Core Viewpoint - The 2026 Jiangsu Province Urban Football League ("Su Super") has entered a critical phase of self-breakthrough as a "second-year" league, requiring continuous improvement on multiple levels, including securing substantial capital support to maintain its momentum and expand its influence [1][4]. Group 1: Partnership and Sponsorship - On January 27, 2026, Su Super announced Adidas and six other companies as official strategic partners, marking a significant event for the league [2]. - Adidas' partnership with Su Super is unprecedented, as it is rare for a world-renowned brand to sponsor a local amateur football league in China, highlighting a notable return to the Chinese football scene after a hiatus since 2014 [2][5]. - The collaboration aims to provide regionally rooted competition and training gear for the 13 participating teams, enhancing the league's cultural significance [2]. Group 2: Audience Engagement and Market Potential - The inaugural season of Su Super in 2025 was highly successful, with total attendance exceeding 2.4 million and an average of 28,628 spectators per match, including a record attendance of 62,329 for the final [3]. - Online viewership reached over 2.2 billion, with social media engagement surpassing 100 billion views, establishing Su Super as a phenomenon in sports IP with significant advertising value [4]. - The influx of world-class brands like Adidas into Su Super not only provides financial and equipment support but also enhances the league's credibility and sustainability [4][5]. Group 3: Broader Impact on Amateur Football - The success of Su Super has inspired the rise of other local amateur football leagues, such as Gan Super and Xiang Super, which have also attracted numerous sponsors, indicating a promising commercial outlook for these "provincial super" leagues [6]. - The collaboration between Adidas and Su Super serves as a model for the diversified development of amateur football leagues in China, emphasizing the importance of brand value and market expansion in fostering a vibrant football culture [5][6].

Core Viewpoint - The article discusses the competitive landscape of commercial sponsorship in Chinese football, highlighting the rivalry between Nike and Adidas as they vie for sponsorship rights in the market [3][4]. Group 1: Sponsorship Developments - Adidas has secured exclusive equipment sponsorship rights for the Jiangsu Provincial City Football League, reportedly investing 21 million yuan (8 million cash + 13 teams at 1 million each for equipment) [4]. - Nike has a long-standing presence in Chinese football, having been the sponsor of the Chinese Super League since 2005 and extending its contract in 2018 for another 10 years [5]. - Adidas is shifting its strategy in China from a fashion-oriented approach to a focus on sports, particularly in grassroots markets, as it seeks to break into areas dominated by Nike [5][7]. Group 2: Youth Development Initiatives - The "Adidas Support for Chinese Youth Football Development Plan (2026-2029)" aims to enhance the training and competition systems for youth football, with a focus on organizing events and developing elite youth players [7]. - Adidas has partnered with the Shanghai Football Association to localize event equipment design, with 60% of its products designed locally and 95% manufactured in China [7]. - The collaboration with the Scottish Professional Football League (SPFL) is seen as a way for Adidas to deepen its engagement in the Chinese football market and connect with grassroots events [8]. Group 3: Market Potential and Brand Impact - The article emphasizes the growing commercial value of Chinese football, driven by over 200 million football enthusiasts and increasing sports consumption [8]. - Sponsorship in football is shown to significantly enhance brand recognition and consumer favorability, with Nielsen Sports indicating a 30% higher increase in brand favorability compared to traditional advertising [8]. - The ongoing investment from international brands like Adidas and Nike is expected to mature the economic landscape of Chinese football, creating a positive cycle of brand empowerment and event support [8].

Core Insights - The commercial value of Chinese football events is continuously rising, highlighted by the competition among major sports brands for sponsorships [1][7] - Adidas has secured exclusive equipment sponsorship rights for the upcoming season, reportedly investing 21 million yuan (8 million cash + 100 million yuan in equipment for 13 teams) [2] - The partnership between Adidas and the Chinese Football Development Foundation aims to enhance youth football development in China from 2026 to 2029 [5][6] Group 1: Sponsorship Dynamics - Adidas has emerged as a key player in the Chinese football sponsorship landscape, competing against Nike, which has historically dominated the market since 2005 [3] - The shift in Adidas' strategy reflects a renewed focus on professional sports after previously positioning itself in the fashion segment [3] - The sponsorship deal with the "Sichuan Super League" is part of Adidas' broader strategy to connect with grassroots football and enhance brand engagement with local consumers [6] Group 2: Market Potential - The Chinese football market boasts over 200 million football enthusiasts, driving a growing demand for sports consumption [7] - Sponsorship in football significantly boosts brand recognition and consumer favorability, with Nielsen Sports indicating a 30% higher increase in brand favorability compared to traditional advertising [7] - Continuous investment from international brands is expected to mature the economic landscape of Chinese football, creating a positive cycle of brand empowerment and event promotion [7]

