puma.com
Puma is a Sportlifestyle brand that brings distinctive designs and a global outlook to its product range by blending influences of sport, lifestyle and fashion. The brand equity is built on its strong sports heritage combined with a long tradition of innovation and sports performance through cooperations with major athletes and teams. Puma is also one of the world’s largest providers of athletic footwear, apparel and accessories which owns the two brands Puma and Tretorn. As a worldwide brand, it operates in more than 80 countries.
With the objective of being "The Most Desirable Sportlifestyle Company", Puma intends to bolster its position as one of the few true, multi-category brands, and to make effective use of the many opportunities offered by the sportlifestyle market in all categories and regions.
In 1993, Phase I of Puma’s long-term business plan was initiated. As part of Phase I Puma’s worldwide organization was restructured in order to build up a profitable business and a solid financial basis for the future. In Phase II brand equity was improved. 2002 marked the beginning of Puma’s Phase III of its growth plan. In Phase III Puma focused on further exploring the potential of the brand by generating desirable and profitable growth. In Phase IV, initiated in 2006, Puma has the long-term mission of becoming "the most desirable Sportlifestyle company". Puma further aims to reinforce its position as one of the leading multi-category Sportlifestyle brands. Phase IV is characterized by the expansion of product
categories and regional expansion as well as non-Puma brand expansion.
The expansion of product categories involves both growth in already existing business segments as well as entering into new product categories. The expansion of the existing product portfolio will be driven by a product offensive that covers the entire sportlifestyle spectrum. In addition, Puma will also expand into new categories that offer promising growth potential. These are mostly product categories which distinguish the Puma brand from the market and from its competitors in a unique manner. A creative connection between sports and fashion will help the brand to achieve its long-term goal of being "the most desirable Sportlifestyle company".
In order to further expand market leadership in the sportlifestyle segment, Puma continues to redefine the boundaries of this segment on an ongoing basis. Puma’s participation in the most important sailing race in the world, the Volvo Ocean Race, serves as an example of the innovative manner in which a Sportlifestyle company can tap into new product categories.
Ongoing efforts aimed at strengthening the product range and innovative designs in the existing product categories, such as Golf, guarantee Puma’s appeal to its target groups, thus gaining brand equity in the long-term. Moreover, new product categories will also attract new target groups to the brand. At the locations in Herzogenaurach, Germany, Boston, and London, Puma established development and design centres in order to create international product collections with different regional emphases. In addition, Puma develops products that meet the various diverse requirements of its customers. At last, in order to strengthen the
brand’s design competency, Puma collaborates with external top designers such as Alexander McQueen.
Next to expanding product categories, Puma will expand the whole-sale as well as its own retail business regionally. After having opened 25 Concept stores last year, Puma owned 116 Concepts Stores in total at the end of 2007.
Regional availability and controlled sales of Puma products can thus be ensured.
Another objective in Puma’s Phase IV is the expansion of non-Puma brands and hence, it does not rule out that further brands will be added to its brand portfolio of Puma and Tretorn.
Moreover, Puma has issued various product licenses (such as fragrances, glasses and watches), to independent partners, who, in addition to being responsible for design and development, are also responsible for the sales of these licence products. Distribution licences are also issued for Puma products in individual foreign markets.
Puma’s 2007 contribution to PPR group consolidated revenue was limited to sales for the last 9 months, and amounted to €1,718 million, representing a rise of 3.6% on a comparable exchange rate basis compared to 2006.
In 2007, Puma contributed a 9-months operating income of €236 million to the PPR group recurring operating income. Operating profitability was at 13.8% over the period.
2008 promises to play to Puma’s historic strengths with global sporting events where Puma will participate with product innovation and marketing visibility such as the African Cup of Nations, European Championships, the Olympics, and the Volvo Ocean Race marking its launch into the sailing category. In addition to these events, Puma will unite a broader set of products and categories under the "Sportlifestyle" brand campaign, continuing to define its design-driven and sophisticated identity. To drive this forward, Hussein Chalayan took on the post as Creative Director with Puma in February 2008.
Key figures for Puma
- Brand established in 1948
- 1, 718 € million in revenue in 2007
(consolidated from April 1 to December 31, 2007)
- 236 € million in recurring operating income in 2007
(consolidated from April 1 to December 31, 2007)
- 11,039 employees at the end of 2007
- 116 directly-operated stores at the end of 2007
BREAKDOWN OF 2007 REVENUE BY PRODUCT CATEGORY (1)
BREAKDOWN OF 2007 REVENUE BY GEOGRAPHICAL AREA (1)
