Reebok 2011 Annual Report Download - page 68

adidas Group
2011 Annual Report
GROUP MANAGEMENT REPORT – OUR GROUP
64
2011
02.2 Global Sales Strategy Wholesale Strategy Retail Strategy
02.2
PEAK people development programme to build the best
sales team
When reaching for gold in business, just like in sports, the quality of the
team is critical to score as high as possible. Therefore, at the beginning
of 2012, we will introduce a new programme for developing our
Wholesale sales organisation called PEAK (Performance, Excellence,
Activation, Knowledge). The aim of the programme is to create the
foundation for an educated and enabled sales organisation. To achieve
this, we have defined competencies and capabilities required by our
sales employees in a functional competency framework. With the
right competencies and skills in place, our employees can follow
our sales-specific career development roadmaps. In addition, PEAK
also offers a guideline for desired behaviour and actions that support
our employees to become successful leaders in the Wholesale
organisation of the Group.
Customer and range segmentation to exploit market
potential
Rolling out standardised product range packages around the globe
is an important part of the Group’s Wholesale strategy. The initiative,
which was first designed and implemented in Europe, involves a
customer segmentation strategy that facilitates the systematic
allocation of differentiated product packages to groups of comparable
customers. With 40,000 different partners around the world that
operate more than 100,000 points of sale, this segmentation is broadly
based on a distinction between sports and lifestyle retailers that either
have an up-market “brand-driven” positioning or a value-oriented
“commercial” positioning. By best suiting their specific needs,
this provides a platform to better exploit market potential, while at
the same time supporting the reduction of complexity and costs. In
addition, Wholesale continues to partner with retailers on increasing
the level and quality of sell-through information the Group receives on
a regular basis. This creates a mutually beneficial understanding of
their needs, which helps us to become a more valuable and reliable
business partner. At the same time, this helps us to drive incremental
business opportunities and ensure a globally consistent distribution
logic.
Innovation key to accelerate speed to market
Accelerating product creation, while reducing complexity is a key
element to gain competitive edge and, ultimately, to increase shelf
space at our customers. We have therefore developed a virtual sell-in
tool which allows us to continuously offer a holistic sample range to
our retail partners. This gives the customer the benefit of having a
“full range in his pocket”. The reduced amount of samples used during
the sell-in process as well as the streamlined image creation process
increases speed to market, while at the same time saving costs. This
new tool has already been introduced in several markets and product
categories and is targeted to cover 60% of all Wholesale pre-orders
by 2013.
Retail Strategy
Our vision for Retail is to become a top retailer by delivering healthy,
sustainable growth with outstanding return on investment. Retail
plays an increasingly important role for the future of our Group and
our brands, and is a key driver on our Route 2015 journey. The reasons
are manifold:
– To showcase the breadth of our brands (e.g. brand centres)
– To create distribution in markets which do not have traditional
wholesale structures
– To grow another profitable distribution channel
– To leverage our learnings from own retail for the entire organisation
– To provide a clearance channel (i.e. factory outlets)
02 adidas
Brand Centre in Shanghai
Over the past five to ten years, the adidas Group has evolved into a
significant retailer, operating 2,401 stores for the adidas and Reebok
brands worldwide SEE RETAIL BUSINESS PERFORMANCE, P. 140 .
In order to simplify the shape of our store chain, we have clustered it
into three different formats, namely brand centres, concept stores and
factory outlets.
– Brand centres are large stores carrying the full range of each of our
adidas sub-brands under one roof. They are the bold and powerful
statements about the adidas brand’s strength, breadth and depth.
This format will be kept to a limited number and only in exclusive
locations such as New York, Paris or Shanghai PICTURE 02 .