I hope all of you had a great first day. Thank you also so much for showing up tomorrow, this morning. We counted 20 participants, so it's not only we are the fastest sports brand, but we also have the fastest finance community. So thank you very much. We hope you already enjoyed the run. Look, I think on your table you find a little souvenir, which I think compliant with every single gift policy. A little, little memory of yesterday, having our special guests around, so, so please take that one home. Yesterday, the first day was all about the challenger, and we told you, let's say, about our opportunities, which we have on a regional perspective. We showed you our strength, which we already unveiled in countries like India and Latin America, and the big opportunities we have in U.S. and China.
Today is all about product. I think that's why we're here for the most exciting piece, and we will show you the opportunities which we have on the running side, as well on the sports style side, and then show you what kind of strength we already are unveiling on the team sport side and basketball side. We complement it with our foundations in sustainability and People First. Then finally, we go and open the showrooms to show you the exciting lineup for SS 25. Without further ado, I hand over to Erin to go through running and training. Erin, stage is yours.
Hey, good morning, everybody. We thought it was a great way to start the day with running, since many of you are off a nice fresh morning run. Glad you got the chance to test some of our newest products, so I definitely look forward to hearing your feedback. So I'm Erin Longin, I'm the Vice President of our Running and Training categories, and here to talk to you about some of the opportunity that we have ahead of us. So many of you know that the global running gear market is the largest segment within the sporting goods industry, and it has the largest consumer participation on a global level, and the numbers just continue to rise. So it's that big that it's actually three times the size of football in Europe, and it's five times the size of performance basketball in the US.
So this really gives us the largest opportunity to scale within a performance category. Now, as Arne mentioned, we know why it's so big, right? Because we know that consumers buy running products for many different reasons. Of course, there's a lot that buy running products to run in, but running shoes cross over into everyday life, right? Into multi-sport use, which isn't the same as other categories with cleated products. And the good news is, for us, that running consumers are really open to new brands, disruptions, and product innovations. It's a very rational market and rational consumer, where innovative technology and great product solutions win and can break through. And we believe strongly that PUMA belongs in running, and the opportunity is there for us to gain significant market share and become a relevant running brand. The running category goes deep in the history of the PUMA brand.
We've always been a brand with high visibility and credibility in the world of track and field. PUMA's been associated with so many iconic moments over time, like Tommie Smith's statement at the 1968 Olympic Games, raising his fist in the air. Also, the amazing moments of the fastest man alive, Usain Bolt, always wearing PUMA loud and proud. So we have this proven legacy in speed, and we've outfitted some of the most iconic athletes and record breakers of all time. Track and field gives us that edge and that credibility, but we know that the large commercial opportunity is in the world of road running. And as you guys heard, when it comes to road running, we're just getting back in the game, and we do know that it will take some time to build that credibility with consumers.
We like to say that getting into road running is not a sprint, it's really a marathon. So we're at the beginning of this journey, of this re-entry into the space, and we look at this in a three-phase approach. Each phase is intentionally about four years, which is the cycle of the Olympic Games, which gives us a really good timeframe and roadmap for innovation. So phase one, we're still in the middle of, right? Phase one for us kicked off in 2021. It will end at the end of this year, and it was all about getting started and re-entering the space. Phase two will kick off next year through 2028, through the LA Olympics, and that's where we're gonna work on really strategic acceleration in this space.
That's all to set us up for phase three, which will come next, where we'll be able to really scale and unleash our potential. So we're still a very small player today. We have a great start and great progress, but we believe there is so much upside potential from here. We believe we have nothing to lose, and as the third largest sport brand, we need to be participating in the largest sport category. So our goal in the future is to become a top five running brand. Our how to win strategy has three parts: First, credibility is crucial for success in the world of running, and we have to enhance our performance credibility in order to win. Next, we need strategies to really reach running consumers and show them the great products and initiatives that we offer.
And lastly, we're doing this to gain market share, right? It's gonna take a really focused distribution strategy to do that. I'll go through each one. Let's take a look at the first, and how we plan to enhance our running credibility. In running, performance credibility comes from exceptional product, and this was for us, the main goal in phase one, was to build the best possible product solutions as we enter. To win in running, we knew we had to focus on footwear. It is footwear first in terms of the segment, and you have to bring great solutions in footwear. That's where we focused all of our research and development now, and in the future as well, and in footwear, it's all about key technology. To be honest, we scrapped everything we had when we restarted this journey.
We built everything from scratch, all new foam solutions, new plates, right? Plate-plated products were really hot at the time, so we have our PWRPLATE and best-in-class rubber solution. Our PUMAGRIP is kind of the underlying hero of our collection. We did this leading through working with leading chemists and biomechanical experts. But the backbone of what we offer in our running range, and what makes us different, is our NITRO Foam technology. This is an industry-leading foam innovation, and we know that foam is the most important part of any running shoe. So NITRO Foam is our own proprietary formula, okay? Nobody has exactly what we have, and we know it's superior because we start with superior raw materials. Then, we use a very innovative nitrogen injection process, and the end result is this idea of superior responsiveness. It's a very lightweight and responsive product.
We can actually measure responsiveness by measuring energy return, the amount of bounce back of the product, and we know our metrics are leading the industry. We also are set up with the most robust supplier network, so the idea that we can stay ahead and keep innovating is really, really there for us. And most importantly, we are the only brand today that is using this type of foam across the entire product line. So when you buy PUMA running performance product, you're getting NITRO Foam. And we know that NITRO Foam has proven results with our athletes in running and in track and field. We've pulled NITRO Foam now across all of our products. So it's helping them break records, win medals, and beat their personal bests. Let's take a look at NITRO.
Aha! We put in work. Work, work, work, work. Come on! Work, work, work, work. We put in work.
Okay, now, this advanced technology development wouldn't be possible without the help of our innovation team, and you saw a great video, Maria showed yesterday with the leader of that team, Romain Girard. But they have a relentless approach to finding solutions that will help runners continue to improve. They help us improve technologies that we have today, like NITRO, but they also are constantly looking at what's next and working on solutions that we'll bring in the midterm to sit alongside of NITRO technology. And our innovation team leverages, of course, internal, but also external experience. We work constantly with an extensive supplier network, industry-leading biomechanical experts in universities, and most importantly, our elite athletes. And I would say that the way the team works with our elite athletes is what really sets us apart from any other brand.
We don't only build products and test and get feedback from our athletes. We actually invite them behind the curtain to be part of our product creation process. But instead of hearing about this from me, we asked one of our athletes to explain his experience with you. Let's take a look.
My name is Karsten Warholm, and I run the 400-meter hurdles. The way we're working with the PUMA innovation team is that they allow us to come with feedback, and then we can use their expertise, and they can use our expertise and our knowledge, so we work together to develop what hopefully will become the best product.
It's really unique, the way we have been able to work with PUMA in developing new equipment. It's been a learning process, and we've always based it on the laws of physics, which makes sure that if you do it in the right way, it will work. And I think PUMA, as we speak, are in the forefront of this development.
When we were in Vietnam, first of all, it was great knowledge to see how the processes behind the product. And to me, I learned a lot seeing what's going on behind the scenes. And also we got to meet a lot of great people, hardworking people that knows what they're doing. Also, to be able to meet them and to discuss with them what to do and how to further develop the shoes that I'm gonna use in the Olympics, for example. We also did a lot of testing, where some of the people from the innovation team were there to see how the spikes worked. So we had three test sessions, where we improved the shoe over these few amount of days, and it was incredible.
Ah, nice!
I really enjoyed my time there.
I'm so happy to be able to be part of the PUMA family and be involved in making equipment for the athletes. Not too long ago, a shoe was a shoe. Now, it's turning into a sophisticated music instrument, and if you are a violin player, I don't think you should choose the trumpet.
So what I think is unique about the partnership is that PUMA allows me to work the way that we do right now. I can always reach out to people whenever I want, and they are always there to help. They want to make sure that the athletes, and also myself, gets the best tools, and that we get the support we need to achieve the great results that we are trying to do. So I think this is very unique, and also the way that we can be hands-on.
I'm also really impressed with the passion and the results of the PUMA innovation team. They are not that many, but the results are fabulous.
I think a lot of companies, they want to own the product 100%, and then they just send it to the athletes. But we are able to to look at it many times. We're able to test it, we are able to come with feedback, and we are listened to, and, and this makes a great cooperation because that is what it should be. It should be a cooperation.
So I think we work differently than our competitors do when it comes to creating innovations. And newness and innovation is very important to drive credibility, but it's not the only thing. One of the most important ways to drive performance credibility is actually through consistency. We know that runners wanna find a shoe they love, and know that brand is gonna stay committed to that product, and continue to update it, improve it, and evolve it. So as you heard from Maria, we've identified three hero franchises where we will have this firm commitment to constantly evolving and improving the product. This is where we'll also invest our marketing focus and our go-to-market strategies. So first, we have Velocity. Many of you guys got to run in Velocity today, so that is really our go-to everyday cushioning daily trainer.
We also have Deviate, which has also the additional PWRPLATE technology for speed. Then the Forever Run is our modern take on a stability solution. So three intentional products with different consumer benefits to serve different consumer preferences. Again, we're committed to building these out over time. Some of our competitors who are farther ahead in the journey are on number 20, 30 of these types of products. We're on number 3, 4, or 5, but we have that commitment to continue and build that consumer loyalty. So next, I'll talk about how we will reach the running consumer in a stronger way going forward. In order to reach the consumer, we have to build awareness of these great products and technologies that we have, and find ways to connect to the culture around running to become a loved brand in the space.
When it comes to building awareness, we believe there's a couple ways that we can improve what we're doing: through media and influencers, and also athletes. We know the key media that consumers are looking at, right? To really find out what products are hot, what works, what to wear. We're actually lucky because from the start, we've gotten very strong reviews on our product line, so we're starting from a point of strength. Here, we are going to increase our investment in how we work with the media and the key influencers, content creators, and reviewers in the space, and enhance our seeding program and relationship with them. We also have the opportunity to amplify the great achievements of our athletes. Our sports marketing team has been busy now signing more and more road running athletes to balance out our portfolio.
While we have a great and established roster in track and field, we want to be more present in the road running world. We're signing athletes with a focus on females and connected to our key markets as well for running. You guys heard a little bit about this. It was a great moment for us a few weeks ago, when two of our athletes came onto the scene for the U.S. Olympic Trials. If I could talk about Fiona for one minute, she came in first place at the marathon trials. She is the youngest ever American female to place into the trials and to win first. She also beat the record time that's been there since, I think, 2012, by three full minutes.
The most amazing part of this is it was her first ever marathon, her first professional marathon. So she really came onto the scene in a strong way. In that same race, we had Dakota Lindwurm, who at the end, overtook the person that she was kinda running neck and neck with to come in third. The exciting thing for us was that, one, these are two of our female athletes, both on the podium qualifying for the Olympic Games, and both wearing our brand-new Deviate NITRO Elite 3, which is coming out this summer, which is what I'm wearing as well. An amazing debut moment to really show what our products can do.
Now, the story of Fiona and this woman coming onto the scene in her first-ever marathon with this type of accomplishment might sound familiar to you guys, and today, you got to meet somebody with a similar story. Let's take a look.
Running at the Olympics is not just like something that you just decide to do. You have to focus your entire life around this goal, and I would never have traded this for anything. You have to be kind of all in it.
The youngest American woman to make an Olympic marathon team in almost three decades.
I think that's gonna be with me my entire life.
Please join me in welcoming Molly Seidel. Thanks for joining us.
Oh, my gosh, it's great being here.
Fresh off a run. I thought you could start by pointing out who in the room was the fastest... and the slowest.
Honestly-
How did these guys do? Did they keep up?
I think Arne was leading, like, pretty much all of it.
Look at that!
He was showing us up.
... yesterday I'm like, "Go nice and easy." Anyways, thank you for joining us. Thank you for doing the morning run with everybody.
Mm-hmm.
We were just talking a minute about Fiona, and your stories have some overlap, right?
Mm-hmm.
I mean, if just in case anybody doesn't know Molly's history, she started out as an NCAA champion cross country.
Mm-hmm.
Right? Made that change to running marathons, 2020.
Mm-hmm.
Similar, in your first-ever marathon, qualified for Tokyo.
Yep
... and then went on to become an Olympic medalist, right?
Yeah.
In 2021. Now, the amazing thing is, in the middle of this journey and all of this success, Molly decided to change sponsorships, right?
Yeah, mm.
Explore new brand partners.
Yeah.
I remember it was, what, December of 2020-
Yeah
... you came to see us?
Yeah, in the Boston office.
We were one of many that were trying to get Molly to come to us.
Mm.
Can you tell us why you decided to choose Puma?
Yeah, it... When I was changing brands at the end of 2020, I had qualified for the marathon, and with the Olympics being postponed, it wasn't going to be until that next summer.
Yeah.
And so I was coming in at this really pivotal part of my career where I'd achieved a certain level of success, but I knew that I was going to be taking that next step up. And this next, this transition in my career, I felt like I really needed to align myself with a brand that was going to... As I told you guys in the office, I was going in with the goal of winning medals, and I needed a brand that was going to help me do that. And PUMA was just getting back into the distance running space. I believe the shoes that you guys sent me weren't even on the market yet. But the minute I put them on my feet, I knew it was just game-changing, and that was gonna be it.
I think the first race I did in them, I PR'd by about a minute in the half-marathon-
Yeah
... which was huge. And so I feel like from there, I've known that that was the right decision the entire time.
Yeah, I remember, when you were coming that day, it felt very intimidating. We didn't have any products on the market. We're like, "How do we convince an athlete to join us when we have- don't have a success record?" But luckily, you saw the products, you believed in it-
Mm-hmm
... and then, you know, we've been together ever since. But I was curious how your experience with PUMA has been. Maybe you heard a little of what Karsten said.
Mm-hmm.
Do you feel that it's different, your experience working with PUMA?
Honestly, I feel like that's been the biggest thing for me, being a PUMA athlete, is PUMA is such an athlete-centric brand. I feel like so many times, I'm being asked for my feedback on stuff, being asked how the shoes are feeling. I think there's... Sometimes in other brands, there's this attitude of, "Oh, the athletes need to conform to the product that we're creating," and I feel like PUMA, the entire ethos is really focused on how do we create the best product for the athletes, and that's what leads to the performance.
Yeah, absolutely. And then Molly was the first athlete to really run in our original version of the Deviate Elite, and it became known in the industry and through reviewers-
Mm-hmm
... as the Molly shoe.
Yeah.
Everybody's: "Where can I get the Molly shoe?
Mm-hmm.
Now we're on to version three, and obviously-
Which is wild.
... you saw, you saw how, Fiona and Dakota did. Have you been able to test the product?
Yeah. I was in the Boston office a couple months ago, I believe in November, and we were in the NITRO Lab actually testing various versions of the shoe. And it was amazing to me because the first version of the Deviate NITRO Elite is the one that I won bronze in, and this current version, I believe it showed that I was 2% more efficient-
Yeah, yeah
... in the shoe, which is huge in running. That equates to about 3 minutes over the course of a marathon. So it's shocking to me just how much, even over the 3 years that I've been with PUMA, that the technology has evolved.
Yeah, excellent. Now I know that unfortunately you had to pull out of the trials this year-
Mm-hmm, yeah
... right, due to an injury.
Mm-hmm.
I'm sure you'll be cheering on your-
Mm
... your fellow American females, as we get to Paris. But what are your goals? What are you thinking? How are you feeling-
Yeah-
with your recovery?
... obviously, that was very, very disappointing not getting to race, but also it was like this bittersweet thing of like I was so sad I couldn't race. But then this, the last trials, there weren't any PUMA athletes in the trials. It hadn't entered the distance running market, and now there are two on the podium.
Yeah.
So it was this incredible moment of just seeing how far we've come as the PUMA family. I'm taking the time healing up, and I'm gonna try and go for the 10K on the track, the 10,000 meters, so I'll be testing out the spike technology now.
Oh, nice.
But, uh-
You're gonna get plenty of that.
