MOSCOW: Rising consumer demand and a strengthened store network should help adidas, the sportswear manufacturer, to rapidly increase sales in Russia over the period to 2015.
At an investor event, Herbert Hainer, CEO of adidas, forecast revenues in Russia and the CIS (Kazakhstan and Ukraine) were likely to grow by double-digits each year to 2015.
More specifically, the company hopes to expand its branded retail network across this region to 1,200 stores in four years time, versus an anticipated 800 branches by the close of 2011.
"Our group is the clear market leader, with adidas number one and Reebok number two in the market," Hainer said. "With our strong momentum, I expect adidas Group sales in Russia/CIS to exceed €1bn by 2013."
If these predictions are accurate, this would place the Russia/CIS region among the top three global outlets for the adidas portfolio, a result in keeping with the aims of its Route 2015 business plan.
This strategy names North America, Greater China and the Russia/CIS as the firm's top three "attack markets" that are expected to generate 50% of revenue growth between now and 2015.
Currently, adidas has 13,000 staff in Russia and the CIS, and Martin Shankland, its local managing director, suggested the "healthy consumer market" would prove highly beneficial.
He said: "Our success in Russia/CIS is grounded on the strong desirability of our brands, our innovative and comprehensive product offering as well as our unmatched own retail footprint and expertise."
The other key contributors to growth should include the UEFA Euro 2012 international football tournament, which is being co-hosted by the Ukraine, alongside Poland.
According to statistics from adidas, it already holds a leading position in Ukraine. The company has also set the target of assuming the same position in Poland by 2015.
Data sourced from adidas; additional content by Warc staff