Adidas plans to expand in China
Adidas has announced plans to open 500 new stores in China and to increase distribution from its current 500 to 2,500 cities by 2015.
New outlets, featuring the brand’s upscale fashion lines, are planned for larger cities. Adidas will also try new tactics in markets already saturated with sporting goods stores, designing shops that target consumers by the sports that interest them, according to Colin Currie, senior vice president of marketing and sales at the company.
“China is an important market for us and consumers want access to our products,” said adidas chief executive Herbert Hainer.
Adidas has been working to regain its popularity with Chinese consumers after a year-and-a-half slump in the nation's market. In the run-up to the Beijing Olympics, the German company oversupplied its retailers and was forced to take back inventory. In the meantime, rivals Nike and Li Ning Co., China’s leading sports-apparel maker by revenue, gained ground.
In 2009, Nike had 10.2% of China’s $14 billion sportswear market, according to research firm Frost & Sullivan. Li Ning held 10% of the market, while adidas had 9.6%.
“We're building a plan to become number one,” said Mr. Hainer. E-commerce will also play a role in the company's growth strategy. In August, adidas opened a store with China's biggest online retailer, Taobao.com, a unit of Alibaba Group.
