Reebok 2006 Annual Report Download - page 20

016 ANNUAL REPORT 2006 › adidas Group ›
What about TaylorMade-adidas Golf?
What are the opportunities and challenges
for this business segment in 2007?
Over the last year, you announced several
new retail initiatives. Why are you
placing so much emphasis on this area
of your business?
Our innovative strengths in this segment have allowed us to grow and increase market share in an otherwise
challenging space. 2007 will be an exciting year for the golf industry, with several new technologies from
many market players. And I’m very confident that TaylorMade-adidas Golf will again be at the forefront when
it comes to bringing stimulating, technologically advanced product to the consumer. Look at our two new
drivers, the r7® SuperQuad and the Burner® driver, which have been the two most played new clubs among
professionals on the PGA Tour since we launched them in January. To fully capitalize on the momentum,
we’ve also introduced a major marketing campaign supporting these product launches. We are not only
scoring in the critical metalwoods category, but also expect to generate strong growth with our golf balls as
well as our apparel and footwear offering. We are gaining market share in many categories and I am fully
convinced that our team at TaylorMade-adidas Golf will deliver € 1 billion in sales in 2010.
The most successful companies are those that operate close to the market. But, for us, close is not enough.
We want to be closest. At adidas, our own-retail activities are setting the pace in providing the best consumer
experience, with creative new formats and interactive fitting technologies. But it is important to remember
that 85% of our product is presented to the consumer through our extensive distribution and retail partner
base. Going forward, a clear priority is collaborating even more with our partners to enhance every point-of-
sale experience. We want to get closer to the consumer in these channels, but also to open up new oppor-
tunities and help increase the efficiency and profitability of our retail partners. We are definitely leading the
industry here. Whether it be shop-in-shop initiatives, for example with JJB in the UK and Dick’s Sporting
Goods in the USA, or partnership agreements like those we have with INTERSPORT in Europe, our goal is to
increase our impact at retail.
And we won’t stop there. In order to be closest to every consumer, we will raise the game of our entire orga-
nization. In particular, through our “World Class Supply Chain” initiative, we will enhance our supply chain
capabilities. We will focus on speed, agility and connectivity. This includes building capabilities to share sell-
through data from our customers directly with our suppliers. Our efforts will make us more demand-driven
and increase our retail and consumer focus. In the end, when consumers enter a store – whether it be our
own stores, our retail partners, or online shopping – they should always be able to find the product they want
in the color they want and the size they need.