Group 1 - Adidas has announced its partnership as the official strategic sponsor for the 2026 Jiangsu Province City Football League (Su Super), marking its first sponsorship of a domestic amateur football event [1] - The Su Super has rapidly become a phenomenon in China's grassroots football scene since its establishment in 2025, with total attendance exceeding 2.43 million and an average attendance of 28,000 per match, setting a record for provincial leagues [1] - Online viewership for the league has surpassed 2.2 billion, with related topics on social media platforms generating over 100 billion views [1] Group 2 - As part of the sponsorship, Adidas will provide financial support and custom-designed match kits, training apparel, and equipment for the 13 participating teams, with designs created by the Adidas Shanghai Creative Center (CCS) [1] - The CCS, established in 2005, is a key platform for the brand's localization strategy, focusing on local needs and culture, and has produced popular product lines such as the New Chinese Style series and the Trefoil Pet series [1] - Currently, over 60% of Adidas products sold in China are designed by local teams, with 95% manufactured in China, reflecting the company's "global brand, local thinking" strategy [1]

Core Insights - The partnership between Adidas and the Jiangsu Super League (Su Super) marks a significant milestone, as it is rare for a global brand to sponsor a local amateur football league in China [1][2] - The first season of Su Super in 2025 was highly successful, with over 2.4 million total spectators and an average attendance of 28,628 per match, indicating strong market potential [2][3] - The collaboration with Adidas is expected to enhance the league's brand value and attract more international sponsors, which is crucial for the league's sustainable development [3][4] Group 1: Adidas and Su Super Partnership - Adidas has become an official strategic partner of Su Super, providing culturally rooted competition and training gear for the 13 participating teams [1] - This partnership is seen as a "return" for Adidas to Chinese football, having previously collaborated with the Chinese national team since the 1980s [1] - The partnership is expected to significantly increase brand exposure for Adidas and enhance its market share in China [2] Group 2: Market Impact and Future Prospects - The success of Su Super has created a phenomenon in sports IP, with over 2.2 billion online views and 100 billion views on social media platforms [2] - The influx of sponsors, including new brands like Ant Financial, indicates that Su Super has become a competitive space for brand partnerships [2] - The league's growth is seen as a model for the diversification of amateur football leagues in China, with potential for further market expansion and integration with local cultural and economic development [4]

Core Viewpoint - The article discusses the investment position in ADDYY, indicating a beneficial long position held by the author, which suggests confidence in the company's future performance [1]. Group 1 - The author expresses a personal opinion on ADDYY, emphasizing that the article is not receiving compensation from any company mentioned [1]. - The author clarifies that they are not a licensed financial advisor, and the content should not be construed as financial advice [2]. - The article highlights the importance of due diligence and research by investors before making any investment decisions [2]. Group 2 - The author mentions a watchlist position in Adidas, indicating potential interest in increasing the investment in the future [2].

Core Insights - Adidas has announced a strategic partnership with the Jiangsu Province City Football League for 2026, marking a significant investment in local football development [1] - The partnership includes financial support and the provision of customized match kits, training apparel, and equipment for the 13 participating teams, designed by Adidas' Shanghai creative center [1] - The Jiangsu Province City Football League, established in 2025, has seen impressive attendance and viewership, with a total of 2.43 million in-person attendees and over 2.2 billion online views in its inaugural season [1] Company Strategy - This collaboration is part of Adidas' broader strategy to deepen its engagement in the Chinese football market, leveraging local cultural elements in its product designs [1] - Over 60% of Adidas products sold in China are designed by local teams, and 95% are manufactured domestically, highlighting the company's commitment to localizing its operations [1] - Adidas has a long-standing relationship with Chinese football dating back to 1996, and has been increasingly involved in supporting various football initiatives, including youth programs [1] Industry Impact - The Jiangsu Province City Football League has emerged as a significant provincial football event in China, with a social media reach exceeding 100 billion views [1] - Adidas' investment in local football aligns with its goal to create a systematic approach to football development in China, focusing on grassroots and youth training [1]

