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10.11.2010 Brands central to Adidas growth plans

Adidas, the sportswear giant, is aiming to substantially increase its sales over the next five years, basing its approach on the concept that "brand success means business success." In its Route 2015 plan, the organisation outlined the goal of boosting revenues by between 45% and 50% by 2015, when returns should come in at €17bn. "Brand success means business success," said Herbert Hainer, ceo of Adidas. "That's why we have set out clear business targets based on our strong and unmatched brand portfolio." "Over the next few years, we will invest in our brands in order to reach our ambitious, but realistic targets."

The company's Sport Performance division, delivering innovative and technologically advanced products, is anticipated to see revenues climb from €6.2bn to €8.5bn. Its Sport Style arm is prioritising the "lifestyle and fashion consumer" in a bid to lift sales from €2bn to €3.7bn, figures standing at €1.9bn and €3bn respectively for Rebook, positioned as a fitness and casual sports range.

Key regions for Adidas include China, Russia and the CIS, India, Latin America, the UK, India and North America. Around 50% of incremental sales could be drawn from the US, China and Russia alone, according to Hainer's forecasts. More specifically, China should generate double-digit annual expansions over the coming five years, with Adidas hoping to open 2,500 stores in the country by 2015.

Acquisitions may also make a vital contribution in attaining such an objective, Hainer stated. "It stands to reason that the Adidas group will continue in its role as 'Consolidator-in-Chief', taking market share through organic growth or exploring other business opportunities if they align with the strategic brand priorities," he said.

B.L. 10.11.2010