The Strategist

Adidas is Turning Back to Europe

03/26/2015 - 14:40

The German company Adidas announced plans aimed to rapid return of the production capacity from Asia to Europe, according to Reuters. The company aims to move its clothes production closer to customers: options with the opening production plants in the store so that customers can personalize your purchase are being discussed.

Adidas has been giving ground to the main competitor - American Nike - for several years.
- We intend to return to Europe production, where our real buyer is, - said the CEO of Adidas Herbert Hainer, noting that it would allow the company to respond quickly to changing consumer demand.

Also, the manufacturer is gradually turning away from the Russian market. For example, in the annual report of the company, Adidas reports that in 2015, the company will close 290 of its stores. About 200 among those are located in Russia, said Hainer. According to him, these shops were "not effective." However, the company does not refuse a probability of opening new outlets in Russia, leaving the previous forecast of 100 stores (generally,in the whole world Adidas is going to increase the number of stores for 220 units).

The company also plans to open hundreds of new stores in Europe. Adidas predict that sales of its products in 2020 will grow nearly doubled to € 22 billion and net profit will grow by an average of 15% per year.

Earlier it was reported that Adidas will cease cooperation with the NBA after the season 2016/17, reports Associated Press.

The German firm has decided not to renew the agreement.

- While we have enjoyed successful long-term relationships with the League, we are constantly reviewing our partnership agreements, to ensure their satisfaction with our investment and implementation for our brand and business needs, - said in a statement.

Adidas supplies NBA with branded equipment and has the rights of the NBA branded products all around the world. In 2010, idea of ​​expanding cooperation between Adidas and NBA arose from the fact that the Europeans became more interested in NBA games due to the influx of European players in the North American Basketball League.

The deal with the NBA became possible after Adidas severed relations with sporting goods manufacturer Champion. Champion brand is an official stocker of NBA form in Europe since 1991, The Wall Street Journal noticed.

The new contract allowed Adidas to become the only official worldwide manufacturer of NBA equipment.