Adidas 2001 Annual Report Download - page 56

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51
MD&A
Strong TaylorMade momentum in the region will
also continue. In America, double-digit gains will be
driven by both footwear and apparel improvements.
Changes to how adidas-Salomon approaches the
market combined with adidas product innovations
mark the Group’s return to growth in the world’s
most important sporting goods market. In Europe,
adidas-Salomon is targeting modest overall gains,
supported by strong improvements in key markets
such as Italy and Spain and further growth with key
accounts. In Latin America, moderate sales increases
are expected, although growth in the region is uncer-
tain because of regional effects tied to the Argentinean
financial crisis.
Two New Footwear Innovations
to Lead Forever Sport Growth
Within the adidas Forever Sport division, two impor-
tant new technologies are being introduced in 2002
to drive sales, brand momentum and adidas’ credibil-
ity for innovation. ClimaCool™, a 360-degree venti-
lated shoe which reduces foot moisture and tempera-
ture, enters the market in Spring 2002 and will be
supported with a global marketing campaign in four
key sports categories: running, basketball, tennis and
training for sport. a3, adidas’ second technological
innovation, cushions the foot but additionally guides
the foot to optimal footstrike and encourages energy
maintenance during sport. adidas remains committed
to technological innovation and will continue to
introduce at least one innovation or major evolution
of an existing technology per year in the future.
Basketball Category to Grow Fastest
at adidas Forever Sport
adidas Forever Sport is targeting growth in each
of its five major sports categories in 2002: running,
basketball, football, tennis and training for sport.
In particular, adidas-Salomon is encouraged by the
outlook for adidas basketball products, which are
quickly gaining profile in the global marketplace.
Exciting products such as the KOBETHREE, T-MAC,
All Day All Night II in addition to ClimaCool™ and
a3products for the basketball category will enable
adidas to capitalize on the strong industry product
cycle. Sales growth is expected to return to the run-
ning and training categories for the first time in two
years, with a strong impetus coming from the two
new adidas footwear technologies, ClimaCool™ and
a3. Football innovations tied to the 2002 FIFA World
Cup™ will push category sales forward. And con-
tinued high visibility on the tennis circuit will help
drive sales gains in tennis.
Double-Digit Growth Continues at adidas Originals
The Original division, which grew by more than 50%
in 2001, will continue to grow at double-digit levels
in 2002. In particular, apparel, which will be launched
as a full collection for the first time in Spring/Summer
2002, will grow significantly. Growth here is also
supported by adidas Originals stores, which are located
in Berlin and Tokyo. An additional Originals store will
be opened in the United States in 2002.
Salomon Growth to Continue
As a result of the continued innovative strength and
the increasing profile of Salomon products, adidas-
Salomon is currently projecting continued growth from
the Salomon brand in 2002. On a regional level, the
strongest growth will come from North America, as
a result of further progress in the outdoor footwear
and apparel sectors, spurred by Salomon’s high visi-
bility at the Winter Olympic Games. Product category
increases should be highest for apparel, where
Salomon’s multi-brand strategy and in particular the
first-time inclusion of Arc’Teryx will allow Salomon
to expand its outdoor technical apparel at double-digit
rates. Skateboarding sales will also grow as Cliché,
the Group’s new skateboard brand, will help both
hardware and soft goods sales for Salomon. Inline
skate sales, which currently account for 10% of
Salomon sales, are expected to decline in light of the
global softening of this market. Salomon activities in
2002 will also focus on preparing for their market entry
into water sports, in particular surfing. This small-scale
program will target hard-core enthusiasts and support
the brand’s growth in soft goods.