Adidas Ag · XETR:ADS
Adidas — Investor Day (November 2010)
48 slides from Adidas's investor day presentation, Nov 8, 2010
Slide 1: adidas Group Investor Day – Global Sales Strategic Initiatives
adidas Group Investor Day November 8, 2010 Global Sales Strategic Initiatives – Herbert Hainer
Slide 2: Global Sales Mission
Global Sales Mission Get the products onto the feet, into the hands, in the shopping bags of the Consumer We want to be ready to strike at the POS adidas Group Investor Day 2
Slide 3: Three Distinctive Channels
Three Distinctive Channels Wholesale Own Retail eCommerce adidas Group Investor Day 3
Slide 4: Global Sales Strategic Priorities
Global Sales Strategic Priorities North America • Integrated distribution roadmap Greater China • Increase controlled space to >45% • Three “Attack” markets Russia to generate 50% of sales growth adidas Group Investor Day 4
Slide 5: Integrated Distribution Roadmap
Integrated Distribution Roadmap 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! Why do we need it? • Provides a joined-up approach to growing our business • Cements the integrity and
Slide 6: Strategic Priority Areas In Global Operations
5 Strategic Priority Areas In Global Operations DELIVER BASICS PRIORITY 1: PRIORITY 2: Ensure cost- Industry-leading competitiveness product availability MAKE A DIFFERENCE PRIORITY 4: PRIORITY 5: PRIORITY 3: Support growth Modernise Faster to POS battle fields Group infrastructure adidas Group Inves
Slide 7: North America Provides Largest Revenue Growth Potential
North America Provides Largest Revenue Growth Potential adidas Group Investor Day 7
Slide 8: Win The Hearts And Minds Of High School Kids
WIN THE HEARTS AND MINDS OF HIGH SCHOOL KIDS ON THE FIELD AND IN THE HALLWAY adidas Group Investor Day 8
Slide 9: Why The High School Consumer?
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 adidas Group Investor Day 9
Slide 10: How To Win The High School Consumer
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 adidas Group Investor Day 10
Slide 11: Generation US 2015 Focus Sports
Generation US 2015 Focus Sports 7 Million High School Athletes Basketball Football Soccer Baseball Running Training adidas Group Investor Day 11
Slide 12: Team Is The Foundation Of Sport
Team Is The Foundation Of Sport adidas Group Investor Day 12
Slide 13: Team Is The Foundation Of Sport
Team Is The Foundation Of Sport 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 adidas Group Investor Day 13
Slide 14: Team Strategic Formula
Team Strategic Formula US Sports + SLD = adidas team sports • Service • Speed to market • Seamless organisation adidas Group Investor Day 14
Slide 15: Increasing Mind Share And Purchase Intent
Increasing Mind Share And Purchase Intent Why: • Direct correlation to sales and margin growth How: • With brand communication that is: ¾ Consistent ¾ Relevant ¾ Irreverent adidas Group Investor Day 15
Slide 16: Establish 3 Key Marketing Pillars Per Year
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 adidas Group Investor Day 16
Slide 17: Key Marketing Pillar In 2010
- Key Marketing Pillar In 2010 adizero F50 adizero Scorch adizero Sonic adidas Group Investor Day 17
Slide 18: Key Marketing Pillar In 2010
- Key Marketing Pillar In 2010 adidas Group Investor Day 18
Slide 19: Key Marketing Pillar In 2010
- Key Marketing Pillar In 2010 adidas Group Investor Day 19
Slide 20: Key Marketing Pillar In 2011
- Key Marketing Pillar In … ... 2011 adidas Group Investor Day 20
Slide 21: Training – Key Marketing Pillar In 2011
Training - Key Marketing Pillar In … ... 2011 adidas Group Investor Day 21
Slide 22: adidas Originals – Key Marketing Pillar In 2011
adidas Originals - Key Marketing Pillar In… ... 2011 adidas Group Investor Day 22
Slide 23: Wholesale Distribution Strategy
Wholesale Distribution Strategy Distribution channels 2009 Distribution channels 2015 Moderate Dept Field / Specialty 34% 32% Moderate Dept Field / Specialty 30% 16% 7% Strategic Dept Strategic Dept 9% Sporting Goods 23% 24% Mall Sporting Goods 19% 6% Mall adidas Group Investor Day 23
Slide 24: Wholesale Distribution Strategy
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 Store
Slide 25: Summary
Summary Focus: Double-digit • Consumer: High school kids growth • Sports: Team sports per annum • Marketing: 3 key pillars per year • Distribution: Wholesale adidas Group Investor Day 25
