Adidas to add 3,000 stores as sales grow 18pc in China

The Pak Banker - - COMPANIES/BOSS -

FRANK­FURT: Ger­man sports­wear maker Adidas AG will ex­pand its retail net­work in China from the cur­rent 9,000 stores to 12,000 by 2020, a top ex­ec­u­tive said on Fri­day.

"With in­ter­est in sport in China con­tin­u­ing to gather pace, our newly un­veiled 'Cre­at­ing the New 2020 Greater China' strat­egy will fur­ther build upon our re­cent achieve­ments and lead Adidas to be­come China's best sports brand by 2020," said Colin Cur­rie, man­ag­ing di­rec­tor of Adidas Group China. Adidas recorded an 18 per­cent growth in sales in China last year, driven by the so-called per­for­mance and style prod­ucts, ac­cord­ing to its an­nual re­port.

Dif­fer­ent from its pre­vi­ous em­pha­sis on fast ex­pan­sion, the com­pany's new five year plan fo­cuses on pro­duc­tiv­ity in 23 key cities as they rep­re­sent po­ten­tially more than 50 per­cent of busi­ness in China, Cur­rie said. Adidas in­tends to grow and ex­ceed in­dus­try av­er­age by con­cen­trat­ing on sports per­for­mance, sports ca­sual, out­door and kids prod­ucts.

Its core brands in­clude Adidas, Reebok, Tay­lorMade and Reebok-CCM Hockey. In China, it em­ploys more than 3,000 peo­ple. The com­pany's China op­er­a­tions gen­er­ated sales worth 2.5 bil­lion euros ($2.74 bil­lion) in 2015, the an­nual re­port showed. Over­all Adidas rev­enue grew 16 per­cent to 16.9 bil­lion euros in 2015 from 14.5 bil­lion euros in 2014. Net profit was up by 12 per­cent with dou­ble-digit sales in­creases in Western Europe, China, Latin Amer­ica and the Middle East, Africa and Asia. Reebok was one of the best-per­form­ing brands, with global sales ris­ing by 6 per­cent in 2015.

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