Adidas Looks at the World Cup "The Jedi Counterattack"

Adidas Group Chairman Herbert Hainer kicked off his first business trip of the year by visiting China, accompanied by the newly appointed Greater China Managing Director, Christophe Bezu. During this visit, Hainer emphasized that Adidas remains one of the key players in the Chinese sports market. He highlighted the upcoming FIFA World Cup in South Africa as a major opportunity for the brand to strengthen its position. The 2010 World Cup represents a strategic advantage for Adidas, as it is not only the official sponsor but also supplies match balls, equipment, and uniforms for referees, volunteers, and officials. The company launched the iconic JABULANI ball in Cape Town, marking a significant innovation in football design. Additionally, Adidas plans to release new products such as the Falcon and F50 football shoes, along with jerseys and other merchandise leading up to the event. Despite challenges, including high inventory levels after the Beijing Olympics and a decline in sales during 2009, Adidas remains confident in its ability to recover. The company has been working on restructuring its distribution channels, focusing on improving relationships with local distributors while exploring online marketing and selective store openings. In the first half of 2009, Adidas generated around €5.034 billion in revenue globally, with the Chinese market contributing 7% to 8%, approximately €352 million to €403 million. Meanwhile, Li Ning’s revenue reached 4.05 billion yuan, surpassing Adidas’ Chinese sales. Analysts predict that Li Ning could overtake Adidas as the top sports brand in China in 2009. Hainer acknowledged the growing strength of domestic brands but stressed that there is still a gap between Adidas and Nike compared to local competitors. He believes that, despite the challenges, Adidas will continue to be a leading player in the Chinese market. Looking ahead, the company aims to reduce inventory levels and improve supply chain efficiency. By the end of 2009, inventory had decreased by 8% to €1.652 billion, with expectations of returning to normal levels by June 2010. With the World Cup on the horizon, Adidas is preparing for a strong performance, hoping to replicate the success seen in the 2006 tournament, when football-related sales surged by 30%.

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