Slide 26: Greater China Challenge
WwW CHALLENGE
Slide 27: Excessive Growth Rates Until 2008
Excessive Growth Rates Until 2008 6,000 1,000 Number of franchise stores 1) 2) 5,000 800 Sales (€ in millions) 4,000 600 3,000 400 2,000 200 1,000 0 0 2004 2005 2006 2007 2008 2009 2010 1) Brand adidas only 2) Total China sales brand adidas 27
Slide 28: China Facing Tough Challenges Recently
China Facing Tough Challenges Recently Competition intensifies Marketplace more and more crowded Local brands gaining market and mind share Vertical retailers Local brands eye international expansion 28
Slide 29: adidas Greater China – Changing The Rules
adidas GREATER CHINA CHANGING THE RULES 2010-2011 2012-2013 2014-2015 TRANSFORM CATCH UP GAIN BACK ORGANISATION AND AND ACCELERATE LEADERSHIP GTM PROCESSES REVENUE 29
Slide 30: China Consumer More Sophisticated
China Consumer More Sophisticated 30
Slide 31: Category Attack In High Tier Cities
Category Attack In High Tier Cities WOMEN‘S TRAINING MEN‘S TRAINING RUNNING B E C O M E G A I N G A I N A BRAND LEADERSHIP LEADERSHIP OF CHOICE FOR WOMEN BY 2012 BY 2015 G A I N CHALLENGE E M B R AC E BUILD LEADERSHIP LEADERSHIP NEW SOURCE UNEXPLOITED BY 2015 BY 2015 OPPORTUNITIES OF GROWTH FOOTBALL
Slide 32: It’s Time To Unleash Originals
It’s Time To Unleash Originals 32
Slide 33: We’ve Only Started To Touch The Lower Tier Opportunity
We’ve Only Started To Touch The Lower Tier Opportunity Our city coverage in 2010 Today: Only 247 cities with 2000 100,000+ MAC population 1800 1700+ T7 1600 T6 T5 1400 T4 T1-T3 1200 1000 800 600 ~550 400 200 0 Not covered Covered 33
Slide 34: But Lower Tiers Matter More As China Gains In Wealth
But Lower Tiers Matter More As China Gains In Wealth Our city coverage in 2015 (planned) By 2015: 576 cities with 100,000+ MAC population 2000 1800 T7 1600 T6 1400+ T5 1400 T4 T1-T3 1200 1000 850 800 600 400 200 0 Not covered Covered 34
Slide 35: Lower Tier City Expansion
Lower Tier City Expansion 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 35
Slide 36: Leverage Global Retail Expertise
Leverage Global Retail Expertise • Targets large-scale turnarounds • Leverage global expertise and local knowledge • Rapid feedback • Model stores to benchmark BEFORE AFTER 36
Slide 37: We Play To Win Commercially
We Play To Win Commercially Double-digit growth per annum 37
Slide 38: Expand Leadership In Russia
Expand Leadership In Russia 38
Slide 39: adidas Group Market Share In Russia around 60% in 2010
adidas Group Market Share In Russia around 60% in 2010 1 2 3 39
Slide 40: Growth Driven By adidas And Reebok Own Stores
Growth Driven By adidas And Reebok Own Stores Over 700 stores in 2010 75% of sales through own retail in 2010 YTD Sep 2010 comparable store sales +21% Fully integrated joint operating model 40
Slide 41: Best Russian Sports Marketing Assets
Best Russian Sports Marketing Assets 41
Slide 42: Improve Productivity In Existing Stores
Improve Productivity In Existing Stores Improved product offering • Best sellers Volume • Seasonal offer growth • Inventory management • Pricing 42
Slide 43: Improve Productivity In Existing Stores
Improve Productivity In Existing Stores • Drive consumers into the store Increase Units • Effective in-store product communication Per Transaction • Visual merchandising (UPT) 43
Slide 44: Increase Store Base
Increase Store Base • Stand-alone stores Over 1,000 • Multi-brand factory outlets • In existing and new malls stores in 2015 44
Slide 45: Highest Growth Coming From Training
Highest Growth Coming From Training Training = 50% of sales • Expanding entry price point offer • Leading in fitness top price point ranges • Focusing on seasonal products 45
Slide 46: Become The Leader In Outdoor In Russia
Become The Leader In Outdoor In Russia Leading in Outdoor by 2015 • Outdoor windows • In-store category call-out • Drive traffic and conversion • 350 doors with outdoor corner in 2011 46
Slide 47: Increase Group Market Share By 50% In Outdoor
Increase Group Market Share By 50% In Outdoor 2010 2015 adidas adidas 15% Other Other Reebok 28% 44% 8% 36% Reebok Outventure 9% 33% Outventure 27% 23% adidas Group outdoor market share 37% 47
Slide 48: adidas Group Market Share In Russia Around 70% by 2015
adidas Group Market Share In Russia Around 70% by 2015 Total market share to be around 70% 1 2 3 48