Transcript
Global Sales Strategic Initiatives – Herbert Hainer
adidas Group Investor DayNovember 8, 2010
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Global Sales Mission
We want to be ready to strike at
the POS
Get the products onto the feet,
into the hands, in the shopping
bags of the Consumer
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Three Distinctive Channels
Wholesale Own Retail eCommerce
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Global Sales Strategic Priorities
• Integrated distribution roadmap
• Increase controlled space to >45%
• Three “Attack” markets to generate 50% of sales growth
Greater China
North America
Russia
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What is it?
A joint approach in every market for agreed Top 100 cities to identify where we want our brands successfully represented – our blueprint for the future!
Integrated Distribution Roadmap
Why do we need it?
• Provides a joined-up approach to growing our business• Cements the integrity and presence of our brands within a market• Grows market share in underpenetrated affluent cities• Eliminates duplication of effort • Clusters own investment to achieve scale and site excellence
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5 Strategic Priority Areas In Global Operations
DELIVER BASICS
PRIORITY 1:
Ensure cost-competitiveness
PRIORITY 2:
Industry-leading product availability
PRIORITY 3:
Faster to POS
PRIORITY 5:
Modernise Group infrastructure
PRIORITY 4:
Support growth battle fields
MAKE A DIFFERENCE
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North America Provides Largest Revenue Growth Potential
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WIN THE HEARTS AND MINDS
OF HIGH SCHOOL KIDS ON
THE FIELD AND IN THE HALLWAY
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Why The High School Consumer?
• 16.3m high school kids
• $16.1bn spending
• 20% industry spend
• 80% higher spending than
college kids
• Influencers and purchasers
of sport and fashion
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How To Win The High School Consumer
• Increasing mind share and purchase intent with relevant brand communication
• Creating strong product franchises to increase brand momentum
• Driving sell-thru and market share where it matters
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Basketball
Football
SoccerBaseball
Training
Running
7 Million
High School
Athletes
Generation US 2015 Focus Sports
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Team Is The Foundation Of Sport
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Why:
• $1.5bn industry with big halo
effect
• Direct and authentic for the high
school kid
How:
• Industry-leading team service
engine
• Innovation leadership through
aiT support
• Increased investments in US
sports
Team Is The Foundation Of Sport
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Team Strategic Formula
US Sports + SLD = adidas team sports
• Service
• Speed to market
• Seamless organisation
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Increasing Mind Share And Purchase Intent
Why:
• Direct correlation to sales and margin growth
How:
• With brand communication that is:
Consistent
Relevant
Irreverent
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Establish 3 Key Marketing Pillars Per Year
Why:
• Less complexity
• Sharpened brand focus
• Drives brand momentum
How:
• 3 franchises as focal point per
year
• Aligned global/local focus on
development
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adizero F50
- Key Marketing Pillar In 2010
adizero Scorch adizero Sonic
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- Key Marketing Pillar In 2010
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- Key Marketing Pillar In 2010
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- Key Marketing Pillar In …
... 2011
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- Key Marketing Pillar In …
... 2011
Training
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- Key Marketing Pillar In…
... 2011adidas Originals
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Wholesale Distribution Strategy
Distribution channels 2009
34%
19% 6%
9%
32%
Distribution channels 2015
23%
30% 16%7%
24%
Moderate DeptModerate Dept
Strategic Dept
Strategic Dept
MallMall
Sporting GoodsSporting Goods
Field / Specialty Field / Specialty
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Wholesale Distribution Strategy
• Sporting Goods to be the largest
distribution channel in 2011
• Mall to grow at double-digit rate in
2011
• Mall and Sporting Goods will
account for nearly 50% of sales in
2015
• Reductions to the discount channel
headlines the reduction in
Moderate Department Stores
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Double-digitgrowth
