Well, done Herbert Hainer, great job. Your task now: Keep up the good work.Yes, Adidas beat archrival Nike by 12 to 10 in equipping soccer teams, who played this summer for the World Cup in South Africa. Yes, in the wake of the tournament Adidas was propelled into a position where it could beat market expectations and raise its targets for the second time.
But, what’s on the agenda for 2011 is less exciting, well, let’s say, less glamorous.
Adidas now has to beat Nike in U.S. shopping malls and outlets in Chinese mega cities.
For sure, at half time (2010) Nike did a better play in China. In the three months to May, Nike’s sales in China were up 12% in dollars, while Adidas dropped by 18% at constant currencies.
China is a good example of how fast enthusiasm can fade. All the sports retailers had there goods stocked high on Chinese retailers’ shelves. But consumers didn’t buy as much as the stores anticipated.
Well, thanks to the World Cup soccer experience, Adidas boss Hainer is tremendously optimistic that his company will return to growth in China in the second half. It will be interesting to see if his optimism can be delivered on.
And in the U.S. especially, Adidas’s long-suffering brand Reebok has rebounded, albeit from a low base. Hainer said it will continue to grow by innovation and expects investment in the brand to be higher in the second half than in previous years.
Some investors are worried about Adidas’s cost base. They have a point: While Adidas sees its margins growing, Nike fears price pressure.
But again, Adidas is still riding on the back of its World Cup success.
The next tournament will be in 2014, hosted by Brazil — a Nike team.
It looks like you’ve got your work cut out Mr. Hainer.
ShareThis