Adidas Global CEO: We're in a Better Place Than Three Years Ago and Will Advance Further in Three Years | The Frontline
"The Chinese market is definitely very important to us. In the next 10 years, even if China doesn't become the most important sports and athletic market globally, it will be one of the most important ones."
On October 13th, Björn Gulden, the Global CEO of Adidas, reiterated his expectations for the Chinese market during an interview with 36Kr at Shanghai Jiao Tong University.
Amid the impact of tariffs and the shadow of geopolitics, the steady growth of the Chinese market is particularly valuable to Adidas. In the past nine quarters, Adidas' Greater China region has achieved double - digit growth in performance continuously. This is largely due to its in - depth localization strategy, including product design and marketing tailored to the needs of Chinese consumers.
Localization: Not only for China in China, but also going global
After Gulden took office, Adidas implemented a localization strategy in various regions around the world. So far, the Chinese market has the fullest authorization. Since April 2022, Simon Siu has been the Managing Director of Adidas Greater China, and he is also the first Chinese to hold the position of regional managing director at Adidas.
Björn Gulden and Simon Siu
During the interview, Gulden expressed his complete trust and expectations for the Chinese team led by Simon Siu. "Consumers in any market need our very specific and special attention. That's why I always say that Mr. Siu and his team are the best decision - makers for the Chinese market."
The exact location of Adidas' Greater China headquarters was moved to the West Bund of Xuhui, Shanghai in 2025 and will be officially put into use in 2026. This decision is also the result of the efforts of the Chinese team. Simon Siu said in the interview that the new headquarters will have more space to accommodate more employees, facilities, and functional centers, including a creative center.
This year also happens to be the 20th anniversary of the establishment of the Creation Center Shanghai (CCS). The CCS undertakes the task of local design. In 2022, CCS accelerated the expansion of its team size. Now it has a complete talent team of more than 100 people, including designers, product managers, and operation and development teams, which connects the complete link from insight to creativity and then to products. Many popular items on social networks, such as waffle jackets and tulip skirts, are actually designed by CCS.
"We have many products designed and produced for consumers 'in China, for China'. Different from before, now more of our products are designed in China and exported from China to other global markets." Gulden mentioned in the interview.
Now, more than 95% of Adidas' products in China are manufactured in China, and 60% of the products are designed in China. The proportion of local design is even higher in the clothing category, accounting for about 70%. These products are not only popular in the Chinese market but also exported back to Southeast Asian and East Asian markets.
The integration of sports and fashion will deepen, and the next hot spot is football
To better adapt to the trend of sports becoming more fashionable and part of daily life, Adidas proposed a product cycle of "from the stadium to the street, then to the catwalk, and then back to the stadium". Gulden mentioned in a previous financial call that in terms of products, performance sports shoes will gradually enter the street scene, and lifestyle running will become an area that Adidas focuses on.
In the past period, Adidas' flagship running shoe, the Adizero 0 series, has become "the best - selling shoe model in many global markets and many retail channels", which also benefits from its good performance in the mass market after the expansion of colors and materials.
"First, we need to develop the latest technology and produce the best running shoes; second, we need to invest in runners and athletes, provide them with the best shoes to help them win competitions. Then we need to build more and larger markets, occupy the markets for daily running and comfortable scenarios, and develop more related products. We can first develop these high - tech products and then scale them up and commercialize them." Gulden explained to 36Kr how Adidas will maintain its leading position in the running market.
In the second quarter of this year, both Adidas' sports performance and sports fashion businesses achieved double - digit growth, with year - on - year increases of 12% and 13% respectively. By category, Adidas' footwear revenue increased by 9% year - on - year, and the revenue of the running business represented by the ADIZERO 0 series increased by more than 25% year - on - year.
When talking about future trends, Gulden believes that "the fashionization of football" will be the next explosion point.
"Football clothing has broken through the boundary of scenarios. Not only are there fans and male consumers, but more and more girls are also starting to wear football clothing and football shoes. All kinds of fashionable football shoes are frequently seen on the street. This wave of 'football fashionization' may become the explosion point next year."
Adidas originated from the football field. In the upcoming World Cup next year, Adidas will sponsor 20 teams. Adidas was also the sponsor of Argentina, the champion of the 2022 World Cup.
"We do our best to get close to consumers and meet their needs in the three major fields of sports, fashion, and comfort. The combination of these three factors points in a very favorable direction for us. We are a better company than we were three years ago. I will also strive to make sure that we will be an even better company than we are today three years from now."