Core Insights - Adidas showcased its Spring/Summer 2026 collection at the Shanghai Fashion Week, marking a significant event for the brand in the Chinese market [1] - The local team has driven a turnaround in performance, achieving growth for nine consecutive quarters since the appointment of the new managing director in 2022 [1][2] - The Shanghai Creative Center (CCS), celebrating its 20th anniversary, plays a crucial role in this success, with over 60% of products designed locally and 95% manufactured in China [1][2] Group 1: Event Highlights - The fashion show featured a diverse range of elements including racing, ice hockey, martial arts, and street dance, which resonated with various consumer interests [1] - Over 80% of the showcased items will be available to consumers in stages, emphasizing the local team's creative expression [2][4] - The event was a culmination of four months of preparation by the CCS team, highlighting their commitment and innovative approach [2] Group 2: Strategic Focus - Adidas emphasizes a localized approach to product development, with CCS evolving through key milestones such as the 2008 Beijing Olympics and collaborations with local celebrities [3] - The brand aims to explore new possibilities by understanding consumer needs and engaging in co-creation with younger audiences [5][7] - The CCS has become a central hub for global product distribution, with approximately 25% of locally designed products being exported [8] Group 3: Consumer Engagement - The company prioritizes direct interaction with consumers to gather insights and feedback, which informs product development [6][9] - The focus is on creating emotional connections with consumers, recognizing the shift towards co-creation in brand-consumer relationships [7][9] - The CCS aims to integrate traditional Chinese culture into its products, enhancing their appeal both domestically and internationally [10][12]

Core Insights - The concept of House Code is essential in the fashion world, representing the core identity and value system of a brand, which ensures its relevance amidst changing market trends [1] - Adidas is redefining its House Code by extending its reach into the fashion domain while maintaining its core identity, particularly through localized interpretations of its iconic three stripes [1][2] Group 1: Brand Strategy and Innovation - Adidas showcased its latest collection at Shanghai Fashion Week, inspired by the "POWER OF THREE," highlighting three key areas: speed in sports, Eastern rhythms, and street self-expression [2] - Over 80% of the creative ideas presented during the fashion show are expected to be commercialized in the coming year, indicating a strong focus on turning innovative concepts into marketable products [2] Group 2: Consumer Trends and Product Development - The definition of "sportswear" among Chinese consumers, especially the younger generation, has shifted from professional functionality to everyday fashion, with significant growth in products like the ADIZERO EVO SL contributing nearly 30% to global running shoe sales [4] - The FOS "Pioneer Sports" series has gained popularity by merging the brand's sports DNA with urban functionality, appealing to both domestic and international consumers [4] Group 3: Localization and Creative Center - The Adidas Creative Center Shanghai (CCS) has been pivotal in localizing products since its establishment, with notable projects including the Chinese sports delegation's uniforms for the 2008 Olympics and the "Martial Arts" series in collaboration with Jet Li [5] - CCS has increasingly contributed to Adidas' product matrix, with a growing number of "China-first" creative products launched monthly, reflecting the brand's commitment to local market insights [6] Group 4: Consumer Engagement and Feedback - The brand has learned from past missteps, such as the initial FOS series, emphasizing the importance of continuous dialogue with consumers to refine and improve product offerings [6] - The recent pet product line illustrates Adidas' responsiveness to market needs, with adjustments made based on consumer feedback regarding size variations for different pet breeds [6] Group 5: Global and Local Synergy - Adidas' strategy of "global genes, local innovation" aims to resonate with Chinese consumers by creating products that genuinely appeal to their preferences [9] - The CCS is positioned as one of Adidas' four global creative centers, facilitating talent exchange and enhancing the brand's ability to cater to diverse markets [7]

Core Insights - The global sports footwear and apparel industry is largely defined by the competition between Nike and Adidas, with a historical context of dominance by German, American, and Japanese brands before Nike's rise in the 1980s [1] - In the Chinese market, Nike and Adidas have faced increasing competition from domestic brands like Anta and Li-Ning since 2017, leading to a decline in Adidas's market share [1][10] - Adidas is actively working to regain its position in the Chinese market, showing a notable increase in revenue and market strategies [10][12] Market Dynamics - Nike's market share in China has decreased from 18.1% in 2021 to 16.2% in 2024, while Adidas's share has dropped from 15% to 8.7% in the same period [14] - Anta's market share increased from 9.8% to 10.5%, and Li-Ning's share rose slightly from 9.3% to 9.4% [14] - The competitive landscape is intensifying, with domestic brands gaining traction and impacting the pricing power of established international brands [6][22] Financial Performance - Nike's revenue in Greater China fell by 10% to $1.512 billion (approximately 10.775 billion RMB) for the latest fiscal quarter, with a decline in both direct and wholesale channels [4][5] - Adidas reported a 2.2% increase in revenue to €5.952 billion (approximately 49.625 billion RMB) in Q2, with a significant contribution from the Greater China region, which saw an 11% increase [10][11] - The operating profit margin for Adidas in China reached 22.7%, surpassing its margins in Europe and North America [11] Strategic Initiatives - Adidas's CEO, Bjorn Gulden, has been actively engaging with the Chinese market, emphasizing the importance of local production and design [12][14] - Nike is also increasing its investment in China, focusing on enhancing its retail experience and product offerings to regain market share [17][20] - Both companies are facing pressure from the rise of domestic brands, which are improving product quality and competitive pricing [8][22]

