Reebok 2010 Annual Report Download - page 18

14 To Our Shareholders Interview with the CEO
Will adidas grow in 2011 without any major sports events? What key initiatives and Will adidas grow in 2011 without any major sports events? What key initiatives and
product launches for the brands should we watch out for in 2011?product launches for the brands should we watch out for in 2011?
We have seen a strong turnaround for Reebok in 2010. With signs that the toning market We have seen a strong turnaround for Reebok in 2010. With signs that the toning market
is slowing, can Reebok maintain its momentum in the near term?is slowing, can Reebok maintain its momentum in the near term?
Too much is made out of event versus non-event years. Beyond the phasing of our business
between the quarters, there is actually very little difference, given how diverse the adidas
brand is today. Last year is a great proof of that. Outside of football and adidas Sport Style,
which we already talked about, we had outstanding growth in running and outdoor, where
sales grew 8% and 21%, respectively. In running, highlight collections such as adiZero,
Supernova and Response all grew at double-digit rates.
I also wouldn’t say 2011 is eventless. The sporting calendar is packed, and with great regional
diversity, which can only be good for a brand as global as adidas. Events such as the Cricket
World Cup in India, the Rugby World Cup in New Zealand, the Copa América in Argentina, the
Women’s Football World Cup in Germany and the IAAF World Championships in Korea are
just a few we will leverage to our advantage this year. The Copa América will attract half a
billion viewers alone in Latin America. And don’t forget towards the end of the year, we will
start prepping for the highly anticipated London 2012 Olympic Games and the UEFA European
Championship 2012.
At the end of the day, our success in any year is only as good as the initiatives we have in place
to excite the consumer. And I am extremely enthusiastic about our campaigns and product
launches, which will show up everywhere in a big way in 2011. In mid-March, we will kick off
our “all adidas” global brand campaign. The campaign showcases adidas’ distinctive presence
across and into different sports, cultures and lifestyles – fusing the worlds of sport, music
and fashion. We also have an incredible pipeline of products coming to market this year. Take
running again. With products like the adiZero F50 Runner and Clima CC Ride, I expect we will
see growth accelerate in this cornerstone Route 2015 category and grow at a double-digit
rate. In football, the Predator has been completely redesigned to give maximum impact both
technically and visually. It will also be fully integrated with adidas miCoach, and you will see
it on the field of play with a new younger breed of stars such as Nani who just recently joined
the adidas family. We will also build on our credibility as the lightest brand in the game of
basketball with the launch of the adiZero Crazylight. And adidas Sport Style has another string
of intriguing collections, including the first year of our own Originals Denim collection.
Yes, definitely. I can only reiterate what I said in November. We have built our presence in
toning in the right way, taking our time, choosing selectively how and with whom we distribute,
and matching demand carefully with supply. We have also remained committed to our
endeavours, making sure we give our partners the right support to drive sales through to the
consumer.
More importantly, however, with every quarter the top-line drivers are becoming more
broad-based and, indeed, more international. Our presence at retail is also getting bigger
and bolder. And our partners are showing great confidence in the brand. I only have to look
at our exposure at Finish Line in February, where we ReeZig’d all 680 Finish Line stores in
the USA with ZigTech imagery for four weeks. In 2011, we are also gearing up for our third
key technology platform launch – RealFlex. RealFlex promotes natural movement and is
equally striking in terms of design and functionality as Reebok’s toning and Zig platforms. In
addition, we will also re-launch Reebok Classics. To support the Classics franchise, Reebok
has recently announced a multi-faceted partnership with producer, artist and designer
Swizz Beatz, who will work initially on creative content to bring our new Classics positioning
to life. The reaction to RealFlex and Reebok Classics has been really encouraging, adding
further momentum to an already energised brand.