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Adidas Expansion Strategy in China
Transcript of Adidas Expansion Strategy in China
Adidas first established a small presence in China in 1990
It was not until 1997 that Adidas Sports (China) LTD opened its first flagship store in the city of Shanghai a year after Nike Inc.
Adidas remained in China's largest cities for the early part of the 2000s.
Adidas has 7,600 stores across China, Adidas wishes to consolidate its footprint in the country even further by expanding to 400 new cities.
Adidas Current Strategy is called Route 2015
Adidas will now focus on expanding in China's lower tiered cities.
Adidas is focused on two different approaches when it comes to products Adizero and SportsStyle.
The “running bug” that has captured China
The Route 2015 plan has been in effect since 2010. seen at most a 15% growth in China.
The accelerated growth can be attributed to the rise in participation in sports, specifically running. An increase in gym memberships have also contributed sales growth.
Comparing with other sports brands, like Kappa and Li Ning, the price positioning is higher.
Adidas is focused in expanding to lower tier cities. Lower tiered cities that currently have lower retail activities, for example cities like Urumqi and Lanzhou.
Continued growth Chinese market, is the most serious challenge for Adidas. The companies faces strong competition from domestic and international brands like Li-Ning and Nike.
According to Shanghai-based market research firm, China Markets Research Group, Li-Ning and Anta’s share of the sportswear market in China is 10% and 13%
Sportswear companies Market share in China 2007-2012
Perceptual map of price:
Is an International premium athletics wears company. Adidas was founded by Adolf Dassler in 1949.