Adidas Adidas Believes That China'S "Rocking Qian Shu" Market Has 16 Times The Potential.

With the strong growth of North America, China and the electricity supplier business, the German sporting goods giant Adidas AG (ADS.DE) Adidas Group continues to enhance its confidence. The company said it will further expand the potential of the Chinese market in order to realize its dream of "the best sports company in the world".

In the mid March annual meeting, the German group raised its mid 2020 operating margin target from 11% to 11.5%.

Kasper R rsted, group chief executive, believes that online sales with higher profitability and China's huge potential can help German companies achieve these goals.

In 2017, the sales of e-commerce business for group 7% reached 1 billion 500 million euros, an increase of 57%. The Group expects the proportion of electricity supplier revenue to reach 30% in the medium term target.

Group chief financial officer Harm Ohlmeyer said that the group is actively investing in logistics to speed up delivery, and strive to achieve the day in major cities, enhance user experience, stimulate e-commerce channels.

China's business is also a bright spot. In 2017, Adidas group Greater China earned 3 billion 789 million euros, an increase of 3 billion 10 million euros compared with 2016, the most 25.9% of all markets, and a fixed exchange rate growth of nearly three as much as 29.5%.

Harm Ohlmeyer, chief financial officer of the group, reported the results at the annual meeting.

Kasper R rsted said that the potential of China's business is much more than those growth. He believes that China, which has a population of four times the United States, will have a potential growth potential of 16 times in the future.

2017, group Greater China

Accounting for 17.9%, although close to 2 billion 800 million euros income is lower than 5 billion 883 million euros in Europe and 4 billion 275 million euros in North America, but the growth rate is higher than 11.2% in Europe and 25.3% in North America. More importantly, the growth rate of China's market has maintained stable growth for a long time. The strong strength of the North American market is more often attributed to the downturn of competitors, which is not sustainable from a historical perspective.

The development of online channels gives Adidas another reason to position China as the most preferred market. At present, China's retail online channel accounts for 15% of the total, two times the proportion of the German group's e-commerce channel.

At present, the operating profit margin of the Chinese market is as high as 35.4%, which is comparable to that of the luxury group with the highest operational efficiency, which is also far higher than the overall operating profit margin of the group's 9.8%.

Therefore, for the Chinese market, Kasper R rsted believes there are huge business opportunities.

China

"Huge business opportunities" do not need to be repeated. Even though the current growth of Adidas Nike Inc. (NYSE:NKE), Nike group's Greater China business has continued double-digit growth, the recent quarter has even surpassed 19% of its accelerated performance.