BrandArena: Adidas unveils strategic plan to boost growth until 2020

Friday 27 March 2015

Adidas unveils strategic plan to boost growth until 2020

On Thursday at its Investor Day held in Germany, the Adidas Group unveiled its new strategic business plan until the year 2020, which aims at further accelerating growth by significantly increasing brand desirability.

"This is expected to spur top- and bottom-line growth, with revenues projected to increase at a high-single-digit rate on average per year on a currency-neutral basis until 2020 compared to the expected 2015 results,” Adidas said in a statement.
Herbert Hainer, Adidas CEO
The Group’s net income is expected to grow at a considerably higher rate than the top line and is projected to expand by around 15% on average in each of the next five years.

The company also said it will pay 30 percent to 50 percent of profit in dividends, up from a previous range of 20 percent to 40 percent.

"We are living in a fast-changing world. Only what is new is relevant to the consumer. Therefore, we have to relentlessly focus on ‘creating the new’ for our consumers, Herbert Hainer, Adidas CEO said in the statement by the sportwear company. "And we have to constantly re-invent ourselves as an organisation to lead the change in our industry. Going forward, speed will be a key competitive advantage for us as we transform the adidas Group into the first true fast sports company".

"Our new strategy is built on speed, focus and openness. As a result, we will accelerate our growth story and deliver superior returns to our shareholders. I am very much looking forward to ‘creating the new’ together with the adidas Group’s more than 53,000 employees across the globe," he added.

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. Across these cities, the adidas Group will over-proportionally invest in talent, attention and marketing spend.

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