Yeah, it's, I think it's just a reality of the sport, that injuries happen. But yeah, luckily, there's always opportunities and different ways to spin it, and making the most of the year.
That's great. Now, I think, one of the things that we loved about Molly from the start is we felt your personality was the perfect fit for the PUMA brand, right? Molly is somebody who brings joy and fun to the sport of running, which is something as a brand that we always want to do, is bring joy to, to sport.
Mm-hmm.
Did you feel that same connection?
Oh, 100%. I think what I was-
Did you see the embarrassing slide in there?
Yeah, exactly. I know. I love that the dumpster pic made it up in there.
Yeah. Uh-huh.
But that first meeting in the office, I think Todd and I were just, like, geeking out over different shoe technology, and you guys showed me the first prototypes of the Fast-R at that point, and I was, like, losing my mind 'cause I'd never seen anything like that. I'm very, very much into shoe technology. And so I feel like just the passion that you guys had for creating really quality product, and then also there is this element with PUMA that I don't find with other brands of really, like, being willing to push the limits, being willing to try the fun, new thing and really go for it. It's an energy that I think really sets the brand apart.
That's great.
Mm-hmm.
Thank you. Well, I mean, a huge thank you from me and, of course, the PUMA family. You believed in us from the start and, and we're still very grateful. And also, thanks for joining today.
Thanks for having me.
Thanks.
Thanks, Erin.
... So thank you to Molly. So we'll move on. So the other really important thing, which Molly has a unique talent of doing, is connecting to run culture, right? She makes her story approachable. Most people cannot run nearly as fast as Molly, but the way she brings joy and fun to it, a lot of people can relate to. When it comes to our opportunities to connect to the culture, we're looking at females in running and also races and events. We believe strongly that women are the future of running. We know that in the last few years, there are more women than men now participating in races around the world, actually registering for races. This is a massive change over 20 years. 20 years ago, it was a male-dominated race participation.
So with the reset of running from the start, we had the opportunity to really focus on females. From the way that we build product, we have women-specific fits. We test product on women, which is very different from the industry. Typically, brands will prototype in just a men's size, test on men, expand it to women's sizes later. We do women from the start, so we can get feedback from female runners from the start. And then lastly, as you've seen, we're investing strongly in female athletes. When it comes to races and events, this is a key way to really connect to where the runners are, and it's a really important thing that we need to enhance going forward.
So we're working on a new strategy to kind of ambush the six major marathons and show up with a unique PUMA activation that will give runners that PUMA experience every time. And you heard a little bit about HYROX. HYROX gives us another chance to reach more consumers with our product solution. So HYROX is the sport of fitness racing, and what's unique about it is that it's half running, you're running half of the time, and it's half training. So it really hits both of my categories, which is great. And we know the preferred footwear to use in an environment like that are running shoes. So another way to reach the consumer with our NITRO products. And HYROX is expanding like crazy. Right now, they're in about 60 events.
They will double that and expand their country footprint as well as they move forward. The participation rate is growing just as fast, and events in the key countries where they're more established are selling out. But by 2027, they plan to be at about 600,000 participants annually, which is a big number of consumers to reach. And we believe also this gives us an opportunity to really show what we can do on the apparel side as well, across both running and training. This is definitely an untapped area where we have a ton of upside potential to reach. But we need to do a few things on the product side to better maximize this opportunity. So first, we're going to sharpen our USP, our design language, our differentiation in terms of how our products look.
We're also going to sharpen our technology stories and really offer better tech- technical solutions, which you'll see in our showroom today. Comfort solutions like CLOUDSPUN or lightweight solutions like ULTRAWEAVE. Then we're going to establish a key item strategy that we're building now with long lifecycle items, so when people find that T-shirt they love or shirt they love, they always can come back to the brand and get that performance solution. Lastly, we're doing all of this because we wanna gain market share, and we have a lot of market share potential to gain. I'll move on next. When it comes to the running distribution, we have a very focused strategy to win here. We look at it in two buckets, very simple. The top of the pyramid is run specialty channel. This is all about credibility.
It's been a really big focus of ours from the start. We know it gets us credibility, and it helps us reach the runner directly. The bottom of the pyramid is the sporting goods channel, which gives us the opportunity to scale. Let me start off with run specialty. So from the start, we built relationships, again, before we even launched a shoe, with key partners in this channel. We knew that it was crucial to get credibility to show up in this space. We have so much opportunity still to maximize. In the US, for example, we're in 100 out of 1,000 great stores, okay? So a lot of upside potential. We also, in the stores we're in, can expand shelf space and become a big brand with a bigger presence.
So in this channel today, we have our strongest sell-through, so we have a great start, and we have a lot of expansion opportunity. In sporting goods, it looks a little bit different. I would say, we're hit or miss in our phase one results in sporting goods, but we've learned a lot. We know we have to focus on our strategic partners in the space, even down to what doors we show up in, so that our brand comes across in a really strong way. We know we have to build awareness in order to have that lasting success in a multi-sport environment. One of the most important things we need to do to drive sell-through is enhance our tech rep structure. I'll tell you guys a quick story about this.
When we were relaunching Running, we met with a CEO of a run specialty account called JackRabbit in the U.S. It's now merged with Fleet Feet, so it doesn't exist under that banner. But he said to me: "It's so simple to win in running. There's only two things you need to do. The first is great product, the second are Tech reps." So that stuck with me through this entire thing, and I have to say, he's right. Where we have great Tech reps and ambassadors that are winning the hearts and minds of shop staff and consumers at the store level, that is where we're the most successful. So going forward, we're gonna increase our investment in this space around our key markets as well. So in summary, we're just in phase one. It's all about getting started.
By the end of this year, we will have doubled our business from where we started in 2021. As you've heard, we're the fastest-growing brand in Europe, breaking into the top 10 by the end of last year. Even in other markets like France, we've overachieved that, right? Brand number nine in France as well. Some strong growth, fastest-growing market share. As we look ahead to phase two, we're planning to triple our business between 2025 and 2028. Again, strategic growth. We don't wanna shove a ton of products in the market. These are high-price, performance products, but we do believe that we can grow to this level by the end of phase two. It's because we know that we have the winning formula, right?
It's all about enhancing performance credibility first, by doubling down on product excellence and innovation. It's about reaching the running consumer by building awareness and connecting to the culture around running. Then lastly, it's about gaining market share by focusing on those two strategic distribution channels and enhancing our tech rep infrastructure to drive that sell-through. That's it for me, and I definitely look forward to showing you guys the products later today. Thank you.
Thank you, Erin. Thank you, Molly. Good morning, everyone. I'm glad to be with you today to talk about sportstyle. Sportstyle is the heart of our business. It shapes the image of our brand. But more than anything else, sportstyle gives our brand heat, and it makes our brand cool. My name is Lionel Telega, and I'm the Vice President of PUMA Sportstyle, and I'm very excited to be with you today to share how many great new products we have coming our way. The market is starving for newness, and we are bringing it. When we talk about sportstyle, we are talking about the sportleisure segment, which are lifestyle products that are rooted in sports. It's the largest part of our industry. Sportleisure is a truly global business, with consumers across all geographies, all genders, and all ages, that are wearing sport-inspired clothes and shoes.
To be successful in sportleisure, you absolutely have to be credible in sports, and PUMA is one of the few brands that has authenticity across different categories in sports. We've got heritage in motorsport, in track and field, in tennis, in football, in skate. But you also have to be credible in fashion, and PUMA has got the history of making that leg between sports and fashion. We have been doing that longer than everybody else, back to Clyde Frazier in 1973, or Jil Sander in 1998, just to name a few. When you look at the markets in footwear, these are in the tens of billions of dollars, and today, we only have a tiny share, but we have really strong ambitions to grow. We are already a top player in core, with our strong price-value proposition, and we want to hold that position.
But where there is the most potential, it's in Prime. Our target is to build, to build our Prime business, and that's where our team is currently focusing on. So we have a tiny share today. We are the brand with the biggest growth potential, especially in the higher and aspirational channels, the Prime and the Select segment. Let's take a look at what we are changing to tackle that. Everything starts by our attitude. We are a challenger brand. We are the challenger. We are hungry. We go the extra mile, and we will disrupt. We are already disrupting the industry in football. We are already disrupting the industry in basketball. Now, it's time to disrupt the industry in sportstyle. Sportstyle is PUMA's biggest business unit, and we are divided into four segments: Select, Prime, Core, and Kids.
This helps us to have one brand approach to bring more consistency to our consumers. Let's look at how we are going to work these segments to achieve our goals. This is the Sportstyle pyramid. At the very top, you have Select, then Prime, then Core. The three segments, they have different roles when it comes to financial contribution and brand heat building. Prime is the biggest part of the market. It's our biggest growth opportunity. But to get into Prime, you've got to succeed in Select, a smaller market, but absolutely crucial when it comes to driving brand heat. One of the key factor for success is to bring products at the right time. In the last few years, we have been maximizing existing trends without having a clear and unique point of view.
As an example, in terrace, with our Palermo, we joined the party, but when the party was already at full swing... To create brand heat, what we are changing is to focus on creating the trends, bringing to the market products and stories with a unique PUMA point of view. After many years of pursuing a volume business and growth for growth sake, our strategy now is about creating trends and building franchises as brands. Our Select, Prime, and Core segments have each a role to play in the life cycle of any given trend. It starts with Select, where we are introducing new styles and incubating new trends. This process takes time, but once a trend takes off, we are in the best position to make the most of it. That's what we do in Prime afterwards, with a wider distribution with our major key accounts.
Finally, in Core, we deliver a volume business when the trends are established. I will explain to you in the next slides our strategy to create new trends, to be on trend and on time, and to deliver commercial results in the short term. Let's start with Select. The primary objective with Select is to create brand heat by creating the trends. Our Select products are exclusively available to Selected premium accounts, like Kith or END. Clothing, and also, obviously, our D2C. Select is the pinnacle of our sports and fashion offer, and it shows our point of view to the market to connect with highly influential consumers. Today, our market share in Select is very low. That's because we have spent a lot of time catching up with trends. Now, we are investing in creativity and in innovation to create those trends ourselves.
What are our goals in Select? On an emotional level, it's to create a deep connection with the most influential consumers, and on the distribution side, our goal is to be one of the top eight brand in the Select distribution. Then the question is, how do we get there? First, we have created a strong multi-years product pipeline with a unique PUMA point of view. Second, we are currently working with some of the most relevant partners to create hype, like recently, Ottolinger, Coperni, or Noah, just to name a few. And finally, we are working with limited drops to create scarcity and to create sell-out. And the success that we will create in Select will have a halo effect on the entire PUMA brand. Let me give you a concrete example. In Select, once again, it's all about creating the trend.
The trend that we will own in the future is low profile. Low-profile shoes, they have a sleeker look, where the midsole is closer to the ground. We are currently creating this trend with the Speedcat and with the Mostro. Let's look at the Mostro, which we are bringing back after more than 15 years, for a new generation of consumers. To create the trend, we showcased the silhouette in fashion weeks, strategically aligning with industry leaders and tastemakers. Our big moment was collaborating with Ottolinger on their runway in March 2023. It was a perfect collaboration to tease the market about the return of the Mostro. Next, we showcased the Mostro during Copenhagen Fashion Week in the Paolina Russo show. Paolina asked us to have the Mostro in her show, which just confirmed the market eagerness for Mostro's return.
And last September, we revealed the next Ottolinger iteration of the Mostro that is set to launch this month. At the same time, we had a pop-up store in Paris for the Ottolinger launch, and we totally sold out the collection. And then more recently, as you've heard yesterday, we literally took over the New York Fashion Week with the Mostro. That was one of the highest hype moment for our brand. But it's not just on the runway, it's also on the street with our ambassadors. The last few months, our ambassadors, like Skepta or A$AP Rocky, they have been wearing Mostro, and it has been organically being picked up by the media. We are also collaborating with cultural authenticators, such as Inside Tag, who are passionate about heritage and culture. They are also very excited by the low-profile trend and the Mostro.
We are clear with what we want to own. We are clear that we want to bring PUMA's unique point of view through low-profile in a market that is starving for newness... and the first results have been above our expectations. The market is ready for low-profile, and the most important is that the market is ready for the Mostro. And our customers, they have the same strong belief that low-profile with PUMA and product like Mostro is the next big thing. Here are my two favorite quotes. The first one from Niklas Wirén, from Sneakersnstuff: "2024 is the year when PUMA will lead the low-profile segment with its Mostro and Speedcat." And that's great, because that's now. But what I really like to hear is the quote from Luke Matthews, Brand Director at size?
JD Group: "Now, rather than looking outside, it feels like PUMA is looking within and telling the market what they want it to be." That's exactly what we are after. Back to my pyramid. Select is about creating trend and brand heat. What we do in Select will influence Prime, and then will influence Core. Let's dive into Prime. Once again, Prime is where we have the biggest opportunity for growth. Prime is the commercial extension of Select. It's all about addressing sport strengths through archive and new Progressive designs. Success in Prime is absolutely crucial. It's the biggest market with huge growth opportunities. It's an aspirational business with high ASPs and margin, and most importantly, it will help us building lasting relationship with our consumers. On top, it really help us to build on the legacy and on the authenticity of our brand.
This is how we are looking today in the Prime distribution. We have been growing the last few years, but today we still have few products on the wall. We still have a small share of shelves, even sometimes in the middle of the competition. We can do a lot better than that. Today, I'm going to tell you how we are going to do that. Our goal is clear in Prime. We are currently in the top ten, and we want to be in the top five. We want to increase our ASP and increase our profitability. We want to reconnect with our female consumer and our male urban streetwear consumers. How do we do that? First, by building long-term power franchises with a distinctive PUMA identity. Secondly, by maximizing the trends that we will create in Select.
And then finally, by being on trend and on time to commercialize business opportunities. And one more point, as presented by Richard yesterday, we want to master influence. We will master influence to reconnect with our Gen Z consumers. Let's take a look at the market and at its segmentation within Prime. We have Classic, which is all about addressing sports trend through archive. That does represent approximately three-quarters of the market. And then on the other side, we have Progressive, a segment where we have a very strong plan to reconnect with our young urban male consumers, which is approximately one-quarter of the market. In Classics, we can tap into our rich archive and our legacy in many sports.
For our key franchises, our key Classics franchises, we have go-to-market plans, making sure that we land the right products at the right time, in the right distribution, with the right marketing support. Let's take a look at those products. With Easy Rider, we are taking the terrace trend to the next level through the lens of retro running. You all know the Suede, that is our most iconic product, and we've given it a new twist to make sure that we connect with the current skate trend, with the Suede XL. Our GV Special takes inspiration from our tennis archive and brings a new level of tooling and a new level of comfort to the white leather segment. In low-profile, we are very excited about the Speedcat, which will hit the stores globally this year.
We are already off to a great start with our Speedcat, with a fantastic launch event that took place in South Korea last month. South Korea being a crucial market when it comes to creating the trends. Let's take a look.
[inaudible]
That's a great video, but the most important is that the consumer's response has been fantastic. We sold entirely in our own channels in 30 minutes, and Musinsa has sold 81% of their stocks in just one day, meaning thousands of pairs in just one day. And finally, our Palermo. Palermo hit the market end of 2023, and is also off to a great start. To support the Palermo, we've got marketing activities all around the world. As an example, we've done a big push with Palermo in Asia Pacific. Here, you have some examples from China.
And here, closer to Europe and to the US, we've got a major collaboration with Dua Lipa, who is supporting the Palermo and wearing it during her latest music video for the song Houdini. Let's take a look.
Everything you say is sounding so sweet. Oh. But do you practice everything that you preach? Oh. I need something that I really believe. Oh. If you got it, baby, give it to me.
That's exciting. After Classics, now we have Progressive. It is our priority to bring newness to the market, to reconnect with the young, urban consumers. We've listened to our accounts, and we've made newness an absolute priority. This is our lineup for the next seasons, with two main product priorities in 2024: with the Inhale, supported by A$AP Rocky, and with the Mostro that is currently in Select in 2024, and that will cascade to the Prime distribution in 2025. So we have exciting newness for 2024, and we have a strong lineup for the next few years. Here is the Inhale, supported by A$AP Rocky, and then the Mostro that I showed you, I think, in details earlier. And to support some of those initiatives, we have the support of the most powerful, the most iconic couple, with Rihanna and A$AP Rocky.
