Amer Sports’ Ball Sports division is restructuring
its operations for improved profitability with focus on improving gross
margin, followed by re-igniting profitable growth. Over the last five
years Ball Sports’ growth and profitability have not met Amer Sports’
financial targets.
Amer Sports has a clear strategy to improve profitability and then to re-ignite profitable growth in Ball Sports.
“We need to improve margins in order to improve Ball Sports profitability. We will re-set the base and exit some non-core low-margin product lines and reduce complexity. We will also continue to improve softgoods profitability by leveraging Amer Sports platform, with focus on tennis footwear, apparel, and team sports uniforms,” explains Mike Dowse, president of Ball Sports.
After re-setting the base, Ball Sports will focus on re-igniting profitable growth.
“In Tennis we will leverage industry leadership to create a more profitable business and grow. Baseball/Softball has really been a successful story. We know we have a winning formula there, and we will continue to accelerate. In Golf our ambition is to continue to improve the business. In Inflates we are a strong leader. There we have significant global expansion opportunities.”
1. Tennis – the key to growth is innovation
“We are by far the largest tennis company in the world,” says Dowse. “And tennis is a 1.3 billion euro business globally, a truly global sport.”
Wilson is now leveraging this leadership. The company is focusing on winning in Go to Market: improving coverage sufficiency, benefiting from the Amer Sports portfolio scale and facilitating B2C.
“We have the opportunity with our brand strength to surround the consumer, whether it is on hardgoods, accessories or softgoods,” Dowse says.
Wilson aims also to improve profitability and growth through innovation. “Wilson has historically been very innovative, and we have delivered some of the breakthrough products in tennis. We are now rejuvenating that strategy,” Dowse explains. R&D operations at Wilson have been restructured, and Wilson Tennis has a new leadership team.
The pipeline for new innovation is strong. The most interesting new product is the Pro Staff racket that was developed with Roger Federer and will soon be on the market. Other upcoming products include Rush Pro 2 Tennis Shoes, Blade tennis rackets, and the Burn racket franchise for younger players.
Wilson has also made significant investments in footwear and apparel, and these investments are starting to pay off.
2. Accelerating growth of Baseball and Softball
“Wilson’s
baseball operation is very successful,” says Dowse. “We have nearly
doubled our baseball business in the past decade.”
In addition, Wilson Ball Gloves has taken the number one place in U.S. market for the first time ever. According to Dowse this is a huge leap, because Wilson and its closest competitor have both been in the market for about 100 years.
One key to success is digital innovation. “Our custom uniforms are unique in the industry. Custom gloves have added millions of dollars to the sales,” Dowse says. The Ball Sports division continues to build on this momentum.
3. Golf improving – Premium drives margins
Golf is a huge 2.8 billion euro market, but the economic downturn has brought difficulties to the market. Wilson’s golf business has, however, improved and the unit is trending profitable.
“Our team has been very disciplined over the last few years to focus on premium products. This is our third year in a row that we have gained market share in the premium segment of the market, and this is driving margins up,” Dowse says.
“We are continuing to keep our OPEX flexible in Golf division, so that we can continue to be profitable, whether it is an up market or a down market.”
4. Game-changing innovation in inflates
Wilson’s market position in inflates is strong. The brand is number one in American Football and Beach Volleyball, and number two in Basketball.
“We have great opportunity in expanding our Go to Market in Asia-Pacific and EMEA,” says Dowse.
The leadership in the category continues with game-changing innovation, as Wilson develops a completely new type of product, the digital basketball. It is a sensor-enabled basketball with make/miss technology, and it features a smartphone app that contains several training programs.
Wilson expects that this product will receive enthusiastic response in the market. “We can take this technology and apply it to other inflatable businesses as well,” Dowse says.
Wilson is also focusing on e-commerce and customization in inflatables, and results have been very encouraging. “Customization of sports equipment is really unique to Wilson,” says Mike Dowse.
By Amer Sports
Amer Sports has a clear strategy to improve profitability and then to re-ignite profitable growth in Ball Sports.
“We need to improve margins in order to improve Ball Sports profitability. We will re-set the base and exit some non-core low-margin product lines and reduce complexity. We will also continue to improve softgoods profitability by leveraging Amer Sports platform, with focus on tennis footwear, apparel, and team sports uniforms,” explains Mike Dowse, president of Ball Sports.
After re-setting the base, Ball Sports will focus on re-igniting profitable growth.
“In Tennis we will leverage industry leadership to create a more profitable business and grow. Baseball/Softball has really been a successful story. We know we have a winning formula there, and we will continue to accelerate. In Golf our ambition is to continue to improve the business. In Inflates we are a strong leader. There we have significant global expansion opportunities.”
1. Tennis – the key to growth is innovation
“We are by far the largest tennis company in the world,” says Dowse. “And tennis is a 1.3 billion euro business globally, a truly global sport.”
Wilson is now leveraging this leadership. The company is focusing on winning in Go to Market: improving coverage sufficiency, benefiting from the Amer Sports portfolio scale and facilitating B2C.
“We have the opportunity with our brand strength to surround the consumer, whether it is on hardgoods, accessories or softgoods,” Dowse says.
Wilson aims also to improve profitability and growth through innovation. “Wilson has historically been very innovative, and we have delivered some of the breakthrough products in tennis. We are now rejuvenating that strategy,” Dowse explains. R&D operations at Wilson have been restructured, and Wilson Tennis has a new leadership team.
The pipeline for new innovation is strong. The most interesting new product is the Pro Staff racket that was developed with Roger Federer and will soon be on the market. Other upcoming products include Rush Pro 2 Tennis Shoes, Blade tennis rackets, and the Burn racket franchise for younger players.
Wilson has also made significant investments in footwear and apparel, and these investments are starting to pay off.
2. Accelerating growth of Baseball and Softball
“Wilson’s
baseball operation is very successful,” says Dowse. “We have nearly
doubled our baseball business in the past decade.”In addition, Wilson Ball Gloves has taken the number one place in U.S. market for the first time ever. According to Dowse this is a huge leap, because Wilson and its closest competitor have both been in the market for about 100 years.
One key to success is digital innovation. “Our custom uniforms are unique in the industry. Custom gloves have added millions of dollars to the sales,” Dowse says. The Ball Sports division continues to build on this momentum.
3. Golf improving – Premium drives margins
Golf is a huge 2.8 billion euro market, but the economic downturn has brought difficulties to the market. Wilson’s golf business has, however, improved and the unit is trending profitable.
“Our team has been very disciplined over the last few years to focus on premium products. This is our third year in a row that we have gained market share in the premium segment of the market, and this is driving margins up,” Dowse says.
“We are continuing to keep our OPEX flexible in Golf division, so that we can continue to be profitable, whether it is an up market or a down market.”
4. Game-changing innovation in inflates
Wilson’s market position in inflates is strong. The brand is number one in American Football and Beach Volleyball, and number two in Basketball.
“We have great opportunity in expanding our Go to Market in Asia-Pacific and EMEA,” says Dowse.
The leadership in the category continues with game-changing innovation, as Wilson develops a completely new type of product, the digital basketball. It is a sensor-enabled basketball with make/miss technology, and it features a smartphone app that contains several training programs.
Wilson expects that this product will receive enthusiastic response in the market. “We can take this technology and apply it to other inflatable businesses as well,” Dowse says.
Wilson is also focusing on e-commerce and customization in inflatables, and results have been very encouraging. “Customization of sports equipment is really unique to Wilson,” says Mike Dowse.
By Amer Sports
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