Adidas Continues Rapid-Fire Expansion in Lower-Tier Cities

on July 30 2012 | in Retail | by | with No Comments

Adidas, China

Adidas Group China, part of German sports clothing manufacturer Adidas AG, showed great first-quarter results: revenue is up 14 percent (3.8 billion euros) and net profit is up 38 percent (289 million euros). Sales in China alone saw a 26-percent increase. Colin Currie, managing director of Adidas Group China, credits the growth to his company’s Route 2015 strategy, enacted to obtain five years of double-digit growth for the company’s interests in China.

“We plan to open 500 to 600 stores in lower-tier cities by the end of the year,” Currie said, noting that the new stores will go to 300 to 350 cities where it doesn’t currently have stores, but competitors do.

“Adidas’ long-term strategy and good partnership with distributors are its strength,” said Guo Hongchi, chief executive of He also pointed out that, “Adidas’ success may come from the decreasing market share of Li Ning, its major Chinese rival.”

Adidas entered the Chinese marketplace in 1997, and has since opened up more than 6,000 stores. “Sports have become more and more popular here. We are optimistic for medium- and long-term development in China,” said Currie. In China, adidas is considered a high-end sports brand.

The company expects its global sales for this year to increase nearly 10 percent, compared to the 5 to 9 percent projected earlier.

photo credit: keso s

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