Rihanna supporting our Classics product portfolio, and Rocky supporting our Progressive strategy. As we've said, our winning formula in Prime is clearly marked out. It all starts with products, and as you've seen, we have some great products coming our way. We've got a strong marketing strategy. We want to connect with Gen Z and master influence. In footwear, we are leading the trends, and apparel complements. From a commercial perspective, we are working in close partnership, close collaboration with our strategic accounts, Foot Locker, JD, and Snipes. From November 2023 to May 2024, we have six major franchise launches. In Select, we have the Inhale, the Speedcat, and the Mostro. In Prime, we have the Palermo, the Suede XL, and the Easy Rider.
This will help us to create new trends, to be on trend and on time, and deliver commercial result in the short term. When we look at Google search, because I know from Arne and from Gottfried that, this is an important measurement for you, you see that our newness, Palermo and the Suede XL, are already performing better than any other franchises from the last few years. On top, like for Select, we have the commitment and the support from our major accounts, like you heard yesterday from Sven, from Sven from Snipes, during Arne's presentation. But on top of that, here are some very enthusiastic feedbacks from Franck-Olivier Broudin, the buying director at Courir, one of our biggest European accounts.
My name is Franck-Olivier, and I had the chance to lead the Courir buying team for almost 20 years. I wanted to share a few things about our relationship with PUMA, and the way we see our business going forward in the next future. I also wanted to tell you that we had recently the opportunity to see how PUMA plans to tackle a new trend that we feel is going to be the next big thing in the lifestyle footwear business. That's to say, the low-profile product. I must say, I feel pretty excited about what I've seen, and we really look forward to see and to address this new product journey with the PUMA people. They are very legitimate and authentic in this product area. No doubt for us that it will enable significant growth and even stronger partnership.
May the Mostro be the next Air Force 1, who knows? I have to leave you with this, because I have a few PUMA orders to place. I thank you, everybody. Bye.
... Great! Then from Select to Prime to Core. Let's dive into Core. If you want to be strong, you've got to have a strong core, and that's true also for our business. In Core, it's all about mastering the fundamentals by having the best price proposition for our everyday consumer. What are our goals in Core? Our goal is to defend our strong position and further increase market share by growing with our retailers and be in the top three in all the markets. And on top of that, we want to start establishing higher price points. How do we do that? We will continue to offer the best price quality through fashionable and comfortable products, and obviously, we will commercialize our product through the halo effect that we will create in Select to Prime and then to Core.
In Core, you can see that great products with the right balance between a commercial price and good quality can deliver fantastic results, even without marketing. This applies to our footwear products, like the Caven, and to our apparel lines in general. But that doesn't mean that we are completely ignoring the category. We can do some very effective activations to take it even further. So we don't have big campaigns, but we do smart focus ones resonating with the local target consumer audience, like the ongoing campaign that we have with Deichmann and the Zarrella collection that is very successful. We've been talking so far about Select, Prime, and Core, and how they work together as one product ecosystem.
So far, I've focused on how we are winning in the adult market, but I don't want to leave out what we are doing to attract the consumers of tomorrow, and that's the kids market. We've got very exciting products, stories, and concepts coming our way in this crucial market segment. To conclude, we are the brand with the biggest growth potential, and we want to move faster than the competition. We aim to win market shares, to become a top eight brand in Select, a top five brand in Prime, and to be in the top three in Core. We are clear, and we have a clear strategy to each segment with great products, with a lot of newness. As the challenger brand, we are absolutely committed to delivering results. Thank you. I'm happy to hand over now to Anne-Laure.
Hello. I do apologize in advance. You have to bear with another French accent for the next 30 minutes, the third one in 2 days. But I'll try to be efficient and sharp, like sourcing is. So my name is Anne-Laure Descours. I'm the Chief Sourcing Officer for PUMA. I look after two in very important area of the business, sourcing and sustainability, and I'm gonna try to be efficient and sharp to walk you through what we do on that side of the business. So I'm French. I'm based in Hong Kong, actually, for 30 years, and sourcing has been my life. It's still really a key area of what we do. And what is sourcing for PUMA? It's really making sure we can provide product solutions and margin to the business, to make it very simple. So the role of sourcing.
When I started 30 years ago, what we did in sourcing was about product quality, margin, landed cost. That was the core of what we are doing every day. It was about chasing for the next cheaper product somewhere. What happened the last few years, the complexity of sourcing has increased tremendously, because of sustainability and compliance, but also recently about the risk mitigations and the resilience we have to have in supply chains. That was really illustrated during the COVID crisis. To support all that, we had also to enhance our systems between the process and the transformation and the data flow. Our key competitive advantage, and I'm really proud of that, we deliver margin and FOB, and I know this is important for you guys.
Trust me, we do a hell of a work to make that happen, pushed by my dear colleagues from the sales subsidiary that want us to make the impossible possible. One really key part of PUMA, which is unique also to my organization, we have integrated product development into sourcing. Most of the trade today still have product development under the product team. We made a conscious decision some years back to integrate product development into sourcing for one reason: because we want to build a product to cost. And to build a product to cost, you have to be sitting with your suppliers, at source in the factories, and the largest part of the product development organization is sitting between China, Hong Kong, Vietnam, Cambodia, Bangladesh, Indonesia. That give us an edge to really make sure we deliver the price we need for the business.
The second key competitive advantage we have is the partnership, and I will elaborate more on that. Our vendors are part of the family. We grow together, we go through shit together, and we have quite a lot of shit on a daily basis. This is the heart of the business. But we continue really bringing us to the next level. As an organization, we are ensuring that we stay very pragmatic, and we make fast decisions on a very speedy drive. We get the basics right. The basics are very easy for us, is the right product, deliver at the right time, with the right quality, at the right price. This is the base of what we do. And to do that, we stay humble. We look at providing solutions, pragmatic solutions, to make sure that the business can deliver.
To do that, of course, we're very agile, and my age probably less, but my team is very young, so they're very, very agile. They look at multiple options to deliver and to serve the business. Recently, we have also invested quite significantly in managing data. Today, to make sure that we run the business with no risk, we have to have millions of data to report back to the regulators. Not just the regulators, but also multiple stakeholders. We have been really working on automation, data usage, and data flow as a backbone, and as a matter of fact, we have a dedicated team sitting in Asia to help us enhancing this data and digitalization roadmap. So landscape. We're very focused.
We have 150 vendors in 29 countries worldwide, and here, this is actually the split between Asia and the rest of the world. Asia is still the core of sourcing today for PUMA, both footwear and apparel. Our six more important countries are China, Vietnam, Cambodia, Bangladesh, Indonesia, and India. China has a share which we have to take into, I need to explain to you a little bit. The 32%, actually, part of that 32% of China is serving surely for the local, for local, for the China market. So China export is about 25%, and the rest is actually going for the China market directly.
Because we are focused, we don't have so many vendors, and 45% of our suppliers actually have been with us for over 10 years, and 11% of our vendors have been with PUMA for 20 years. 24 of these vendors do 80% of our business. This is really critical for us, and we made that conscious decisions to grow with these suppliers to make sure that they can serve us from multiple countries of origin perspective. That provide to us efficiency, speed. Instead of onboarding a new vendor, we onboard a new factory, so that new factory is completely already trained for the system of PUMA, for the regulations and the compliance of PUMA. That really also helped to build also better environment in terms of business.
So we are a strong sourcing entity, rooted in partnership and commitment between us and the vendors. Our headquarters is in Hong Kong, for my case, but the footwear team headquarters is between Vietnam and China, and apparel is in Hong Kong. We are really localized next to our vendors. Some of our people are really working also in the factories directly, and we have also make sure that the management, managing sourcing locally, is coming from local people. Our head of Bangladesh is from Bangladesh. Our head of China is from China, and same apply to Vietnam. We really want to enhance this capability to be very present in the country. We innovate together, and we invest together. And here, I want to share with you one testimony from one of our key suppliers. You saw, actually, Leslie from Royal on Arne's video earlier.
Royal Footwear has been with PUMA for 20 years, is a key footwear supplier that really help us in innovation, both from a track and field standpoint, but also from basketball. Here is Leslie.
Xin Chao from Vietnam. Royal Group has been a proud partner of PUMA for nearly 30 years, and it is with utmost pleasure that I share with you some of the key elements that have enabled this valuable partnership to flourish. PUMA clearly considers its supplier partners to be an integral part of its business and ensures that communications are rooted in trust and transparency. In 2018, PUMA trusted us with the basketball category. Working alongside PUMA from development to manufacturing, we identified and implemented innovative solutions that maximize market appeal and manufacturing efficiencies, resulting in success stories such as the LaMelo series and the Clyde All- Pros. This collaborative approach is also replicated in other categories, such as running, with their class-leading NITRO technology, sports lifestyle, golf, and even track and field shoes.
We take pride in being part of making products in cooperation with champion athletes and celebrities alike. Another integral part of PUMA's culture is sustainability. With PUMA's guidance, we have actively improved employee welfares through programs such as Better Work and Worker Voice. By 2025, we will declare our science-based targets to reduce greenhouse gases through projects implemented by the GIZ and PUMA, such as climate action training and resource efficiency. We look forward to further strengthening our partnership with PUMA as we work towards our shared vision of creating sustainable, exciting products that inspire our consumers. Thank you.
So we're proud to be a family also with our vendors, and we last year hosted the vendor summit here in Herzog to make sure after COVID, they had the opportunity to regroup also with people from headquarters. Thanks to them, we are able to navigate a very volatile environment when it comes into sourcing. We have surprises on a constant basis. So what are the three key areas of attention for us today? Resilience, manufacturing transformations, and agility are really our key focus. When it comes into resilience, we have three current challenges: regulatory landscape. I'm sure most of you coming from Europe are very familiar with the regulatory regimes when it come into sustainability and regulations, inflation, and also decoupling and relocalizations. To navigate these situations, we have three different topics, areas: A, supply chain diversification, B, product cost optimization, and logistic excellence.
When it comes into supply chain diversifications, two-thirds of our main vendors have a multi-country of origin capability. This allow us to decrease dependency on any single sourcing country, and really help us to manage the risk. As a matter of fact, during COVID, when one country was closed, we had the possibility to move to another one. When Vietnam was shut down, we moved production of footwear into China. That really provide us an edge to make sure we could navigate all these situations, and we also never shut down any orders, any factory during COVID, maintaining this openness to make sure we could react fast. Being able to source product from multiple countries really help us to answer the market response and disruptions.
Here on the screen, you see the countries where we have a global sourcing, which is the case for Bangladesh or Vietnam, but also the green ones are the one where we do local-for-local sourcing, which I will elaborate later, China being a mix between local and export. When it comes into product cost optimization, we have had hard to really design to cost. If you have $10 to spend, you need to build a product for $10, not for $12. So we really look at better cost control, combined with traceability and speed. We also have our suppliers that have built, through our common strategy, a vertical integration setup. Why we want them to be vertically integrated, not just from a product manufacturing, but to material manufacturing? Two reasons: A, materials represent more than 50% of a product cost.
If a vendor has integrated the material production, they manage the cost better. B, when you integrate your material production within your space, you also have more flexibility, and you address speed. In the footwear sourcing, our vendors today have integrated the manufacturing of the outsoles. In the apparel, our top vendors have either a complete verticality from a yarn to a finished product or from materials to finished product. This also lead us to long-term commitment. For our vendors to bring efficiency and reduce cost and deal with the inflations today, they need long-term commitment so they can plan their investment. This is something we've done consistently for the last 10 years, which has leaded us to have now manufacturing in multiple countries. Of course, we need to simplify the way we do business through material consolidations and system integration.
Logistics excellence, we have a very, very strong partnership with Maersk. This collaboration has moved from a transactional business to a partnership business since 2018. Arne has regular conversation with the top management of Maersk. Our people is here from the team have also regular conversation, discussing on rates and also solutions whenever the logistics situations becomes a bit complicated. Now, manufacturing transformation is very also impacted again by regulations because the consumer and regulators demand for change when it comes into the product. What we do here, two things: more sustainable product and more sustainable process. One example of more sustainable a few example of more sustainable product, we've been really working on product excellence. Quality means a lot to the consumer. If you want a consumer to buy again a PUMA product, we have to have very strong quality and durability.
Then we also have to look at lowering our emissions in terms of materials. We use mostly recycled... a lot of recycled materials when it comes into footwear, between recycled EVA or recycled rubber, but also look, work a lot with recycled polyester and cotton when it comes into apparel. Last but not least, waste is becoming a huge topic. We work with our suppliers through robotics, automations, and usage of analytics for better planning to reduce waste in terms of manufacturing, not only, not only from a material, but also from water and energy saving. More sustainable process is about data. We need to make this data flow and data transparency being available. We build capability to provide this traceability and this transparency, and we invested into 3D sampling, better machinery for resource efficiency and better consumptions, and also renewable energy. Last but not least, agility.
We really need to have an adjustment ongoing to the market needs. We need to be able to provide shortcut to the countries whenever they need speed programs. Shirley elaborated yesterday on the speed program from China. We have similar speed programs in other countries. We also ramp up digital sampling, using the new technology for faster approval of product, so bringing from design to market in a much faster way, and we work very closely on material availability. Having material ready provides speed to the executions. An example was the Fenty Creeper Phatty. Between the moment we signed with Rihanna to the moment the shoe was in the market, it took only six months. And of course, we look at material consolidation for better FOBs. Last but not least, Local for Local.
It's something that PUMA has established many years ago, even prior to my time. It started, I think, in Argentina and Brazil, long time back, to build a footwear capability locally. This Local for Local really is a competitive advantage for PUMA in multiple countries. We have Local for Local in Argentina, in Brazil, in India, in South Africa, in China, in Indonesia, and now in Turkey. That helps us to support the country locally to build a product that is relevant for the market in a very fast speed. But also when the situations from a trade standpoint do not allow to import product into the country, like the case now for India in footwear, we have the capability to serve the country very fast. So we provide good margin, great margin, great FOBs. We are strong partners to our vendors.
We are very pragmatic, we get the basic rights, and we bring agility through data and also digitalization. This is where we stand as a, as a PUMA Group sourcing. And we believe that we have the right tools and the right values to address all the challenges and to support the growth of PUMA. So that's the sourcing presentation. That lead me now to sustainability, very close to my heart and now very close to the heart of many people. So sustainability for PUMA is actually a journey, it's not a destination. And PUMA has been one of the very first brands that have really built sustainability as a backbone of business. It's part of the DNA for many, many years. It's now touching every part of the business. It used to be an expert conversation, it became now a business conversation.
As a matter of fact, in PUMA, sustainability is embedded in every division of the business, from product, to supply chains, to finance, to sales or logistic. This is now driven very much by stakeholders for a long time, but now regulators came into the party. Stakeholders and consumers are really expecting us to reduce amount of footprint and to look after the workforce wherever we produce, and the regulations are as kickoff to really add complexity into the journey. So what is sustainability at PUMA? It's a vision which it really bring by the management board, executed by operation, touching economic, environmental, and socials. And, and our mantra is really Forever Better, where forever means sustainable, caring for the needs of the present without impacting the future, and better in responding to environment, economic, and social opportunities and the challenges that we face.
This also is key for our people internally. The average age of employees at PUMA is in early thirties. Sustainability is one element for people to decide to work for the brand, and we are very proud that we involve them also in this conversation. It's supported by the management, and as a matter of fact, it's also part of our bonus. So we pushed the boundaries for the last 20 years. We were the first one to publish our own EP&L in 2011. This, with an ambition to be transparent about the cost of environment and committed to mitigate that cost. We also were the first one in 2016 to launch a Forever Better finance program with IFC, which incentivized the vendors for better scoring in social, environmental, to get lower rates, lower rates.
