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Business booms for Adidas in Russia
Back in November 2010, company executives at Adidas said they expected markets in China and Russia to make up half of their total business. Today, Adidas in Russia expects sales in the country and the CIS to surpass $1.3 billion.
CEO Herbert Hainer said during an investor day in Moscow that Russia was the company’s biggest market in Europe. Hainer added that Russian consumers spend on average 75 percent of their income on consumer goods, in comparison with the 40 percent spent by Europeans.
Adidas, which also plans to build 400 stores in four years across Russia and former Soviet states, said the region is likely to overtake Japan in sales.
Sporting good brands flock to Russia
However, Adidas in Russia is not the only sports apparel company profiting from Russian consumers.
Nike announced to investors in June that it expects Russia to become one of its most profitable markets. “We believe Russia is on a path to be a $1 billion market and a very important marketplace not only for Nike, but for the world of sport,” said Nike Global Operations President Gary DeStefano.
In September, Nike saw its Q1 revenue grow 14 percent, driven by strong double digit growth in Russia and Turkey. The company has also started engaging more aggressively with consumers via social media communities, targeting Russia’s Vkontakte, among others.
Following the footsteps of Adidas in Russia and Nike, last month Puma held an event in Gorky Park to seek out the “Faastest” runner in Russia as part of the company’s release of Puma’s Faas lightweight running shoe. The event helped transform Gorky Park into a Caribbean island complete with a carnival, dancehall and limo contest.
Photo credit: Adidas