Adidas sees future in lower-tier cities
German sportswear maker sees two-thirds of growth opportunities outside big cities
Global sportswear giant Adidas sees tremendous growth opportunities in China's lower-tier cities, rather than the nation's big metropolises such as Beijing and Shanghai, as it plays catch-up with market leader Nike in the world's most populated country.
"We still continue to see and believe that two-thirds of growth opportunity is in lower-tier cities," said Colin Currie, managing director of Adidas China. "That's where the growth will be in future."
The German sporting goods maker opened more than 800 new stores on the mainland last year, with more than 400 of them in lower-tier cities.
Adidas reported a 15 per cent sales increase in China last year, growing faster than its rivals including Nike of the United States and home-grown brand Li Ning amid intense competition.
According to market-research firm Euromonitor International, the German brand has an 11.2 per cent share of China's 148 billion yuan (HK$183 billion) sportswear market, trailing only Nike's 12.1 per cent share.
However, Nike posted a sales drop of 12 per cent for its mainland businesses for the fiscal year to November 30.