In announcing this morning its results for last year, which show a drop in the operating margin (Ebit) of 2.2 percentage points to 3.6 percent on 1.9 percent higher revenues of $1,068.5 million, the Accell Group listed six renewed “strategic pillars” that are intended to help reach an Ebit margin of around 8 percent on turnover of around €1.5 billion by 2022.
The pillars are: 1. Lead global. Win Local; 2. Winning at the point of purchase; 3. A consumer-centric omni-channel business model; 4. Innovation; 5. A centralized and integrated parts & accessories business; 6. Fit to compete.
In this framework, the group said it will accelerate the roll-out of several initiatives from the second quarter of this year. Among these, it will centralize management and coordination of sales policies, innovation programs and production allocation. It will focus on large-scale innovations, particularly in the e-bike segment, combined with less fragmented and higher marketing budgets. The focus on e-bikes will be supported by digital platforms, experience centers and mobile bike services.
Accell will set up six key regions: the DACH countries, Benelux, Southern Europe, the U.K. and Ireland, Scandinavia and North America, with an increased integration between bike and other operations in each of them. In combination with the dealers, a strategic brand portfolio for marketing and sales will be determined for each country, trying to avoid channel conflicts and maximizing customer satisfaction. The implementation of a centrally managed supply chain will be accelerated, with an emphasis on further rationalization, standardization and reduction of complexities.
The group is budgeting total investments of between €30 million and €40 million to implement these strategies, on top of €7 million already spent in €7 million, with a goal of realizing annual structural savings of between €60 million and €80 million by 2022.
The update of the Dutch-based bike group's business plan follows the appointment a few months ago of Ton Anbeek as its new chairman and chief executive. In announcing its results and its new strategy, the group announced yesterday the resignation of two other members of the board of directors, Hielke Sybesma and Jeroen Snijders Blok.
Sybesma, who is currently the group's chief financial officer, has decided to leave as of May 1 after 23 years with the group. Snijders Blok is resigning from the board at his own request as of April 25, but he will retain his current activities as the group's chief operating officer, reporting directly to Anbeek.
Accell has also announced the appointment of a new chief commercial officer, Jeroen Hubert, and of a new chief executive for North America, John Short. Reporting to Anbeek, Hubert became responsible on March 1 for marketing, innovation, e-commerce, retail and experience centers. He worked previously in these areas for Pepsico, Friesland, Campina, Wehkamp and Ikea.
In the U.S., Short is taking the place of Chris Speyer, who resigned at the end of last summer. He will be tasked with the implementation of the company's previously announced new omni-channel strategy in the market, which has gone through a major disruption at the retail level. Short's resumé includes various positions at Esprit, Joe Boxer and Sunglass Hut. At Accell, he will be working with a newly appointed marketing and digital officer, Stuart Johnson, who will report to Short along with Larry Pizzi, president of Raleigh and head of North American brick-and-mortar sales.
