging in price from $19.99 to $24.99.
“The size of the backpack market in club and mass channels is nearly the size of all other channels combined– so the opportunity is large,” said Munn. “We expect these new brands will capture a reasonable share of this market, though we don't expect they will dislodge customers private label programs.”


Steve Harden, a former director of sales for adidas, has joined the VF Outdoor team to lead the new brand introductions. The Wolf Creek and L8R brands will launch in Fall 2010. The new lines differ noticeably in appearance and functionality from the premium product now sold through outdoor specialty.


“We gave up some water resistance and technical features like hydration,” Munn said when asked how VF Outdoor was able to reach the lower price points.  “We will also maximize efficiencies with direct ship programs from port of entry– so we won't warehouse the product.  We did not compromise on our material standards-so there won't be things like PVC backing found in other value lines.”