Adidas Future Plan

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  • Topic: Adidas, Sachin Tendulkar, Reebok
  • Pages : 3 (840 words )
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  • Published : September 23, 2010
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ADIDAS INDIA MARKETING PRIVATE LIMITED

Background
adidas was founded by Adi Dassler in 1948. It remained a family firm till 1988, when it was transformed into a corporation.The adidas Group is the world’s second-largest sporting goods company and had net sales of US$ 7.74 billion in 2004. adidas’ product range includes shoes, apparel and accessories for basketball, golf, soccer, fitness and training.The company has over 14,000 employees, 110 subsidiaries and sources from 840 factories across the world. 60 per cent of the company’s suppliers are based in Asia. In 1997, adidas acquired the Salomon group and the name got changed to Adidas-Salomon AG.The name is expected to change to “Adidas AG” in May 2006 following the acquisition of Reebok.

adidas started in India in 1996 as a joint venture with Magnum Trading, with adidas holding 80 per cent stake. Since December 1995 it has been a 100 per cent subsidiary of the parent company. adidas sells three brands in India – adidas,Taylormade and Maxfli. It sources from 16 factories which employ 3,800 people in India. It retails accessories such as footballs and water bottles in addition to footwear and apparel. adidas has a 25-30 per cent share of the premium footwear market in the country. The market is estimated to be growing at 15-20 per cent annually.The six metros account for nearly 40 per cent of adidas’ sales, but the smaller towns are also playing an important role and showing very healthy growth. Entered India as part of global strategy adidas decided to enter India as part of the company’s global strategy – to take direct control of the markets in Asia.The domestic demand was not high when the company started India operations. In the first 9 years, India was the smallest sub-division in Asia, in terms of revenue.The company believed that India had the potential to become a huge market considering India’s large young population and the changing demographics. Currently out of the 13 subsidiaries in...
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