Adidas' new strategy will accelerate its deployment in western China

Recently, Adidas Group established its western headquarters office in Chengdu. Colin Currie, managing director of Adidas Greater China Group, said that the new regional office is an important step for the group to achieve its 2015 China strategy.
Gao Jiali said that western China is a key area that the group is determined to win. Adidas' full range of products have been launched in this region. This advantage will help Adidas better penetrate the brand in this region.
It is understood that the headquarters office in Chengdu will manage the 12 provinces, cities and autonomous regions in the western region of Adidas. Its size is twice that of the original office location, which indicates that the Adidas Chengdu office will have complete regional center functions, such as franchise management and regional marketing.
It is worth mentioning that this regional office will bring sales and marketing personnel closer to their partners, enabling them to more effectively understand local market needs and respond quickly.
According to the data of the World Federation of Sporting Goods Industry, more than 65% of the world's sporting goods are produced in China each year. Almost all international sports brands have entered the market in the hope of getting a piece of the pie in China's huge potential sporting goods market.
Adidas has clearly also shared in the feast of this growth.
According to the 2008 China sporting goods market share report, Adidas ranked first with 22%, former champion Nike ranked second with 21%, followed by Li Ning (16%), Anta (12%) and Puma (7%).
However, in the second half of 2008, Adidas overestimated the Chinese market after the Beijing Olympics and underestimated the ability of local brands such as Li Ning to "steal the show" at the Beijing Olympics. The resulting surge in inventory directly affected Adidas' sales performance.
Relevant statistics show that throughout 2009, Adidas closed at least 200 stores.
Analysts point out that the effective integration of retail channels and the length of the reconstruction cycle will be the key to whether Adidas can get out of the quagmire in the Chinese market.
In fact, since the financial crisis, international first-tier brands have gradually adjusted their China market strategies. They believe that it is difficult to achieve greater development by simply occupying China's coastal cities, and they must expand to central and western cities.
French sporting goods retailer Decathlon opened its second store in Chengdu at the end of last year, and plans to open 12 stores in the greater Chengdu area in the next 10 years.
According to statistics, the average per capita income and sports consumption in western China are RMB 8,351 (about S$1,270) and RMB 491 (about S$98) respectively. Among them, Chengdu's two indicators are basically close to the eastern level, at RMB 13,028 (S$2,606) and RMB 925 (about S$125), respectively, and sports consumption accounts for 7%.
Adidas Group executives said that the China market strategy for the next five years will focus on key areas with huge development potential, and the company expects sales revenue in the Chinese market to achieve double-digit growth.
Adidas Group is a global sporting goods company with a range of core brand products, such as Adidas, Reebok, TaylorMade, Lebu and Reebok-CCM Horkey. The company is headquartered in Herzogenaurach, Germany.