Then in 2018, we were one of the founding members for Fashion Industry Charter for Climate Action, which is under the UN, an association that really leads conversation with different governments on energy, particularly. Recently, we brought on board some young voices, four young voices, to help us to shape the conversation with the next generation on sustainability. We listen to them, and they help us also to educate, engage, and co-create with PUMA to improve our communication, but also to understand what this generation expect from us. This lead us to very strong external recognition. We're very proud of that. It help us to measure where we are, but also help us to measure what we need to improve for the future. I want to call out here two very important one for me personally. The first one is CDP, the Climate Disclosure Project on climate.
We ranked A for the second year in a row, and CDP has assessed actually 21,000 companies. Very few make to A, and for the second year, we still score A. The second one, which is also very important, is the Platform Living Wage Financials, the PLWF, which is a coalition of 20 financial institutions, for which we are the only brand that leads the category of leading category for our work on fair income. So how do we work on sustainability? We work by 5-year cycles. We are now in the middle of 10 for 25, and we are building now 25 to 30. 10 for 25, as of today, we've reached already 82 of our targets. We still work on 8. We have 28 sub-targets. Of the 28, 19 already are achieved.
For example, we complete the fair wage assessment for the top five sourcing countries. We map our subcontractors and Tier Two for human rights risk. We eliminate plastic bag from the stores and from the, from our stores, and we also spend 57,000 hours of community engagement for our staff. Few of the highlights of 2023, we reduce environmental footprint in term of CO2. Our suppliers improve their waste management in factories. The worker safety being key, we signed Accord in Pakistan on top of Accord in Bangladesh. We ensure consumer safety by using only materials that pass RSL testing, and we train more than 226,000 PUMA staff and workers for women empowerment since 2021. Now, when it comes into 2030... This is the roadmap we have.
We did actually a double materiality exercise in 2023. It's now compulsory under the CSRD in Germany. This double materiality allow us to understand what is the impact we have on people and environment, but also what sustainability impact is on our business, the risk and opportunities. Based on the materiality assessments, we're gonna move on to a stakeholder dialogue in April, where we bring organizations from from sustainability standpoint, stakeholders, but also customers with us and vendors to define our roadmap for 2030. Very likely, our roadmap will be focused for 2030 on climate, circularity, and human rights. I'm going to walk you through the highlights on these different topics. So climate. Again, very connected to regulations. I mean, the regulators have kept us very busy for the past 3-4 years.
The landscape has changed, and the impact now is on the entire value chain from product design and marketing and sales. But our long investment in sustainability actually position us very well to make sure that we can, we can deliver against the regulations. We have revised our science-based targets this year. We are aiming having 90% of our absolute emissions to be reduced about, with a baseline of 2017. But the most challenging part for us is about supply chain. Actually, 70% of greenhouse gas emission from a PUMA brand come from the supply chain, and the objective is to reduce 33% of our emission on the 2017 baselines. That shows you here the graph, 2017 being there, we estimate 2030.
So if you look at 2030, basically, we have to cut 50% of emissions on the 2030 projection. How are we gonna get there? It's about renewable energy and supply chain. This is where the conversation with local authorities is critical for us because we need to make sure our vendors have access to renewable energy. There are a lot of programs in different countries. I was in China last week. China today is basically financing solar panel roof for multiple suppliers, so we have a good trajectory in China to get to more renewable energy. It's about lower emission materials, increase of low carbon materials, and material innovation, where Romain's team is helping us together with the vendors to get there.
It's about partnership, not just with the vendors, which is absolutely critical, but in sustainability, the partnership with the other players, the other competitors, but also associations such as Better Cotton Initiative, Fashion Pact, are critical for us to get there. We commit to net zero by 2050. Now, when it comes into circularity, it's about innovation and collaboration. Innovation is key. We need to find ways to make our product circular, but collaboration is the vehicle for us to get there. It's collaboration internally between the product team on the BU level and the sourcing and the vendors, but also it's really externally as well with the partners and competitors. Two examples here, one on innovation with RE:SUEDE, that we, an experiment we did two years ago to test biodegradability for footwear.
We proved that it was possible, and what we did with the result, we shared with the community of our partners, but also our competitors, to make sure that this capability could be expanded beyond PUMA. And when it comes into collaboration, the RE:FIBRE, which is a textile to textile, textile recycling, which I'm very proud that PUMA has really developed, has been a complete collaboration between chemical companies, yarn supplier, material supplier, garment suppliers, but also some outside companies as well. Let me show you a movie to explain the technology. The good news is, this technology is nearly cost neutral compared to bottle recycling, so we're gonna enhance and expand the offer of RE:FIBRE. We started actually with Matthias on Team sport, with the pilot phase in 2022.
Next year, or this year, in 2024, we're gonna provide most of the replica business using the RE:FIBRE technology, and we want to expand these recycled polyester options to the rest of the range after 2025. This has been supported very strongly by the Team sport guys and by the clubs. We have take-back bins in the clubs and in the stores of the clubs. They also help us to do activations to make the technology known by the fans, and we could see that the traction were actually quite strong here. Last but not least, human rights. For many years, we built a very solid and comprehensive compliance system on three levels. Due diligence, this is where we foster sustainable and responsible corporate behavior.
We anchor the human rights environmental considerations in the operations and corporate governance, and all the policies and standard that we have in place are reviewed regularly by Fair Labor Association. We ensure that there is a grievance mechanism in case of issues in the factories. Our people on site are being trained, but also we provide hotline for the workers to reach to us whenever there is an issue, and we make sure we train, through building capability programs, the factories people, but also our own people. We want to continue to focus and raise our ambition. This was identified through the materiality exercise we did. We're gonna focus on labor condition, fair income, and gender equality.
As a wrap-up, we are open and transparent in our work on sustainability because we believe transparency and openness lead to collaboration and innovations, and that will lead to a Forever Better. On the pitch, we are competitive, but when it comes to the planet, we play as a team. There is one forever. Let's make it better together. Thank you very much, and with that, I hand over to my friend, Dietmar.
[Foreign language] Ja, herzlich willkommen im PUMA Headquarters, Herzogenaurach.
[Foreign language] Un café al día aleja el estrés.
[Foreign language] Bueno, clase!
[Foreign language] Ich bin seit 15 Jahren dabei, komme jeden Tag noch mit einem Lächeln auf den Hof.
We are here to write the future history of sports and culture.
The canteen is always surprising me.
I was asked the other day by an HR auditor, "Dietmar, how do you ensure that your employee experience is consistent with your employer brand?" My answer to this was simply, "We just share what we're doing at Puma." Because nowadays, good employer branding is coming from within, and you can't mess up nowadays with candidates and employees anymore. I hope after you experience the first 24 hours here at Puma and watching our lovely location video here in about Herzogenaurach, you agree to that statement. I'm Dietmar Knoess. I'm heading up People and Organization since 13 years here at Puma, and I probably have one of the best roles you could possibly have. Why that? Simply, I'm heading up people in a people-centric company. And... Oh, yes, they prefer.
And that's actually the topic I want to talk to you about, because people centricity, what we call internally People First, and what is the strategy behind it? I want to share a few stats about Puma, how we do as an employer, and while we are sitting here or standing, a lot of stuff is happening around us. There's some macro trends affecting the way we're gonna work moving forward, and I want to give you the answer, you know, how Puma is tackling these topics. So People First is something you have heard quite a few times. You heard about how much people Puma is caring about people. And of course, you have seen this triangle, you know, from Arne, with a very strong foundation, which is a focus on People First.
But that's nothing you can, yeah, delegate or just define from the top, you know, as a management team. So People First, not something we're just putting in a strategy paper. It was more something which has been growing over many, many years. And the way how you grow as a People First company is simply that you generally care about your people. You care, you know, about their physical well-being, their mental well-being, and their financial well-being, and you generally care. Because only people, you know, you look after can care about athletes, consumers, and partners in your organization. That's the only way how you make it possible. And you heard about, last two days, quite a bit, how much we care about our athletes, you know, our retailers and our vendors. So, and People First was, again, not something which just was created by us.
So because we have been listening to our people for many years, internal, external platforms, and People First was something which actually was coming from our employees. Because comments they made on internal opinion surveys or on rating platforms externally, and you heard more and more People First about. And then we said, "Why not taking this, you know, as one of our strategic, as one of our foundations?" And that's what we actually did. So it was actually coming from the inside out. And what we're doing as a company is simply that we focus on workforce diversity. We are a global brand. We do business in 120+ countries around the world, and in order to run this business successfully, we need people from around the world.
Because there is different ways how to look at the world, and we're all right and wrong at the same time, and we need those people, and we're able to attract those people. You, you were running around the campus, so we're an attractive brand, and we're able to attract people from all the world. But one thing is to get them here, of course, and then you need to take care of them, what we call with an inclusion. So we invite him to the game, but we need to allow him the game. And the way, you know, we allow him the game is that we foster culture that encourages collaboration and teamwork. And you also heard the word teamwork quite a bit throughout all the presentations here. And it only works if you give also autonomy to the people.
We are much leaner than other companies, but it only works if you manage your organization by objectives and you give them a certain autonomy to act in a certain framework. And last but not least, we are listening to our people. We're using any opportunity, no matter it's up in our canteen that you just pass by so that people can reach out to you as a manager. We do regular feedback, surveys, smaller ones, bigger ones, and of course, we're listening what people are talking about us outside. Because there are also platforms outside, where we now see what people think about us. So what's also quite important, you see our values here internally. You might have seen when you walk by the PUMA office, Be Driven, Be Vibrant, Be Together, and Be You.
Be you is the most strongest one. Why? Because we want people to be authentic. We want them to be exactly the same people as they are at home. We don't want them to change, because that's the only way how can you value diversity? If you hire people from around the world and you want them to play a certain role in your company, it's not gonna work. You can only harvest the benefits of being diverse if you let them being diverse. And if somebody wants to wear a headscarf, they wear a headscarf. No one needs to hide their tattoos here in this company. We have here a prayer room. If somebody wants to go and do a prayer, that's absolutely fine. If people wanna do meditations, also fine. You need to value this diversity in the organization, and that's what we're doing.
It's quite important that we have very authentic people, you know, and what they say is what they mean. So what are the benefits of it? It starts with a high employee engagement, and I will share in a minute our stats, you know, sharing the results of our employee opinion survey. Only if you have engaged people, they're happy, they're able to contribute to a positive work environment. And also, that helps us because they speak with other people. So the word of mouth is quite important to attract talent to our organization. So it helps on the talent attraction and retention. Of course, no one wants to leave, typically, a place where they feel welcomed. And last but not least, is positive environment. We are a creative, an organization, encourages people to be creative.
Again, only if they can be themselves, if they can contribute again, if they can raise the concerns, if any, if they can share their ideas, and that's what's all about here. So long story short, there is a business case, and our investments in People First is paying off. So how do we do over the past years as an employer? I was sharing some stats yesterday already. I just wanna make sure I have a certain consistency to say the same stats. So we grew our population by 2.6%. We have now 21,170. So our turnover last year was 23%, and we need to differentiate. So we have a strong retail operation. Roughly 56% of our population works in retail, so we have a higher turnover, so 38.5%.
We had a slight increase from the 36%. I will refer to that in a second. In corporate, we had a turnover of 6.5%, and we saw a drop coming from a 12% in 2022, from an all-time high, actually, we had, and I think that's what all companies experience around the world. Our average age is 31.8. A lot of companies here in Europe talk about Gen Z and how to get and how to retain Gen Z. I mean, when you walk the aisles here, we have them as our key customer, and so we understand our key customer well because we understand our people quite well here. And we are filling 81% of our leadership roles worldwide from within, and we're doing that, over the past years already.
So I think last 5, 6 years since we are tracking that, at the moment, we have that consistency, and we think that's the right balance. So if you say 3 out of 4 or 4 out of 5 positions, and why we're doing this? To retain this wonderful culture we have in the PUMA. If you would hire too many managers from the top, you know, from the outside at the moment, we had risk to lose our value, our fabulous culture here at PUMA. But we are also open if we see a need, you know, on certain skills, we can't fill roles from within. We are really not too proud to go also to the outside, actually, and hire people where needed.
So, I was sharing the turnover rate and I also wanna say there is a difference because the turnover rate in retail, so we have some structural turnover, because when we have students working for us in the store, it's very likely that they're gonna leave us one day. Of course, I mean, if they finish their studies, often they don't work in the store. So we have some structural turnover at the moment. So what is very important for us when you read our turnover numbers, is what is the retention rate or the staff turnover on the store manager side? And you see that we saw a drop from 17% to 15.3% on the store manager side. And these are quite important because these are the representatives of our culture.
Those are the ones we need to retain and make sure that we have a certain consistency over time. So when we talk about the corporate world, so we see that we had a significant drop again on the, on the turnover side from 2022 to 2023. And then we need to talk about management roles, which are also key for us, yeah, to, to, maintain that culture. And we just had a turnover rate from 6.2% in management, and we look at the Germany corporate, that means this location here, we had a turnover rate last year of, 5.1% coming from a 10% the year before. A few other stats.
So we are hosting 143 different nations around the world, which makes 75% of all UN countries in the world, and that's quite important that we have people from all over the world. So when we look at our headquarters, we're having 77 different nationalities here. Some people say, "Hang on, Dietmar, you said eighty-six yesterday." That's true, because we don't count the interns here typically in that number. So we have about 200 interns here per year at headquarters, and they bring also quite a bit diversity into our organization. So and then is the question, so how many people are German, non-German? That's a number to share a bit, to know how serious we mean it with our diversity. So almost half of our population is non-German, and you might have noticed as well.
I just checked the number this morning, by the way. We went also up now. We have only a share of 52% Germans here. And there's nothing wrong with Germans, by the way. Yeah, just wanna say that. So we just believe we are the global headquarters of a company, and of course, we need that diversity, and yeah. I come to a macro trend as well, which is gonna hit us, what also explains why we were investing so much into diversity. When it comes to gender distribution, 50/50. Looks like that I was tricking a bit, and when you look at the stats over the past years, more or less the same numbers, 50/50. But I swear I don't do anything on that. That's naturally happening.
What's also naturally happening is the share of women in so-called STEM roles, yeah, which, in Germany called MINT. Yeah, or in English is scientific, tech roles, engineering, and math. And our share of women is 45%, and that naturally grew to that percentage. What also naturally grew was, the share of women in leadership, so which is 43%. Believe it or not, we don't have any quota in PUMA. We never had any quota when it comes to women management. We have one, according to the corporate, the share, corporate shareholder act, where we need to, set targets to the outside, but to the inside, we never worked here with any quotas. Yeah, you can believe or not. So I promised you to share some stats with you. Employee opinion survey. We run a big survey every second year.
We run pulse surveys in between. We ask more than 50 questions, split up multiple categories. I was picking the most important one. So typically, an employee has three choices. He/she can give us a positive feedback, can give us a neutral feedback or a question mark, or a less good feedback. So they're told these three options. What I'm showing to you here, the white bars are the positive feedbacks only. So we have been surveying our entire population. We have a participation rate of 85%. I'm not sure whether you have ever run a employee opinion survey, but typically, if you get 65% participation rate, this is fantastic. Again, we have 85% of our population at PUMA participating, including retail. 15,400 people. It's very representative.
So when you look at the first bar here, in my eyes, it's the most important one and maybe the most important one for you. How engaged are people here at PUMA? Because this category subsumes also question how much people believe in our vision, our goals at PUMA, and how well people get along with each other, or whether people are recommending PUMA as an employer of choice. Because these are three questions we have been asking, which are scoring 92% and even higher than this. So and again, numbers are quite representative here. And, the other reds, what you see on the right-hand side is how we are doing against the two previous surveys we did in 2021 or in 2019, and how we're doing against a retail benchmark, that means compared to other retail companies.
And the right, the very right column, you can see, it's probably the one of the most important ones. It's how we do against high-performing companies. So what is a high-performing company according to this benchmark? Is the top 30 companies having the best survey results and the best business performance, and PUMA is one of it. So you can see a lot of green. That means we are outperforming, yeah, in those categories, the high-performance norm. And not just since last year, so we are consistent, you know, when you also look at the 2021 results. We also listen to the outside, and this is just one platform you can go. It's called Glassdoor. There's some others, Indeed, and Comparably. You can also go on these platforms. You will see a similar picture, where you can see how we're doing against our competitors.
