Sportswear manufacturer Adidas recently opened its newest mega headquarters in Asia. The company's newest headquarters is located in Shanghai, China. Many observers and market analysts said that Adidas' decision to pick China as its newest home is part of the company's ongoing effort to win the Asia-Pacific market.
The new regional headquarters in China was opened on Wednesday. Adidas is expected to use this new headquarters to consolidate its current position in China's growing sports goods industry.
The new mega headquarters boasts a 21-floor office and is located in the central part of Shanghai. It is expected to house more than 1,500 staff which will be tasked of overseeing various projects and operations in China, Japan, South East Asia, and Pacific regions.
Prior to the official opening of the new headquarters in China, Adidas had an internal integration of the company's markets. The integration process was completed earlier this year, according to Adidas' official report for the 2018 fiscal year. Last year, Adidas also opened a milestone facility in Shanghai. This was the Asia-Pacific Brand Center and it is part of Adidas' "planned expansion in the Asia-Pacific and China markets."
It would appear that Adidas' ongoing Asian expansion projects are paying well for the company. In terms of market performance, Adidas reported that 33 percent of its global net sales came from its Asia-Pacific operations which are also the company's largest regional market. According to its own report, growth in the greater China region topped the company's regional market performance posting an impressive 23 percent net sales. That is an impressive market performance, especially when compared to the company's overall global average growth of just 8 percent.
Despite aggressive marketing and expansion moves from some of the company's closest rivals, Adidas remains optimistic about the stability of its operations not only in China but also in Asia in general and the Pacific region in particular.
In a statement, Adidas Chief Executive Officer Kasper Rorsted said, "China and North America makeup half of the (global) sporting goods market and winning in these two markets is naturally our priority, and we intend to differentiate products for millennials by connecting with them and launching local celebrity endorsements."
International market research firm Mintel is projecting that Adidas' sportswear market in China will grow to 312 billion Yuan by 2023. In 2018, Adidas' market in China amounts to 212 billion Yuan.
