Invacare 2013 Annual Report Download - page 15

I-9
an active lifestyle that can be achieved through use of oxygen devices such as the Invacare® HomeFill® oxygen system and the
Invacare® XPO2® and Invacare® SOLO2® portable oxygen concentrators.
The Company also drives consumer awareness of its products through its sponsorship of a variety of wheelchair sporting
events and support of various philanthropic causes benefiting the consumers of the Company's products. The Company continued
its sponsorships of individual wheelchair athletes and teams, including several of the top-ranked male and female racers, hand
cyclists and wheelchair tennis players in the world. The Company continued its support of disabled veterans through its sponsorship
of the 33rd National Veterans Wheelchair Games, the largest annual wheelchair sports event in the world. The games bring a
competitive and recreational sports experience to military service veterans who use wheelchairs for their mobility needs due to
spinal cord injury, neurological conditions or amputation.
Europe
The Company’s European operations consist primarily of manufacturing, marketing and distribution operations in Western
Europe and export sales activities through local distributors elsewhere in the world. The Company has a sales force and, where
appropriate, distribution centers in the United Kingdom, France, Germany, Belgium, Portugal, Spain, Italy, Denmark, Sweden,
Switzerland, Austria, Norway and the Netherlands, and sells through distributors elsewhere in Europe, the Middle East and Africa.
In markets where the Company has its own sales force, product sales are typically made through dealers of medical equipment
and, in certain markets, directly to government agencies. In 2013, the continued consolidation of big buying groups tending to
develop their business on a European scale has continued resulting in the application of pan-European pricing policies by the
Company.
The Company has centralized its product distribution through its European Distribution Center which is focused on further
optimizing logistics and increasing service levels to customers.
Invacare continues to sponsor wheelchair sporting events including European Handcycling Federation (EHF) and FIPFA
(Powerchair football association) events, the Lisbon marathon as well as individual heroes and athletes with disabilities.
Asia/Pacific
The Company's Asia/Pacific segment is comprised of Australia, New Zealand, Japan, Korea and South East Asia related to
its Australia and New Zealand distribution businesses.
In the fourth quarter of 2012, Invacare Australia made a significant change to the way it markets Invacare product. Direct-
to-consumer sites in Melbourne, Adelaide, Perth and Brisbane were closed and all warehousing and distribution were consolidated
into the Company's Australian headquarters in Sydney, Australia. Invacare New Zealand is a market leader for mobility and
rehabilitation products in New Zealand. A significant portion of the direct sales are government funded and controlled by capped
budgets. Invacare Australia and Invacare New Zealand both sell through three distribution channels:
• Mobility and Seating products are sold via a dealer network. Almost all sales are directly government funded;
• Homecare products are sold via a dealer network that sells products to the consumer market; and
• Long-Term Care products are sold directly to aged care facilities.
Invacare Australia and New Zealand have invested heavily in marketing efforts to increase demand for Invacare product in
2013. Customer Relationship Management (CRM) and On Demand Marketing (ODM) as well as sales and marketing database
tools have been introduced to improve the effectiveness and efficiency of the sales force and the marketing efforts within Australia
and New Zealand. Invacare Australia and New Zealand focused their respective sponsorship efforts around a small number of key
athletes who participated in premier sporting events. Invacare also is a sponsor of the "Oz Day 10K" classic where the streets of
Sydney are closed for a wheelchair race on Australia Day. Invacare is a sponsor of the Attitude Trust and is naming sponsor for
the Disabled Sports Person of the Year award that is held as part of the Attitude Awards on World Disability Day in New Zealand.
Invacare China sells almost exclusively through the homecare channel via a distributor and dealer network focused in the
major provinces and cities of Shanghai, Beijing and Guangzhou. The primary product sold is oxygen concentrators, with some
minor sales in wheelchairs and bathing aids. Invacare China has established a government affairs team to capitalize on the increasing
levels and localized funding of aids and equipment for the elderly and disabled. Marketing efforts are focused on supporting the
dealer network to increase consumer sales. The other Asian markets are supported by dealers and distributors and Invacare supplies
directly to those customers.