Reebok 2007 Annual Report Download - page 56

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ANNUAL REPORT 2007 --- adidas Group GROUP MANAGEMENT REPORT – OUR GROUP -- Structure and Strategy - Reebok Strategy
SHARPENING LIFESTYLE PROPOSITION Catering to sports
lifestyle consumers continues to be an important pillar of
Reebok’s strategy. In the past, the brand’s lifestyle business
was overly reliant on certain products, particularly in the
Classics footwear segment. To limit the risk of overdepen-
dence on single styles and build a broad-based lifestyle busi-
ness, Reebok is currently refi ning and widening its product
range.
Going forward, Reebok will continue to partner with enter-
tainers, actors and artists to appeal to a variety of consumers
and to stress individuality in the product offering. In 2008,
Reebok will introduce several new lifestyle concepts (e. g. the
Kool-Aid and Voltron collections) but also new variations of
popular existing concepts (e. g. Classics, Freestyle).
REEBOK-CCM HOCKEY: EXTENDING MARKET LEADERSHIP
Reebok-CCM Hockey holds the number one position in terms
of global sales in the hockey category, combining two leading
brands: Rbk Hockey and CCM. Both offer a complete range
of hockey equipment and apparel. Rbk Hockey and CCM are
positioned with two differentiated ‘’head-to-toe’’ brand plat-
forms. CCM is placing emphasis on the skates category while
Rbk Hockey is focusing on hockey sticks and apparel. Product
development and design initiatives at Reebok-CCM Hockey
focus on technologically-advanced, performance-enhancing
equipment.  see Research and Development, p. 072 Going forward,
Reebok-CCM Hockey will continue to develop and further
improve its industry-leading products such as the Rbk EDGE
Uniform System™, the Rbk O-Stick, and the Rbk Pump and
CCM V10.0 skates.
Reebok-CCM Hockey is the exclusive jersey licensee of the
NHL, the American Hockey League (AHL), the Canadian Hockey
League (CHL) as well as several college (NCAA) and national
teams. Through its partnership with the NHL, Reebok-CCM
Hockey is featured prominently at all games of the most
popular hockey league worldwide. In addition, the partnership
enables Reebok-CCM Hockey to drive its licensed business.
Further, Reebok-CCM Hockey partners with top players
including Sidney Crosby, Alexander Ovechkin and Vincent
Lecavalier. These partnerships with individual key players
underline Reebok-CCM Hockey’s leadership position in hockey
and also provide a commercial opportunity in the form of
licensed apparel sales or signature collections. As a result of
its strong product offering and partnership portfolio, Reebok-
CCM Hockey expects to further strengthen its leadership posi-
tion going forward.
FOOTBALL: COMPETING AS A NICHE PLAYER Football is the
most popular sport worldwide and of particular importance in
Europe and Latin America. Therefore, Reebok intends to tackle
the football market in these regions by becoming a credible
niche player in the category. The brand’s product offering in
football (including footwear, apparel and hardware) revolves
around fi t and comfort. To support business development and
connect with consumers in Europe, Reebok partners with a
limited number of standout footballers such as Thierry Henry,
Andriy Shevchenko and Iker Casillas. Reebok’s brand commu-
nication initiatives across Europe not only highlight the athletic
abilities of these players but also present facets from their life
off the pitch. In this way, Reebok intends to directly address
football consumers and to build brand awareness. In Latin
America, the brand utilizes sponsorship agreements with
popular football clubs such as Chivas, São Paulo FC and Inter-
nacional Porto Alegre to resonate with consumers.
BUILDING THE BRANDED APPAREL BUSINESS With respect
to apparel, Reebok’s current strength clearly is the licensed
apparel business. Therefore, building its branded apparel busi-
ness is a key priority for the brand and is targeted to deliver
annual incremental sales of € 100 million by 2009 as part of
the Reebok integration into the adidas Group.  see Outlook, p. 118
Technological innovation, design and a well-functioning supply
chain are critical success factors in the branded apparel
category. Expanding its apparel technology platform is a key
Reebok priority. This includes greater commercialization of the
brand’s “Play Dry” concept. The new KineticFit apparel tech-
nology will also be launched in 2008. By creating global ranges
that include region-specifi c executions, Reebok aims to evolve
into a credible and competitive market player in the branded
apparel cate gory. Therefore, Reebok is currently revamping its
product design and development processes – adopting adidas
best practices where appropriate. It also includes utilizing
adidas’ sourcing and supply chain infra structure.