Adidas Muscles in on China
By ELLEN GROVES
July 7, 2008
PARIS — With the opening of its biggest store worldwide in Beijing on July 5, plus its biggest ad campaign ever for a single market for the city’s Summer Olympics, Adidas is stepping up the pace in its race to overtake Nike and become China’s leading activewear player.
“The Beijing 2008 Olympic Games will serve as a platform for Adidas to become the leading sports brand in China in 2008,” declared Adidas China’s managing director Wolfgang Bentheimer, noting that first-quarter 2008 sales in the country soared more than 70 percent on-year. And the Adidas Group overall expects China to become its number-one profit driver this year.
The Olympics, for which Adidas paid an estimated $80 million to become a sponsor, and for which it will bring all of its China-based staff to Beijing, are key to underscoring its commitment to the country. “You have to see this as a huge PR campaign,” said Erwan Rambourg, luxury and sporting goods analyst for HSBC, noting there are very few Olympic products. “It’s more of a long-term investment.”
That investment includes two or more Adidas store openings a day, or around 1,000 doors this year, bringing the brand’s network to 5,000 stores by yearend. |