adidas reveals new five-year business plan

Focusing on three key areas – speed, cities and open source – the brand is aiming to generate high single digit currency neutral sales growth every year for the next five years and boost net income by around 15 per cent per annum until 2020.

The ‘speed’ aspect of the plan relates to reducing production lead times further, boosting sales through ‘controlled space activities’ to over 60 per cent of sales and growing its ecommerce business to €2 billion (approximately £1.47 billion) by 2020.

adidas plans to concentrate on what it describes as six global cities (Los Angeles, New York, London, Paris, Shanghai and Tokyo) via significant investment in talent and marketing spend.

Explaining this strategy, Roland Auschel, adidas’ executive board member responsible for global sales, says: “Global brands are created in global cities. If we win running in New York and Los Angeles, we will win running in the US. Therefore, we are committed to win market and mind share in key cities around the globe.”

In addition, adidas’ open source strategy aims to strengthen its ties with the people who buy its products by giving them a say in how the brand creates, designs and presents them.

It also said it’s going to expand product customisation options for customers.

“We are living in a fast changing world,” adidas Group CEO Herbert Hainer says.

“Only what is new is relevant to the consumer.

“Therefore, we have to relentlessly focus on creating the new for our consumers.

“And we have to constantly reinvent ourselves as an organisation to lead the change in our industry.

“Going forward, speed will be a key competitive advantage.”

Last year adidas generated sales of €14.5 billion (approximately £10.6 billion).

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