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Adidas sets out plans for digital transformation
Adidas, the German sportswear firm, has announced an ambitious strategic plan that aims to double the size of its e-commerce business over the next four years, make its products more sustainable and place greater emphasis on the women’s market.
Dubbed ‘Own the Game’, the strategy is designed to “significantly” increase sales, profitability and market share, while also strengthening the credibility of the adidas brand, the company said in a statement.
The details
- Adidas intends to increase sales by an average of 8% to 10% per annum on a currency-neutral basis between 2021 and 2025.
- The company plans to invest more than €1bn in its digital operations by 2025, including expansion of its membership program to around 500 million people.
- Sales through direct-to-consumer channels are projected to account for around half of the company’s total net sales by 2025 and to generate more than 80% of the increase in sales until 2025.
- Net sales from e-commerce are expected to double from more than €4bn in 2021 to between €8bn and €9bn by 2025.
- Greater China, EMEA and North America are expected to account for a combined 90% of net sales growth until 2025, and adidas intends to focus on 12 ‘key cities’ in these regions to drive up membership.
- By 2025, nine out of ten of its products are expected to be sustainable with increased use of biodegradable and recycled materials.
- There will be an increased focus on the women’s market, with a cross-category plan aimed at product excellence and elevating women’s experience of the brand.
Key quote
“Our strategic focus is on increasing credibility of the adidas brand, elevating the experience for our consumers and pushing the boundaries in sustainability. To successfully execute our strategy, we will continue to significantly invest into our people, our brand and the digital transformation of the company” – Kasper Rorsted, CEO of adidas.
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