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 - Adidas CEO Bjørn Gulden's visit to China highlights the importance of the Chinese market in the company's global strategy, marking his fourth visit since taking office in January 2023 [1] - The Chinese market has become a significant revenue source and innovation hub for Adidas, contributing €1.827 billion in revenue in the first half of 2025, a 13% year-on-year increase, accounting for approximately 15% of global revenue [2] - The company emphasizes local decision-making, with Gulden stating that understanding local consumers is crucial for making the right decisions [2] Market Trends - There is a growing consumer interest in running shoes and outdoor sports in China, driven by an increase in health awareness [2] - The blending of sports and fashion is becoming a notable trend, with Adidas observing a rise in demand for stylish football apparel among diverse consumer groups, including women [3] - The upcoming 2026 FIFA World Cup is prompting Adidas to expand its football product offerings, including national team and club jerseys [3] Product Insights - Adidas is witnessing a resurgence in classic styles, with products like Samba, Campus, and Superstar gaining popularity, and a potential return of the all-white sneaker trend anticipated for 2026 [3] - The company has successfully launched several product lines, such as the Samba series, which became a global hit and contributed to a recovery in performance for 2023 [3][4] - The ADIZERO EVO SL running shoe has significantly boosted global running shoe sales, contributing nearly 30% growth in the second quarter of the year [3] Strategic Approach - Adidas' success is attributed to decades of market engagement and the accumulation of experience in product development and marketing [4][5] - The company has built a strong foundation based on its rich brand history, which supports its ongoing innovation and market responsiveness [5]

Group 1 - Adidas reported a revenue of €12.105 billion for the first half of 2025, a 14% year-on-year increase, with an operating profit of €1.2 billion, up 70% [1] - The Greater China region has shown consistent quality growth for nine consecutive quarters, with a revenue of €798 million in Q2, representing an 11% increase, and €1.827 billion for the first half, a 13% increase [1] - The CEO emphasized the effectiveness of the localization strategy, which focuses on understanding local needs and enhancing product performance and fashion [1][2] Group 2 - The Chinese creative team has been increasingly active since 2022, focusing on product design, brand marketing, and supply chain collaboration under a strong localization strategy [2][4] - The aim of the reforms is to regain consumer trust in Adidas, with a focus on product strength as the key to consumer engagement [4] - Adidas has been integrating its historical brand elements with Chinese cultural elements, enhancing emotional resonance with consumers [7][9] Group 3 - The Chinese consumer market has shifted from brand-oriented to self-expression, prompting Adidas to adjust its product offerings accordingly [9] - The running business has become a significant highlight for Adidas in Greater China, contributing nearly 30% growth in global running shoe sales in Q2 2025 [10] - Adidas is responding to more segmented consumer demands, with a growing number of "China-first" creative products launched monthly [12] Group 4 - The concept of "rapid and precise" product launches is emphasized, with a focus on creating products that resonate with consumers while also generating buzz [14] - The strategy includes hidden product releases in flagship stores to create a sense of discovery for consumers [16] - Social media plays a crucial role in understanding consumer needs and driving product innovation [17][20] Group 5 - The localization strategy has empowered local teams, with over 80% of products produced in China and more than half designed locally, indicating a shift towards local talent development [20][22] - The CCS team aims to become a platform for creative talent in China, fostering a connection with consumers through co-created products [22]

Core Insights - Adidas continues its growth momentum, reporting a global revenue of €12.105 billion in the first half of 2025, a 14% year-on-year increase, with operating profit reaching €1.2 billion, up 70% [1] - The Greater China region has shown "quality growth" for nine consecutive quarters, with Q2 revenue of €799 million, an 11% increase, and a total of €1.827 billion for the first half, a 13% rise [1] - The CEO emphasizes the effectiveness of the "localization" strategy, which has been a key focus since Adidas's rebound in 2023 [1] Financial Performance - In the first half of 2025, Adidas achieved a revenue of €12.105 billion, marking a 14% increase compared to the previous year [1] - Operating profit for the same period reached €1.2 billion, reflecting a significant 70% growth [1] - The Greater China region contributed €1.827 billion in revenue for the first half, with an 11% increase in Q2 revenue [1] Localization Strategy - The localization strategy has been pivotal in driving growth, with a focus on understanding local consumer needs and enhancing product offerings [1][22] - The Greater China team has been empowered to make decisions, allowing for greater flexibility in responding to market changes [22] - The creative team in China has been increasingly involved in product design, with over 80% of products produced locally and more than half designed in China [22] Product Development - The Shanghai Creative Center (CCS) has become a key player in product design, focusing on creating products that resonate with Chinese consumers [5][20] - Recent product launches have emphasized a blend of Adidas's historical elements with contemporary Chinese influences, enhancing emotional connections with consumers [9][20] - The running category has emerged as a significant growth area, contributing nearly 30% to global running shoe sales in Q2 2025 [12] Consumer Engagement - Adidas is adapting to the evolving Chinese consumer landscape, shifting from brand-driven to consumer-driven approaches [11] - The brand aims to balance proactive marketing with real-time consumer feedback to create products that reflect individual expression [11] - The introduction of "first launch" products has been a strategy to engage consumers and create memorable experiences [14][16] Future Outlook - The CCS aims to become a platform for creative talent in China, fostering local design and innovation [25] - The brand's commitment to local production and design is expected to enhance its cultural relevance and market position [22][23] - Adidas is focused on building emotional resonance with consumers through tailored products and community engagement [25]

Core Insights - The sports goods consumption continues to grow rapidly, with Adidas reporting a revenue of €12.105 billion for the first half of the year, a 14% year-on-year increase, and an operating profit of €1.2 billion, up 70% [1][3] - The Greater China region has been a significant strategic market for Adidas, contributing €1.827 billion in revenue, a 13% increase year-on-year, marking nine consecutive quarters of growth [1][3] Company Performance - Adidas' gross margin improved by 0.9 percentage points to 51.9% year-on-year [1] - The running category has become a key focus for Adidas, with a notable increase in the adoption rate of their running shoes, particularly during major marathons [1] - Revenue from Adidas' footwear segment grew by 9% year-on-year, with the ADIZERO series driving over 25% growth in the running business [1] Future Outlook - Adidas' CEO indicated that the company faced a €20 million impact from tariffs in the second quarter, with an expected increase of €200 million in product costs in the U.S. for the remainder of the year [3] - Despite these challenges, Adidas maintains its initial full-year outlook, projecting double-digit revenue growth in currency-neutral terms and operating profit between €1.7 billion and €1.8 billion for 2025 [3] - The global sports goods industry is expected to grow at a rate of 6% over the next five years, with 44% of executives expressing cautious optimism about 2025 amid inflation pressures and consumer spending constraints [3]