PUMA’s Business Strategy PUMA’s goal is to be “The Most Desirable Sportlifestyle Company”. Along its charted course PUMA makes use of the opportunities offered by the sportlifestyle market to strengthen its position in all categories and regions as one of the few multi-category brands. Selected categories and divisions are being developed with a view to achieving permanent value increases through unique brand positioning. PUMA is a sportlifestyle brand where product categories originate in Sport before being continued in Lifestyle and on through to Fashion.
From the current perspective, based on the strategic objectives and related expansion targets, the long-term potential of the company is estimated to be € 4 billion in sales. This long-term strategic objective is to be achieved through: Expansion of product categories Regional expansion Expansion with non-PUMA brands Expansion of Product Categories The expansion of product categories involves both growth in already existing categories and entering into new categories. The expansion of the existing product categories will be driven by a product offensive that covers the entire sportlifestyle spectrum from sports to fashion.
In addition, PUMA will also expand into new categories with promising growth potential. These will mostly be product categories which distinguish the PUMA brand from the market and from competition in a unique manner. Regional Expansion In addition to the expansion of product categories, PUMA aims at regional expansion both in the wholesale and in its own retail business. Expansion of the shop-in-shop systems and other salespromoting instruments will help to intensify business relationships with existing trading partners and thus further increase the presence and visibility of the PUMA brand.
A further goal is to terminate or prematurely redeem the major distribution licenses and to consolidate the business. This should lead to more rapid exploitation of existing brand potential in the respective markets and its subsequent conversion into profitable growth. In the already strongly developed markets, in particular, PUMA’s retail stores will not only serve as a unique window for the brand, but will also offer the possibility to react swiftly to new trends and, as a consequence, to offer innovative products on the market at an early stage.
The targeted expansion strategy in conjunction with the more pronounced verticalization of business processes should lead to further strengthening and expansion of the share of retail operations in consolidated sales. Expansion with Non-PUMA Brands In addition to the brand Tretorn (since 2001) PUMA does not rule out expansion with non-PUMA brands. Further acquisitions may follow if, after thorough evaluation and examination, they can contribute to a sustained value increase for the Company.