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Adidas Has a 3-Prong Plan to Gain Market Share

The Adidas Group mapped out a five-year plan to grow its football, running and Originals categories at an investor event Wednesday in Herzogenaurach, Germany. Each category has been assigned specific goals to significantly improve Adidas’ top and bottom line, with the end goal to have its football and Originals categories lead in every market by 2020, and to have running gain dramatic market share.

Thanks to high profile collaborations with Pharrell Williams and Rita Ora, Adidas expects the momentum behind the Originals collection to continue to build, with sales projected to increase 50 percent by 2020. The company wants the sub-brand to be the “most influential and connected sportswear brand in street culture in every market by 2020.” By 2018, the Stan Smith, Superstar, ZX FLUX and Tubular franchises are expected to generate the majority of the overall Originals footwear revenues, the company revealed.

In addition, Adidas Originals plans to significantly expand its business with key sneaker accounts and its own direct-to-consumer channel. New flagship stores in more than 30 cities around the globe is expected to have a “halo effect” and elevate business worldwide. Going forward, Adidas said it will prioritize speed to market, enabling in-season creation to tap into market trends and faster replenishment of bestsellers.

“We are more than excited about the strong momentum of Adidas Originals,” said Arthur Hoeld, general manager of Adidas Originals, in a release. “The hype we have recently created around our iconic Stan Smith and Superstar silhouettes is just the beginning. With our well-filled product pipeline as well as some of the world’s most influential artists such as Kanye West, Pharrell Williams and Rita Ora collaborating with us, telling our stories and promoting our products, we will be closer to our sports lifestyle consumers than ever before and set for strong growth in the years to come.”

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The Group expects its football business to increase at a mid-single-digit rate on average per year on a currency-neutral basis from now until 2020. The company is placing an emphasis on new product lines, including the newly introduced ‘X’ and ‘ACE’ footwear collections, which replaced former silhouettes that were discontinued earlier this year.

Adidas also plans to reconnect with both registered and unregistered players by setting up permanent, seasonal or event-driven grassroots programs, and enlisting a team of influencers to develop closer interactions with consumers.

Likewise, Adidas announced it will reach out to the running community through more localized events. Adidas Running expects sales to double by 2020, and in particular, will focus on the North American market where it targets significant market share gains over the next five years.

In a release, General Manager Adidas Running Adrian Leek said, “We will focus our activities on key running cities representing the largest running communities globally. We will also continue to open source our running business with partners such as BASF, key athletes and running communities around the globe to ensure we continue to create consumer-focused product. Additionally, we have an exciting consumer proposition in the pipeline looking into speeding up and redefining the manufacturing of footwear.”