Reebok 2006 Annual Report Download - page 19
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015
Interview with the CEO ›
You once again delivered significant growth in
North America in 2006. What are your expectations
for 2007 and beyond?
Our first big product initiatives will hit the market in the second half of 2007. Here our focus will be on running,
women’s and apparel. We are launching two new marketing campaigns, “Run Easy” and “Best On | Best Off”,
and will leverage our strong portfolio of partnership assets such as NFL, MLB, Peyton Manning, Thierry
Henry and Scarlett Johansson to deliver the Reebok proposition to the consumer. At the same time, we are
also refining our distribution strategy at Reebok to ensure we are where it matters most to our consumers.
By broadening our presence in all major retail formats, particularly in sporting goods and better department
stores, we will reduce the brand’s historic dependence on specific customers and channels to provide a
more balanced and flexible distribution base. We will also create new excitement with Reebok-CCM Hockey
and Rockport. These two tremendous businesses are performing well and by leveraging the capabilities of
the entire adidas Group, we will open up new avenues and opportunities for growth.
In North America, both adidas and TaylorMade-adidas Golf delivered excellent double-digit growth for the
second year in a row. Reebok had a more difficult time with lower consumer appetite for classics product,
and intensified competition in the family footwear segment where the brand has been traditionally over-
represented. During the second half of 2006, the market environment became more difficult and less trans-
parent. And it’s clear that in 2007 market conditions will be more challenging for all of our brands in the
region. Nevertheless, I am confident our Group has the tools in place to be successful in this important
market. We have worked hard in recent years to broaden our product offering and enlarge our distribution
base, and we have clear potential to significantly improve the position of all our brands. Growing our busi-
ness profitably is our guiding principle in this market. At adidas, although our backlog development is nega-
tive in footwear, we are seeing positive sell-through at the retail level, particularly in running, which leaves
us confident we will grow sales again in 2007. Reebok meanwhile should benefit from new product and
campaign initiatives in the second half of 2007.