Adidas Is "Cautiously Optimistic" About China'S Market Prospects.

The world's second largest sporting goods group Adidas AG (ADSGn.DE)

The Group believes that the slowdown in China's economic growth will not damage the trend of rising demand for domestic sporting goods. Therefore, it plans to further increase 3000 stores in the next 5 years on the basis of the existing 9000 stores. The target market in 2020 is 12000 stores in 2200 cities.

China's GDP growth slowed to 6.9% in 2015, the lowest rate in 25 years.

Nevertheless, Colin Currie Currie, general manager of Adidas AG group in Shanghai, held a briefing at the briefing in Shanghai on Friday, saying that it is "cautiously optimistic" about the prospect of China's fastest growing market in the global market, and that "optimism" is far more than "caution".

According to the data, the fixed exchange rate in the 2015 fiscal year of China increased 18% to 2 billion 469 million euros, or 17 billion 610 million yuan, which is the third largest market of the group. The operating profit increased 40.4% to 866 million euros, or about 6 billion 180 million yuan.

China's sporting goods industry has experienced several years of inventory crisis since the 2008 Beijing Olympics. With the rapid growth of middle consumption and the rise of sports fitness trend, it has become very vigorous, no matter what Lining (2331.HK),

Local brands such as sports (2020.HK) or Nike Inc. (NYSE:NKE)

Group, Under Armour Inc. Andrea, Asics Corp. (7936.T), Arthur Arthur and other international large groups and professional manufacturers have achieved excellent results.

According to the research report released by Credit Suisse Group AG (VTX:CSGN), Credit Suisse last year, the scale of China's sporting goods market will grow to 3 trillion yuan before 2025, with an annual growth rate of over 19%.

Herbert Hainer, CEO of Adidas AG Adidas group, expects the group to maintain double-digit growth this year.

The government's strong support for the football industry and the overall promotion of the second child policy to the promotion of population growth provide support for the expansion of Adidas AG, Adidas group in China.

On the other hand, there are explosive growth in sports activities such as running, fitness shaping and outdoor hiking in China. These consumers are mainly middle-class people who earn well and are willing to spend money. This is also a strong agent for the group to achieve healthy and sustainable growth in China.

Adidas AG's Adidas expansion strategy includes accelerating the layout of the smallest cities, because the Group believes that the urbanization of these cities will make them more resistant to the overall economic weakness.

The advent of the second child era also means that children's clothing will become a group's key development category.

According to the data of Euromonitor International Europe, the world's largest sporting goods manufacturer, Nike Inc., Nike group, has dominated the Chinese sporting goods market by 17.5% of its market share with strong marketing and brand effect. Adidas AG Adidas group is following 16% of the market share.

Colin Currie believes that the development of China's campus football program will greatly promote the development of football products as a traditional superior category of the group, making up for the inferior brand of basketball Nike compared with Nike brand.

Colin Currie revealed that Adidas AG, Adidas group has no plans to merge in China.

He also said he would continue to retain China's capacity.

China is the largest purchasing market of the group. According to the annual report released by the group last week, the products of the 29% Adidas brands such as Adidas, Reebok Reebok, TaylorMade-Golf and Ashworth, and so on, were "made in China", the proportion decreased by 2 percentage points compared with that in 2014, while the output of Kampuchea and Vietnam increased by 3 percentage points, respectively, 19% and 16% respectively.