Herbert Hainer, the chairman and CEO of Adidas Group, a leading global sports brand, shared his insights during an interview with reporters in Shanghai. He highlighted that the 2008 Olympic Games significantly boosted the sports product market. In recent times, the Chinese market has shown a positive shift from previous declines, with steady growth and promising future potential. As one of Adidas’ most important markets globally, the company plans to maintain and even increase its investment focus on China.
According to the latest quarterly financial report, Adidas Group saw a notable improvement in its performance during 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—down 29% compared to the same period in 2008. However, this was a significant improvement compared to the 93% drop in the first half of the year.
Hainer stated, “This year, Adidas and the entire sports industry have faced unprecedented challenges. But we have adapted well and managed to improve our financial situation. Our operating cash flow reached 740 million euros over the past six months.â€
He also mentioned that while consumers and retailers may still be cautious, Adidas is fully prepared for any obstacles ahead. The company now has tighter inventory control, stronger financial health, and a more streamlined structure.
Regarding the Chinese market, Hainer emphasized that it has become one of Adidas’ most critical global markets. Currently, it is the second-largest market after the U.S., and also the largest procurement hub for the group. Approximately 44% of shoes, 36% of apparel, and 65% of accessories are sourced from China. There are 268 factories in China supplying Adidas products, and by the end of 2009, there were around 5,000 retail stores across the country, with plans to expand further in 2010.
Reebok, another brand under Adidas, recently introduced new strategies in China. It signed a partnership with China Baosheng Group to restructure its business model. This new approach focuses on “China-centric†design and production, which will shorten delivery times and speed up the launch of new products. The agreement took effect on April 1, 2010.
Under the agreement, Baosheng will collaborate with Reebok China on joint design, production, and sales. This marks a major step forward for Reebok in China. Previously, Reebok relied on U.S.-designed products sold through its dealer network. Now, the two companies will align local marketing efforts with Reebok’s global strategy. Reebok China will still supply some products to existing distributors.
Du Bairu, Managing Director of Adidas Greater China, noted that this partnership is a milestone for Reebok. He added, “The Chinese market has huge development potential, and customers are demanding more variety in sportswear. Our goal is to provide high-quality products at the right time and place. Baosheng is the ideal partner to help us achieve this.â€
Hainer believes that Reebok’s localization efforts in China show great promise. As living standards improve, demand for fitness and sports products will grow, expanding the market further. However, he acknowledged the increasing competition and stressed that Adidas must rely on better design, faster product launches, and a more efficient marketing model to stay ahead and maintain its leadership in the Chinese market.
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