German sportswear company Adidas has enjoyed a successful and profitable last few years. Since 2015, the brand has grown at an average rate of 17.6%. Nike footwear has only increased by 6.8%. The brand has grown to $5.8 Billion.
In 2019, Kasper Rorsted, Adidas CEO shared,
We had a great start to the year. We saw double-digit sales growth in our strategic growth areas in Greater China, e-commerce, and another big profitability improvement.
He also added:
We are confident about the top-line acceleration in the second half and confirm our full-year outlook. Our 2020 targets will be met with great success in 2019. This milestone will be significant.
Adidas’ simple Miami digital marketing strategy is the key to this success.
This well-executed strategy will allow the company to overthrow its main competitor Nike. Brand’s eCommerce channel is the fastest-growing revenue channel, and all production processes are as digitalized as possible. Digital transformation can also change the way Adidas operates. The company can build closer relationships with customers through technology.
These are 5 things to know about Adidas’ digital marketing agency in Phoenix strategy.
- Technology and digital
Adidas’s five-year strategy, released in 2015, is called “Creating the New”. Adidas describes itself as a digital company and aims to be the best brand of sporting apparel in the world. They use digitalization in the future as a key part of their marketing strategy. The “Best” is the design, build, and sale of the most high-quality sports products in the world. The company spends 90% of its marketing budget on digital campaigns and social media.
- Speed
Adidas’ digital marketing agency in Los Angeles’s strategy includes high-speed manufacturing. The production process was digitalized using 3D printing technology and robotics at Speedfactory Ansbach. Futurecraft 4D Shoes, which are made with light and oxygen, are one example of the brand’s innovative technology.
Running shoes are made to be unique and personal for each athlete. The brand of sporting goods tries to satisfy the high demand. The brand is innovative and collaborative, and the new and desired products are always available for customers wherever and whenever they need them.
- Relationship with consumers
They strive to connect with customers and create personalized, premium experiences. They create excitement and enthusiasm about sports on a personal level. Adidas ensures that every touchpoint, including mobile, social media, and retail, is used by consumers to offer a consistent experience. Adidas uses Big Data and digital analysis to make sure it is everywhere its customers are. Adidas promises multichannel, unique, and unified experiences.
- Open-source innovations and collaborations
Adidas invites all creative people, including consumers, athletes, and partners, to come together and create, share, and shape the future of sports and culture. They aim to bring new products to the market. Parley for the Ocean is part of this initiative, which includes the production of 3 new UltraBoost models using plastic waste from the ocean.
To inspire, the brand collaborates with world-famous athletes, football players, and singers. The 72AndSunny campaign “Calling All Creators” is an excellent example of such collaboration.
- Strategic cities
Adidas has strategic importance in six cities: London, Los Angeles (New York), Paris, Shanghai, and Tokyo. These cities influence consumers’ perceptions, buying decisions, and trends. While they are primarily focused on selling soccer products in Europe, the US is important for other subsidiaries such as basketball and baseball. North America has a 40% share of the global sporting goods market.
- Portfolio
The company constantly reviews its portfolio and focuses on Reebok and Adidas as the core brands. The brand can target more precisely and reduce complexities. The Adidas Neo and Originals brands continue to expand their footwear and apparel lines. Adidas has repositioned Reebok to increase profitability in 2018. Reebok partners with prominent women designers such as Victoria Beckham, and women who are determined to make a difference in the world like Ariana Grande or Gigi Hadid.
Even if Adidas has a strong competitor, they’re trying to be the best sporting goods company in the world and they have no intention to give up the game. Using digital, technology, the right targeting, speedy manufacturing processes, innovation, and collaborations the brand is getting closer to catching the world’s number one. I guess we’ll continue to watch these two sportswear giants’ competitions for long years.