Chillin' out till it needs to be funded
International sales make 95% of Adidas sales globally, and its 2012 plan to grow profits in double digits depends on China. Sales lost in Japan in 2011 were easily made elsewhere according to the CEO Herbert Hainer (BTV) HE also comments on Jeremy Lin’s good potential in the TV preview of his plans for 2012
Shoes and Sportswear and accessories are a high margin business even for the technically minded Adidas which had $16 bln in revenues in 2010 Its WSJ plug of date mentions how it expects to have sold $1.3 bln in China in 2011 including HongKong and Taiwan sales. Herbert Haner’s pressser on WSJ mentions the company’s desire to beat Nike in China with a move in High street fashion and Kinder apparel. That’s a 28% jump in the first nine months over 2010. ts Gross Margin is just under 50% for last year.
Nike has 7500 Sports brands, Adidas close behind at 6700 according to Euromonitor in China. Y-3 the retailer’s premium line retails for $3100 for Trench coats ( CnY 20,000) and tweed 3/4 sleeve coats for (CnY 16,500)
Adidas has more than 500 Children’s stores across China, selling baby bootees for CnY 1200-1500 and expects to stay sporty by showcasing its line of outdoorsy hking and rugged wear. However, it is also introducing fast fashions in the street range with teen NEO jackets retailing for $60 on the other end, in an apparently non existent budget market and would go head to head with other European fashion brands in the high street gear, Jeremy Lin shirts notwithstanding