Reebok 2007 Annual Report Download - page 19

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ANNUAL REPORT 2007 --- adidas Group
01
S
ALE
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F
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R THE REEB
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2008
. WHAT ARE Y
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ITI
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AND
PERFORMANCE GOING FORWARD
?
Let me start by saying that while we are pleased with the new market opportunities and scale benefi ts that have already
come to our Group as a result of the Reebok integration, you are right that we still need to complete the repositioning of
the Reebok brand – especially in its two largest markets – the USA and the UK. To do this, we clearly have to maintain our
discipline and focus on Reebok. In 2007, we made major management changes at the Reebok brand. We took tough decisions
to improve US distribution – even stopping supply to the brand’s largest customer where excess inventories had led
to a signifi cant decline in profi tability.
But the real test is still in front of us – making the Reebok brand more relevant to consumers. The brand needs simple
messages that stick, and that’s why its 2008 products and marketing strategies focus on two important concepts – fi t and
choice. Reebok is striving to be the brand that “fi ts me”. This means creating the perfect fi t with all its consumers, customers
and business partners alike. Therefore, Reebok has sharpened its 2008 product offering by including 893 new fi t initiatives
throughout its collections. In addition, Reebok is customizing its product offering for key retail partners – which means more
relevant products for consumers, and higher margins for Reebok. And through the launch of the brand’s global commu ni-
cation campaign –“Your Move”– Reebok is set to establish itself as a supporter of individual choice and a challenger of con-
vention.
We still have a long way to go. As we announced at our Investor Day six months ago, sales will not grow for Reebok in the USA
and the UK in 2008. But I do expect the order situation in these markets to improve later this year. And sales will grow in
nearly all other markets – especially Russia and China – where the brand took over distribution for the fi rst time in 2007.
As a result, we not only expect sales and profi tability for the segment to increase in 2008 – but more importantly, the brand
perception amongst consumers around the world should also improve.
“We still need to complete the repositioning of the Reebok
brand – especially in its two largest markets – the USA
and the UK.”
“We not only expect sales and profi tability for the segment
to increase in 2008 – but more importantly, the brand
perception amongst consumers around the world should
also improve.”