per annum
Summary
• Consumer: High school kids
• Sports: Team sports
• Marketing: 3 key pillars per year
• Distribution: Wholesale
Focus:
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0
1,000
2,000
3,000
4,000
5,000
6,000
2004 2005 2006 2007 2008 2009 2010
Nu
mb
er o
f fr
an
ch
ise
sto
re
s
0
200
400
600
800
1,000
Sa
les
(€
in
mil
lio
ns
)
Excessive Growth Rates Until 2008
1)1)
2)2)
1) Brand adidas only
2) Total China sales brand adidas
28
Competition intensifiesCompetition intensifies
China Facing Tough Challenges Recently
Marketplace more and more crowded
Local brands gaining market and mind share
Vertical retailers
Local brands eye international expansion
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adidas GREATER CHINA
CHANGING THE RULES
2010-2011 2014-20152012-2013
TRANSFORMORGANISATION AND
GTM PROCESSES
GAIN BACK
LEADERSHIP
CATCH UPAND ACCELERATE
REVENUE
30
China Consumer More Sophisticated
31
WOMEN‘S TRAINING
B E C O M E
A B R A N D
OF CHOICE
FOR WOMEN
MEN‘S TRAINING
G A I N
LEADERSHIP
BY 2012
RUNNING
G A I N
LEADERSHIP
BY 2015
FOOTBALL BASKETBALL
CHALLENGE
LEADERSHIP
BY 2015
G A I N
LEADERSHIP
BY 2015
HARDWARE
EMBRACE
UNEXPLOITED
OPPORTUNITIES
BEYOND
B U I L D
NEW SOURCE
OF GROWTH
Category Attack In High Tier Cities
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It’s Time To Unleash Originals
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We’ve Only Started To Touch The Lower Tier Opportunity
Today: Only 247 cities with
100,000+ MAC population
Today: Only 247 cities with
100,000+ MAC population
0
200
400
600
800
1000
1200
1400
1600
1800
2000
Not covered Covered
T7
T6
T5
T4
T1-T3
Our city coverage in 2010Our city coverage in 2010
1700+
~550
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But Lower Tiers Matter More As China Gains In Wealth
By 2015: 576 cities with
100,000+ MAC population
By 2015: 576 cities with
100,000+ MAC population
0
200
400
600
800
1000
1200
1400
1600
1800
2000
Not covered Covered
T7
T6
T5
T4
T1-T3
Our city coverage in 2015
(planned)
Our city coverage in 2015
(planned)
850
1400+
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Store expansion roadmap
• City-by-city footprint plan to match local retail environment• Segmentation to match purchase patterns of high vs. low spenders• Accessible pricing options to complement range • POS increase of 2,500 by 2015
Lower Tier City Expansion
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BEFORE
AFTER
Leverage Global Retail Expertise
• Targets large-scale turnarounds
• Leverage global expertise and local knowledge
• Rapid feedback
• Model stores to benchmark
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We Play To Win Commercially
Double-digit
growth per
annum
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Expand Leadership In Russia
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adidas Group Market Share In Russia around 60% in 2010
1
32
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Growth Driven By adidas And Reebok Own Stores
75% of sales through
own retail in 2010
Fully integrated joint
operating model
Over 700 stores in 2010
YTD Sep 2010
comparable store
sales +21%
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Best Russian Sports Marketing Assets
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Improved product offering
• Best sellers
• Seasonal offer
• Inventory management
• Pricing
Improve Productivity In Existing Stores
Volume
growth
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• Drive consumers into the store
• Effective in-store product
communication
• Visual merchandising
Improve Productivity In Existing Stores
Increase Units
Per Transaction
(UPT)
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Increase Store Base
• Stand-alone stores
• Multi-brand factory outlets
• In existing and new malls
Over 1,000
stores in 2015
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• Expanding entry price point
offer
• Leading in fitness top price
point ranges
• Focusing on seasonal
products
Highest Growth Coming From Training
Training
=
50% of sales
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• Outdoor windows
• In-store category call-out
• Drive traffic and conversion
• 350 doors with outdoor
corner in 2011
Become The Leader In Outdoor In Russia
Leading in
Outdoor by 2015
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Reebok
8%
adidas
15%
Outventure
33%
Other
44%
Other
36%
Outventure
27%
adidas
28%
Reebok
9%
adidas Group outdoor market share23%
2010 2015
37%
Increase Group Market Share By 50% In Outdoor
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1
32
adidas Group Market Share In Russia Around 70% by 2015
Total market
share to be
around 70%
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