Adidas And Wanda Jointly Announced That They Have Reached A Strategic Cooperation Agreement.

Adidas Adidas brand stores

Adidas AG (ADSGn.DE)

The group and China Wanda Group jointly announced today that they have reached a strategic cooperation agreement. The two sides will promote each other in sports events and retail business. This will not only help speed up the expansion of Adidas AG, Adidas group, but also consolidate the ambitious sports layout of China's richest man Wang Jianlin.

Adidas AG Adidas group will sponsor Wanda's World Triathlon Corp, which is purchased by US $650 million at the end of last year, World Triathlon Corp in China this year, and will join hands to promote football and basketball sports at home and abroad.

Wanda's commercial plaza will also offer more Adidas Adidas.

Store.

The second largest sporting goods manufacturers in the world have chosen to focus on the traditional sports of China as a traditional sport.

In June 27th, Adidas Adidas world's first flagship store opened in Guangzhou. The brand spokesperson and retired star David Beckham David Beckham also arrived.

For Adidas AG, Adidas group, Greater China is one of the fastest growing markets in recent years.

According to the data, fixed exchange rate in fiscal year 2015, sales in the region increased by 18% to 2 billion 469 million euros, or 17 billion 610 million yuan, which is the third largest market of the group, and business profits rose 40.4% to 866 million euros, or about 6 billion 180 million yuan.

In the first quarter of the 2016 fiscal year, the growth rate of the Greater China region increased to 30.2%. The group disclosed that the revenue of a single city in Shanghai almost reached the sum of two countries in Poland and Portugal.

In response to this growth potential market, Adidas AG, Adidas group, launched a 5 year radical expansion plan of 3000 stores this year.

The Group believes that the slowdown in China's economic growth will not damage the trend of rising demand for domestic sporting goods. Therefore, based on the existing 9000 stores, it will establish 12 thousand stores' sales network in 2200 domestic cities by 2020, and this year it will first add 500 stores.

China's sporting goods industry has experienced several years of inventory crisis after the Beijing Olympic Games in 2008. With the rapid growth of middle consumption and the rise of the sports fitness trend, it has become very vigorous, no matter whether Lining, 2331.HK, Anta sports (2020.HK) and other local brands are 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%, while China hopes to raise the total scale of sports industry to 5 trillion yuan by 2025.

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

The Xi Jinping administration's strong support for the football industry as well as the policy of promoting the growth of population by the second child policy fully support 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.

Moreover, fashion brands such as Adidas Originals and Neo have caught the international fashion trend of sports and leisure and widened the whole consumer group.

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, Nike Inc. Nike group, the largest sporting goods manufacturer in the world, has dominated the Chinese sporting goods market by 17.5% of the market share with strong marketing and brand effect. Adidas AG Adidas group is following the market share of 16%.

Last year, the group reached an agreement with the Chinese Ministry of education to promote the development of grass roots football and provide funding for the development of soccer projects in 20 thousand primary and secondary schools in China in the next three years.

Adidas AG, Adidas Colin China General Manager Colin Currie believes that the development of China's campus football program will greatly promote the development of football products as a traditional advantage of the group, and make up for the disadvantages of Nike's brand in basketball category.

In today's press release, Wang Jianlin pointed out that the goals of Adidas and Adidas AG are consistent, not only on the commercial level, but also in the vision of promoting sports industry development in China and around the world.

Wang Jianlin started building sports industry empire from overseas acquisitions last year.

In addition to the United States world iron man company, Wanda Group acquired the 20% equity of the Spanish Liga team and the 68.2% equity interest of Infront Sports & Media in early 2015 with euro 45 million and over 700 million euros.

In March this year, Wanda Group became one of the five top sponsors of FIFA FIFA. In June, the Group signed an exclusive business partner with the international blue union FIBA.

At the time of the deadline, Adidas AG (ADSGn.DE) 28 reported an increase of 2.51% in early trading on Tuesday, 122.75 euros.

The stock has risen by 36% in 2016 so far, which has significantly outperformed the cumulative decline in Nike Inc. (NYSE:NKE) 17.2%. Over the past 52 weeks, Adidas AG (ADSGn.DE) has increased by nearly 75%.

Some analysts believe that Adidas AG (ADSGn.DE) has already reached its peak in the short term, and that it is now the time to sell the unit with the increase in instability caused by Britain's departure from Europe.