adidas: the German sports equipment manufacturer aims for 10% annual growth until 2020

The adidas Group aims to increase its turnover by 10% annually from now until 2020, announced Herbert Hainer, the CEO of the group during the presentation of the 2016-2020 strategic plan to the shareholders of the German brand, on 26/03/2015. adidas also wants to increase its net profit by 15% each year. It reached €490m in 2014.

The group, which has nearly 53,000 employees worldwide, generated a turnover of €14.53bn in 2014. The new strategy aims to reach nearly €22bn in turnover between now and 2020. adidas also announced that it will distribute 30-50% in dividends per year compared to 20-40% in 2015.

The plan annouced by Herbert Hainer is based on three main areas: concentrating sales efforts on six global key cities, reducing production time and getting closer to its consumers by listening to them and allowing them to customise products.

adidas Group: 2016-2020 strategy

Reducing production time

• adidas wants to generate 60% of its sales through its own distribution network.
• The group aims to expand its e-commerce activities to more than €2bn yearly by 2020 by implementing a…