Leveraging 08 Olympic Adidas to Double Chinese Stores

During the just-concluded 2006 World Cup, Adidas, the "home-grown combat," reached only 1.2 billion euros in sales of football-related products. Yesterday, Herbert Hainer, Chairman and Chief Executive Officer of Adidas Group, visited Shanghai. While announcing this "record," he stated that Adidas Group's next market focus is the 2008 Beijing Olympics, leveraging the 2008 Beijing Olympics sponsorship program. It is expected that Adidas' store in China will double by 2010 to reach 5,000 by 2010.

During the World Cup in Germany, Adidas sales increased by 30% over the same period of last year to reach a record 1.2 billion euros; sports apparel sales also doubled from the previous World Cup to 3 million. For Herbert Heiner, this is Adidas' "most successful sponsorship ever". However, what he is most concerned about right now is the 2008 Beijing Olympics.

In January last year, Adidas defeated Li Ning and officially became a partner of the 2008 Beijing Olympics. The sponsorship fee is estimated at 38 million Euros. According to reports, in the near future, Adidas will set up a team of more than 100 people in China, specifically responsible for the preparations for the 2008 Beijing Olympic Games. Including determining the design of the Chinese delegation's clothing, launching more Olympic logo sports products and planning the market activities from the present to the 2008 Beijing Olympic Games.

Herbert Heiner also stated that Adidas will use 13% of its global net sales revenue each year for marketing, of which 40% will be used for sponsorship activities and the rest for advertising and public relations; whether it is direct advertising or indirect Commercial sponsorship will greatly promote the sales of Adidas products in the region. He predicts that by 2010, Adidas will expand its branded stores in China to 5,000 stores and distribute it in 500 domestic cities (at present, Adidas has about 2,500 stores in 300 cities in China), and the total sales in China will also be Reached 1 billion euros.