We didn't disclose any numbers. You can do that. I can tell you the numbers look great. But when you see the green arrows, those are the areas where we're leading the pack in these categories. And when you see the green areas on competitor A and B, that's where we're at eye level with them, right? So in general, I can tell you that in all KPI or all categories, we're leading the pack here against our key competitors. There's always a question why we also have a 4.1 than competitor A. I can't tell you. There's a certain algorithm behind I don't even understand, but that's what it is. But in generally, in all subcategories, we do much better than our competitors, and that's a very important message.
When you go to Glassdoor, you can also see employee reviews, and I can tell you, we answer every single review, not just with, "Thank you for your comment." We take it serious. We read those comments. If it's coming from a market, we reach out to our head of P&O, you know, in those relevant markets, and everyone gets a qualitative answer on this, if we can. If somebody's just venting, then we can't. But if there is a qualitative comment, we are answering on that. And we're doing that since probably 11 years. Yeah, when you reach out back, so there's a certain consistency as well.... So what we're very proud of is a lineup of awards we have been winning recently. There are a lot of awards. Some awards, they, they're just coming.
So there's some big, magazines or newspapers, they survey. Some of them work together with Statista. Statista is typically surveying, 200,000 people around the world, multiple countries, and we're typically ranking, you know, amongst the top 30, 50 employers. Yeah, it depends on which ranking you're going in the world. There are some, awards as well we are very proud of. Sorry, the global awards are actually on the left-hand side, so where we get recognition for being a fantastic global employer, and we have a lot of local, awards, where we either contribute in a competition or we get, local, yeah, local feedback. We didn't list all of them, just a few.
But there's one award I'm very proud of, and I want to share that one here, is the Top Employer award. So my team just went yesterday to Amsterdam because PUMA has been awarded as one of only 19 companies, who have received a global Top Employer award. So what is Top Employer? Top Employer is something where you need to do something because you have to share your human resources practices with Top Employer. So they answer you 315 questions. You need to upload all information, auditors coming on-site. This was, by the way, the auditor was asking me the question from earlier. And they check everything, whether what you are pretending, what you're doing is actually right, and you need to provide evidence. So the great thing is, we have achieved that award in 24 countries.
Those 24 countries are representing 87% of our PUMA population globally. The great thing is, typically you get that Top Employer award globally if you have achieved minimum 65%, you know, of their standards, and the PUMA average is 90. So those markets, you know, not listed here, I can tell you they have the similar practices, they've just not been audited. I can assure you that we have a high standard in our HR practice around the world. There is no other company in our industry participating in that. There's just one company who is participating in two markets, Colombia and Brazil, in that competition. But you can Google all other competitors. None of our competitors is attending that and is auditing him, or is auditing the company accordingly.
So another thing we're very proud of, PUMA has been certified last year as one of 2 employers to be an equal pay employer here in Germany. We are also certified in Sweden and in the Middle East. Sorry. And I can share you, we go, public next week with that. We just got a recertification here in Germany. And I can tell you there are more countries to follow. It's gonna become a legislation anyway, you know, in 2026 onwards here across the EU. But I can tell you, we are already ahead the game, and I'm sure in a very short while, we're able to compete with the other European countries.
The reason why we do that or that's happening is we established, sorry, a pay matrix, where we only do merit increase according to two factors. One is how you compensate that person against to a peer group, and the second thing, the performance of the employee. And other criteria like gender, age, and co, we don't consider at all. So and that's a practice we're having consistently over the past years, and because we found out that we are equal pay employer by coincidence, actually. We just did a check and found out, and we made it from scratch. So what's also quite important that we pay living wage, not saying minimum wage. We pay a living wage across the world to all people in PUMA.
That's one of our objectives, these key objectives we're having, and we filled them already last year, and also this year, we are 100%, fair pay or living wage pay employer around the world. So what's happening around us? You all know there are some demographic developments happening. We know that since years already, so it's now hitting hard the European market, U.S. market, on the long run, also China's market. So we're gonna have a shortage labor, and we can feel already. So what is the way we can approach that? Is simply immigration of skilled labor. So... And that's something we're doing already since years. I think we're in a good shape when it comes to this, because one thing is, of course, hiring, foreigners, the other thing is making them stay longer.
The second thing is efficiency through automation, digitalization, and AI. And I can tell you, since 2018, we are digital in HR, in P&O. So I do my job 90%, just with my mobile phone, and also our people can do that. They can nearly do every single thing in P&O with their mobile phone if they want. But we are also personally reachable, so if they wanna come to us, they can still speak to us, so we're still available for them. So making people returning quicker back from their parental leave is only possible if you provide a very flexible environment, primarily for mothers, which are mainly affected here. We are flexible. We have flexible hours. We support them on the childcare side.
You are able to bring even your kid to work. We have parent-child offices here people can bring, and we have an ideal environment, actually, when people come back. We try to help them as much as we can, you know, to reduce the time of their parental leave to an absolute minimum. So then, yeah, whether we like it or not, we probably need to work a bit longer. So, we need to prepare people for that. We also need to offer part-time solutions for people at a certain age who say, "I may not want to work full-time anymore, but maybe part-time. I maybe want to make some additional money then to my pension."...
And last but not least, we also seriously, we think about that and we do it already, is offshoring roles, and offer remote working solutions. So the second macro trend, as I was mentioning, is automation and AI. So we're right in between. There are a lot of software solution now coming, which make that topic very serious. I just wanna assure you that we work on the topic, and we prepare our organization here, because that's a trend which will be, affecting us quite significantly. We are preparing our people with upskilling and reskilling opportunities in organization, and, and that's a huge change process, but we're definitely working on this topic. So our way moving forward, I just wanna share our, four key priorities in P&O. Number one is talent, talent, talent management.
I can show you my slides for the last 10 years, number one was always talent management. Yeah, and if there's one thing we are really good at in PUMA, then it's talent management. We take talent management very serious. We evaluate our talent, we have talent conferences, and we share our talents to the very top, to Arne and the team as well. And what's more important than having a system behind is talking talents and also taking actions, giving people an opportunity to grow, and that's very important. Retention management is a key thing. Retention is the new hiring strategy, making people stay longer and always saying the first day with PUMA needs to be double as good as the last day with the previous employer.
Expediting the onboarding process, and of course, the last day with PUMA needs to be double as good, you know, with the first day with the new employer. Why? Because to retention management is also keeping track on your alumni, in particular, people just moving on to a new employer, and don't be too proud, you know, to hire them back. And what we do to people, we give them a promise, actually, to hire them back in a certain timeframe if they change their mind. So... And of course, if people change employers, it's quite important that you keep track on them, and maybe in a short while, actually, they change their mind, and you get them back. So retention is all about making people happy in the organization, offering them the best work environment, and that's what I think we do quite well here.
Employer branding, again, not just to the outside, employer branding to the inside. We need to tell our people as well how great we are as an employer. It's sometimes difficult when PUMA is their first employer, because they haven't seen any other companies before, and they often find out when they move somewhere else that the new employer is quite different than PUMA. So and again, it's quite important that we offer them the hand and say, "There's no problem to come back," yeah? So and last but not least, upskilling. I mentioned that there is a lot of technology hitting us in the next month and years, and you need to prepare the organization. I think we're well prepared because we have a very young crowd, which is quite open to the new technology.
However, we need to prepare organization how to use these new tools, these new features in the organization. So in short, I think we have highly engaged people here. We have fantastic P&O practices around the world, consistency. On the diversity side, I think we're on the right track. We're looking actually rather good here. So I think we are rather well prepared, actually, for whatever is coming, you know, next for us. So before I leave the stage, I need to make an announcement that after my presentation, you have a little break, yeah, 30 minutes break. And I was also asked to tell you that behind the curtain, there's not a reason why I put a curtain, that you don't look behind. You should look behind it because you'll see our wonderful archive there and some seating opportunities.
So if you grab a coffee, just spend some time because you see some very fantastic product we have done in the past. There's a little archive we are putting there, so please take the time. So and the last word, I don't wanna... It's not gonna be me. I just wanna give the last word to our people to tell them how great we are as an employer. Thank you.
1, 2, 3, dive into PUMA!
My very first time at corporate, see this amazing building and thinking to myself, "My God, look at this place." And I mean, there's people riding by on skateboards, playing table tennis. The culture was incredible.
PUMA, PUMA, PUMA. PUMA in three words?
Diversity.
Inclusive. And family.
Even though there are segregation of departments, we still work together as one big team.
Everyone is willing to help and share their knowledge and experience.
We are just one team, we're here to win, and we are the best team in the industry.
So Max, what do you think? Do the guys have enough energy for the next lap?
I think they all went to the bathroom. Looks like they have coffee. They're excited.
I think a lot of... Is it your turn or my turn, by the way?
I don't know. You know, we saved the best for last, so it doesn't really matter.
Not sure. But you know what? What I feel-
Did you just hear them laugh? I've been waiting an entire day.
No, now I hear them laugh. They are nice guys, I can tell you.
Okay.
You have no French accent. You're wrong here.
We both don't have French accent-
Okay.
But we don't, we both don't sound too great.
That's true.
Okay.
Come, let's get it started.
Okay, let's go.
Guys, before I start and on stage, I have to give you a little secret. So I had great conversations last night, I have to say, especially with some hardcore Frankfurt, Eintracht Frankfurt fans like Jürgen. We will go to the stadium together, I promise you. But I forgot to eat. I went home, opened the fridge, and took a sausage, and it was done. And then I closed the door, and I thought, "We are so blessed. If I have to go back tomorrow and presenting things about sausages, it would be, it would be a nightmare." Also, for you guys, I think you're gonna kill 48 hours presenting sausages and things like this. We are blessed in this industry, I can promise. So now I need a clicker. Where do I have the clicker? The clicker is here.
But seriously, my name is Matthias.
I am heading up the BU Teamsport, driving football. I want to have a kind of a sound check from you. So who is, let's say, at least a football fan? That many? Ooh, makes my life easier. I thought you're gonna kill me. And who is playing actively football or has played actively football? Still on it. Wow, cool. So join me. I would love to invite you all, let's say, for the next minutes, for I think it's an exciting journey about something which is deeply rooted in our DNA. So it's a fantastic sport. It's a universal language, I would say. A bit of religion as well. So 4 billion people are watching football and following, are fans, in more than 200 countries. That's really amazing.
I think before we, let's say, dive in the strategy and how we look at it, and look at our results, it might make sense, let's say, to look at the pitch from a helicopter view, and looking onto the field where you're playing on. So football today is highly competitive. It's really about physical and mentally strengths. It's about agility, it's about, yeah, it's power, it's possession, and it's about more and more analytics, let's say, consumer centrics on pitch. I've been at Man City a couple of weeks ago, and I can tell you, it's, it's, it's mind-blowing. So they have a room with 300 seats, I don't know, doing analytics before they play a game to whomever. All the players know exactly what is the opponent, how does he react. They have it on their iPads, they have analytics, figures. Unbelievable.
So they have drones flying over the training camp and measuring every single movement, and every single run paths, and so on, and so on. It's totally changed. And then, you know, if you have these kind of mastermind, like Pep Guardiola, and I think he's a great guy, and he has won 5 trophies in a row, then you're really blessed. And we are part of the journey, and I can't wait for more. So but today's football competitiveness, let's say, is far beyond the 90 minutes on pitch. So what we can see out there is that big investments are made to turn more in that kind of entertainment clubs, right? So, and also, let's say, turning into more international groups, like the City Football Group. AC Milan, for example, they will build a new stadium within the next years. Super big, cinemas, shops, restaurants, everything.
Same, same to Man City. So if you look at the pre- and post-season tours, towards China, the US, Japan, wherever, you can clearly see that they are underlining the ambition to internationalize their business. They also have, since a while, offices in New York, Shanghai, in Dubai, and, and elsewhere. Borussia Dortmund, for example, and it's close to my heart, this club, I signed it, is opening their offices in New York within the next 14 days. Football is key focus for global sport brands. I would say all the brands, many brands, want to be part of a sport that still has the biggest viewership on Earth. Followerships and engagement rates across all social channels are really massive, I have to say. It's unbelievable.
Everyone, everybody want to have a kind of a piece of it, and want to have a part of it. So if you want to be considered as a true performance brand, you have to reach significance like we do since decades, I have to say. But there's a hunt outside, and this hunt to get the best players, clubs, and federations for each brand is really an incredible battle. So I want to summarize it a bit, because honestly, sometimes I'm receiving these questions, "Yeah, you know, brand A or B, they're doing this." Like, do you know what? If they drop some bananas, I don't catch bananas. I'm going for the fresh apples. This way I want to win. This way I'm doing my shares, with the Unisport, with the Elite Partners, with the Pro:Direct, with the Soccer.coms. This is very important.
So there is truly no free lunch outside. Nothing. There's not one free inch, and there's not success by accident, I have to say. So what we have to do, we have to fight for any single millimeter. If you want to be as relevant as we are, then you really have to be somehow obsessed in this kind of a business to reach what we reached. And I have to say, sorry, the journey over the last years, and especially the last year, has been amazing. I want to share with you. Check it out in the video.
See, it started out with the Henny and then the kush came. Last time I freaked out and ain't been high since. I'm on the fence of attempting to rinse, but how I'm gonna get caught when I don't even got... It's like, drop zone till the block's gone. Can't you tell we ran up by the hop shows? This ain't a crime, bro. Tell the entire truth, and let it set you free. We undeniable. We undeniable. We undeniable. We undeniable. Is anybody home? Am I missing some info that I should probably know? I've been way legit and way the opposite. This ain't a crime, bro. Tell the entire truth, and let it set you free. We undeniable. We undeniable.
Of course, I mean, this is a takeaway from this beautiful video, these strong numbers behind me on the screen. I mean, multiplying shares and doubling sales is of course super great. But on top of that one, it's worth to mention that, I think, lots of the best and outstanding players today are with PUMA. Many really iconic clubs today are with PUMA, so we are really consistent. So we have Progressive product innovation season by seasons, and 2023 has been the best year ever for PUMA Teamsport, and I promise you it won't stop there. As a real challenger brand, we stay hungry, even if the achievements are already, let's say, remarkable. I mean, listening to Pep yesterday, same, same. Success is nice, but it makes you ready for the next one. So do have in mind that we're really actually scratching surfaces.
We will drive PUMA Football definitely to the next level, and we will continuously accelerate, built on a very focused vision and strategy. That is very important, and this is based on three important pillars for me, and it's about clarity, simplicity, and execution excellence. Having said this, let's have a look at our strategy. I will hurry up a bit because you learned a lot over the last 24 hours about football, but there are some things I think they are worth to share. Here we go. So first of all, we do have a very clear vision, and I want to read this one for you. "Catalyst. This represents PUMA Football's active role to bring positive changes within football. Beyond age, next-gen references, those who push the game forward, both on and off the field.
We aim to be the most authentic, socially aware, and culturally relevant brand in football." If it comes to the strategy, I think it's very important that you find your game, that you find your strategy to attack and challenge the status quo. In a deeper sense, we have a clear, aligned strategy based on so-called business drivers, which you can see easily behind me. Business drivers are connected to commercial targets. They are boiled down into the organization and translated into game plans per market. Everybody within PUMA knows precisely what he has to do when it comes to team sport. We are the fastest-growing football footwear brand, and we're getting more and more shelf space. This is amazing. So we will keep this momentum, and we're gaining market shares, I promise you.
The way how we ramp up our license business led us to an outperforming double-digit growth. We fully focus on the club DNA. This is a very important point, by the way. So we don't do template business. We don't do copy and paste. Back in the days, there have been great ideas. We can do all same, same, you know, and then people forgot to put the crest on the breast, on the heart, right? This is gonna kill you. Ask Jürgen about the Frankfurt fan; if you put away the crest, they're gonna kill you. So now we have all ducks in a row. We really ramped it up in the right way. What we as well know is that there's a kind of a bit of a blind spot when it comes to team sport.
