Reebok 2015 Annual Report Download - page 59

GROUP MANAGEMENT REPORT – OUR GROUP
Group Strategy
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Creating long-term shareholder value: Creating long-term value for our shareholders through
strong and consistent operating cash flow generation drives our overall decision-making process.
Therefore, we are focused on rigorously managing those factors under our control, making strategic
choices that will drive sustainable revenue and earnings growth and, ultimately, operating cash flow.
We are committed to increasing returns to shareholders with above-industry-average share price
performance and dividends.
TRENDS SHAPING OUR INDUSTRY: DIGITALISATION, URBANISATION
AND INDIVIDUALISATION
We need to be at the forefront of change as we adapt to new consumer demands, innovations in technology
and the overall dynamics in the expanding sporting goods industry. The three main megatrends our Group
is anticipating are:
•Digitalisation: We are convinced that everything that can be digitalised is being digitalised. There is
an array of digital technologies that is involved in the creation of value: smartphones, data analytics,
cloud infrastructure, etc. Digital services also offer completely new possibilities to connect and interact
with our consumers.
•Urbanisation: We believe that the appeal and power of brands will be determined by their success in
ever-expanding key cities. Since 1990, the number of megacities with more than 10 million inhabitants
has tripled. These are the ‘halo’ locations, where the perception of brands will be shaped. From there,
they will spread to the rest of the world.
•Individualisation: Consumers’ relation to brands is increasingly based on their individual experiences
with a brand, a campaign or a product. This trend is growing in terms of importance and we are deter-
mined to cater for this trend with our brands.
Against the background of these three trends, in March 2015, we presented our new strategic business
plan until the year 2020 named ‘Creating the New’.
CREATINGTHE NEW PUTS BRAND DESIRE CENTRE STAGE
At the epicentre of Creating the New is our ambition to further accelerate growth by significantly increasing
brand desirability. Creating the New therefore focuses on our brands as they connect and engage us with
our consumers. Our new strategic business plan is built around three strategic choices that will support
us in intensifying our focus on our consumers and will drive brand desirability in the years to come: Speed,
Cities and Open Source.
see Internal Group Management
System, p. 102
01OUR STRATEGY FOR CREATINGTHE NEW
BRAND DESIRE
Top line and market
share growth
Gross margin expansion
Operating leverage