When the fog clears from the pandemic, Adidas’ business operations will have transformed.
Adidas weathered the pandemic in the last quarter of 2020 with a 53% bump in online sales, and revenue growth in Greater China — trends the company intends to continue in its next chapter.
The Herzogenaurach, Germany-based company also announced a partnership with Peloton, signaling a bet on the home fitness movement.
While the company has reopened over 95% of its stores around the globe, in-person retail will take a backseat to online sales in the company’s growth strategy.
- In a five-year plan released alongside its Q4 earnings on Wednesday, Adidas said it plans to double e-commerce sales to between $9.5 billion and $10.7 billion by 2025. The company will invest over $1.2 billion in the digital transition.
- It also expects sales to grow by 20-30% in Latin America, Asia-Pacific, and Greater China this year.
China in particular will be a focus for the shoe and apparel maker. The company is reorganizing its bookkeeping to separate out the Greater China region from Japan, South Korea, Southeast Asia, and the rest of the region.
Adidas announced last month that it plans to fully divest Reebok, casting off an underperforming brand as it looks toward a new era.