Business

Friday June 5, 2009

adidas plans to grow sales by 10%

By LEE KIAN SEONG


KUALA LUMPUR: adidas (M) Sdn Bhd is counting on better services and products to grow sales by 10% this year, says country manager Ng Chee Loon.

The company’s sales last year amounted to RM149mil, about 15% higher than that of 2007.

He said personalised and customised products were important nowadays as consumers were looking for different designs to express themselves.

Ng Chee Loon ... we have to continue developing new technology

The company had special design equipment to allow customers to customise the shoes themselves, he said, adding that the service was currently available only in Pavilion Kuala Lumpur and the price was about 25% higher than that for normal shoes.

“We have to continue to develop new technology and let our customers know how this technology can benefit them,” he told StarBiz.

“There were indications of consumer traffic slowing down in the first quarter this year compared with the same period last year but overall sales are growing,” he said, without disclosing any figures.

There are currently over 40 retail shops carrying adidas and related brands of sports apparel in Malaysia, of which eight are owned by adidas Malaysia. Its main customers are teenagers and those below 25 years old.

adidas Malaysia is a wholly-owned subsidiary of the adidas group in Germany, whose brands include adidas, Reebok, TaylorMade, Rockport and Ashworth.

adidas’ Asia-Pacific regional office is in Hong Kong while its South-East Asia area office is in Singapore.

Ng said adidas Malaysia currently had about 140 employees and contributed about 25% to the group’s South-East Asia business.

He said adidas and TaylorMade were the only brands directly managed by adidas Malaysia while Reebok, Rockport and Ashworth were managed by distributors.

“adidas brand contributed more than half of our sales last year,” he said, adding that 90% of its products were imported and some of the accessories and apparel were made in Malaysia by its appointed manufacturer.

Ng said adidas had also created a range of high fashion premium products to compete with luxury brands.

“It is only available in Japan, Hong Kong, Europe and the United States,” he said, adding that it was not the right time to bring these products to Malaysia as the market was not mature yet.

Ng also said adidas was working on a loyalty programme that was expected to be introduced next year.

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