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Football continues to be Adidas forte

Adidas is celebrating 70 years. The sports giant is in the fourth year of its strategy cycle but could only expand the top line in the first half by about four per cent. In India, the brand has a very strong business in football and running. Adidas is the clear market leader in India, it is not just the biggest sportswear company but has also established the most sustainable and profitable business model that operates in India. Over time, Adidas sees India as having the same competitive set found in other markets. Today, Adidas has access to roughly 25 million consumers in India and is optimistic these 25 million consumers over the next few years will become many more.

As a company Adidas spends €3 billion a year to create brand demand or brand heat. Of which, roughly half is against sponsorships, athletes, collaborations with federations and clubs, and the other half is used to activate its innovations. Of the half on athletes and clubs, a lion’s share is still football. Other than that the company invests in basketball, Olympic sports, tennis, and continues to sponsor marathons. But football has defined the brand and major investments in terms of endorsements will continue to be in the football space.

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