Retail in Asia

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adidas banks on high fashion to reach new markets in China

The fight for the title of China’s top sports apparel brand is becoming a one-on-one match between Germany’s adidas AG and the American superstars, Nike, who currently holds the top ranking.

"China has shown that it is more interested in leisure and fashion than any other country" where adidas operates, adidas CEO Herbert Hainer said. The company plans to bank on this burgeoning market by promoting lines of high fashion and children’s wear. In doing so, adidas hopes to surpass its estimated USD1.3 billion revenue in 2011 for China, Hong Kong, and Taiwan, but the competition is fierce.

The market research firm Euromonitor pegs Nikes as the country’s number-one producer of sportswear, with 7,500 outlets that sell its products across the country compared to adidas’s 6,700 retail stores.

(Source: red luxury)