Core Insights - The competition between Nike and Adidas has defined the global sports footwear and apparel industry, with both brands historically dominating the market [1][2][3] Market Dynamics - Nike surpassed Adidas in North America in 1980, achieving a market share of 50%, while Adidas struggled due to a lag in the sports fashion trend [2] - Adidas began to recover in the 1990s by focusing on sports fashion and launched the Originals retro series in 1996, maintaining over 20% growth since 1994 [2] - In China, the competition has intensified since 2017, with domestic brands like Anta and Li Ning rapidly gaining market share, leading to a decline in Adidas's position [3][4] Financial Performance - As of the latest fiscal quarter ending August 31, 2025, Nike's revenue in Greater China fell by 10% year-on-year to $1.512 billion (approximately 10.775 billion RMB), with declines across various channels [7] - Adidas reported a 2.2% year-on-year revenue increase to €5.952 billion (approximately 49.625 billion RMB) in Q2, with Greater China being a significant growth driver, showing an 11% increase to €798 million (approximately 6.653 billion RMB) [12] Competitive Landscape - The domestic sports market is under pressure, with brands like Peak reporting significant losses and implementing salary cuts [9] - The rise of domestic brands has eroded Nike's pricing power, as they offer high-quality products at competitive prices [10] Strategic Moves - Adidas's CEO, Bjorn Gulden, has made multiple visits to China, indicating a strategic focus on the market, which is crucial for the brand's recovery [13][14] - Nike is also increasing its investment in China, planning to enhance its retail experience and product offerings to regain market share [17][20] Market Share Trends - Adidas's market share in China has dropped from 15% in 2021 to 8.7% in 2024, while Nike's share decreased from 18.1% to 16.2% [14] - Anta and Li Ning have increased their market shares, with Anta rising from 9.8% to 10.5% and Li Ning from 9.3% to 9.4% [14] Leadership Changes - Nike has appointed Dong Wei as the new chairperson and CEO for Greater China, emphasizing the importance of the Chinese market for its overall strategy [20][21]

Core Insights - The global sports footwear and apparel industry is largely characterized by the competition between Nike and Adidas, with a historical context of dominance by German, American, and Japanese brands before Nike's rise in the 1980s [1][2]. Market Dynamics - Nike surpassed Adidas in North America in 1980, achieving a market share of 50%, while Adidas struggled due to a lag in the sports fashion trend [2]. - Since 2017, domestic brands like Anta and Li-Ning have rapidly gained market share in China, leading to a significant decline in Adidas's position, which fell below Nike, Anta, and Li-Ning by 2024 [3][4]. Performance Metrics - In the Chinese market, Nike's market share decreased from 18.1% in 2021 to 16.2% in 2024, while Adidas's share dropped from 15% to 8.7% during the same period [12]. - As of the latest fiscal quarter, Nike's revenue in Greater China fell by 10% to $1.512 billion (approximately 10.775 billion RMB), with a notable decline in both direct and wholesale channels [7]. Competitive Strategies - Adidas reported a 2.2% increase in revenue to €5.952 billion (approximately 49.625 billion RMB) in Q2, with Greater China being a key growth driver, showing an 11% increase to €798 million (approximately 6.653 billion RMB) [11]. - Adidas's operating profit margin in China reached 22.7%, surpassing that of Europe and North America, indicating a strong performance in the region [11]. Brand Positioning - Domestic brands are increasingly competitive, with claims that they have closed the product gap with Nike, focusing on high-quality products at competitive prices [9]. - Nike is responding to market pressures by enhancing its investment in China, including the transformation of retail spaces into sports experience centers and optimizing product offerings [15][18]. Leadership Changes - Nike appointed Dong Wei as the new chairperson and CEO for Greater China, emphasizing the importance of the Chinese market in its recovery strategy [18][19].

Core Viewpoint - Adidas is increasingly focusing on the Chinese market, recognizing its potential for sustainable long-term growth due to its large population base, which contrasts with the saturation of the sports market in Europe [5][6]. Group 1: Company Performance - Under CEO Bjorn Gulden's leadership, Adidas has seen continuous revenue growth, with global revenue reaching €12.105 billion in the first half of the year, a year-on-year increase of 7.3% [5]. - The net profit attributable to shareholders for the same period was €798 million, reflecting a significant year-on-year growth of 121.4% [5]. - The Greater China region has been a key strategic market, contributing €1.827 billion in revenue during the first half of the year, which is a 13% increase year-on-year [5]. Group 2: Market Strategy - Gulden emphasizes the importance of "localization" in achieving success in overseas markets, advocating for empowering local teams to make decisions based on consumer preferences [7]. - The company recognizes that consumer demands can vary significantly between different markets, necessitating a tailored approach to product offerings [7]. - Currently, 95% of the products sold in China are "Made in China," with a growing number of products designed locally, which are well-received by both Chinese and international consumers [7].

