The localization strategy continues to take effect. Adidas' revenue in Greater China increased by 11% year-on-year in Q2 of 2025 | The Frontline

Adidas recently released its financial report for the second quarter of 2025, showing that the company's global revenue reached 6 billion euros, a year-on-year increase of 12%; the operating profit was 546 million euros, a significant year-on-year increase of 58%; due to the reduction in discounts and the decline in product and freight costs, which mitigated the impact of currency and tariffs, the gross profit margin increased to 51.7%. The total revenue in the first half of the year was 12.105 billion euros, a year-on-year increase of 14%; the operating profit reached 1.2 billion euros, a rise of 70%.

Behind the growth is the continuous advancement of Adidas' dual - wheel drive strategy of "sports performance + sports fashion". The running shoe business performed remarkably. The global sales of the ADIZERO series increased by more than 25% year-on-year, and the wearing rate among runners in the Chinese market increased significantly. Adidas frequently appeared in marathons and track and field events, supporting many Chinese athletes to achieve good results, which further promoted the brand's influence. The financial report shows that in the second quarter, the ADIZERO EVO SL contributed nearly 30% of the growth to Adidas' global running shoe business.

In terms of regional business, Adidas continued to promote the strategy of "In China, for China", and the performance in the Greater China region achieved "quality growth" for nine consecutive quarters. The financial report shows that in the second quarter, the Adidas brand achieved a revenue of 798 million euros in the Greater China region, a year-on-year increase of 11%. In the first half of this year, the Adidas brand contributed a revenue of 1.827 billion euros in the Greater China region, a year-on-year increase of 13%.

The first Adidas Originals flagship store that opened on Anfu Road in Shanghai this summer is a perfect embodiment of this strategy. On the opening day of the store, the Adidas Originals pet product series created by the Shanghai Creative Center on its 20th anniversary was globally launched for the first time. The store also displayed trendy works by designers such as Edison Chen and Caroline Hu.

In addition, Adidas is continuously strengthening its local penetration by collaborating with universities such as Tsinghua and Fudan, supporting campus sports, opening flagship stores, and collaborating with local designers. This strategy helps the brand get closer to Chinese consumers and achieve comprehensive local integration from products, marketing to culture.

Adidas Originals launched a series of promotions combining local culture and brand stories on Anfu Road in Shanghai

Behind the outstanding achievements, the challenges cannot be ignored. Adidas CEO Kasper Rorsted, who is always outspoken, pointed out in the earnings conference call that the company was affected by tens of millions of euros in tariffs in the second quarter, and the product cost in the United States is expected to increase by about 200 million euros for the whole year. Analysts believe that the United States' additional tariffs on products from countries such as Indonesia and Vietnam may indirectly increase its global supply chain costs, which may force the brand to adjust its pricing strategy or transfer some of its production capacity.

According to Reuters, as of 2024, Vietnam and Indonesia, the two largest product - sourcing countries for Adidas, accounted for 27% and 19% of Adidas' total product output respectively. Like many other sportswear companies such as Puma, Adidas has pre - purchased products to the United States in an attempt to avoid tariffs.

Nevertheless, Adidas maintains its expectation of double - digit revenue growth for the whole year. It plans to ease external pressure through a more competitive product line, strengthening cooperation with retailers, and improving marketing efficiency. It is expected that under currency - neutral conditions, the revenue of the Adidas brand will maintain a double - digit growth trend in 2025, and the operating profit will remain between 1.7 billion and 1.8 billion euros.