Kasper rorsted is running adidas to the top of the market _ european ceo

When Kasper Rorsted announced he was leaving Henkel for Adidas in January 2016, everyone was surprised. Low cost high profit This was not just because he had two years to go on his contract at Henkel, or because CEOs rarely make a move from one DAX listed company to another. Items with high profit margins People were caught off guard because it seemed like there was still a lot to be done at Henkel; Rorsted had successfully raised the prominence of the group’s brands in the US, such as Persil detergent and Schwarzkopf shampoo, and, despite losing a recent acquisition bid, further gains seemed possible. High profit home business Rorsted oversaw a tripling of the company’s share price, and its rise to become one of the best performers in the DAX index.

Small scale business with high profit in india Immediately following the announcement of Rosted’s move, Henkel’s stock slumped 4.1 percent.

One thing is certain: with his move to Adidas, Rorsted has put himself in a position to lead a turnaround of similar proportions. High profit online business With the athletic fashion industry going through a revolution, Adidas is on the marks to finally mount a decent challenge to an increasingly unsteady looking Nike.

After studying at the Copenhagen Business School and the Harvard Business School, Rorsted began his career in the technology sector. High profit products to sell online He climbed trough the ranks at Oracle and Compaq (later Hewlett-Packard), before ending up as Hewlett-Packard’s Managing Director for the EMEA region. High profit industries He was let go from the company in 2004 following weak performance, and, despite being offered a number of positions at other technology companies, he chose to move to Henkel, a producer of laundry, beauty and industrial adhesive products.

His time at Henkel represented a massive turnaround of the business, from both a financial and cultural perspective. Small business with high profit The family-controlled company was founded in 1876, and had long been stuck in a stupor of complacency. High profit farming In 2008, when Rorsted was appointed CEO, he and his young team of managers put in place a range of ambitious goals for the company, including increasing pre-tax profit margins to 14 percent by 2012. Low investment business with high profit At the time, Henkel consisted of over 1,000 brands, 200 production sites and three separate global business units. High profit selling Less successful brands were cut, and the group went through a reimagining of its vision statement and employee values charters. High profit business ideas A new performance evaluation process was also introduced that compared employees by their performance relative to their peers, rather than abstract targets.

The results spoke for themselves. High profit greenhouse crops By the end of the 2012/13 fiscal year, Henkel comfortably reached its profit margin target. High profit business in malaysia Emerging markets then represented 43 percent of the group’s global sales, while the number of brands it produced dropped to below 400. High profit margin products to sell on ebay It was the clear strategy efficiently communicated by Rorsted that drove this success.

However, more recently, Henkel has been forced to face slightly more muted prospects. Low investment business with high profit in india In July 2015, the firm lost out in a bid for Procter & Gamble’s beauty brands, including Wella, Clairol and Max Factor. High profit margin foods The failed bid, while not disastrous, dented prospects for significant further growth into the US market. High profit margin products to sell online On a positive note, the company’s range of industrial glues has been seeing increasing demand in China, its biggest market. Low investment high profit business in pakistan However, while there are still opportunities for further growth at Henkel, the figures it has been posting in the last few years are unlikely to be maintained. Business with small investment and high profit The situation at Adidas, on the other hand, is very different.

Adidas gained global popularity in the 1970s and 80s, immortalised in the Run DMC hit My Adidas. Small scale business with high profit In recent years, though, the company has struggled. Low overhead high profit business Long-time rival Nike has dominated the last decade. High profit business ideas india Now, Adidas is perfectly placed to return to its former glory.

Sportswear, or ‘activewear’ as it has come to be known in certain circles, has benefitted from a surge in popularity recently; health and fitness has transformed from the hobby sphere to become a lifestyle concept, and the fashion industry has been forced to meet changing expectations. Business with low investment and high profit While trainers and running clothes used to be purely functional, activewear is now as fashionable on the street as it is in the gym. High profit plants With this shift in style, the industry has become substantially more lucrative. High profit small business ideas 2013 Clare Varga, Director at trend forecasting agency WGSN, said that in the last seven years the activewear industry has grown a spectacular amount. High profit margin business india “It’s globally valued at something ridiculous now, about $350bn. High profit online business ideas It is huge.”

Modern technology has also led to the development of versatile new fabrics. Business with low overhead high profit “Performance fabrics are now sort of indistinguishable from non-performance fabrics”, explained Varga. High profit business for sale “They look beautiful and are very casual. Business ideas with low investment and high profit in hindi The clothing industry has been quite flat globally for a few years, but activewear has been a real bright spot, and because of that we’ve seen everybody wanting a piece of it.”

The rise of activewear has posed a conundrum for both fashion designers and traditional activewear manufacturers. High profit companies While the biggest names in fashion have a dedicated following, in the past their moves into activewear have disappointed; while often looking good, fashion designers have lacked the authenticity, credibility and technical proficiency that established firms such as Nike, Adidas and Puma have in spades. Items to sell with high profit margins Varga said this led to clothing that just didn’t work well for its intended purpose. Low risk high profit business ideas “You can, maybe for a season, get away with just doing something like printed leggings. Low cost business ideas with high profit But, at the end of the day, if you want to actually stake a claim in the active sector, it’s got to function.”