I personally believe there are triple of millions of potential, triple millions of potential, if you discover the full ecosystem. We're on the way. Women's community in football is rapidly growing. I mean, remember the Euros, UK? So Wembley has been sold out at the final. Looking backwards last year to the World Cup, Down Under, all stadiums sold out. So the women's football is getting bigger and even more relevant, especially when it comes to the culture side of the business. The last growth, let's say, last pillar for me, and this is a somewhat important one as well because no one has it on the radar, is to become a leading match ball partner. For me, there's nearly no way to show better high-end performance and maximize visibility via the balls.
I will come to this later, back to this one later because it's a super interesting one. So when it comes to, let's say, the footwear, I don't want to tick every box, but just briefly get along. So, it's very important for us that we build franchises. That's what you have learned. So... And therefore, let's say, we are trying to really get the best insights from the players, and the most important thing on that one is that you create a kind of emotional connect, and this emotional connect is a red thread across seasons. And then, you know, season by season, you evolve your technique and your innovation, and you're getting better and better and better. That's super, super important. Secondly, is about consumer-centric. My friend over there, Dom, he's heading it up.
So he's traveling with his team around the globe, tons of time, out in the markets with young players, with professionals, with amateurs, to get an understanding about what is really the need. So... And this is so important that you listen and that you then, out of this, create something that really matters to the consumers. Thirdly, best kids' products. I mean, I've been impressed. So many of you obviously played football or at least are fans. You can remember your first brand that you had as a kid, right? Most people can. What has been the first football shoe you have in your head, in your head, in your hands? And therefore, it's super important that we connect with these guys. Of course, we have to deliver the right performance product, the right fit, at the right price points.
On this one, we are as well very heavily on. And then last but not least, be the best partners to the customers. The customers, they are driving the performance, and we can connect all to, let's say, to their communities. This is very important, and we're doing bespoke products for these guys because we know what they need, and we learn from them, and we have discussions on an eye level. Building franchises is absolutely crucial. So, and consistency on that one is, of course, super important. I mentioned it and a couple of times now. So players need a clear benefit, a clear benefit. Giving you an example: Ultra is a synonym for speed, lightweight, for the fastest players. The emotional benefit behind Ultra as a silo is, "I want to feel dangerous." This is important to the player.
The player type is then, you know, obsessed to being the first, relentless, and super competitive. The boot definition itself, "It's my weapon. It's not fast, it's faster, it's aggressive, it's just explosive." This we are doing for each silo. We have these kind of emotional connect, and every player understands what's in for me and what's why I want to be like this. To be clear again, we just started in 2018 with the first franchise, the Future boot. What we achieved in such a short time frame is, for me, really impressive. It's outstanding. Having in mind that the speed segment is commercially the biggest one, by far the biggest one.
We just launched 2020 the Ultra, so you can get an idea, if you really let it get that one nailed down, what it means to our business as well. And knowing this, it's even more important to understand that this market share growth that we have is based, let's say, only on one boot, the Future. Imagine we come in full swing with Ultra on the speed side, we come in full swing with the King, what will happen when it comes to the shares? And there's a very important chart, now behind me in my presentation. So the top ten, the top ten market shares on the, no, on the... No, other way around, sorry. On the top ten market shares, we have three boots that are from PUMA.
But even more important, if you look at the pace, how we are growing, number 1, fastest, PUMA. Number 2, PUMA. Number 4, PUMA. So a success like this is built on bits and pieces, and of course, you have to have the right player strategy behind. So to deeply connect to the football-playing audience, you need outstanding players. You need really characters, fashionable guys, true performers, on and off pitch. I mean, remember Kingsley Coman yesterday, how he has been dressed? So they love it. Ideally, on top, connecting to hero national teams, like Coman and Neymar, these guys are really ticking the box. So as we are continuously scouting, I have to say, we are extremely happy to add always new players to our roster.
And we are super happy, not allowed to speak officially about it, but we will get another star to our roster, a great player from AC Milan. You will check it out within the next weeks. Given this outstanding players' line-up, the share of voice had really shot up across the last seasons. Look at this. Across the five biggest leagues, we are actually around 20% in average, counting all PUMA players on pitch compared to other brands. A couple of years ago, honestly, it has been unthinkable. It's justified, and it's justifying that we are really back in the race. License and teamwork is the second big pillar. The persona approach I spoke about already is so important. The fan of AC Milan is different from a fan at BVB. BVB is different to Man City.
So therefore, it's so important that we really deliver, let's say, individual solutions, that we do understand the persona, and that we're doing the right stuff. And combined to this, we created business plans, and these business plans are working out. We have, with each club, a very concrete idea how we want to develop the business. And with all these big clubs, we are in double-digit growth. We've grown with every club bigger than 30% over the last years. At the same time, it's a commitment of the club, and we want to feel their willingness to really grow with us and to drive business forward. We are now in the position that we really can somehow Select which clubs we can add to our portfolio, because our portfolio is so strong.
I'm really happy, two years, two days ago, that we announced RB Leipzig coming to us and now being with us, and also FC St. Pauli is a great addition. Given the time frame today, I will touch those boxes really just briefly, but I wanted to say, when it comes to license, number one, all first partners are in double-digit growth. So it's really a proof that business plans are working. Number two, we don't any template business, no copy and paste. We stay unique. Number three, we have the lightest game shirt in the market. The lightest game shirt in the market. You can check it out. ULTRAWEAVE technology. On top, PUMA is pioneering, and Arne talked to this one, when it comes to circularity, sustainability as of Autumn/Winter 2024. Very well received by the clubs and the fans.
Number four, culture and collabs. Exploring the full universe of that one, and I will come back to this one, but just give me a sec. So and then, super important, fueling teamwork... This is so, so important that we trickle it down. We have triple millions potential, nothing more to say to this one. Exploring the culture, I mean, look behind me with this beautiful shirt. We do it by using our performance power and our, let's say, our performance DNA, and we are creating spillover effects into style and fashion, and vice versa. So this is how we drive football culture, and we're connecting to sports and fueling trends. The shortcut, at least the commercial opportunities we have on that one, are more or less endless, I have to say. So these shirts are really flying through the roof.
If I could reorder what people want to have, our law would be crazy. All these great initiatives are creating brand heat and desirability, and this is helping us, let's say, to really discover the full ecosystem when it comes to teamwear, especially. Here we have to grow, but we are ready to go. We have a fully digitalized catalog, we have real-time inventory management, all that stuff that you need. Nothing fits more to teamwear as clarity, simplicity, and execution excellence. So we are ready to go on that one, and we will make a lot of money out of this, I promise you. Let's talk about women's football. First of all, we spent really tons, tons of time, and also a significant investment to understand the needs and to get all the insights about women's.
But a lot of people talk about it, but they don't really get it. So, but now we know really the specific needs and performance, and we can offer to these ladies the best product, and supporting the best fit, giving the innovations, also, let's say, avoiding injuries, and so on, and, and so on, and so on, with all insights that we have. So we put also a lot of efforts behind, let's say, ramp up the business for all the women's. Getting shelf space, convincing also, let's say, wholesale partners, how important it is, and that it drastically has changed over the last year. Years, sorry. So as on the men's side, we do have a great share of voice as well, and we are focused on the silo approach, and we have great performance here, on and off pitch.
More than 90% of our sponsored ladies are using the specific fit. This is a clear proof of our strategy, and we are a pioneer of this market. We have the products on all price points and all fits, specifically for women's. And the level of women's football, as I said, I think has drastically changed. I mean, it's, the, the stadiums are getting more and more full, and, you know, it's very attractive, and I strongly believe this is part of this universal, sport. It's a fantastic opportunity for us. And last but not least, I spoke about a bit, the match balls. So I strongly believe that we will become, I would say, no, we will become the leading match ball partner. Again, there's nearly no better way to show up high-end performance and getting visible around the globe.
People underestimate this. There's one league ball who is, let's say, reaching out to 1.4 billion households every week, once or twice. There's nothing that you have on your hands to create more visibility and convince people. For me, it's the balls business is a bit like a sleeping giant. We shake, we shake the giant already a bit, I have to say. So it took us already to 12 important competitions such as La Liga, Serie A, and many more. So four additional match balls as of this year, so 16 in total. And the giant will wake up even more, I would say, with a partner number 17. Unfortunately, I can't talk about this partner. It's a fantastic one, and I promise you, it's a super, super big one.
Nothing is more important at the end of the day than to keep the momentum. So I strongly believe, and not only believe, I do not have, let's say, any single doubt about that PUMA football will grow in the future. And of course, why we are growing? What is the reason for? So first of all, and we heard it a couple of times, nothing is more than the product itself. So we're doing extraordinary hard work on that one, on innovation, on global sourcing by Anne, and the entire design departments. So we engineered the strongest lineup that this company has ever had in football. Whether we talk about footwear, apparel, or equipment, for those of you who will join the showroom sessions right after, I can promise you fast new Speedcat.
You will see highly consumer-relevant product, you'll see beautiful product, and you will be amazed about that one. PUMA is benchmarking customer relation. This is core to us because we are as we are. The bond of partnership with customers has never been better than today, and I want to give you a kind of a clue about it. Last, or an impression, three weeks ago, we held our second team sport summit in Man City. We did a short movie about that one.
[inaudible]
It's been a fantastic event. I mean, more than 50% of our turnover followed us to Man City, so customers from all over the world. We had Australia over there, South Africa has been there, NA has been there, LATAM has been there. It has been just a great, great venue. And I have to say, I mean, we get that much of a strong feedback to the product line that we are really amazed about. And of course, I believe that we will get some on-top commitments when it comes to buying budgets. So it's also very important. I will show you, might be this one here from Unisport. So he's saying, "The funnel is full of ammunition, fuel for growth, and an increase of market share." It's nice. Pro:Direct from UK: "PUMA remains the benchmark.
PUMA's strategy is spot on." I mean, this is, of course, music to our ears because obviously we're doing more things right than wrong. "Build a super strong inline footwear business and use the great collabs and limited edition drops to drive brand heat, and the business will follow." Very nice. We are on it. Thirdly, why we will continue to grow is we continue to invest wisely. I mean, you have, as always in life, you have different options. You can, let's say, spend smart money, or you can spend stupid money. So this is what we don't do. We have clear guardrails, and we are scouting, really, assets where we have the feeling the brand fit is that strong that we have a kind of a payoff.
So it's all too justified by a future club share of more than, or let's say, 30% when it comes to Champions League as of next year. Years ago, it goes unthinkable. I mean, having more than 30% of the clubs at the Champions League is amazing. Yeah? And thank God that so many football fans are here, so and do know what I'm speaking about. So given the opportunities and the momentum we have, let's have a kind of a quick summary. I would say the Speed silo is so important to us. We have a brand-new ULTRA Carbon Plate, great products. Dom over there, he created a machine. This is what customers are saying. Customers are not saying, "You have a great boot." They are saying, "This is a machine." So we attack teamwear, very important. Sky is, for me, the limit.
Again, these are triple millions. And then, I mean, if you travel around the world, what a great journey we can do and can have, let's say, together, explore in the next year, USA for PUMA. So the Copa America 2024, the Club World Cup in 2025, and then the Men's World Cup in 2026, and if we are lucky, we have might be the Women's World Cup in 2027 as well. Four amazing venues. So as said, these are, for me, tons of opportunities. But there's one thing on top that I really want to share with you, and I think it's popped up a couple of times: the PUMA mentality. The PUMA mentality is unique. I think we are really brave to take challenges, and you see these sailing boats behind me.
I've stolen this picture from a presentation of the CEO of Man City, from Ferran, because he's and he can speak to this, I think, better than I do, but there's some takeaway. He said, "Okay, if you want to change something, it doesn't make sense if you follow the boat. If you want to pass by and be faster, if you go the same route, then you have the same wind, you have the same water underneath. You just won't change. So be brave, find your own course. Sometimes you fail, sometimes you win. That's life." But this is about. And if you might be loose for or you get a goal, there's another analogy I want to share. He showed us a film, a small movie, and that counts the seconds. It was about 12 seconds.
A goalie got a goal for whatever game, important game. You have 12 seconds to come over your frustration. You have 12 seconds to get the ball out of the net. You have 12 seconds to put it on the line and makes the game fast again. And this is our mentality, I would say. So don't, don't run around, don't complain, don't explain why. Find the solutions, be agile, and show that you can, that you can change it, and then you can drive the business. I think you get me. So, and you know, for us, especially for me and my team and all of us, I would say, and hopefully you, this is the kind of an experience you made during the last hours. This is not just, just a job.
I think for us it's more really a passion to be the challenger, and I hope that you really feel this with every fiber of your heart, because this makes a difference. It's the emotional connection to consumers, customers. This makes a difference, and it's important. I want to, let's say, underline it. And this is what I can, let's say, promise from the bottom of my heart, that PUMA keeps on hunting. This is how I put it here. And as we speak about football, hunting is so important to be successful, and there's a very last trailer I want to show you from my friends from Man City, because as I said, it's super important, let's say, to stay on the hunt and, and to chase.
Gonna be the best ever!
Good Lord, no chain, I want more. Good Lord, I want more.
Yeah. This is a perfect, let's say, translation into this beautiful chart that I'm sharing with you now, because we're talking about the treble. We put our business into four phases, and we doubled the business within PUMA Teamsport within two years. And this is not, let's say, kind of an estimation. I know we're going to treble the business by 2024. We're going to treble the business within PUMA Teamsport by 2024. And this, let's say, is a very, very strong halftime result. Let's keep it and call it like this. I know we'll come... What I know is this will qualify us for the next challenge, and might be we double the treble. I don't know. I don't want to promise that much, but we are on the journey, we are on the way, and it's a great one.
The very last slide I have to share with you, as we stay hungry, we have really, let's say, a kind of a huge appetite for more. So look behind me. We are not allowed to talk about this one today, but you will discover everything very soon. We will have an iconic, outstanding, and super relevant additions to our portfolios. So these will be assets that we really make the diff in the future as well. So guys, it will drive consideration, it will drive visibility, it will drive top line sales, and we are on it to make the money. The future of PUMA and the future of PUMA Football is bright. Thank you very much.
Just come outside. Late at night, yeah. Take your time. Get your tight. Turn it down. Yeah, yeah.
When I see it, I get a lot of energy.
Agüero will score. Messi!
... Oh, what feet?
Had to be, had to be dripping my roads.
Thomas, and he's turned away from Saka. They score this time.
It's spectacular!
Thomas here in on the hat trick. Oh, sensational! Clinical! Clinical! .
Okay, we were running on time, then Matthias started talking about sausages, and now we're late. So welcome to basketball. Look, I think the last time we got together for a Capital Markets Day was 2018, and that's just when we started to think about: Let's get back into basketball. So we wanted to take this time today to really show you why we got into basketball, how we're doing it, and then what are the products that we've created, this amazing momentum, becoming one of the fastest growing brands in the sector, and how this momentum will continue. In order to do this, and because this is the last presentation, I wanted to change this a little bit, and I wanted to think about it more as a case study, right?
We're set up as a classroom, which is great, so all of you who are sitting in the front row, good job. Back row, always room to improve, but that's okay. In order to do the case study, we need to set the scene a little bit. For that, you got to rewind the clock and think about 2018 for us. We're sitting there in 2018 and saying, "Okay, we're noticing a trend, that sport culture is diluting this very classic narrative of performance marketing." Right? So it's not just about, is the shoe the lightest? It's the fastest.
That's not really why people were starting to buy stuff more and more, and even the kind of purchase funnel, the decision-making process, started to become a lot more about the fashion angle, the gaming angle, the angle of art, music, and so on and so forth. Really, the culture around this. We said: How can PUMA, leading with our products, be part of that narrative? How can we be part of that cross-section? We started looking at the sports that really operated right at that intersection and that cross-section.
... and we landed on one thing. It became clear that basketball is, out of all the sports, the one that is best suited to live at that cross-section of sports and culture. Because if you think about it, basketball today, while performance-driven, really is the game that connects the idea of fashion, of art, of business, of community, of gaming. The consumer today learns so much more through basketball than just the performance thing. The players that are the voices of basketball are ambassadors of the performance side, sure, but also are ambassadors of the worlds of fashion, of art, of music, of community, and so on and so forth. You have to understand, in a lot of countries, basketball is an inner-city game.
