Adidas registered sales of USD 6,736.78 Million in China in 2020
Adidas recorded a historical growth (CAGR) of 3.48% between 2017 to 2020
The Chinese apparel retail market is fragmented, with a large number of both international and local retailers present, which heightens competition to some degree. The COVID-19 pandemic has further intensified competition between leading players in China in 2020. Local manufacturers are upgrading and modernizing their production capabilities, along with adopting omnichannel strategies to compete with international brands.
The apparel retail market includes baby clothing, toddler clothing and casual wear, essentials, formalwear, formalwear-occasion, and outerwear for men, women, boys and girls; excludes sports-specific clothing.
The footwear market consists of the total revenues generated through the sale of all types of men's, women's and children's shoes. It includes all footwear categories for men, women, boys and girls, but excludes sports-specific footwear.
The Chinese footwear retail market experienced strong growth during the historic period that was offset by a sharp drop in value during 2020. The market is expected to recover with strong growth in 2021 which will continue over the forecast period.
Although Chinese footwear retailers have suffered in 2020, the market is expected to make a strong recovery over the forecast period. In comparison to some countries, China was able to recover from the pandemic relatively quickly by imposing some of the world’s strictest lockdown restrictions. This has allowed the market and consumer habits to return to normal, helping facilitate a recovery in the retail sector. With the market starting to recover in the final quarter in 2020, it can expect strong growth to return in 2021 and beyond. Chinese footwear manufacturers have large operations in China which means there is less disruption caused to supply chains for Chinese retailers.
Footwear Market Geography Segmentation
China accounts for a significant position in the Asia-Pacific footwear market value.
Japan is another notable country in the footwear market in the Asia-Pacific region.
Market Distribution
Clothing, Footwear and Accessories Specialists have leading share in market distribution channel.
Online Specialists, Hypermarkets, Supermarkets & Hard Discounters and Department Stores are other channels involved in market distribution of footwear in China.
Adidas returns to sales growth in Greater China
German sportswear giant Adidas says revenue has returned to growth earlier than expected in Greater China after stores were temporarily closed in an attempt to stem the spread of coronavirus and now expects second-quarter sales in the region to be around the prior-year level.
In line with Adidas' expectation for a gradual normalization of its business, almost all own stores in other markets within Asia-Pacific as well as in Emerging Markets have resumed operations.
In Europe, three-quarters of the company's stores have reopened as of today, albeit with the majority operating at reduced hours. While around half of the stores in Russia/CIS have also resumed operations, the opening rates in North America and Latin America are still significantly below.
Looking ahead to the second quarter, Adidas says it does not project a significant deviation from the top- and bottom-line guidance provided in April.
In its first-quarter earnings release, the group said top and bottom-line declines in the second quarter of 2020 are expected to be "more pronounced" than those recorded in the first quarter, with currency-neutral sales projected to come in more than the prior-year level and the operating result to be negative.
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