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adidas Group Annual Report 2008 049
Increasing cooperation with retail partners
Success in both Sport Performance and Sport Style requires
an effective distribution strategy and a solid network of reli-
able retail partners. The right presentation and availability
of consumer-relevant products as well as excellent customer
service at the point-of-sale are critical in this respect. adidas
currently generates around 82% of its business with its retail
partners. Two of the highest strategic priorities to drive future
business growth with the brand’s partners are:
— Consumer-oriented range segmentation today forms the
foundation for closely targeted brand activation plans. In this,
adidas is working very closely with its main retail partners to
fully align consumer propositions and to develop unique selling
propositions in line with the partner’s target audience. In 2008,
an example of this was the collaboration with the Intersport
Group around the UEFA EURO 2008™. adidas also seeks to
broaden its distribution network with the addition of new
partners, in particular sports specialist or fashion specialist
customers, as the product offering is expanding continuously.
— Retail space management (e.g. shop-in-shops) is becom-
ing the most dynamic business model for adidas and is a key
part of the brand’s controlled space expansion. In this, the
brand is cooperating with retailers along the entire supply
chain all the way through to the point-of-sale. Replenishment
models secure high levels of product availability throughout
the season, allowing for quick adaptation to demand patterns.
In addition, by increasing control over point-of-sale presenta-
tion, regular brand statements and product updates give adidas
higher fl exibility to generate consumer awareness.
To support these initiatives, during 2008 the brand extended
the reach of its innovative web portal services and added
attractive new features to its CRM platform in many countries
around the world. Going forward, adidas is ready to invest into
new forms of cooperation to remain at the forefront of cus-
tomer collaboration and partnership.
Own retail and e-commerce
Own-retail expansion is an important strategic driver for adidas
brand growth. While serving as a mechanism to expand distri-
bution where retail infrastructure is under-developed (such as
in many emerging markets), own-retail activities also give the
brand valuable insight into consumer trends and product posi-
tion ing in all markets where adidas operates its own stores.
In addition, improving own-retail presence and processes will
– in the long run – also be benefi cial for enhancing other con-
trolled space initiatives as best practices in presenting brand
image can be incorporated in these concepts.
2008 marked a milestone in adidas own-retail history with the
opening of the fi rst adidas Brand Center in Beijing a month
before the Beijing 2008 Olympic Games. As the largest adidas
own-retail store in the world with 3,170 m2, the Brand Center
offers products from all adidas categories under one roof.
Other retail initiatives carried out in 2008 included refi ning the
women’s and kids’ areas and a revised, more customer-friendly
footwear department in adidas Sport Performance stores. The
Sport Style division released new concepts for the Originals
stores called Atelier and Studio. Furthermore, a refreshed
Y-3 store concept has been launched and is already exceed-
ing expectations. To fully exploit the potential of the new Style
Essentials range, adidas has opened numerous dedicated
stores via the adidas franchise partners in China.
In 2008, adidas also successfully launched its e-commerce
platform in four major European markets (Germany, the
Netherlands, France and the UK). In 2009, the United States
and selected European countries will welcome mi Performance
online as part of the mi adidas® customisation solution.
Sport Performance: divisional overview
No other brand has a more distinguished history or stronger
connection with sport than adidas; not only where the best
meet the very best, like at the Beijing 2008 Olympic Games,
but everywhere around the globe where sports are played,
watched, enjoyed and celebrated.
Everything at adidas refl ects the spirit of its founder Adi Dassler.
That means adidas intends to inspire, support and equip all
athletes in the best possible way to help them achieve their
optimal performance. Therefore, adidas Sport Performance
remains the brand’s primary focus both in terms of product and
brand initiatives. The division will continue to generate at least
70% of adidas brand revenues going forward. Although the
adidas Sport Performance division offers products in almost
every sports category, the key priorities are:
— Football
— Running
— Training
— Basketball
In all these areas, adidas strives to be the leading global brand
in terms of sales. Additionally, adidas plans to intensify its
activities in the outdoor market see adidas Products and
Campaigns, p. 128 and to further extend its strong global market
position in the tennis category going forward.
adidas aims to consistently present the brand attitude
“ Impossible is Nothing” in targeted and relevant consumer
communication. The “Impossible is Nothing” brand campaign
encourages consumers to achieve their own personal
“ impossible” goals – no matter what they might be – and
underlines that adidas will help them in their pursuit of these
goals.