Global sports brand adidas has used the expertise of international retail planning experts to support its China expansion strategy.
adidas already has 7,600 shops across 1,000 Chinese cities and intends to consolidate their location coverage in the major cities as well as increase their footprint in China by expanding to another 400 cities by the end of 2015, with special focus on opportunities in mid-sized cities.
GMAP Marketing Consulting (Shanghai) Ltd., which is part of Callcredit Information Group, to support in their China expansion strategy, was tapped to understand and map expansion potential.
Using expert modelling solutions, GMAP calculated the size of the market opportunity for sports and casual fashion in nearly 5,000 unique retail sub-centres, identified which locations and malls within specific cities would offer the highest revenue prospects for expansion. A physical survey of all locations, including current adidas and competitor stores, as well as new potential locations, was also undertaken.
The result was a detailed roadmap identifying the most viable locations to target for store expansion. This included all existing retail centres and malls as well as a unique database of over 800 future retail developments coming on stream in the next year or two with recommendations on which would have the most retail potential.