Footwear Insight

The Nimble Cat Preys By Bob McGee N o one is quite sure how many of its nine lives Puma has used up during its nearly 70-year existence. But the Cat may well be marking the start of another in 2018 as it begins its first full year as more of a standalone public company, aiming to snare a larger presence in North America. In January, Gucci and Alexander McQueen parent Kering announced its intention to divest 70 percent of its 86 percent stake in Puma to existing share- holders. Once completed, Puma will have approximately 55 percent of its shares publicly floated. The company isn't saying if the new ownership creates added pressure to deliver higher revenues and profits. But Puma does exude confidence about its ongoing strategy under Norwegian-born CEO Bjorn Gulden and its stated brand values of bravery, confidence, determina- tion and joyfulness "For us, sport is more than winning at all costs. We revel in the pure joy of sport, competition and play," it writes in its latest annual report. Puma has enjoyed two consecutive years of topline growth, helped in part by an ability to effectively straddle its authentic sports heritage with fast- moving fashion trends, particularly with young women. Americas' revenues rose 12 percent in euros in 2017, with foot- wear sales up 17.6 percent and apparel up 11 percent. The business is largely balanced between footwear and apparel because Puma has made a point to link the two to present "a cohesive story" to consumers worldwide. "As a brand, we do operate in a smaller capacity," admits Bob Philion, who took the helm of Puma North America in February 2017 following the retirement of Jay Piccola. "As a team, we can make decisions much faster than our competitors. We have the freedom to take risks and change with the times, but also the deep-rooted history that allows us to be taken seriously. "Whether a consumer knows the spe- cific details of Puma's past and history isn't as important to us as the fact that they are familiar with the brand and see us as a relevant player in the mix." Like his counterpart Mark King at Adidas North America, Philion became the regional head of a major Germany- based athletic brand after spending years in the golf business. For King, who retires in July, it was TaylorMade. For Philion, it was Cobra Golf, a brand he helped Puma acquire and integrate in 2010 and led as president and CEO for seven years. It is a business he con- tinues to oversee in his larger role as president of Puma North America. Philion emerged onto the larger Cat- scape more than a year after the brand made a major decision that forever altered its position in the fashion world. It signed Rihanna as global ambassador for wom- en's training and named the Barbadian singer and actress as the brand's women's creative director in 2015. With Rihanna saying she "tried to push the envelope a little bit" with her collection under the Fenty Puma by Rihanna label, young women around the world responded and Puma had a hit on its hands. Now, the trick for Puma, particularly in North America, will be to replicate that success with young women while also developing a formula that will attract more young men, Millennials and Gen Zers to the brand. Nine months ago, Puma added 25-year old singer, actress and producer Selena Gomez to its team. Gomez helped Puma develop its Phenom and En Pointe fit- ness footwear and apparel lines. "Our objective is to create a sense of urgency for the consumer in North America," says Philion. "Over the past few years, in both men's and women's, we have had incredibly strong momentum brought on by the inclusion of creative, strong and humble ambassadors like Rihanna, Selena Gomez and Usain Bolt." Given its brand DNA began in men with the Suede and T7 track suit, product that mixes sport, lifestyle and fashion with cul- ture, Puma is confident it can make a new statement with young males via an entry into the Nike and Jordan dominated bas- ketball category later this year. Also on tap: Hybrid Foam, a new midsole compound in the running category. "With basketball, we are taking a sport culture approach and will be working with both performance and entertain- ment ambassadors," confirms Philion without offering specifics. Of course, The Cat thinks it can also gain additional trac- tion with men in the Americas through its strong ties to international soccer and new category products such as the Puma One and Puma Future. Several retailers surveyed for this story suggest Puma's growing success in North America has been built on the brand's abil- ity to attract young Hispanics to the brand and its designs, particularly in markets such as Philadelphia and South Texas. "Since our re-positioning to be 'Forever Faster,' Puma is able to move quickly to produce products that matches current trends in the ever-flowing marketplace," Philion points out. "We are noticing that consumers want to wear trends sooner and our retailers want to work with a brand that offers a variety of products in-store and one that shows diversity in the sneaker place." O Puma Charts a Path to Grab Larger Marketshare. PUMA FAST FACTS Celebrates 70th anniversary on October 1, 2018. Surpassed 4 billion euro ($4.78 billion) in annual revenues in 2017. Double-digit Americas' growth in 2017 to more than $1.78 billion. Jumping Cat logo was created in 1967, updated in 1979. Acquired Cobra Golf in 2010. Rihanna, Usain Bolt, Pelé, Clyde Frazier among famous endorsers. Gucci parent Kering acquires 60 percent stake in 2007; spinning off 86 percent stake in 2018. PROFILE 28 • Footwear Insight ~ May/June 2018 footwearinsight.com PUMA x MCM Suede Bob Philion, Puma North America President CLASSIC BRANDS MODERN PATH

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