Adidas broadens China ambitions
Aiming for double-digit sales growth year after year, German sporting-goods brand Adidas plans to seize growing opportunities in China.
Posting a strong performance last year, Adidas China achieved nine per cent sales growth during the third quarter. This year, it plans to exceed the estimated revenue of one billion euros (US$1.3 billion) in China, Taiwan and Hong Kong.
Currently, Adidas is strongly spread across first-tier cities. By 2015, it plans to enter small and medium-sized cities for its strong expansion of 2500 store openings.
“I firmly believe that Greater China will become the main driving force of the future development of our group,” said Herbert Hainer, Adidas Group CEO.
Adidas will place marketing focus on products in categories still untapped by competitors such as Nike. This year, it will market the new NEO, to be sold at a price point of around US$60, a casual line with striped hooded sweat jacket targeting teens and consumers with tighter budgets.
Adidas for children, which currently has 500 stores across China, will also be expanded.
For affluent customers, Adidas will broaden its premium brand Y-3, with new lines including tweed three-quarter-sleeved coats priced at about US$2650 and fur-trimmed leather trench coats at around US$3100.
“China has shown that it is more interested in leisure and fashion than any other country where Adidas operates,” Hainer said.
With 6700 stores in China, Adidas makes it to be the country’s second largest sports brand, following Nike which has 7500 stores.
Last year, Adidas achieved a sales of 900 million euros (US$1.20 billion), 28 per cent up on 2010.