Adidas is planning to quadruple its online sales to $5.6 billion by 2020. The athleticwear company says it will move its focus to fast fashion as the lifestyle category outperforms traditional sportswear, and boost its social efforts as well.
As Adidas looks to advance its online sales over the next three years, the company says it will pay more attention to fast-fashion and strip away its non core sport businesses like golf and hockey, which will help lift its sales as a whole.
The sports apparel retailer will also turn more toward digital and social to boost its online sales to new heights. Adidas will shift its focus from traditional TV advertising to digital, as it seeks to quadruple its online sales to $5.6 billion by the end of the decade.
Part of that strategy will include partnering with 25 female social influencers, moving away from those with sports world rankings (although this will be part of the mix) and closer towards those with high social media presence with a lifestyle twist, including author and coach Robin Arzon, model and disc jockey Hannah Bronfman, and personal trainer Zanna van Dijk, to draw customers sought after by its competitors including Nike and Lululemon Athletica.
Last year rival Puma partnered with social media royalty and celebs including singer Rhianna and social personality Kylie Jenner and model Cara Delevingne, who have no apparent connection with sport, but rather boast tens of millions of social media followers.
Adidas CEO Kasper Rorsted says the company will also aim raise its game when it comes to competitor Nike Inc., a battle in the sporting market which he declares is now global. “Adidas now seeks 11 percent operating profit by 2020,” Rorsted told Bloomberg. “We had a fantastic 2016 – we delivered $1 billion (US) profit and our plan is to deliver $2 billion profit in 2020.”
“We’re quite comfortable and confident that we can get to where we want to get, but it’s not just one battle against one competitor.” Adidas also competes with sportswear label Under Armour who are relatively new in the Australian market, but a dominant player in the US sportswear scene.
In the last four years Adidas has really boosted it game with massive recovery following a downturn in financials and profits. Rorsted says that the Adidas “cool factor” has played a lot in this progressive growth since 2013. “The secret sauce is creating the product for the right place in the world, for the right consumers.”
“We’ve aligned with some of the best artists in the world that will also help to create the cool factor – so it’s getting the right creators to help provide the right spin on the products. So the kids feel attracted to our products in the store, but also engaging with the kids through their digital devices.”