The Strategic Significance of Adidas in China's Market

May 18




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Adidas has been making significant strides in the Chinese market, particularly in third and fourth-tier cities. This article delves into the company's market share, growth strategies, and future projections, highlighting the importance of China in Adidas's global strategy.

Adidas's Market Penetration in China

Adidas has established a strong presence in over twenty major cities in China. According to Colin Currie,The Strategic Significance of Adidas in China's Market Articles the Managing Director of Adidas in China, the brand's popularity is set to soar even higher. By 2011, Adidas planned to open 2,500 new stores over three years, with a significant focus on third and fourth-tier cities.

Expansion Strategy

To counteract rising costs in raw materials, labor, and transportation, Adidas increased prices and reduced marketing expenses. The company aims to cover more cities, thereby expanding its market share. By the end of 2015, Adidas expected that sales from China, Russia, and the United States would constitute 50% of its total sales.

The Growth of China's Sports Industry

China's sports industry has been growing at an impressive rate. In 2010, the industry grew by approximately 20%, generating over $30 billion, with 80% of this revenue coming from sporting goods sales. This growth is attributed to the increasing disposable income of Chinese consumers, who are now more inclined towards sports and fitness activities.

Adidas's Five-Year Plan

Adidas has a comprehensive five-year plan to increase its market share and profitability in China. The company aims to generate over €100 million from the Chinese market. In 2010, Adidas's sales in China reached €1 billion, marking a 3% growth. Globally, the company achieved total sales of €12 billion, a 15% increase from the previous year.

Year Total Sales (€ Billion) Growth Rate (%)
2010 12 15
2011 13.8 15

Profit Margins and Retail Strategy

In 2010, Adidas's gross profit margin was 47.8%, a 2.4% increase from the previous year. This improvement was due to reduced discount activities, increased retail business, and cost reductions. By 2015, Adidas aimed to cover 1,400 cities in China, up from 550 cities in 2010. The company planned to open 550 new stores in 2011, with more than ten being owned stores.

Consumer Behavior and Market Trends

Adidas's new store locations are strategically chosen based on consumer lifestyles and shopping needs. The brand's focus on understanding and catering to local preferences has been a key factor in its success.

Interesting Stats

  • In 2010, China's sports industry grew by 20%, generating over $30 billion. (Source: Statista)
  • Adidas's global sales in 2010 were €12 billion, a 15% increase from the previous year. (Source: Adidas Annual Report 2010)


Adidas's strategic focus on China's third and fourth-tier cities, coupled with its comprehensive five-year plan, has positioned the brand for significant growth. The company's ability to adapt to local market conditions and consumer preferences will be crucial in maintaining its competitive edge in the rapidly evolving Chinese market.

For more insights into Adidas's global strategy, you can refer to their official reports.

Regardless of your expertise in footwear, understanding the strategic moves of major brands like Adidas can provide valuable insights into market dynamics and consumer behavior.