Adidas 1999 Annual Report Download - page 38

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34
Management Discussion and Analysis
Sporting goods markets expected
to grow in Asia and Europe,
but sluggish in North America
adidas-Salomon anticipates that development of the
world’s sporting goods markets in 2000 will be mixed.
The highest growth rates are expected for Asia. Follow-
ing a broad-based recovery from the economic and cur-
rency crises, it is expected that there will be a signifi-
cant upturn in consumption in the private sector, and
thus also growth in demand for sporting goods.
There is consensus among economic research institutes
that gross national product and consumption in the
private sector in Europe are likely to increase by
between 2% and 3%, differing slightly from country to
country. This will create positive conditions for moderate
growth in Europe’s sporting goods industry.
Prospects for the sporting goods industry are felt to
be less positive in North America, although economic
growth and a further increase in consumption is also
forecast for this region. However, the industry is still
suffering from the excessive expansion of retail chains,
out of line with market developments, which did not
culminate in the first consolidations, insolvencies and
store closures until the beginning of 2000.
Salomon, Taylor Made and Mavic expected
to show higher growth than adidas
In this environment, adidas-Salomon expects the adidas
brand to achieve sales growth only in Asia and Europe –
showing a double-digit increase in Asia, and low single-
digit growth in Europe. In North America, sales in the
first half of the year are expected to show a low double-
digit percentage decrease. adidas-Salomon expects sales
in the second half to remain virtually unchanged com-
pared to the previous year.
Overall product sales under the adidas brand name in
the year 2000 are expected to exceed the 1999 level
only marginally.
Stronger growth is anticipated for Salomon, Taylor Made
and Mavic. The focus of growth for the Salomon brand
will be in Europe and Asia. Taylor Made is hoping to
achieve stronger increases in the USA, the world’s
biggest golf market. Mavic expects sales and growth
to continue to be driven predominantly by European
markets.
Outlook
adidas è
Salomon é
Taylor Made é
Mavic é
NET SALES GROWTH