Recently, Adidas AG is expanding its business in China in an attempt to overtake rivals that have gained market share in recent years.
It is said in an article that Adidas plans to open 500 new stores in China by next year. The company is eager to reach China’s more sophisticated shoppers, who live in cities like Beijing and Shanghai. Tricky thing, in a classical Chinese perspective, I’d like to say that people who live in these cities as well as other cities, actually, favor Adidas’s biggest global competitor, Nike Inc. It is true and it happens like a bias that most Chinese people label Nike the No.1 brand of sport products including outerwear, sportswear, footwear and related accessories. Adidas is always the second best. Always!
So, repositioning is a tough but necessary strategy for Adidas to increase its market share in China. Let alone there is still another rival for Adidas—Li Ning Co., China’s leading sports-apparel maker. In 2009, Nike had 10.2% of China’s 93 billion yuan ($14 billion) sportswear market, according to research firm Frost & Sullivan. Li Ning held 10% of the market, while Adidas had 9.6%.
Basically, it is like: Nike is the first choice for upscale consumption and Li Ning is the first choice for salariat. Adidas is between the two levels, so it’s kind of awkward.
Anyway, the dream of overtaking the two rivals for Adidas may not be very realistic, but having a good brand awareness, expanding market in China hopefully will be a good idea.