World Footwear

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adidas details growth plan

Jul 6, 2015 Germany
adidas details growth plan
adidas Football and adidas Originals aim to lead in every market by 2020 and adidas Running is targeting significant market share gains in the coming years. These are key components of the group’s 2020 strategic business plan
Between 2015 and 2020, adidas intends to expand its football business at a mid-single-digit rate on average per year on a currency-neutral basis, outgrowing the market and further strengthening its position as the number one football brand in the world. In order to drive brand loyalty among football consumers, adidas will focus will on bolstering the footwear part of the business, supported by new product line-up and the creation of football destinations in key cities with premium presentation at the point of sale.

adidas Running expects currency-neutral sales to double by 2020 while strengthening it’s positioning in the area of ‘energy running’, significantly increase its presence in global key cities with the objective to bring ‘energy’ to consumers in a holistic approach from the product range to runners forming part of their local running communities and activations. A particular focus will be put on the North American market where adidas targets significant market share gains over the next five years. A major driver fuelling this growth will be the establishment of two creation hubs for the category in the market. In addition to Boston, runbases will be established in both Los Angeles and New York City.

For adidas Originals currency-neutral sales are expected to increase by 50% by 2020. This category aims to be the most influential and connected sportswear brand in street culture in every market by 2020. By 2018, the major product families are expected to generate the majority of the overall adidas Originals footwear revenues, allowing adidas to be more impactful and efficient. In addition, adidas Originals will significantly expand its business with key sneaker accounts as well as its own Direct-To-Consumer channel. The opening of new flagship stores in more than 30 cities around the globe aims at strengthening adidas Originals’ bond with its target consumers.

The adidas group expects to spur top- and bottom-line growth over the next five years, with revenue estimated to increase at a high-single-digit rate on average per year on a currency-neutral basis until 2020 compared to the expected 2015 results. The group’s net income is expected to grow at a considerably higher rate than the top line and is projected to expand by around 15% on average in each of the next five years.

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