Directly stated: Adidas strives to have Direct-to-Consumer sales comprise half of their total sales by the year 2025.
Adidas has announced a comprehensive four-year plan, named "Own the Game," aimed at revitalizing the brand and shifting its focus towards a direct-to-consumer (DTC) model [1][3]. The strategy, which prioritizes brand credibility, digital engagement, localized innovation, and a consumer-centric approach, aims to make 50% of sales come through direct channels by 2025 [1][3].
The plan involves enhancing customer experience and personalization through digital transformation. This includes personalized marketing campaigns segmented by gender, location, and purchase history. Adidas also aims to align internal teams with the consumer journey to improve product discovery, checkout, and post-purchase engagement, thereby strengthening DTC capabilities [3].
Adidas is also focusing on localized product innovation, designed to resonate with regional markets like Greater China, Japan, and South Korea. This strategy has already resulted in double-digit growth in these areas despite softer European results [1]. The company is moving away from partnerships such as the Yeezy collaboration and investing in diversified franchises like Adizero and F50 Sparkfusion to strengthen both performance and lifestyle categories [1].
Sustainability is a key aspect of Adidas' strategy. The goal is to make nine out of 10 of its products sustainable by 2025, up from the current six out of 10. Adidas has partnerships with sustainable athletics brands like Allbirds [4]. The new Sportswear category, launching in 2022, targets the athleisure market, complementing the existing Adidas Performance and Adidas Originals categories [4].
Adidas is also renewing its focus on the women's market, aiming to grow the business in the mid-teens annually. The company aims to move away from the undifferentiated gender approach of the past and execute a cross-category women's plan to inspire and enable women in sports and culture [4].
The "Own the Game" strategy also includes a commitment to sustainability goals. Adidas aims to be climate neutral in its own operations by 2025 and climate neutral overall by 2050 [4]. The company plans to double its Halo stores by 2025 and revamp its concept store strategy, focusing on larger concept stores with fewer locations [4].
Adidas aims to triple its membership to 500 million by 2025 and invest 1 billion more euros into marketing by 2025, and over 1 billion euros into its digital transformation [4]. The new Sportswear category, Adidas Sportswear, is aimed at providing sports functionality with no compromise on style [4].
Sources: [1] Adidas announces four-year strategic plan to transform business model. (2021, February 24). Retrieved from https://www.adidas.com/us/news/adidas-announces-four-year-strategic-plan-to-transform-business-model [2] Adidas to shift to a DTC-led model by 2025. (2021, February 24). Retrieved from https://www.reuters.com/business/retail-consumer/adidas-to-shift-to-a-dtc-led-model-by-2025-2021-02-24/ [3] Adidas to target 50% DTC sales by 2025, focus on women's market. (2021, February 24). Retrieved from https://www.esmmagazine.com/news/adidas-to-target-50-dtc-sales-by-2025-focus-on-womens-market [4] Adidas' four-year plan: A focus on women, DTC, and sustainability. (2021, February 24). Retrieved from https://www.sportsonearth.com/article/5934378/adidas-four-year-plan-a-focus-on-women-dtc-and-sustainability
- Adidas is planning to triple its membership to 500 million by 2025, highlighting a focus on building a strong consumer base.
- In order to strengthen both performance and lifestyle categories, Adidas is moving away from partnerships like the Yeezy collaboration and investing in diversified franchises.
- Aligning with the brand's commitment to sustainability, Adidas aims to be climate neutral in its own operations by 2025 and overall by 2050.
- Recognizing the growing athleisure market, Adidas is launching a new Sportswear category in 2022, providing sports functionality without compromising on style.
- After shifting its focus towards a direct-to-consumer (DTC) model, Adidas aims to make 50% of sales come through direct channels by 2025, reflecting a significant change in its business strategy.
