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The German brand Adidas has been making a huge wave in the apparel and footwear market as its share continues to skyrocket leaving American brand competitors Nike and Under Armor under siege. The brand recently topped its highest day increase last Wednesday. Adidas’ CEO also ensures more investing in its US market and boost e-commerce sales.

The brand’s CEO Kasper Rorsted said in an interview that they are still in the ‘catch-up’ mode in terms of their North American target market. Rorsted is the former head of consumer goods at Henkel before taking the highly regarded seat last 2015, and from then, the company went ballistic on the increase after increase. Recently, the company has overtaken its record high day increase last November 2015 yesterday, March 9 by an increase hovering somewhere at 7.6% to 8%.

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Rorsted’s Drive To Boost US Sales

According to CEO Rorsted, "We are creating U.S. products in the U.S. so we have the right products for the right consumers. We have grown 30 percent in the past year in the U.S., following a very strong year the previous year." He also mentioned in an interview that the company’s new goal is to put more focus on company culture, e-commerce, and efficiency. 

The recent statistics from the company has proved that its increasing sales are from its giant leap to correlate with its consumers’ preference by improving footwear products in the US. The company’s margins also benefited from its continuous effort on creating and innovating popular shoes, making consumers willing to pay for a much premium price. One more recipe that the company has done well is with the exclusivity of their products from different artist and collaborators.

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Nike, UA Drops Due To Adidas’ Growing Popularity

Adidas currently sits on a 136% year over year increase in its shares; the company’s closing price yesterday was at, roughly $91.72. The aggressive US market penetration also heightened the profit coming from its e-commerce. Meanwhile, the US-based sport and lifestyle apparel manufacturers Nike and Under Armor are slowly losing the battle as both companies’ shares plummet to give way to the Adidas’ resurgence in the land of the brave market.

 As for Under Armor, their sales are dwindling down the past 12 months resulting in a total decline in their stock at about 54%. UA is terribly underwhelming run last year made several analysts and investors shy away from the company, naming Nike as the only direct USA-based Company as a notable competitor for Adidas.

Nike, on the other hand, is keeping the problems at bay. The Oregon-based company has analysts and investors looking positively for its future outcome, due to its untarnished and ever growing products. An analyst also mentioned that until the company’s sales growth matches inventories, the stock will remain under pressure. But on the brighter side, a group of analysts also believe that the surprise comeback of the brand can stem from the fact that it offers a lot of diversified goods.

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Rorsted’s Future Plans

There is no stopping the Adidas CEO in brand innovation, as a matter of fact, Rorsted plans to expand and explore newer technologies such as 3D printing, and its keen look on the potential of e-commerce. Rorsted envisions a 4 billion euros or $4.2 billion increase in the company’s e-commerce sales by 2020. The previous target was at 2 billion, and 1 billion achieved in 2016; while Nike sets a target to reach $7 billion in e-commerce sales by 2020, out of the expected total revenue of $50 million.

All in all, Rorsted plans on harmonizing and simplify business processes; this includes the reducing of a number of articles offered and harmonizing marketing activities, a similar strategy he used for Henkel which boosted the profitability in return. The newer style Adidas has been putting on the table has and will pierce the US market, top it up with the exclusivity, the brand is looking for a better-performing future.

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