Profile: Adidas SEA MD Ralph Kotterer aims for the top

Ralph Kotterer, the newly-appointed managing director of adidas for Southeast Asia, has arrived in Singapore full of competitive spirit. "I just like to win," he declares. "It will be difficult for me to lose in this part of the world, as it's no secret that Asia is an attractive place to work, live and succeed."

The immediate attraction of Southeast Asia is obvious. Adidas was hit hard by the recession in the US and in Japan, its key market in Asia, where sales plummeted by nine per cent.

In comparison, the rest of Asia showed resilience to the recession, with double-digit growth and strong domestic demand offering adidas opportunities to expand market share, brand recognition and sales. The company's strategy has been to target the affluent segments in emerging markets and establish its product offering among the urban youth.

However, Asia offers challenges quite different to those found in Russia or Europe, markets which Kotterer helmed in the past. For one, Asia is culturally, linguistically and economically segmented.

Then there is the challenge from the likes of Li Ning and Asics - emerging Asian brands that connect with their local buyers through ambitious expansion plans and lower price points. Li Ning, for instance, aims to set up more than 100 stores in Southeast Asia.

"Competition is a part of the game," says Kotterer. "Yes, we do need to watch our competitors a little more closely, especially those which originate from Asia, but except for watching them, I am not too worried. As long as we get our act together and do our homework, no one can touch us," he says confidently.

Kotterer's vision for 2015 is that adidas be the undisputed number one in Asia. "I see the possibility of doubling what we are doing right now," he says. "To do this, we will move from the capital cities to the tier two and tier three cities where the disposable income will grow the fastest. This will mean we will have to adjust the product offering, go wider in entry price points, and strengthen our franchise and retail presence."

Kotterer says that to gain brand recognition and sales, adidas is trying to revise its wholesale model and offer its customers a better retail experience and he believes a focus on PR will help the brand further connect with customers and project the desired image. "Our industry still underestimates its potential and how it relates to our brand and shopping experience," he says.

But this is only the beginning. Adidas' target market is the urban youth to whom it offers a brand proposition of leading a sporty lifestyle. "We are moving from a 'passion for sport' to a 'fashion from sport' concept, which will enable us to tap into a much larger customer base," he says.

Adidas has strengthened its online presence to engage directly with young people and, according to Kotterer, it is beating its rivals in attracting an online audience. "We received 1.37 million visitors to our football related site," he says. "Our Facebook market share was standing at 26 per cent compared to our closest competitor, who had 19 per cent; and our digital campaign, 'Every Team Needs the 12th Man' received 12,000 fans across Southeast Asia."

Kotterer's challenge is to maintain the company's pole position. Nike, adidas' nemesis, is aggressively trying to outspend them in football, where adidas was once the undisputed champion.

In fact, with the sponsorship of Manchester United, it has already got an edge over adidas in the football-frenzy territory of Asia. In addition, despite Tiger Woods' recent bad press, Nike's sponsorship of the golfer has helped the brand make inroads in golf, which is the core market for adidas' TaylorMade brand.

"The competition is getting stronger and it is not only from the other brands in the same category," admits Kotterer. "We are also competing for the disposable income of our consumers against non-sports goods such as Uniqlo clothes, iPhones and iPads. But ultimately, no brand has the sporting heritage that adidas does. We simply have to go back to our roots, to remind ourselves of the reasons why we developed this product and make it modern - that's what people want."

Ralph Kotterer CV

2010 Managing director, Southeast Asia, adidas
2009 Managing director, area central, adidas
2005 Managing director emerging markets, adidas, Dubai
2003 Managing director Eastern Europe, adidas
1999 Head of export adidas AG, adidas
1997 Sales and marketing director, adidas, Moscow
1993 Sales and marketing manager, adidas, Eastern Europe
1991 Area manager, adidas Trading AG
1988 Export manager adidas AG, Hong Kong
1986 Assistant to export director adidas AG

This article was originally published in the 12 August 2010 issue of Media.