The reverse has been true as well. Low investment high profit business in chennai Activewear makers, while more than capable of making clothing that is perfectly suited for physical activities, struggled to make anything that caught the eye of the fashion-conscious. Small business high profit Varga said there was even some resistance at first. High profit small business ideas “In a way, some of the biggest sports brands were a little bit snobbish about it, almost dismissive of it as a trend. High profit products to sell on ebay ‘We’re pure performance, we don’t need to go down this road’ was the message.”

But as the activewear market became too big to ignore, collaborations between activewear companies and well-known designers have emerged as the go-to solution. High profit business Activewear makers benefit from a fresh perspective and fashion credibility, while designers gain access to the technology and authenticity of established sports brands.

Varga said that, while some early collaborations were a little mismatched, more recent lines have proved to be stunning successes. Low price high profit shares Nike and Gyakusou produced a particularly commended collection, and Puma joined forces with Rihanna to bring star power to the brand.

Varga added Adidas has been at the forefront of some of the most impressive collaborations. High profit margin products in india “The Y3 Yohji Yamamoto Adidas collection is probably one of the most high-profile brands at the moment, and the whole world is salivating over the Alexander Wang and Adidas collaboration that dropped. Low investment high profit business ideas Of course, you have to mention Stella McCarthy and Adidas, that’s another awesome, awesome collaboration that has really revolutionised what Adidas is doing.”

Adidas’ current strength is a parting gift from its outgoing CEO, Herbert Hainer. High profit business in india 2012 He took up the position in 2001, and went on to become the longest serving CEO in the DAX index. What is a high profit margin It wasn’t an entirely smooth ride, however, and in 2014 he faced investor revolt as the company slipped further behind both Nike and Under Armour, while becoming the worst performing company on the German exchange for that year. Highest profit margin products on ebay Instead of quitting, Hainer gave managers more decision-making power, forged closer ties with retailers, and invested in smaller factories in Germany, allowing faster production of limited-quantity items. Low capital high profit business This extra autonomy and agility let Adidas quickly build hype around trainer lines, develop limited run styles, and rapidly react to changing tastes. Low risk high profit business It was this new structure that ultimately led to Adidas’ wildly successful collaboration with Kanye West on the Yeezy line. Business ideas with low investment and high profit Once again, Adidas’ fortunes have been tied to the music industry.

Another position Adidas is strong in is technology. High profit business opportunities Varga said maintaining a balance between performance wear and lifestyle projects is perhaps the biggest challenge for most sportswear makers, but a real strength at Adidas. Business with high profit The majority of activewear may not be used for its intended purpose, but it still needs to function properly to remain credible.

“One of the things I think they’ve done extremely well is that they have a technology that works in both ways”, Varga explained. Today high profit shares “Adidas’ ‘Boost’ technology that they use in all their elite performance footwear is also used in some great lifestyle models as well. Best business ideas with low investment with high profit It’s technology that is very easy to understand and actually feel the benefit of.”

This is where arch rival Nike hasn’t looked as strong in recent times. Low budget high profit business While having come out with some truly outstanding technology, many of the company’s innovations have been dismissed as mere gimmicks. High profit products to sell One example is Nike’s Back to the Future-inspired self-lacing trainer, the Nike Air Mag. Low investment high profit business in bangalore While impressive, such technology is not going to appeal to the wider market any time soon.

With these innovations, Adidas recently overtook Under Armour to regain the title of second-biggest sports footwear company in the US. Low investment and high profit business Nike’s top spot is likely to be a target for Rorsted.

Despite only just having stepped into the role, Rorsted has set about fixing a gaping hole in Adidas’ portfolio. High profit margin industries In 2005, Adidas reached a deal to purchase US sports equipment maker Reebok in an attempt to compete with the seemingly untouchable Nike. High profit items to sell Whereas Reebok was flying high in the 80s, its brand never managed to recapture the same popularity. High profit shares Varga said Adidas has never really figured out what to do with it. High profit crafts “I think it is a bit of a dead weight around their neck. Low cost high profit business It’s finding its feet now that they’re moving into the cross-fit territory. Low cost high profit shares I think they have to work out if it has a future or whether they should sell it.”

Rorsted has quickly announced a plan for a revival of Reebok, with the brand set to undergo a major restructuring. Small business with high profit margin in india Reebok will close stores, move its headquarters and cut 150 jobs to return to a sustainable level of profitability. Low investment high profit business in kerala While the long-term future for Reebok may be under question, a leaner version of the company is a definite within the next few years. High profit agriculture business in india In any case, it seems Adidas is in safe hands with Rorsted. Businesses with high profit margins “I think he’ll have a very clear vision, and I think he’ll take the brand further”, said Varga.

While the growth Adidas has seen since Hainer’s restructure is almost certainly unsustainable, the company has positioned itself well to ride activewear’s wave of growth with a renewed relevance and the all-important cool factor. Low value high profit shares With the foundations laid and Rorsted in a prime position for success, Adidas is once again ready to tread sport fields and pavements across the world.

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