Adidas enters teens' market for EUR1 billionWednesday, 15 February 2012
The German athletic apparel firm announced its plans
to enter the competitive teenage girls’ apparel market. Adidas hopes to make up to additional 1 billion euros ($1.3 billion) in revenue by 2015.
“Teenage girls are a target group we didn’t really reach so far, whereas boys are closer connected to Adidas via sports,” said Erich Stamminger, the board member responsible for global brands. “For girls, you need a bit more of fashion influence and that’s exactly what we are offering with NEO.”
Adidas AG (ADS) plans to expand its NEO fashion outlets in an effort to attract 14 to 19 year-old girls, reported Bloomberg.
Up to the date, the chain, launched three years ago, has outlets in Russia, India and China. Its sales went up to 400 million euros in 2010 and 500 million euros last year, according to estimates by Mark Josefson, an analyst at Silvia Quandt Research GmbH quoted by Bloomberg.
Adidas has forecast group revenue of 17 billion euros by 2015, with growth being driven by expansion in China and Russia.