At the group level, the company expects currency-neutral revenues to decline at high-single-digit rates due to “uncertainty around the China recovery,” revenue lost from unsold Yeezy inventory, macroeconomic challenges and geopolitical tension.īut the soft-spoken Siu remains confident that Adidas can ride the tailwind of a burgeoning sportswear market in China driven by policy incentives and change of lifestyles post-lockdown.īased on Euromonitor estimates, China’s sportswear apparel market is expected to grow by 10.5 percent to 401 billion renminbi, or $55.9 billion.Īdidas remains a market leader, in particular in the premium category, accounting for 11.2 percent of China’s sportswear market in 2022, according to data from Euromonitor. According to the local ranking platform “New Fortune 500,” Ding’s wealth reached 90.3 billion renminbi, or $12.6 billion, in 2023.Īt Adidas, a gloomy outlook persists. A brand synonymous with Chinese pride, the market gains prompted Anta company chairman Shizhong Ding to become the richest man in the country’s apparel business. Last year, Anta surpassed both Nike and Adidas to become the biggest sportswear brand by revenue in China. Increased competition from domestic players has made it harder for Adidas to engineer a quick turnaround. Last year, sales in the market plunged 36 percent to 3.2 billion euros, just half of 2019 levels.įor the first quarter of this year, revenue in the Greater China market continued to fall by 9 percent, but the company highlighted sell-out growth, or the amount of Adidas goods sold through its retail partners, which resumed “double-digit growth” in the period. Siu, who has served in multiple roles for Adidas in Hong Kong and Shanghai, was most recently the chief executive officer of Cosmo Lady, China’s largest underwear maker.Ī major task for Siu is to rework the brand as “one of the most profitable markets” for Adidas in the long run, as Adidas’ new CEO Bjørn Gulden noted during the company’s first-quarter earnings call.Īfter the BCI controversy, coupled with COVID-19 lockdown woes and the Yeezy crisis, the company’s Greater China arm has been on a losing streak for seven consecutive quarters. Bernstein: China's Offline Luxury Consumption Surpasses Growth Expectations
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