Core Insights - Adidas is increasingly focusing on the Chinese market, which currently accounts for approximately 15% of its global performance [1][4] - The CEO, Bjoern Gulden, emphasizes the importance of localizing strategies and empowering local teams to make decisions [5][6] - The company has seen continuous revenue growth, with a 7.3% increase in global revenue and a 121.4% increase in net profit year-on-year for the first half of the year [4] Market Performance - In the first half of the year, Adidas achieved global revenue of €12.105 billion, with a net profit of €798 million [4] - The Greater China region contributed €1.827 billion in revenue, reflecting a year-on-year growth of 13% [4] Strategic Focus - Adidas aims to integrate sports into urban development in Shanghai through sponsorships and events [1] - The company is leveraging past successful products to maintain momentum in the market [5] - 95% of products sold in China are manufactured locally, with an increasing number of designs originating from China [6]

Core Insights - The Chinese market is crucial for Adidas, expected to be one of the most important sports markets globally over the next decade, despite geopolitical challenges [1] - Adidas has achieved double-digit growth in the Greater China region for the past nine quarters, largely due to localized strategies tailored to Chinese consumer preferences [1] Localization Strategy - Adidas has implemented a global localization strategy, with China being the most empowered market, led by the first Chinese regional managing director, Xiaojia Le [2] - The company expresses full confidence in the Chinese team under Xiaojia Le's leadership, emphasizing the need for specific attention to local consumers [3] Headquarters and Creative Center - Adidas will relocate its Greater China headquarters to Xuhui West Bank in Shanghai by 2025, with the new headquarters set to accommodate more employees and facilities [3] - The Shanghai Creation Center, which focuses on local design, has expanded its team to over 100 members, contributing significantly to product development [3][4] Product Development and Manufacturing - Over 80% of Adidas products in China are manufactured locally, with more than half designed in China, particularly in apparel where local designs account for about 70% [4] - Products designed in China are not only popular domestically but also exported to Southeast Asia and East Asia [4] Market Trends and Product Strategy - Adidas is adapting to the trend of sports fashion, promoting a product cycle that transitions from the sports field to streetwear and back [5] - The company reported double-digit growth in both sports performance and sports fashion segments, with running products, particularly the Adizero series, seeing over 25% revenue growth [5] Future Outlook - The trend of "football fashion" is anticipated to be a significant growth area, with increasing interest from female consumers in football apparel [6] - Adidas aims to meet consumer demands across sports, fashion, and comfort, positioning itself for continued improvement over the next three years [6]

Core Insights - Adidas is placing greater emphasis on the Chinese market, as evidenced by CEO Bjorn Gulden's increased presence in China and participation in the Shanghai Advisory Council [1][6] Financial Performance - In Q2, Adidas reported a revenue increase of 2.2% year-on-year to €5.952 billion, with a 12% growth rate when excluding Yeezy's impact [2] - Revenue from the Greater China region grew by 11% to €798 million, contributing 13.4% to total revenue, second only to Europe [2][3] Market Dynamics - The operating profit margin in the Chinese market reached 22.7%, surpassing Europe at 21.9% and North America at 12.8% [4] - The North American market faces uncertainties due to tariffs, making the Chinese market more attractive for growth opportunities [3] Strategic Initiatives - Adidas is empowering its Chinese team, with 95% of products sold in China being "Made in China" and a focus on original designs [5] - The new Greater China headquarters in Shanghai will accommodate over 1,500 employees, indicating a long-term commitment to the market [5]

Group 1 - Adidas is placing greater emphasis on the Chinese market, with CEO Bjorn Gulden attending the Shanghai Advisory Council for the second consecutive year and making his fourth visit to China in three years [2][3] - In Q2, Adidas reported a revenue increase of 2.2% year-on-year to €5.952 billion, with a notable 11% growth in the Greater China region [4][5] - The Greater China market accounted for 13.4% of Adidas's total revenue, making it the third-largest market after Europe and North America [5] Group 2 - The operating profit margin in the Chinese market reached 22.7%, surpassing Europe at 21.9% and North America at 12.8%, indicating its strategic significance for Adidas [6][7] - Adidas is empowering its Chinese team, with 95% of products sold in China being "Made in China" and a shift towards original designs [7] - The new headquarters for Adidas in Greater China will be located in Shanghai, accommodating over 1,500 employees, suggesting an increased commitment to the market [7][8]