Adidas in ambitious China push
Following the announcement of the closure of its only factory in China, German sportswear brand Adidas now plans to expand its retail presence in China.
The expansion plans were unveiled by Adidas Group China MD Colin Currie to China Daily newspaper.
“We plan to open 500 to 600 stores in lower-tier cities by the end of the year,” he said.
Initial focus of the expansion will be western and north western parts of China where sports are becoming more popular.
Adidas’ confidence in the Chinese market is reflective of its strong first quarter performance in China with sales up 26 per cent.
According to Guo Hongchi of e-commerce portal for sports products Xijie, Adidas’ long term strategy and good partnership with distributors are the key factors to its success in China. He added that Li Ning’s fallen market share in China has also contributed to the strong performance of Adidas in the Chinese market.
Globally, Adidas has raised its full year profit forecast from a 10 to 15 per cent range to 12 to 17 per cent.
Adidas has opened more than 6000 stores throughout China since it arrived in 1997.