Direct Sales Channel Expansion: Adidas Targets 50% Direct-to-Consumer Revenue Share by 2025
Adidas, the global sportswear giant, has announced a strategic initiative called "Own the Game" aimed at accelerating growth and boosting profitability. The plan, which spans from 2021 to 2025, focuses on increasing direct-to-consumer (DTC) sales and aims to have these channels account for 50% of net sales by 2025, up from the current 30%.
To achieve this goal, Adidas is investing over €1.1 billion extra in marketing, accelerating digital initiatives, shifting product strategy, localizing product offerings, leveraging storytelling and innovation, and prioritizing its membership and apps.
The marketing investment will be used to build brand momentum and emotional engagement with consumers. Digital initiatives will focus on e-commerce and direct channels, aiming to better control the customer experience and margins, despite upfront costs in supply chain management.
Adidas is also phasing out lower-margin collaborations like Yeezy and focusing on high-performance and lifestyle franchises such as Adios Pro Evo, Boston 13, F50 Sparkfusion, and relaunches like Superstar. The company aims to target technical innovation and cultural resonance with these products.
Regional preferences will be considered in product offerings, with key regions like Greater China, Japan, and South Korea receiving customised products. Adidas also plans to embed the brand within sports and cultural moments, enhancing brand credibility and customer loyalty.
The strategy has already shown promising results, with a 13% currency-neutral sales rise in Q1 2025, and the Adidas brand itself growing 17% during this period. However, the plan requires sustained marketing spend and supply chain investment, with risks around maintaining product momentum and managing inventory without heavy discounting.
Adidas also plans to make nine out of ten of its products sustainable by 2025, and aims to triple its membership base to 500 million members by 2025. The company also aims to grow net sales by 8% to 10% each year and net income by 16% to 18% each year.
The retailer aims to be either the No. 1 or No. 2 retailer in each of the categories it operates in. Adidas plans to own 95% of its sales growth over the next five years in the product categories of Soccer, running, training, outdoor, and lifestyle.
Adidas' e-commerce sales are expected to double, reaching between €8 billion and €9 billion by 2025. The company plans to shift to a DTC-led model by 2025, with direct-to-consumer sales making up 50% of net sales. Adidas Factory Outlets will continue to grow and be upgraded.
In addition, Adidas is introducing a new consumer proposition, dubbed Sportswear, which is in addition to Adidas Performance and Adidas Originals. The creation of Sportswear will allow Adidas to develop a dedicated sports lifestyle collection and roll out sportswear-specific experiences at the point of sale.
Running, training, and outdoor is expected to make up 40% of industry growth through 2025, while lifestyle is expected to make up 50% of industry growth during the same time period. The strategy shift towards DTC is expected to bring Adidas "significant" market share gains, higher revenues, and margins.
Finally, Adidas aims to be climate neutral in its own operations by 2025 and climate neutral overall by 2050. The company's ambitious plan, "Own the Game", is set to reshape the sportswear industry in the coming years.
- Adidas, in its strategic initiative "Own the Game," intends to boost its presence in the lifestyle category, focusing on products like Adios Pro Evo, Boston 13, F50 Sparkfusion, and Superstar, aiming for technical innovation and cultural relevance.
- The sportswear giant plans to embed itself within sports and cultural moments to enhance brand credibility and customer loyalty, focusing on key regions like Greater China, Japan, and South Korea for customized product offerings.
- In an effort to double e-commerce sales, Adidas intends to adopt a direct-to-consumer (DTC)-led model by 2025, with DTC sales comprising 50% of net sales, and aims to triple its membership base to 500 million members by the same year.
- As part of its plan for sustainability, Adidas aims to have nine out of ten of its products sustainable by 2025, and intends to be climate neutral in its own operations by 2025, with an ultimate goal of climate neutrality overall by 2050.
- Adidas is broadening its consumer proposition with the introduction of Sportswear, a dedicated sports lifestyle collection, and sportswear-specific experiences at the point of sale, positioning itself for "significant" market share gains, higher revenues, and margins in the running, training, outdoor, and lifestyle sectors through 2025.
