Jenny Chan 陳詠欣
Apr 29, 2012

You want a marketing challenge, you got it in China: Adidas

SHANGHAI - Speaking at the 2012 Asian Marketing Effectiveness Festival with the same intensity of an athlete under highly rigorous training, Colin Currie, managing director of Adidas Greater China, laid out a game plan to win the sports marketing race in the mainland.

China, North America, Russia to contribute 50% of Adidas sales until 2015.
China, North America, Russia to contribute 50% of Adidas sales until 2015.

"China is changing on a scale, and at a pace, that has never been witnessed before," Currie said. By 2020, it will be the world’s largest economy. This is presenting companies like Adidas with "unparalleled opportunities and unprecedented challenges," he said.

"You want a marketing challenge? You got it, it's here in China!" the Malaysia-born Currie remarked, adding that China is one of the most complex markets on earth, with youths in the higher and lower tiers living in two different worlds.

In first-tier cities, youths want to be special and cool as they seek individuality. For Adidas, this means image branding and tactical executions. Young people in the lower tiers still want to be special and cool without going too far as they are slowly trading up in life. For the German sportswear maker, this means opening stores as quickly as possible to get its brand in the face of young consumers, Currie said.

"The game is moving inland because economic power is expanding from the coast to the west of China". The growth of the country's middle class will come from more than 1,400 lower-tier cities, which actually have greater spending power for apparel and footwear than people in the 100 first-tier urban cities, who are squeezed by higher living costs, according to Currie.

Adidas' strategic business plan for the near term is called ‘Route 2015’, meant to keep the key target group of 14- to 19-year-olds close to the Adidas while a host of vertical brands come into China from the US and Europe to compete for the attention of the Chinese.

Currie explained that it is not just about the size of consumers’ wallets. It is about their hopes and aspirations as their country forges ahead and their lives change.

“Quality is a competitive advantage, and brand equity certainly counts,” he said. “But ultimately it comes down to putting the consumer at the heart of everything—not just selling to them, but listening to them, understanding them, serving them, making real connections with them and winning their affections.”

To beat the competition, Currie revealed Adidas is taking the 'glocal' route, aiming to be more relevant to Chinese youth while retaining international brand positioning. The global 'adidas is all in' campaign for its ClimaCool running shoe leverages the influence of prominent celebrities including David Beckham and Katy Perry, but is localised in China with local boxing champion Zou Shiming and actress Yao Chen.

"Concurrently, there is a rapid decline in nationalism influencing purchase decisions. The taste of Chinese consumers is becoming more international," Currie commented.

Read all of our Asian Marketing Effectiveness Festival coverage.

Source:
Campaign Asia

Related Articles

Just Published

16 hours ago

Generation Greytt: The trillion-dollar market that ...

Armed with unprecedented pocket power and digital savvy, the over-50s are redefining what it means to age. Yet businesses remain fixated on youth, overlooking a demographic that's more adventurous, connected and ready to spend than ever before. Rajeev Lochan opines.

17 hours ago

TBWA dominates in Japan/Korea AOY 2024 awards

Accenture Song and TBWA walked home with multiple metals at the 2024 Campaign Asia-Pacific Agency of the Year awards for Japan and Korea. Check out the highlights here.

18 hours ago

Hong Kong's unique spirit: A 'Never Normal' love ...

Forget dim sums and skyscrapers, over 40 brands and influencers from Hong Kong join forces to embrace the city's chaotic charm, eclectic character, and resilient spirit in an unconventional campaign.

19 hours ago

Global ad spend to hit $1.08 trillion in 2024 as ...

WARC's latest study also reveals tech giants' intensifying dominance of global ad spend and social media leading unprecedented growth—but regulatory headwinds still threaten to reshape this burgeoning landscape.