A lot of the kids that are connected to basketball only learn about these areas of fashion, art, the ideas of business, of music, of gaming, through basketball. There is nothing else. That's the outlet. That's really the archway into all of this. And we said, "Okay, if that's really the case, then that's the sport we have to get into." But listen, only because they rolled out the tallest guy they could find at PUMA who's telling you this, don't believe me. So let's dive a little bit into: Does this basketball culture truly exist? You can see it at all levels, and I'm gonna show you a couple of examples. I think the most classic way is that basketball, out of any other sport, has this true connection, this emotional connection from the fan to the player.
We were recently at a college, so this is students 17 to 21, both the athlete and the students, and look at the interaction. Okay, now two things. One, if you're wondering if Arne will do this with you later, yes, absolutely. Okay? Two, you, you see the connection there, right? These are teenagers, and they wanna... The, the fans wanna be the players, the players wanna be the fans. They wanna feel that connection, and you can see that at all levels of basketball, and it's truly something unique to the sport. Now, fine, you might be sitting there and saying, "Well, Max, okay, I've seen this in football, I've seen this in Formula One, I've even seen this in handball," and so on and so forth. And you're right. Sports in arenas where it's really true fan bases and communities coming together, you see this interaction.
But I would still argue that from an emotional standpoint, basketball is really at another level. But fine, I'll take the argument. But if you widen the scope to the community piece or, or the culture piece of this, you can see this through all levels of basketball. Listen, a lot of people in New York, they go see the Knicks and the Nets play, but most of the time they don't go see for the basketball. They wanna see all the culture around it, and you see some weird stuff there. But people go for the entertainment. On the music side, that's Quavo, Grammy Award-winning music artist. This dude is filming a music video in the middle of an NBA game. This is not some production. He bought 4 courtside seats and brought a camera guy. This is a normal thing in basketball.
The connection between culture and basketball is stronger than ever. If you like pop culture, you know... If you know the case study, you know Larry and Jerry wrote that scene, and they used the Lakers and Shaq for a specific reason, because you know the demographic of the show expanded pretty widely after they did this. Yes, if you're watching this video, that is someone getting his hair cut in the middle of a basketball game around the court, courtside, because the barbershop community idea within the community of basketball is great, and you can see that. Point is, this is unique to basketball and something that you only find in this sport. It continues from there, though, because you see it on the player level as well. Here's Kyle Kuzma.
Kyle is an All-Star NBA player for the Washington Wizards, but he is also a fashion model. He walks in fashion shows around the world, and he is also an investor in two vineyards and probably knows more about wine than all of us combined in this room, and you'd never know that. But the kid that follows him gets exposed to these worlds through the lens of basketball. We said, if we can somehow connect our product and it be a brand that stands for that connection in basketball, it's a white space that we can take advantage of and maybe have a chance at winning. That also led us to the question: Do we have a right to be in the sport? Is there an authenticity? And the answer is absolutely yes, because of this culture piece. You heard it many times already.
This guy literally invented basketball culture. Before he showed up in the 1970s, basketball was clean-cut and kinda boring. He showed up in fur coats and purple Rolls-Royces and said, "The attitude that I can have on the court, I can bring off the court, and by the way, I can wear the same shoes doing it." Because he's doing this, we have this today. Our players could not express themselves, work in the fields that they do, have the expansive idea of culture, if it wasn't for what Clyde and PUMA started back in the 1970s. Probably one of my favorite slides, GQ cover, 1974. Almost 50 years later with Melo. This couldn't happen if it wasn't for Clyde and if it wasn't for PUMA.
So we absolutely have the right to be in this space and be the connector between the performance and the culture through the lens of basketball. When we figured this out, we also said, "Let's figure out who's buying this basketball stuff." And we realized that from a consumer subset perspective, it also matches this idea that basketball is the sport of culture. Now, from a consumer perspective, there's the traditional basketball consumer. We call him the high school hero. Little bit younger, has a dream of playing in the NBA, loves basketball, everything about him is basketball. His friends play, you know, he's on the varsity team, and so on and so forth. But then on the peripheries, we also have other consumers. On one hand, we have an authentic someone that we call an authentic athlete.
A little bit older, someone who's understood that the dream of playing in the NBA has probably passed, but he wants to be entertained. He has a favorite team, he has a favorite player... and he wants to be, again, entertained from the culture of the sport to get to that purchasing decision. On the other side, you have someone called the court culturalist. Can't tell you a thing about basketball, but is really into the fashion, the latest drops, lines up to get the latest Select drops, and so on and so forth. We said, if we have a chance, everything we do has to speak to at least two of these consumers at the same time, because the worst thing we could do is just talk to the middle one. We said, "Okay, there's a reason that we can get into the sport.
We have authenticity. There's consumers that want a story that currently doesn't exist, and we've kind of proven to ourselves that basketball is part of that culture. So we were sitting there, and we're saying, "Wow, what an amazing sport!" And then we kind of looked at the competition and the narrative they were putting out, and we said, "Ugh, it's a bit boring," okay? Because you're missing a lot of this culture-first storytelling element. This is great! This is amazing basketball. It's fantastic. This has worked for a long time, but you're missing a large part of the basketball market. So we said, "Okay, let's do it." First thing we needed, we needed a vision. We said we wanted to be the next-generation brand of basketball.
Next generation in terms of design, next generation in terms of the players we invest in, and next generation in terms of the partners and the stories that we tell and how we do it. Speaking about how we do it, we needed rules. We had three simple ones. First, all stories, culture first, meaning that we don't go out there and say, "Our shoes are the best because of the performance." We've been building great shoes here for 75 years. We don't have to convince people of that, but we do need to convince them that we're cool and basketball is the coolest sport. Two, we've got to ground our product in performance. As cool as our storytelling could be, we gotta make sure we can actually play in our product and have the latest technology.
Well, you saw for the last day, we got great technology, so we had it already. Wonderful. And then three, in order to stand a chance, we had to be disruptive, we had to take first-mover opportunities, and we had to take some risks. I think we did that and did it quite well. Now, in terms of a rule, we also needed a simple framework from a business perspective, and this is also simple and not surprising. We needed to win in the U.S., and we said if we win the U.S., we'd win the world. Because being accepted into the American basketball culture is the biggest thumbs-up that you can get, and the moment that happens, it trickles into all the other regions where basketball is prevalent. This is a little bit from a sales perspective.
Yes, you want to do sales in the U.S. to get momentum, but it's also the acceptance which is within the fabric of the basketball culture. The NBA is the global platform for basketball, and it's in America, and if you win there, you win everywhere. So we put all of this together, and let's take a look how it turned out.
The new Twitter handle that just came out today, @PumaHoops.
You can applaud. Don't be shy. Good. Got you to applaud for a video. That's great. Okay, look, if you, if you think about what you saw in this video, it's really about culture, it's about the voices of it, and then about the creativity, and then ultimately, and most importantly, about the product. If you think about the culture aspect, the partners - just a snapshot here in recent memory of the partners that we've brought in to tell the basketball story. Again, not starting from the performance side, but from the culture side. Music, art, fashion, gaming, pop culture, you name it. At the end, it's basketball. It's just a different way to tell the consumer about the sport.
When you take a snapshot of our voices across the NBA and WNBA, the thing that the players have in common is that they're all more than a basketball player. They all have the affinity and the motivation to tell more of this culture-first story. They're involved in much more than just basketball, and we require them to do so, and we use them in that as well. Then, when it comes to the creativity, this was our first basketball campaign. This doesn't look like anything. Especially back in 2018, it didn't look like anything that was out there. It was younger, it was different, it gave the brand a new voice, a new vibe. It attracted a younger consumer, and it totally shook up basketball.
If you think about where we started here and what we put out now, it started in that same trend, and it's continuing that same way. The best example is take out your phones, open up our Instagram, open up a competitor's Instagram in the same space. Listen, not right or wrong. At the end of the day, we're telling a basketball story. We're just doing it differently. They own this space quite well, and they should own it. We're opening up an entire new space the way that we're giving this storytelling approach. Lastly, when it comes to product, the most important piece, when it comes to that, we think about it in three areas: culture, performance, and signature.
If you think about the product in recent memory that we released, you can see that idea of pushing the boundary of something that maybe looks like a basketball shoe but kind of blurs the line. You might not wear it on a court. It's fashionable, you can wear it off a court, and so on and so forth. When it comes to signature, obviously, you're well aware. We've had good success with Melo. This was the first one, and just in 2 years now, we're even on the third edition here and getting awards that we couldn't even think of from Complex Magazine, saying that it's just one of the best shoes in 2023. Doesn't even matter if it's basketball or lifestyle, so be it.
We're pushing the boundaries with signature, with Scoot Henderson, the first true rookie to get a signature shoe the moment he steps on court for his first game, and then we're getting great accolades for that as well. Even pushing a new price point at $100, something that's in signature had never seen before. And then even from a storytelling perspective, taking a rookie and not an All-Star, bringing him to the All-Star game and doing something great like this activation with Cheetos. And I'm telling you, if you ever wanted to figure out what it was like to go inside a bag of chips, we could have done that for you just two weeks ago. And the success we've had here is great, and we've kinda took over the town and the narrative. And again, it's a culture-first marketing approach.
And then even on the women's side, we said, "Let's get into women's basketball," and we're able to partner with the best female player on the planet. She's one of the best basketball players, and her signature line has been doing very well, and it's taught us a lot how to make performance products for the female consumer as well in basketball. So great expansion on the signature side. As you heard on the performance side, it's simple. We have one of the best foams in the industry with NITRO. We launched the All- Pro NITRO less than six months ago. We already have world MVPs, league MVPs, winning titles across the board, and we've even jumped over Shaquille O'Neal with the shoe. That's a pretty good accomplishment. We're continuing this narrative as well, introducing the All- Pro NITRO Elite.
We're even adding carbon plating, removable midsoles, ULTRAWEAVE upper, and so on and so forth. Point is, we're expanding the performance segment. Pause here for a second. That logo, it's called NXTPRO . 5 years in basketball, we haven't even touched the grassroots youth space in the U.S. yet. Starting this March, we have our own youth circuit, 600 teams, almost 10,000 players, all representing NITRO. It's gonna be a great success. You put that into our full performance lineup. We're now offering performance products from pinnacle all the way to the entry price point. And in just 5 years, that expansion, absolutely fantastic. Lastly, on the culture side, there's this whole area of this kinda crossover of on and off court, and a lot of our players have a lot of personality on the court, but even more personality off the court.
For example, our friend Melo, very flashy on the court, but off the court as well. I'm sure a lot of you can compare. You wanna style your outfits to your supercars every day of the week, as he does. And we said, "Why not try to capture some of that vibe, some of that momentum through a product?" This May, we're launching something called the LaFrancé, his off-court lifestyle line. I think from a trend perspective, quite good in that skate trend, disruptive silhouette, and something that can expand our basketball offering quite well. When you summarize all of this, I think one of the reasons why we've had success is we've kept this idea of wanting to be the first mover. We are the brand of firsts. We are the brand investing in the next generation with top draft picks.
We are the first brand to take advantage of the NIL opportunities in the U.S. We were the first brand to actually do one of these culture shoes with J. Cole and Dreamer. Don't forget, we are the first ones to actually have success in that. We are the first brand to invest in this cool counterculture Pro-Am tournament. We're the first brand to give a rookie a true signature shoe. First brand to bring back the modern women's signature shoe, the first brand to do a high-fashion performance on-court shoe with Balmain, and now we'll be the first to really bring back this idea of off-court signature, and I think we have to continue this. Why? We followed our rules: culture, storytelling first, grounded in performance, and be the unexpected first movers. Now, remember this framework.
You gotta win in the U.S. to win the world. Have we done that? We closed year 5 in the U.S. If you look how we're doing, we're in the top 3 in signature brands, and we're also in the top 3 in performance brand. Some months, we even scratched number 2. We said, "If we win the U.S., we will win in the rest of the world." If you look at the business development starting in 2018, and up here you can see the international expansion. The more success that we've had in the U.S., the bigger the international opportunity came. We really started this expansion right towards the end of COVID, and already, the cat is getting more and more visible across the regions, in many clubs, including the EuroLeague.
If we had this meeting a little later, we could actually reveal another club that we're signing. So more and more popular on the international stage as well. What has the effect been for PUMA? One, newness for the trade. I think something that we heard is that basketball, not only from a creativity, was getting stale, but also from the products that were out there, the design, the colors, the stories, and we're providing that. We're still providing that, sometimes on a monthly basis. Two, we have learned that we are capturing a completely younger consumer for PUMA.
If you look at the way that we tell our story, the way that we do our creative, the way that our graphic looks, the result is that when you look at who's buying it, it is much younger than the demographic of all the other stuff that we had previously. And then two, the halo effect and the brand reach has been terrific. Better than we could even imagine, because we love when Drake's son wears our shoes, because another brand pays him a lot of money, and we don't mind that. So from an idea of lifting the logo and seeing PUMA in more and more basketball has been better than we could even expect. If you break this down, you saw the signature, you saw this pyramid already. If it starts with signature, five years, top three signature brand.
Performance, 5 years, top three performance brand. But that's only 10% of the market, and within that 10%, if it comes to the US, we're only about half of the doors that can carry basketball. The thing is that the main part of the basketball market is actually the lifestyle off court, almost 90%, and we haven't even started that yet. We're just taking the first steps because we've built this very important foundation. So for us, our focus is obviously expanding signature and performance, we have great momentum, and then taking the first steps on the culture side. We're gonna continue to be the challenger brand, and you can see the momentum that we've built. There's so many ways that this will continue, and, if you don't agree with me, I'll argue in our showroom. So that's it from basketball.
We, we'd love to actually have brought over a player, but they're all in season. So we gave them the prompt that we're talking to our investment community, and they should send us some videos, and I will leave you with that. So thank you.
Hey, everyone. Sorry I couldn't be there today. I just got back from winning my second NBA Dunk Contest trophy. I hear you're trying to understand where PUMA stands in basketball culture. Well, PUMA is changing the game, the way they market, design, and tell our story. I'm very proud to be a part of a brand that's gonna continue to disrupt basketball. Trust me.
What's up, everybody? This is Dennis Schröder. Sorry I couldn't be there today. It's busy times right now in the NBA season. We getting ready for a game tonight. I can't wait, you know, after this season in the NBA, to play in the Olympics this summer, 2024 in Paris. It's gonna be a great one. I'm proud to be a part of this journey, changing, you know, basketball culture for the better. I think the momentum is on our side. We have the best products. We have the most disruptive marketing. Just check for yourself. Just look around.
What's going on, everyone? Sorry I couldn't be there today with all of you. Just coming off New York Fashion Week and preparing for the back half of my NBA season. PUMA has re-energized the basketball culture from day one, doing it in our own way as well, and also letting me express myself for who I am. Proud to have been a part of the journey since day one. Momentum is on our side.
Don't make me come back to hurt someone. PUMA Basketball is changing the game every day. Trust me. The way we approach the story, others don't even know what's happening or what's about to come. We are disrupting the landscape of women's basketball together and changing the landscape for the next generation.
Man, talking about stock? I wish PUMA gave me stock in the Clyde. Sorry I couldn't be there today with you, but I had to stay and support my New York Knicks. I'm proud to see the change we started in 1973 is still carrying on today. I've watched a lot of basketball, obviously, and what we are doing in hoops is more than impressive. Proud and honored that I've been able to be a part of another disruptive time of change within basketball, once again, led by PUMA. But seriously, can we talk about that stock?
Now, obviously, it's never easy to come on stage after Max. I mean, I don't need to explain why. As we promised to you yesterday, we will translate the presentations into the physical product and show you the showrooms, which we have on-site. So the idea is that we split up in 4 different groups based on your color badges. You will recognize in which group you are in. That is going up to last about 1.5 hours. Our people will wait for you outside of the Rudolf Dassler Hall. I hope you will understand that in view of the spring/summer 25 product, which hardly anybody has seen so far, we'll ask you to cover your phones and the cameras, with certain stickers, which will be handed out by the teams, in front of the Rudolf Dassler Hall.
