Friday, February 8, 2008

Adidas tries new format to lift market share

International Herald Tribune.

The German sporting goods maker Adidas is changing the format of its fast-growing global chain of Adidas Originals stores, focusing on customized design and interaction among shoppers to increase market share.
New stores in New York and Berlin opened this past week and feature the new design that will eventually be rolled out in the company's 83 stores worldwide in what Adidas calls its largest marketing campaign ever at its Originals brand.
"In the next 12 to 18 months I think we will have the new format everywhere," said Hermann Deininger, chief marketing officer for sports style at Adidas, the biggest European maker of sporting goods.
The new Originals stores, which sell athletic lifestyle fashion rather than performance gear, will feature workbench-type tables, shoe molds and shoes on display that are split open to show their inner workings.
Shoppers can customize their own shoes, choosing from an array of colors, materials and design options, through interactive computer displays.

Nike, the industry leader, has touted customization at some of its stores, but Deininger said Adidas's move was not a competitive reaction to its larger rival. Adidas had already featured interactive design at its chain of performance-focused stores and through mobile units brought to sporting events, he said.
"It's a permanently evolving concept, the customization, and deeply rooted in the Adidas DNA," Deininger said. "That other brands have similar ideas, that's normal in a competitive environment."
The new marketing strategy and the campaign are starting during New York Fashion Week, which is attended by thousands of journalists.
"Of course, we expect this will have further positive impact on the U.S. market," Deininger said, "and it will strengthen our brand profile here for sure."
Adidas hopes to open 80 to 100 more Originals stores throughout the world this year, Deininger said, adding that the rollout has accelerated because of the popularity of the brand in emerging markets like China and Russia.
Adidas has also teamed up with the jeans brand Diesel to sell co-branded premium denim at the Originals stores. The jeans, designed jointly at both companies, will cost between €160, or $237, and €210.

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