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Strategy

We’re all ‘Creating the New’ – because we believe that, through sport, we have the power to change lives

Everything we do is rooted in sport. The good news is that sport plays an increasingly important role in more and more people’s lives, on and off the field of play, so we operate in a highly attractive industry. We push the boundaries of products, experiences and services to drive brand desire and capitalize on the growth opportunities in sport as well as in sports-inspired casual and activewear. However, the importance of sport goes far beyond that. Sport is central to every culture and society and is core to an individual’s health and happiness. Therefore, we believe that, through sport, we have the power to change lives. And we work every day to inspire and enable people to harness the power of sport in their lives.

ON A CLEAR MISSION

We want to be the best sports company in the world. What does that mean? Well, to us ‘best’ means that we design, build and sell the best sports products in the world, with the best service and experience, and that we do so in a sustainable way. But ‘best’ is also what our consumers, athletes, teams, partners, media and shareholders say about us.

WITH A SOLID PLAN

‘Creating the New’ is not only the attitude that leads us into the future, it is also the name of our strategic business plan until the year 2020 to accomplish our mission. At the core of Creating the New stands our ambition to further drive top- and bottom-line growth by significantly increasing brand desirability. We therefore focus on our brands as they connect and engage with our consumers – to deep dive into the world of our core brands adidas and Reebok click here.

We know that, in order to be successful, we need to get closer to our consumers than ever before. To achieve that, our plan is based on three strategic choices: Speed, Cities and Open Source. For more information around these three choices, please scroll further down.
But ultimately, Creating the New has its powerful foundation in our unique corporate culture. We have great talents in our organization who work with passion for sports and our brands. It is our people that bring our strategy to life and make the difference in achieving our long-term goals. To read more about our culture at adidas click here.

OUR STRATEGIC CHOICES

Our business plan is built around three strategic choices that will enable us to focus even more on our consumers:

  • Speed – How we deliver: Putting our consumers at the heart of everything we do and serving them in the best possible way means that we need to ensure that they always find fresh and desirable products where and when they want them. We will become the first true fast sports company.
  • Cities – Where we deliver: Urbanization continues to be a global megatrend. Most of the global population lives in cities. Cities are shaping global trends and consumers’ perception, perspectives and buying decisions. We have identified six key cities in which we want to over-proportionally grow share of mind, share of market and share of trend: London, Los Angeles, New York, Paris, Shanghai and Tokyo.
  • Open Source – How we create: This is all about collaboration and innovation. About learning and sharing. We are opening the doors of our brands inviting athletes, consumers and partners to co-create the future of sport and sports culture with us.

CREATING THE NEW ACCELERATION PLAN

To foster our brand momentum and accelerate sales and earnings growth, we introduced a number of initiatives that we will focus on in addition to the three strategic choices and our corporate culture – Portfolio, North America, Digital and ONE adidas.

  • Portfolio: This is all about more focus and less complexity. We are constantly revisiting and sharpening the focus of our brand portfolio, fully concentrating on adidas and Reebok and on our core competencies in footwear and apparel. This will allow us to reduce complexity and pursue our consumer in a more targeted and consequent way.
  • adidas North America: North America represents the biggest market in the sporting goods industry with a total share of approximately 40%. It is the single biggest growth opportunity for the adidas brand. That is why we have made North America a strategic priority and started to significantly increase our investments into our US business – people, infrastructure, marketing and point-of-sale – in order to be more relevant and always visible to the consumer.
  • Digital: The digital transformation is fundamentally changing the way our consumers behave and the way we work. Technology has enabled us to build more direct relationships with our consumers. With our relatively young workforce we are in the unique position to continuously improve our digital capabilities – not only to interact with the consumer, but also to become faster, better and more efficient in every part of the organization.
  • ONE adidas: We continuously strive for operational excellence. ONE adidas encompasses a set of initiatives that will enable us to work smarter, more efficiently and in a more aligned way. Because we know that when we act as one global company instead of 20 smaller ones, we can only get better.