Adidas already pulls in billions upon billions in revenue each year. So what do they want? A little more, of course.
The 88-year-old German shoe and apparel giant is planning to target “teenage girls more influenced by music and fashion than sports” and expand its three-year-old NEOfashion outlets and “exploiting social-media platforms including Facebook and Twitter,” Bloomberg reports.
The hope is that the world’s 14 to 19-year-olds (or their parents, in many cases) will cough up enough cash in that competitive marketplace to net Adidas another $1.3 billion by 2015. Some of NEO's marketing tactics include tapping into teens' love of music, with a love song digital promotionfor Valentine's Day, and convincing David Beckham (who has a longtimeendorsement deal with Adidas) to put his name on a special collection for NEO.
“Teenage girls are a target group we didn't really reach so far, whereas boys are closer connected to Adidas via sports,” said Erich Stamminger, the board member responsible for global brands. “For girls, you need a bit more of fashion influence and that's exactly what we are offering with NEO.”
Since launching in 2008, there are now NEO locations in Japan, Russia and India as well as a thousand stores just in China, Bloomberg reports. A NEO store recently opened in Frankfurt, Germany, with a Berlin store opening Feb. 23rd. Adidas also operates NEO in-store boutiques within such U.S. department stores as Kohl’s and J.C. Penney, although most of NEO’s expansion is expected to take place in Russia and China.
NEO brought in sales of about 400 million euros ($523.7 million) in 2010 and 500 million euros ($655 million) last year for Adidas, according to analyst Mark Josefson of Silvia Quandt Research GmbH estimates quoted by Bloomberg.
0 Comments:
Post a Comment