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    The Attractiveness Of Adidas To Chinese Consumers Is Increasing.

    2016/11/4 20:24:00 122

    AdidasChinaConsumer Market

    Now it seems that Chinese consumers are more keen on buying Adidas. In the first 9 months of 2016, sales in the Greater China region recorded the fastest growth rate of 25% in the world, excluding exchange rate factors, and sales in the Greater China region increased by 28%.

    In order to achieve 2016 performance growth, one of the main strategies set by the group is bold retail expansion.

    By the end of this quarter, adidas has more than 10000 stores in Greater China, and the group will open 12000 stores in Greater China in 2020.

    German sports brand

    Adidas

    Colin Currie, managing director of group Greater China, points out that sports performance series and sports fashion series have become a powerful driving force for growth. All brands in this quarter have achieved two digit strong growth, which fully proves that Adidas's attraction to Chinese consumers is increasing.

    As of the third quarter of September 30th, group net profit rose 24.2% to 387 million euros compared with the same period last year. Under the strong promotion of its brand Adidas and Reebook, the group's net sales increased 14% to 5 billion 410 million euros compared with the same period last year, while operating profit increased 11% to 563 million euros last year.

    Among them, the group's main brand Adidas continued to maintain a positive growth momentum, and sales on the basis of monetary neutrality increased by 15.8% over the same period last year. The group mainly benefited from Adidas original and Adidas Neo.

    Sales growth

    Adidas Originals is a classic sport series of Adidas. Now its Stan Smith and N M D have many fans all over the world.

    The group said that in addition to the median growth rate recorded in the Russian region, the company achieved two digit growth in other parts of the world this quarter.

    In terms of regional markets,

    Greater China

    Sales in North America and the Middle East, Asia and Africa increased 18% to 20% compared to the same period last year, and sales in the Japanese market increased by 42%.

    Based on the third quarter earnings forecast for the whole year, Adidas reported that the net profit for the whole year is expected to be between 975 million euros and 1 billion euros. Gross profit margin is expected to be in the 48.0%-48.3% interval, and the operating profit margin is expected to grow 7.5%.

    Thanks to strong growth, Adidas shares have risen 62% so far this year, with a market capitalization of about 28 billion 276 million euros, or 31 billion 370 million US dollars.

    In contrast, its main competitor, Nike, has lost about 20% of its stock price so far this year, and its current market value is US $82 billion 46 million.

    In October 1st, Kasper Rorsted, who succeeded Herbert Hainer as the new chief executive, pointed out that the performance of Adidas this year is worth credited to the annals of history. The group's performance has been progressied by leaps and bounds to regain the position of the second major sports brands in the United States.

    Kasper Rorsted said that the strong growth momentum of the group in all important markets highlights the power of Adidas's new strategy, which effectively enhances the attractiveness of Adidas globally.

    Looking ahead, he emphasizes that Adidas will become better and achieve sustained sales growth and profit growth in Adidas in the next few years.


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