In order to improve the quality of our
sales and distribution, we established further
joint product and marketing programs with
key retailersand rolled out our new
“Forever Faster” store design.
The PUMA Group owns the brands PUMA and Cobra Golf as well as the affiliate company Dobotex, which manufactures and markets licensed socks and body wear. As the PUMA brand accounts for the vast majority of the group’s net sales and constitutes the core of the PUMA Group, the outlined distribution strategy focuses predominantly on the PUMA brand.
PUMA is structured into five regions: Europe, EEMEA (Eastern Europe, Middle East and Africa), North America, Latin America and APAC. Due to the particularly heterogeneous nature of our Asian markets, we dissolved the regional reporting layer in APAC in 2015 and gave the respective areas direct access to our global organization. Each region and area is led by a General Manager, who has full profit and loss responsibility for all countries within the respective region or area. In terms of the regional sales priorities, PUMA will continue to leverage its strengths in key growth markets in EEMEA, Asia and Latin America like India, China and Mexico respectively to ensure stable sales growth for the company. The focus in Europe is to enhance the service level to our wholesale partners as well as to further simplify the organizational structure. With this objective in mind, the two regions Europe and EEMEA were set under joint management in 2015. The strategic priority for North America is to build on the positive development in 2015, continue the repositioning of PUMA as a performance brand and increase the presence in quality wholesale distribution channels.
PUMA distributes its products via three different distribution channels: wholesale, PUMA’s owned and operated retail and eCommerce stores. Wholesale accounted for 79% of net sales in 2015 and remains the biggest sales channel for the PUMA Group. With regard to the channels, PUMA has the highest growth rate expectations for eCommerce. PUMA’s focus in the wholesale business is to continue to build joint product and marketing programs together with key accounts. These measures shall increase the business share of the most important accounts of PUMA’s total wholesale net sales and thereby increase the net sales quality. In Retail, PUMA has introduced a completely new store design in 2015. The new design has been rolled out to 20 owned and operated stores worldwide, including Hong Kong, Istanbul, Veracruz and our headquarters in Herzogenaurach. The new and refurbished stores allow us to better tell our product stories, reveal the technologies behind them and strengthen PUMA’s positioning as a sports brand. PUMA will continue to open new stores in strategic growth cities and focus on driving traffic into and improving the sales productivity of its existing owned and operated stores. The growth of eCommerce has been and will be further supported by the completion of the rollout of the unified website Puma.com as well as further enhancements for the consumer experience.
Product Sales Mix
PUMA sells and markets footwear, apparel and accessories in categories such as Football, Running and Training, Golf, Motorsport and Sportstyle. With a heritage of designing shoes for more than 65 years, Footwear is and remains the foundation of PUMA’s business and its key strategic priority, having generated 45% of net sales in 2015. On our mission to become “The Fastest Sports Brand in the World”, we will leverage our clear positioning in sports to sell performance and sports-inspired lifestyle products.
Improvement of Our Distribution Quality
We are convinced that strong relationships with our main retail partners are a key to ensure the commercial success of our products. Therefore, we launched additional successful joint product and marketing programs with multiple retailers to showcase our brand in the right retail environment and drive sell-through with our partners. Together with our partner Foot Locker we continued the rollout of our jointly developed retail concept “PUMA Lab” in the US market and opened a first location in Europe. Additionally, in North America PUMA has improved its presence with shop-in-shops, special wall units and permanent in-store communication at majorsports accounts such as Finish Line and Champs. Several customer-specific marketing campaigns such as the evoCHALLENGE campaign with Intersport have further solidified PUMA’s partnerships with key retailers. In 2016, we will continue to foster strong retail partnerships and launch further product and marketing programs with our most important key accounts in every region.
“By the end of 2014, PUMA has become the largest
brand in India – not just in sports, but across all global brands in the space of footwear, apparel and accessories.
Our focuson retail and specifically running
stores set our brand rollingin the market and has
helped to integrate a strong culture
of sell-through orientation.”
Abhishek Ganguly, General Manager PUMA India