Filed under: Forecasts, Consumer experience, Competitive strategy, NIKE, Inc’B’ (NKE), Economic data
If you love Adidas’ clothing and footwear then I’ve some good news for you. Adidas is eying to open about 2,300 new stores in China by 2010, lifting its total number to 6,300. The company’s decision came as a result of strong demand from China even in times when we might expect to see some downturns.
Frederic Seiller, a vice president in charge of retail operations for Greater China, said that the the global economic slowdown had no impact on Adidas’s sales in China. In addition, the company is optimistic about its further gains, and forecast a nice demand from the local sportswear market. From this point of view, total sales in China are expected to come to 1 billion euros by 2010.
As well as getting growth in revenue, by opening its biggest store in the world in central Beijing Adidas aims to beat rival Nike Inc. (NYSE: NKE). Back in 2007, China became Nike’s second-largest market, and its Chinese sales reached $1 billion in 2008.
For competitor Nike though the current situation is not quite rosy. The sportswear giant has been facing tough concerns related to declining growth in the U.S. which resulted in a drop in shares of 9.8% to $59.50 a share, the lowest level in almost seven years.
The current market conditions made China an important key for both sportswear titans due to declines in markets like the U.S. On the other side of the coin, the Olympics are expected to give a boost to China’s sportswear market in 2009. So the competition regarding sales will become even stronger.
As for me, I’m just curious to see which brand people prefer most.
Eliza Popescu is a financial writer for the on the internet investment advisory service Investor’s Observer.
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