Sections

ideals
Business Essentials for Professionals



Adidas Reiterates Confidence Of Strong Growth In China In 2022


19/02/2022


Adidas Reiterates Confidence Of Strong Growth In China In 2022
China has been a crucial market for the German sportswear company Adidas where its business has been severely hit because of the re-imposition of the restrictions linked to the Covid-19 pandemic last year as well as a call for a mass boycott of its products and other Western brands.
 
However, the company is now confident that it would rebound in this key market in the current year and register strong growth.
 
According to a report published in Manager Magazin, the expectation of the German company is to report a fall of 400 million euros ($455 million) in its business in China. The report however did not cite any credible source for the information.
 
The latest comment from Adidas was made as a rebuttal to the report.
 
"Our business in China grew in 2021 and our business in China will grow in 2022 as well," said a spokesperson for the company to queries about the published news article.
 
The company had reported a 15 per cent drop in its sale revenues in Greater China for the third quarter. However, the sale of the company in the region in the first nine months of the year was up by 15 per cent.
 
The company is set to report its results for the entire year on March 9.
 
Over the past year, there has been a backlash on Chinese social media against a host of Western brands which had said that they would not source cotton for their products that are produced in Xinjiang because of global allegations against the Chinese authorities of abuse of human rights against Uyghur Muslims of the region.
 
China has repeatedly denied such charges against it.
 
An action plan aimed at staging a rebound in its Chinese business had been launched by it, Adidas had said last year. The Chinese market has been a crucial growth market for the company for a long time. The importance of the Chinese market for the company is evident from the fact that it has established a dedicated studio for marketing for the market and is increasing the development of its products that are solely targeted for the Chinese market.
 
The business situation of the company in China had been so acute that it had forced Adidas sales chief Roland Auschel to travel to China in January this year even in the face of severe Covid-19 pandemic-related quarantine requirements, said the report published in Manager Magazin.
 
Adidas’ competitor in the market Nike said in December noted a drop of 20 per cent in its sale revenues in Greater China in its fiscal second-quarter because of a range of issues in its supply chain as well as the re-imposition of pandemic induced lockdowns in the market.
 
(Source:www.businesstimes.com.sg)