The effectiveness of the localization strategy is evident as Adidas Greater China returns to double-digit growth | The Frontline

On March 5th, Adidas released its financial report for the fourth quarter and the full year of 2024.

The financial report shows that in 2024, Adidas' global revenue reached 23.683 billion euros, a 12% increase year - on - year on a currency - neutral basis (the same below). During the same period, Adidas' operating profit increased by more than 1 billion euros year - on - year to 1.337 billion euros; the gross profit margin also increased by 3.3 percentage points year - on - year to 50.8%.

Among them, in the fourth quarter of 2024, Adidas achieved global revenue of 5.965 billion euros, a 19% year - on - year increase, and the gross profit margin increased by 5.2 percentage points year - on - year to 49.8%. Inventory has been further improved, and the inventory clearance of YEEZY shoes has been completed.

As one of Adidas' most important strategic markets, the Greater China region has achieved "quality growth" for seven consecutive quarters, and its annual revenue has returned to double - digit growth. The financial report shows that in the fourth quarter of 2024, Adidas' revenue in the Greater China region was 794 million euros, a 16.1% year - on - year increase; the annual revenue was 3.459 billion euros, a 10.3% year - on - year increase. Currently, Adidas has approximately 8,000 employees in the Greater China region.

Xia Jiale, the Managing Director of Adidas in the Greater China region, believes that Adidas' performance in the Greater China region is due to Adidas' unique product approach and its close cooperation and interaction with Chinese partners and consumers. In the future, Adidas will continue to deepen its localization strategy to better meet the needs of Chinese athletes and consumers.

In the past year, Adidas' interpretation of sports fashion has been remarkably effective. In addition to the hot - selling T - TOE shoes, Adidas has also successfully extended the hit - product model to the apparel category: products such as football knits inspired by Chelsea's classic jerseys and sweaters with retro - pattern jacquards, and a pair of Baggy Style jeans from the Adilenium series launched by adidas Originals at the end of 2023 are gaining popularity on social networks, proving that Adidas still has a good grasp of the retro trend.

Adidas sweater with retro - pattern jacquard

Adidas' Global CEO, Bjørn Gulden, also talked about competition and marketing style during the earnings conference call. In addition to mentioning that the "biggest competitor" is struggling, he believes that "those new running brands will still perform well, but they are not a threat to Adidas." Gulden believes that a marketing expense ratio of 12% is sufficient. In 2025, in addition to the two major ball sports, Adidas will continue to invest in niche sports such as rock climbing, marathons, skiing, and hiking, as well as emerging athletes, to expand the brand's influence in these sports circles.

Gulden finally said, "The operating performance in the fourth quarter and the full year of 2024 was satisfactory. We achieved double - digit growth in 2024, and consumers' and retailers' interest in our sports performance and sports fashion products has been continuously growing. This is due to our consistent approach of serving the local market in a way that suits local consumers. We are full of confidence in the future and see growth potential in all markets. With a trend - setting product line and a more flexible and localized strategy, Adidas is expected to continue to increase brand popularity globally and move towards the goal of becoming a healthier company."