The adidas group presents new plan until 2020Staff writer ▼ | March 27, 2015
At its Investor Day in Herzogenaurach, the adidas Group presented its new strategic business plan until the year 2020. By "creating the new", the strategy aims at further accelerating growth by significantly increasing brand desirability.
Adidas Vulcabras to control of Reebok in Brazil and Argentina
The new business plan is built around three major strategic choices: speed, cities and open source.
With adidas NEO, the Group has already set new standards with regard to speed to market by significantly reducing production lead times and increasing in-season creation.
Drawing on these successful experiences, the company intends to roll out this mantra of "speed" across the entire Group. To complement this, the adidas Group will further increase its sales through controlled space activities to above 60% of sales. At the same time, the Group aims to expand its eCommerce business to above € 2 billion by 2020, by implementing a true omni-channel approach.
With 80% of global GDP generated in cities and global trends being increasingly shaped in metropolitan areas, the adidas Group aims to continue its growth in all relevant geographic markets with a focus on six global key cities: Los Angeles, New York, London, Paris, Shanghai and Tokyo.
n order to capture growth opportunities even more effectively than before, the adidas Group will focus investments across its core brand portfolio: adidas, Reebok and TaylorMade.
Further, the Group unleashed open source, a strong commitment to further strengthen the company’s ties with its consumers. By increasing consumer desire in how the Group creates, designs and presents products, the adidas Group will engage with consumers, athletes, retailers and partners more than ever before, make them become part of its brands and, as a result, increasingly build brand advocacy.
The adidas Group announced that in mutual agreement with Vulcabrás S.A. it will take control of the distribution and licence rights for the Reebok brand in Brazil and Argentina, when the current joint venture agreement concludes at the end of 2015.
By concluding the distribution and licence contract as well as the related joint venture agreement with Vulcabrás S.A., the adidas Group will hold the exclusive distribution rights for Reebok products in Brazil and Argentina as of January 1, 2016.
The Reebok and Vulcabrás partnership dates back to 1992, when Vulcabrás became the official distributor and licensee of the Reebok brand in Brazil. In 2008, the partnership was enhanced with the creation of a joint venture, governed by a Board of Directors comprised of Reebok and Vulcabrás executives, whereby Vulcabrás S.A. would distribute Reebok footwear, apparel and accessories in Brazil and Argentina through to the end of 2015. ■