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    Adidas Has Another Five Year Plan.

    2015/3/28 16:15:00 44

    AdidasFive Year PlanBrand Strategy

    As an executive of this company, Herbert Heiner led Adidas in the early years to double profits and achieved great success all over the world.

    But in recent years, his Adidas has been somewhat discouraged.

    In 2010 and 2015, Herbert Heiner failed to fulfil the promise of the "five year strategic plan" for two times.

    Among them, in the "road to the 2015" strategy, he plans to 2015 operating profit margin will reach 11%, sales reached 17 billion euros (about 114 billion 983 million yuan).

    However, due to poor performance, Haina announced last summer to give up this goal.

    Adidas's investors were rather dissatisfied with the CEO's failure to achieve profit targets for many times.

    According to the contract agreement, Haina's term of office will not expire until March 2017.

    For Adidas investors, this is obviously too slow.

    "The replacement of a new CEO successor is, of course, the sooner the better."

    Ingo Speich, an investment manager with a 1% stake in Adidas, said: "to take new strategic measures, only the new leadership is trustworthy."

    Therefore, at the end of last month, Adidas announced that it was looking for a new CEO and decided to Haina in advance.

    Today, the new CEO has not yet appeared, Haina is in the middle of suffering, but he does not want to give up this company that has been following for 28 years.

    In March 26th, Haina arrived at the German company headquarters with a new "2016-2020 five year strategic plan".

    Although the goals of the first two strategies have not been achieved, Haina is still ambitious in the latest "five year strategic plan". From 2016 to 2020, the company will achieve an average annual growth of 15% of net profit, and promise to recapture the market share from the two major competitive brands of Nike and Under Armour.

    In the US market for recession, Haina and North American president Mark Kim proposed to increase the US market share from 7% to 15% by 2020.

    At this point in time, Haina's move was interpreted by the outside world as a request for the board to leave behind, at least until the end of the 2017 contract period, though stubborn investors may not readily buy it.

    In order to impress consumers and the board of directors, Hainer's team formulated three strategic plans, namely, speed, city and openness.

    Haina is most concerned about improving the speed of Adidas.

    Therefore, the primary task of the five year plan is to shorten the product cycle and speed up the circulation of products.

    To meet this goal, Adidas will reduce production delivery time and increase the anti season production process.

    In addition, Adidas will expand e-commerce business on a large scale in order to achieve all-round and efficient sales channels.

    Their goal is that by 2020, the total sales volume of electricity providers in five years will reach 2 billion euros (about 13 billion 527 million yuan).

    In the past 2013 and 2014, sales of Adidas's electricity suppliers were 250 million euros (1 billion 691 million yuan) and 430 million euros (about 2 billion 908 million yuan).

    In order to improve the sales efficiency of products, Adidas also intends to provide personalized customized services for consumers. According to the current information, this initiative is similar to Nike's personalized design of sneakers.

    "We live in a fast changing world. Only fast and fresh things can cause consumption.

    So in the future market, speed is a key competitive factor. We need to make Adidas a fast enough sport Brand Company.

    Herbert Heiner explained so.

    Apart from speed, big cities are also the focus of Adidas's attention.

    Haina has mentioned in the plan that up to 80% of the world's GDP comes from big cities, so brands will pay more attention to these areas.

    In the next five years, Adidas will focus on six major cities in the world: Losangeles, New York, London, Paris, Shanghai and Tokyo.

    Adidas will increase product investment and marketing expenses in these six cities.

    In addition, in order to cooperate with the implementation of the strategy, the company said it would absorb more management personnel in these areas.

    "As a global brand,

    Adidas

    It needs to appear in major cities all over the world.

    If we gain the advantage in New York and Losangeles, it will help us recover land lost in the United States.

    Therefore, we will be committed to these key cities in the world.

    Roland Auschel, Adidas's global sales director, said.

    He also said that in the next five years, Adidas will increase 500-600 concept stores, most of which will be located in big cities.

    In addition to concentrating on big cities, Adidas also intends to focus on the core.

    Brand combination

    Including Adidas's original brand, Reebok and Taylor golf products, it is more effective to grasp the growth point.

    It is worth mentioning that the global sales of Taylor golf products in 2014 dropped by 28% compared with the same period last year, and the situation is not optimistic.

    In order to reverse the situation, Adidas announced that Taylor's top executives will be re shuffled at the open plan, and the CEO Ben Sharpe has left.

    Yes

    Personnel matters

    After the adjustment, they want to achieve the maximum degree of openness in these core products.

    Adidas hopes to further narrow the relationship between brands and consumers, athletes and partners, so that they can directly participate in the design and promotion of products.

    In the words of Adidas, "open" is to make them a part of the brand.

    "We will be the first such sports company to invite athletes, consumers and partners to become part of the brand.

    We will be open enough for them to develop with Adidas. "

    Adidas global brand leader Eric Liedtke said so.

    But as for how to achieve this goal, the company has not disclosed the relevant plans publicly, and it is difficult for the outside world to estimate the implementation effect of this measure because it sounds hollow.

    However, there is a very practical move in Adidas's plan.

    The company will raise the dividend payout ratio from 20% to 40% to 30% to 50%, and increase the dividend yield of shareholders.

    At the same time, Adidas will continue to launch the "shareholder return plan", with 1 billion 500 million euros (about 10 billion 146 million yuan) of funds to repay investors.

    "The new strategy is built on speed, focus and openness, and we believe that we will accelerate growth, and we will repay shareholders as much as possible.

    I am full of expectation and confidence for Adidas's 53000 employees worldwide.

    Haina evaluated the new round of "five year strategic plan" in this way.

    In the face of this new five year plan, Haina is full of confidence.

    It looks as if the 60 year old man will try his best to accompany Adidas for the last part of the journey.


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