Core Viewpoint - The company has obtained the Adidas laboratory certification, which is valid for two years, enhancing its collaboration with Adidas and improving its market competitiveness [1] Group 1: Certification Details - The company's laboratory recently passed the Adidas laboratory certification, receiving a certificate valid from January 21, 2026, to January 21, 2028 [1] - The company will become an approved supplier for Adidas in May 2024 and has actively pursued laboratory certification [1] Group 2: Impact on Business - Following the certification, the company can conduct independent testing and analysis for 22 testing items related to polyurethane synthetic leather and TPU materials supplied to Adidas [1] - The certification is expected to deepen the partnership with Adidas, expand sales, and enhance the company's brand influence and market competitiveness [1]

Investment Rating - The report maintains a "Positive" investment rating for the textile, apparel, and luxury goods industry [9]. Core Insights - The current inventory replenishment cycle in the U.S. apparel industry is characterized by weak elasticity due to several factors, including K-shaped consumer spending, misalignment in brand recovery rhythms, and constraints faced by comprehensive sports brands [3][6]. - Despite the transition from inventory destocking to replenishment, the expected rebound in manufacturing performance and market response has not materialized as anticipated [6][19]. - The report forecasts limited replenishment elasticity in the near term, with potential improvements in terminal demand expected after the current interest rate cycle concludes [3][8]. Summary by Sections Introduction - The report discusses the weak momentum in the current manufacturing replenishment cycle, noting that the U.S. apparel industry has transitioned to a phase of active replenishment after reducing inventory to healthy levels since Q1 2023 [6][17]. Analysis of Weak Replenishment Cycle - **Macro Perspective**: U.S. consumer spending is experiencing K-shaped differentiation, where high-income households support overall consumption while lower-income households face suppressed purchasing power and willingness to spend [7][32]. - **Brand Perspective**: The misalignment in recovery rhythms among brands has diluted overall replenishment elasticity, with brands like Adidas and Deckers already undergoing several quarters of replenishment without strong retail catalysts [7][30]. - **Industry Perspective**: The growth potential in the sports category is diminishing due to factors such as slowing penetration rates, reduced technological innovation, and diminishing returns from direct-to-consumer (DTC) strategies [7][30]. Future Replenishment Elasticity Expectations - In the short term, historical inventory cycles suggest that mature brands may experience shorter replenishment periods, while growth-oriented brands could see longer cycles [8][19]. - The report indicates that after the current interest rate cycle, retail demand may improve, leading to a more resilient growth trajectory for top brands transitioning into replenishment phases [8][19]. - Recommended stocks include Crystal International and Shenzhou International, with a focus on companies like Wah Lee and Yue Yuen [8][19].

Core Insights - NIKE Inc. and adidas AG are two leading brands in the global sportswear industry, each with distinct strategies and market positions [1][2] - NIKE holds a dominant market share, leveraging its scale and direct-to-consumer model, while adidas focuses on heritage and lifestyle integration [2][3] NIKE's Positioning - NIKE's investment case is supported by its significant market share and brand equity, with a diversified portfolio that includes Running, Basketball, and Training [5] - The company is focusing on sport-led innovation and portfolio discipline, prioritizing major franchises and enhancing digital engagement [6] - Despite its strengths, NIKE faces challenges such as uneven growth across geographies and margin pressures from promotions and inventory management [7] adidas's Positioning - adidas is experiencing renewed brand momentum and growth across various regions and categories, positioning itself as a significant player in the sportswear market [8][10] - The company emphasizes a balance between Performance and Lifestyle, with strong growth in Running and Football, and a focus on connecting sport with street culture [11] - adidas has shown improved margins and operating leverage, indicating effective expense management and brand investments [12] Financial Estimates - The Zacks Consensus Estimate for NIKE's fiscal 2026 sales indicates a modest growth of 1%, with a significant EPS decline of 28.2% [13] - In contrast, adidas's estimates suggest a robust year-over-year growth of 13.5% in sales and an impressive 88.7% in EPS for 2025 [14] Stock Performance and Valuation - Both NIKE and adidas have seen stock declines in the past three months, with NIKE down 5.8% and adidas down 17.6% [17] - NIKE's forward price-to-sales (P/S) multiple is 1.98X, while adidas's is 1.05X, indicating a more attractive valuation for adidas [20][19] Conclusion - NIKE and adidas present distinct strengths, but adidas currently shows better momentum and profitability improvements, making it a more favorable investment option [22][24] - NIKE remains a long-term player, but adidas's current positioning offers a compelling risk-reward profile for investors [25]