Adidas CEO: 2000 Stores In The Next Three Years

2016

Global revenue grew 14% to 19 billion 291 million euros, creating a new sales record for the sports brand. Greater China has also become the fastest growing market in Adidas.

In an interview with reporters last January, Kasper Rorsted, Adidas's new CEO, said that the Greater China region's revenue will have a further growth, on the one hand, from the constant promotion of new products and expansion of stores, on the other hand, digitalization will boost the development of future business.

But Kasper Rorsted believes that all this depends on whether or not it reflects the needs of consumers. In his view, "competitors can be Nike, Anta, UNIQLO, or some other brands."

In response to Adidas's recent attention to the new layout of intelligent factories, he also mentioned that companies also need to increase the speed of supply chain reaction to quickly meet the market in China.

2000 stores in the next three years

Excluding the exchange rate factor, sales in the Greater China region increased by 28% in 2016, becoming the fastest growing market in Adidas, which is far higher than the global revenue growth of 14%. Kasper Rorsted believes that China is Adidas's second largest market in the world and is one of the most successful markets.

In his view, "I am optimistic about the future development, and the income of the Chinese market can go further."

A further driving force comes from Adidas's continuous opening of new stores. According to the introduction, Adidas now has 1 stores in China, and Kasper Rorsted said it plans to open to 1.2 in 2020, and there is a distinct expansion in the retail terminal.

This also means that from now on, Adidas will open more than 700 new stores every year in the next three years.

In terms of shop strategy, Adidas has two parts. The first part is to open more stores in the 21 cities listed and 23 key cities of Greater China in Taiwan and Hongkong. The sales of these 23 cities account for 50% of the total revenue of Adidas Greater China. "We have an analysis of IDR (Integrated Distribution Roadmap) based on the local business circle in these 23 key cities to see if there is a shop opening situation in this business circle, and whether there are more opportunities for opening stores."

The other part is to open a store in a new city. "So far, we have entered more than 1000 cities in China and have opened 1 stores. In the process of urbanization, the business environment and other factors in many cities will change. We study these cities. Once the time is ripe, we will open the shops to these new cities.

In China, we have studied 2000 cities, and now they have stores in more than 1000 cities. That means there will be opportunities to open stores in about 1000 cities in the future.

The future growth of these emerging cities will account for 50% of our total growth.

Emphasize, "how many stores in China is not a problem. In 2016, we opened thousands of stores, the key is to open a good store, this is a real concern for us."

Digital channels bring opportunities

"Through mobile devices for online shopping or shopping, in China, the proportion actually accounts for 80%, which can be said to be the highest among many markets."

Kasper Rorsted has seen the development of China's electricity supplier and the pformation and opportunities brought by digitalization to enterprises, and this is a driving force for Adidas's growth.

"China has the most mature e-commerce and digital ecological environment. In the future, we will seize the opportunity to further the growth of our business."

He said, last year, on the "double 11" day, Adidas's sales on the Internet reached 43 million yuan, but for Adidas, "we hope to be able to interact, communicate and connect with consumers every day, 24 hours a day, 365 days a year."

In addition to the electricity supplier, social media and WeChat, which can maintain and enhance communication and interaction with consumers, have entered Adidas's digital channel observation. What Kasper Rorsted wants to achieve is to connect the current more than 10 thousand entity stores to digital channels and media, and then maintain close interaction with consumers through these digital channels and media.

In Adidas's all channel marketing, there is a project called endless aisle.

Kasper Rorsted explains, "if you go to a store, this shop may not be very large. You may not necessarily buy a thing, but there is a iPad in the store. You can search all our Adidas products on the iPad, or general running shoes, so that you can buy what you want to buy."

In his view, "the biggest advantage of online sales is that it can help us better understand consumers' buying habits, behaviors and preferences, and where their needs are, so that we can better meet their needs."

But Kasper Rorsted also knows, "for our team, what we used to be good at could be physical stores and sales through physical stores. In the new era of digital environment, we also put forward requirements for online capabilities, including the power of e-commerce, the use of social media, and the use of electronic marketing and online marketing capabilities and tools."

According to the reporter, in the implementation of specific digital channels, from within Adidas, it will cooperate with headquarters to formulate China's e-commerce or digital marketing strategy, and then implement it in China; from outside, it will cooperate with all parties' organizations or groups and enterprises to implement and implement strategies.

In terms of channel selection, "all digital platforms are capable of accessing mobile terminals instead of just facing PC terminals.

So in the work of digital media or digitalization, we have to make sure that it works on all mobile devices.

Competition lies in rapid response.

The sales of Adidas in Greater China in 2016 has reached a new high. Apart from efforts made by its own products and channels, the domestic sporting goods industry once again entered the golden age.

They are also moving towards peak sales.

Kasper Rorsted has a clear view on this. "As far as we are concerned about the whole business level, the first concern is the consumer, then we will see our market share, profitability, and finally see competitors," is the order.

In Kasper Rorsted, competitors are not just brands in the sporting goods industry, but brands that attract consumers. "The competitor we define is that consumers buy their products instead of our products. Then he is our competition.

As a company, we are concerned about consumers rather than competitors.

Competitors can be Nike, Anta, or UNIQLO, or some other brands. "

From the consumer perspective, Kasper Rorsted believes that "in the market, you can often see smaller companies or small companies that react more quickly to the market. If competitors are defined as those big companies, they may miss those companies that react quickly to the market."

It requires us to react quickly to the market and consumers, from Adidas's self positioning. "Target consumer group is 16-24 years old, stylish sports product". Fashion is fleeting and must be fast.

Fully automated production of shoes SPEED FACTORY is based on this attempt, although Germany's SPEED FACTORY production capacity is about 1 million pairs of shoes a year, in other words, it only accounts for 0.2% of Adidas's annual sales, but this technology helps Adidas shorten the supply chain time, once the shoe design is completed, it may be less than a week or even a day can be on the shelves.

"We want to change the design process and make all the raw materials ready, so if the product is sold well once the season is sold, it can be reproduced in the season and replenish again to meet the needs of the market quickly, especially in a market like China."

Kasper Rorsted said that in improving the speed of the supply chain, we hope to achieve two goals. First, if a product sells well, then,

Can have enough capacity to organize reproduction quickly, replenish and enter the market.

Second, with this rapid production process and material preparation, the introduction of multiple rounds of products in a single season will enable us to respond to the needs of the market better and faster.

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