Herbert Hainer, Chairman and CEO of Adidas Group, one of the world’s leading sports brands, shared his insights during an interview with reporters in Shanghai. He highlighted that the 2008 Olympic Games significantly boosted the global sports product market. In recent times, the Chinese market has transitioned from a period of decline to steady growth, showing strong potential for future development. As one of Adidas’ most critical global markets, the company plans to maintain and even increase its investment focus on China.
According to the latest quarterly financial report, Adidas Group showed significant improvement in the first nine months of 2009. While sales in the third quarter declined by 7% (on a constant currency basis), earnings per share reached 1.03 euros, a 29% drop compared to the same period in 2008. However, this marked a substantial improvement from the 93% decline seen in the first half of the year.
Hainer noted that the entire sports industry faced unprecedented challenges this year. Despite this, Adidas managed to adapt successfully. Over the past six months, the company focused on operational efficiency, which led to improved financial performance and a net operating cash flow of 740 million euros.
He also mentioned that while consumers and retailers may still be cautious, Adidas is well-prepared to overcome any obstacles. The company now maintains tighter inventory control, stronger financial stability, and a more streamlined structure.
When it comes to China, Hainer emphasized that the market has become one of Adidas’ most important global regions. Currently, it is the second-largest market after the U.S., and also the key procurement hub for the brand. Approximately 44% of shoes, 36% of apparel, and 65% of accessories purchased by Adidas come from China. There are 268 factories in China supplying products for the group, and as of the end of 2009, over 5,000 Adidas retail stores were operating in the country, with further expansion planned for 2010.
Reebok, another brand under Adidas Group, recently announced new strategies in China. They signed a partnership agreement with China Baosheng Group to restructure their business model. This new approach, known as “China-centered,†will involve local design and production of sportswear, reducing delivery times and accelerating product launches. The agreement became effective on April 1, 2010.
Under this deal, Baosheng will collaborate with Reebok China in designing, producing, and selling products. This marks a major shift from the previous model, where Reebok relied on U.S.-designed products sold through its dealer network. The two companies will also align local marketing efforts with Reebok’s global brand strategy. Reebok China will continue to supply some products to existing distributors.
Du Bairu, Managing Director of Adidas Greater China, stated that this agreement is a milestone for Reebok. He pointed out that the Chinese market holds great potential, and customers are increasingly looking for more choices in sports apparel. The goal is to provide high-quality products at the right time and place. Baosheng, as a strategic partner, will help achieve this by co-designing and producing products tailored to local preferences.
Hainer believes that Reebok’s localization efforts in China represent a significant step forward. He remains optimistic about the long-term potential of the Chinese market, noting that as living standards improve, demand for fitness and sports products will continue to rise, driving market expansion.
However, he also acknowledged the growing competition in the region. To stay ahead, Adidas aims to leverage better design, faster product launches, and a more efficient marketing model to maintain its leadership in the Chinese market.
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