The logo of Adidas, the world's second largest sportswear firm, is pictured during the company's annual general meeting in the northern Bavarian town of Fuerth near Nuremberg, Germany, May 7, 2015. (Photo : Reuters)
Global and local sportswear firms in China have eventually turned the corner after years of recession. Key players in the sportswear industry posted strong growth within the market in 2015, attributed to city dwellers' search for a healthy lifestyle.
In 2014, China's sportswear industry was valued at approximately 150 billion yuan ($22.8 billion), according to Euromonitor International.
China's Adidas Group unit hit a target of 2 billion euros ($2.19 billion) in 2015, and therefore, successfully wrapped up a five-year business strategy put in place in 2010. In the first nine months of the year, the company's gross profit increased nearly 40 percent to 1.05 billion euros, China Daily reported.
According to the managing director of Adidas Group, Greater China, Colin Currie, the record achievement is because of the company's capability to implement a decisive strategy. Increasing disposable incomes, which are rising consumer expenditure, served to expand the sporting goods industry in 2015. The trend is particularly evident in smaller cities of China.
Adidas has also expanded its retail operations to over 8,500 stores in both small and big cities, in addition to launching retail outlets in new segments for women, basketball and sportswear collection. There are projections that the next five years will see the company focus on five major drivers, including running, football, kids, women and originals. The focus will be its brand strategy to strengthen major categories and lead mindshare.
Adidas pointed out that this plan will be beneficial for its continued growth by meeting the demands of China's growing middle class "who are placing a higher emphasis on quality of life experiences and the needs of a nation with an ignited interest in sports."
Meanwhile, Nike Inc., which is Adidas's competitor and worldwide market leader, has shrugged off the slow growth trend. In Q2 revenue to Nov. 30 2015, Nike China's value went up by 28 percent to hit $938 million.
