Adidas 1996 Annual Report Download - page 38

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38
Key Strategic Issues
adidas operates in an industry that
will witness increasing competitive
pressure in the medium-term. These
competitive pressures result from a
variety of factors, in particular from
the surge in costs to secure attrac-
tive promotional contracts. In order
to be prepared, we will, during 1997,
realign our corporate structure to
respond best to market demands.
This new structure will focus the
group-wide brand and promotional
activities to achieve maximum effi-
ciencies. In addition, we will contin-
uously review all opportunities to
improve operational efficiencies
throughout the value-added chain,
continue the shift from licensees
to our own sales organizations,
expand the introduction of Feet You
Wear lines and strive for leadership
in customer service.
OUTLOOK
Backlog Analysis
Orders on hand for our top 12
subsidiaries at the end of 1996
amounted to DM 1,964 million, which
represents an increase of 46% or
DM 620 million in absolute
terms
compared to the end of 1995.
The
growth in orders on hand would have
been 33% or DM 485 million after
reconciling for the inclusion of new
subsidiaries. The increase in volume
was led by the U.K. followed by North
America, Germany, Spain, Australia
and Norway, which all showed back-
log growth of more than 25% com-
pared to 1995.
75% of the increase
in orders on hand is related to
Apparel (+53%), with the remainder
attributable to Footwear (+17%).