Sports Business/08/17/2017

Sporting Goods Manufacturer Adidas Focuses its Marketing on Six Major Cities

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Under the leadership of CEO Kasper Rorsted, Adidas is concentrating its global marketing activity solely on these six major cities: Shanghai, New York, London, Paris, Tokyo and Los Angeles. The Bavarian company invests 2.5 million euros each year in its comprehensive marketing strategy. 

Adidas wants to concentrate its global market activities on six major cities.
Adidas wants to concentrate its global market activities on six major cities.

“If we are successful in these cities, our brand will be sought-after worldwide,” explained Sales Director Roland Auschel in an interview with Handelsblatt about the global corporation’s decision. In these six global cities which now find themselves at the center of a new marketing strategy, Adidas is looking to establish sports communities, organize large sporting events, and in doing so, bring athletes together.

More than 100 million euros of revenue in the first six months in Shanghai

According to Roland Auschel, Shanghai serves as a perfect example for the success of the new strategy. Revenue in the Chinese city amounted to 100 million euros in the first half of this year: more than in Austria and Switzerland together.

Adidas Sales Director Roland Auschel.
Adidas Sales Director Roland Auschel.
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Adidas forecasts significant success: revenue should rise on average by 10 to 12 percent, and profits by up to 22 percent. Adidas is not alone with its city strategy: competitor Nike is also concentrating its marketing activities on various cities. But in this case there are 12 cities in question, including a location in Germany: Berlin. 

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