Adidas debuted its new “Home Court” concept store in Beijing’s Sanlitun area early last month, an ambitious new design that speaks to the brand’s considerable influence in China.
Sanlitun, a trendy high-end shopping area, is an appropriate site for the new store. Adidas has attained great success in the Chinese market. The brand generated 1.6 billion euros (US$2.2 billion) in sales in 2012, and 14.9 billion euros in group sales.
Sales in Greater China also increased by 7 percent year-on-year during the first nine months of 2013; in the third quarter of the same year, sales rose by 9 percent. According to Euromonitor International, Adidas Sports (China) Ltd. topped the country’s sportswear market with a market share of 11 percent.
The renovated store in Sanlitun is the largest of the more than 7,600 Adidas outlets in China, according to China Daily. The store’s Shoebase at Centerfield is also crucial to Adidas’s current footwear push.
“We believe footwear is a less competitive segment than apparel. When you buy footwear that fits well, the likeliness of developing brand loyalty is much higher than with apparel,” said Jens Meyer, Adidas China’s vice president of marketing, sport performance.
The new promotional direction may prove useful. The Chinese sportswear industry saw a 4 percent overall market value decline between the years of 2011 and 2012, though domestic brands were affected most heavily.
Adidas has plans for further Chinese expansion as well. As part of the company’s “Route 2015” strategy, Adidas will open more stores in Western China and lower-tier cities, while continuing to renovate stores in larger cities. Their ultimate goal is to have a presence in 1,400 lower-tier cities by 2015.
image credit: geoff deold