Reebok 2011 Annual Report Download - page 71

adidas Group
2011 Annual Report
GROUP MANAGEMENT REPORT – OUR GROUP
67
2011
02.2 Global Sales Strategy eCommerce Strategy
eCommerce Strategy
At the beginning of 2010, a leadership team was put in place to
define and outline the strategic direction of the Group’s eCommerce
activities for the adidas and Reebok brands. Although both brands
have made advances with their respective platforms in recent years,
we believe there is considerable untapped potential for the Group in
this distribution channel.
As part of Route 2015, eCommerce has defined its strategic priorities
which include:
– Establish eCommerce as the third sales pillar
– Balance Wholesale and eCommerce activities by implementing a
new distribution policy
– Create one consumer destination by integrating brand, shop and
customisation sites
– Build a best-in-class technology platform
– Drive attraction, conversion and retention by building enhanced
e-marketing capabilities
The success of our eCommerce strategy will rest on our ability to
attract, convert and retain the consumer in a crowded marketplace. To
attract the consumer, we need to optimise the visibility of our site and
how it ranks in online searches.
We also have to improve our management of paid placement and link
our own site to social media to attract larger numbers of the right type
of consumer. To drive higher conversion rates, we intend to simplify
and improve the functionality of our eCommerce platforms to create
best-in-class shopping experiences. Finally, to retain consumers we
will strive to create targeted communication as we gain a deeper
knowledge through improved CRM solutions that will allow for more
robust consumer interaction. In this respect, social media will play an
important role as it facilitates a deepening of the dialogue with our
consumers and a more evolving relationship with them SEE GLOBAL
BRANDS STRATEGY, P. 68
.
In 2011, we made good progress on our eCommerce strategic prior-
ities, including the completion of establishing eCommerce as the third
sales channel. In doing so, we hired external expertise, added young
and talented digital/online addicts, and strengthened our leadership
both on a global and a market level. Moreover, in North America
we rolled out a new eCommerce platform built in-house that will
give us more flexibility and an improved consumer experience over
time PICTURE 05 . In 2012, we will integrate the Reebok brand onto the
same platform to leverage the benefits for both brands. Similarly,
accelerating our global expansion into new markets is at the top of
our agenda as we plan to add at least 10 additional markets globally,
including Latin America, where we intend to go live with our first
online shops in 2012. In order to create one consumer destination, we
will relaunch a new fully integrated brand and eCommerce platform in
Western Europe in the first half of 2012 as well as implement a state-
of-the-art customised experience (mi adidas/miTeam) to further build
on our personalised interaction with the consumer.
05 adidas
www.shopadidas.com
In summary, with the strategic initiatives we have already kicked off
and which we will continue to build upon, our eCommerce business
is well on track to achieve the target of € 500 million in sales by 2015.