For all the others following us online, we'll have a break for about one and a half hours, and then come back for a Q&A session. Thank you. Enjoy.
Isabelle? Isabelle.
Our Rupert got the question.
There you go.
Our Joker Hubert is still in there, so if there's any question, don't, Gottfried, stage is yours.
Thank you very much. I hope you all enjoyed the showroom tours. Certainly we are a little bit late for now, so I have approximately 20 minutes, I think, for the Q&A now. We'll be traveling the world in the next few weeks anyhow, and meeting many of you for meetings. And I'm more than happy to discuss any follow-up questions which you might have. I'm happy that we have a better gender diversity today on stage than we had yesterday, so maybe just to start the Q&A. I mean, Zuzanna has left. The rule breaker sneaking in more questions has left. But I will still remind you to stick to one question, please. So who wants to take the first question? Andreas.
You can, David, hand it over straight to Jürgen.
I would have a question on football or soccer. So I think we heard that you speak about half time, so it sounds like you want to double the business. Would you say the future growth in football depends on signing more players, teams, or is the growth not so much depending on those players or teams as in the past?
Yeah, I mean, I think what we do see is a certain correlation that I mean, we need, let's say, to be relevant in every single league, because, let's say, that's how the fan is looking up to what kind of shoe is my idol wearing. I think when you look at our roster of players, we feel very strong. Let's say that on the top-tier ones, we have some very significant ones, so I don't think, let's say we need more on this one. But with the increased market shares which we have, we are continuing to sign players for sure.
The question would be, where are the white spots? Because you signed many players and teams-
Yeah
... where are the white spots going forward to double the business again? This would be then the follow-up question.
Yeah. So it was specifically on the player side now?
Players, teams.
Yeah, I mean, again, I mean, with our ambition, which we have, and Matthias showed it, I mean, there are some exciting signings coming up on the national team side, on the club side, on the ball side. So for sure, you can expect a strengthened roster, which is further providing substance to our growth plans. Yeah.
Okay.
A question maybe for Anne, on the sourcing side. Over the last couple of years, we've seen quite some disruptions. A, what kind of learnings have you, as PUMA, drawn from those changes and supply chain issues? And how do you see the, the likelihood that maybe this nearshoring, might become a bigger topic? I noticed that, like in Northern Africa, you have no, no sourcing, whereas some other companies in the apparel segment are obviously quite active there. I guess there are some advantages to it. But how... Is that put all in stone, or how much do you try to be more flexible or change a little bit here? And one add-on question, AI, is that a topic for you on the sourcing side?
Okay, in terms of sourcing mapping, starting with Africa, we are in Africa actually for local, for local in South Africa, but that's not big business. We are not looking at Africa now because you need to put—sorry, you need to put in perspective when you move to a country, you need the entire supply chain to move in the country. So it's not helpful to move a footwear factory in a country if you cannot source sole and uppers at the same time. Same for apparel. Whoever has gone to Ethiopia, and we, we've been following that a lot, because I know a lot of the brand and the partners who went to Ethiopia, it was not successful. So it's not something. No. So it's not something that we've been looking at at the moment.
Disruption, I think the recipe for us and why we've been successful in disruptions is managing the disruption, is because we are living in the countries, and we are working with the vendor on a daily basis. And as much as we would like AI to take over or tech to take over, I can tell you, because I'm in this business for 30 years, relationship, being next to your partners on a daily basis, changes everything. During COVID, none of us flew back to our home country. We all stayed. We had people in sourcing in Vietnam that were locked down in camps, on quarantine, and they were still working from there. And that is something that really makes a huge difference when you have to deal with problem, because the respect and the attention you get from your partner is massive.
We even had in team sports some factory where the people in Vietnam were living in the factory for three weeks just to manufacture product for PUMA. So this is how we handle disruption today. This is really the particular connection and relationship we built over the years, having 24 vendors that is core to us, to whom we talk every day. I visit them every month. I'm in China, Indonesia, Vietnam, Cambodia, Bangladesh, constantly. When you are on the ground, you manage disruption. This is the only option. The last question was AI?
Maybe if I can add on.
Yes.
Also, with our strategic partners, we are pursuing a multi-country of origin strategy, yeah? So let's say that in terms of we need to shift capacities for one or the other reason, from one country to the other one, it makes it easier because it's with the same company but a different site.
Yeah. So we have the best sourcing team of the industry, trust me.
You should say that.
Oh, yeah. This is the... This has been the right recipe for many years, so there's no reason to change it now.
Richard?
Yeah, just a follow-up question on sourcing. I think Shirley yesterday talked about immediate orders going from something like 8% of the business in China up to maybe half the business over the next few years. I just wonder, what are the challenges of trying to go from 8% to half your business as immediate orders, I think she called it? So short, shortly-
Richard, it was a bit difficult to understand.
Yes.
You said 8%?
Yeah.
8% of what?
No, the Local for Local.
Yeah.
China is 32% of today's PUMA sourcing. Out of 32%, 8% is for China, for China, and the remaining is export business.
So 25%-
About 25%
... China for export.
Yeah.
Yeah.
And then the rest, but with that-
Stays in China
... basically, 80% of China's demand is covered by local production.
I thought her point was that she was trying to significantly reduce the lead times of her local-for-local product.
More than 80% for Local for Local?
Yes.
The lead time.
The lead time. To try to quickly-
Lead time in China, yes, of course, we've been working on lead time together with Shirley.
Mm-hmm.
So we have amazing partners, and building shorter lead times goes back to having materials ready. If you don't have materials ready, you cannot do anything. Our partners in China have vertical integration, meaning that they produce materials so they can produce product. In the apparel business, we work with the best-in-class in the world, and they are capable to do replenishment for PUMA China in 10-15 days. For PUMA China, footwear, we build a similar capacity with our vendors in China. We are capable today to replenish for Shirley's team in a matter of 6 weeks to 2 months in terms of footwear.
Okay, so it's not really a big challenge.
No, and-
It's actually pretty straightforward.
We have developed a product team that is based in the different facilities, either close to the apparel team in Shanghai or in close to the footwear team in Shenzhen.
Okay, who wants to ask next? Philip from Warburg. Philip, could you do me a favor, please, and hold the mic nearer and speak louder?
Well, typically not my problem, that I'm too reluctant. Well, actually, I wanted to come back a bit about technology in sourcing. While your crosstown neighbor, they, they've basically famously shown us some Speedfactories and things like that. Do you think that is something which is anytime getting big, or where you also need to invest more for nearshoring?
So nearshoring-
... you need two things here. You need to provide competitive prices, okay? Because at the end of the day, margin matters. Lead time is one thing, but margin is another thing. Today, with margin, unfortunately, Asia still lead in terms of margin. That's why we still focus a lot on Asia. If I look at Bangladesh, for instance, from a sourcing standpoint, from the apparel, Bangladesh is able to replenish a product in four weeks, and we ship by boat. We don't ship by boat. We ship by boat. So the total lead time will be eight weeks. What we're looking at at the moment is understanding also better the demand, so we can plan better at the back.
Once you have that, then you orchestrate your capacity in a way that fit the markets based on the demand that they have, based on the data that we have. So this is where we are working at the moment, quite a lot. In terms of reshoring, nearshoring in Europe, we're looking at options today. Actually, we produce in Marseille for Marseille, believe it or not, so we have dedicated T-shirts for Marseille, made in Marseille. We're looking at options to make, to reshore some footwear in Europe as well. We are building some capability here, but it's not gonna be huge because the industry isn't there. It's disappeared many years ago.
Again, if you look at the total supply chain, you can always move a T-shirt factory somewhere, but then you need to bring the fabrics and everything, and that is the bigger, you know, problem that we have at the back. The reshoring in Europe, not so much. We do reshore in Mexico for PNA, for instance. We do a lot of Mexico for PNA. We do Argentina, Brazil, we do India, we do Turkey. All these pieces are there, but for Europe itself, it's gonna be quite complicated.
Who wants to be the next? Monique?
Thanks. I just had a question on this idea of sort of building the trend and building heat, rather than just taking on the trend. You know, so-
Mm-hmm
... it's the difference between what's going on with Palermo, which is sort of taking advantage of a trend that's already there, versus trying to push that trend with, like, the low-profile, the Mostro and the Speedcat. I guess, how confident can you feel ahead of time that those trends you try and build will land?
Mm-hmm.
What flexibility do you have in terms of, I don't know, plan B products, or how you then distribute that stuff through outlets or-
Mm-hmm
... other channels to get rid of it if it doesn't scale as effectively as you'd like?
Yeah. So it's not that we woke up yesterday and we say: "Okay, we're gonna do low profile," because we could have done it two years ago. And I think one of the things you always need to analyze is the evolution of the consumer, and we tend to be a bit repetitive. And luckily, when you see the market going from very bulky silhouettes five years ago, and I think hopefully you also saw a very chunky Balenciaga that influenced a lot of the industry back then. Everybody was wearing chunky shoes, then naturally start wanting to lower, lower to the ground, and today you see a terrace shoe with two components of it. One is much lower, and it's closer, and then it has a T-toe when you do it when you look at it from a top view.
So consumers start getting used to two very important elements, that it's just one step away from low profile. We pick two elements in that trend, a Mostro, that is a very unique PUMA proposition to, let's say, immerse a, a point of view. But then, of course, at the same time, we come with a very commercial proposition that is Speedcat, that has those two elements, that is T-toe and lower to the ground. There's definitely trend information out there, that comes in some of them with 18 months, 12 months, and most of the trends, you confirm them as well with the latest Fashion Week's releases. So you see all the fashion brands also going into a low-profile direction. But the beauty is identifying which are those, let's say, trends that are scalable.
Once we know that, and in this particular case, we're already in a stage where we can see that the low profile is going into that direction, we work with Anne and many of our stakeholders to plan and react towards how early, how fast, and we can control that still because there's no... And now, today, there's no rule about the month of month of how that can flow. So definitely, we have that flexibility on how to do that.
Anne-
Sorry, one more. Oh, now I lost my track. I wanted to say about... Oh, now I lost-
Then you pause, and I take. No, I think when you look at, let's say, the last two days, I think what we have shown you is three pieces of evidence. I mean, first, let's say from a fashion show perspective, and we know, let's say, how Balenciaga was pushing the bulky trend, and it trickled down. Evidence number one. Evidence number two, you see, let's say, the heat which is building up, let's say, or you heard, let's say, Anne and so on, talking about, let's say, how well Mostro is resonating with the consumer. So in this very high premium segment, they see, let's say, that consumer demand is awakening. And third, let's say, was Korea. We all know, let's say, also the terrace trend was significantly earlier in Korea until it before it came here.
And you saw, let's say, that we sold multiple thousand of units, let's say, on that launch event in Korea. So I think these three evidences make us, let's say, very confident that we are exactly moving on the right trend. How do we manage, let's say, quantities? I mean, when we are doing this, it's all about, let's say, finding the right balance in terms of demand and supply, because you need, let's say, to ensure, let's say, you have exactly the right allocation. So this is why we are allocating and not, let's say, open our books and say you can take any as much Speedcat as you can. It's, let's say, really a managed supply. Yeah.
Great that you gave me time, because you made me a second question about what happens if it doesn't work. Well, first, it's gonna work. If not, one of the beauties of our brand, and I think I mentioned it in my presentation, is that we have built our success in many good bestsellers and not just one bestseller. And I think as you can see in the multiple inspirations and the multiple sports that allow us to have different answers in terms of franchise, in that silhouette, will always allow us to have flexibility. So you saw in the showroom, still terrace shoes, you still saw skate shoes covering that direction, and of course, you saw low-profile shoes going in that direction. So they still have a big role within our portfolio in the organization.
Yeah. I mean, I think it's important what you said. It's, let's say, what we do in addition—I mean, we always, let's say, stay on our feet and react to the trends, and we have that ammunition. So we are continuing to do that, but let's say, the muscle which we are building on top, which we are now newly developing, is, let's say, to be more disciplined on the go-to-market process, how we are incubating and igniting things.
Thank you.
Sure.
Okay. Do we have any further questions from the audience?
Sounds like we did a quite a good job in the last 24 hours to proactively address some of the topics, huh?
Okay.
Yeah.
Then, thank you-
Okay, then let me wrap it up. Is this working or not? It's not. Well, first of all, thank you very much for coming. I mean, 24 hours ago, I explained to you why it's so important to welcome you here at our home, and I hope you felt it, because there's no other way, no better way, to make you feel, let's say, the excitement about the brand, our product, and our people. So again, thank you very much for coming. What I also, let's say, told 24 hours ago, if there's one message I would like you to leave, is the message that PUMA is the challenger. And 24 hours ago, I invited you to see the game like we do, and the game how we see it, this, the challenger is on a way, is on a journey.
In 2018, we started that journey really by saying we focus on football and basketball, and we showed you what kind of strength and muscle we have built and how we were able to break through. In the last 24 hours, we guided you through our significant opportunities ahead of us. Sportstyle Prime, and he was showing you how big that market is, significantly bigger than the core business, where we already have a strong muscle. Now, let's say we want to tackle the Prime business. It's a muscle which we need to build, where we are able to resonate with that Gen Z consumer.
We have shown the same Gen Z consumer who's already buying today our football shoes, who's already buying today our basketball shoes, and now we also need to build up relevance with the same consumer off the court more and tackle the Prime business. We only have low single-digit market share. We talked about running the most, yeah, the sport with the highest participation, the most versatile use. I think you heard our athletes talk about the amazing benefits of that product and how we're working together with them to make the best product even better. We showed you that in only three years, we were able to enter the top 10, are already the fastest-growing performance brand. We talked briefly about training.
We have a huge business, great margins, where we are hardly participating to this one because was not yet our focus, and we feel 2025 will be the right time, with a new restructured product offering, the time to attack it. We talked about two regional priorities. Being the number 8 brand with only, or less than 3% market share in the U.S., and only about 1% market share in China, not being in the top 10, it's not, let's say, our ambition. We showed you, let's say, how strong we can be in India, as well in Latin America, where we've already unveiled, let's say, the strength of the brand and showed how we can build that sustainable growth. Talking about sustainable growth, we talked you through the brand elevation is key. Richard talked you exactly through.
We have identified where we need to improve, we've improved our team, and also, we, let's say, go live now with our first brand campaign to really build that connection to the consumer. And you showed that—we also showed you how well the current campaign is testing, both long-term impact, but also the short-term sales impact, from the testing, was very encouraging for us. And we talked you through the sustainable growth strategy. The next two years, 2024, 2025, we want to make sure we're building that the substance, that we are getting out of this volatility, which we have seen both in the U.S. business as well as the China business, that we have the foundation then for accelerated gains after 2025. And finally, we talked about the 10%.
I would like to reiterate again, why are we losing this 1 70 basis points currently? We have a $3 billion hedge in the USD, roughly. $3 billion. Multiply that by six cents, which we are currently missing, the 1.09 to 1.15, that is your $180 million. That is the 170 to 180 basis points, which is currently missing. I think everybody can do that math. But, we also said we cannot rely on the currencies to bounce back, so that brand elevation strategy will also be fundamental to improve our margins, because then we are able to tackle the higher-margin areas of the business, the Prime sector with the best margins, training with great apparel margins, improve our full price realization, be more successful in China, and finally, with that accelerated gains, also realize operational levels.
I hope you also felt it, let's say, with everybody you talked to. There's a great confidence of everybody working here at PUMA, that we have everything it takes to unlock that potential. We have an amazing brand, which is just getting better and better every single day, with amazing product. You were able to see our super strong Spring/Summer 2025 collections. With amazing partners, you heard them talk from the retailer side, the supplier side, the athlete side, that they all appreciate working with us. And then it is us, the way we work, in a fast, agile wheel, team, and always in a great team spirit. So we are super hungry for more. We like you, let's say, to have you on our journey, so thank you very much for coming.
It has been a huge pleasure to have you here, and we wish you all safe travels back to wherever home is. Thank you very much for your time.