When you think of an athletic footwear brand, Adidas is one of the first few to come to mind. Adidas entered India in 1995. A German company managed to capture a significant chunk of India – all because of their innovative marketing strategies. In a price-conscious market, Adidas is able to sell premium because of many reasons, including: Rising disposable incomeGrowing fitness consciousnessIncreasing sports participation And more reasons, which we will explore in detail below!
Did you know?
Adidas was started by Adolf Dassler who was later joined by his brother Rudolf in 1924 and they made Gebruder Dassler Schuhfabrik.
Later, they split.
Adolf built Adidas.
And Rudolf?
He built one of Adidas’ biggest competitors – Puma!
| Key Takeaways from Adidas’ Marketing |
| Know your market: Research and tailor your approach to resonate with local preferences. Partner strategically: Collaborate with influencers and celebrities relevant to your target audience. Be omnichannel: Offer a seamless customer experience across online and physical touchpoints Embrace local culture: Integrate cultural elements into marketing and product design to build a stronger connection. |
| Understanding the Indian Consumer: |
| Adidas doesn’t simply replicate its global offerings; instead, it actively researches and tailor its approach accordingly. |
| Cricket: A National Obsession: |
| Almost 1.1 billion Indians follow Cricket in India. |
| This translates into a massive market opportunity. |
| Adidas capitalizes on this by offering a comprehensive range of cricket-specific apparel, footwear, and equipment. |
| From high-performance jerseys and spikes endorsed by star players to innovative cricket bats and training gear, Adidas caters to every aspect of the cricketing experience for both professional and amateur players. |
| Understanding Value and Affordability: |
| Price sensitivity is a significant factor for Indian consumers. |
| Adidas acknowledges this by offering a range of products at various price points. |
| They have a strong presence in the mid-tier segment, catering to the growing middle class with aspirations for quality sportswear. |
| Additionally, they leverage strategic partnerships with online retailers like Flipkart and Myntra to offer competitive pricing and discounts during major sales events. |
| Focus on Functionality and Comfort: |
| The Indian climate is hot and humid throughout most of the year. Adidas addresses this by prioritizing functionality and comfort in their product design. |
| They use breathable fabrics and technologies like Climacool to keep athletes cool and dry during workouts. |
| By effectively decoding these consumer preferences and priorities, Adidas has established itself as a leading player in the Indian sportswear market. |
| Their commitment to understanding the Indian market has been a key driver of their success. |
| Adidas’ Market Presence in India: |
| Initially, Adidas established itself through 5 distribution centers, gradually building brand awareness and understanding consumer preferences. |
| Over the years, they’ve transitioned to a more direct presence, with a network of retail stores and a robust online infrastructure. |
| Adidas used various tactics to target different consumer types: |
| The Cricket Fanatic: Cricket remains the undisputed king of sports in India. Adidas capitalizes on this by partnering with some of the biggest names in cricket, like Virat Kohli and Rohit Sharma. These athletes serve as role models for millions of Indians, and their association with Adidas elevates the brand’s image and resonates with cricket enthusiasts. Adidas targets this segment with cricket-specific products and strategic partnerships with star players, capitalizing on the immense passion for the sport. |
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| Source: Wisden |
- The Aspiring Athlete:
The growing fitness culture in India has fueled a demand for performance apparel and footwear. Adidas caters to this audience with a range of products for running, training, and other fitness activities. - The Fashion-Conscious Individual:
Athleisure wear has become a prominent fashion trend in India. Adidas taps into this by offering stylish and comfortable sportswear that seamlessly transitions from workout sessions to casual outings. - The Value-Conscious Consumer:
Price remains a significant factor for many Indian consumers. Adidas addresses this by offering a range of products at various price points, catering to the growing middle class with aspirations for quality sportswear.
| Brand Positioning: |
| While competitors like Nike lean heavily on its technological advancements, Adidas balances this with a focus on functionality and practicality. |
| Adidas prioritizes features like breathability and comfort in its products, catering well to the Indian climate. |
| Cultural Connection: Adidas actively incorporates elements of Indian culture into their marketing and product design. This creates a sense of local relevance and fosters a stronger connection with Indian consumers compared to Nike’s more globalized approach. |
| The Tagline: |
| Adidas’ global slogan, “Impossible is Nothing,” is an aspirational message that encourages consumers to push their limits and achieve their goals. |
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| Source: Canz Marketing |
| While “Impossible is Nothing” serves as a powerful anchor, Adidas goes beyond just a tagline. |
| They actively partner with inspiring Indian athletes and showcase stories of everyday people overcoming challenges through sports |
| Digital Marketing: |
| SEO: |
| In April 2024, the stats for Adidas India’s website looks like this: |
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| Source: Semrush |
| Out of this, 90.22% of people came through mobile. |
| But the average visit duration is under a minute. |
| Adidas needs to update its website to ensure that it doesn’t lose out on consumers. |
| Instagram Strategy: |
| Adidas India currently has 700K followers on Instagram. |
| It is mostly product showcases in various ways. |
| For instance, it released a reel showing the new jerseys for the Indian cricket team: |
| It also uses celebrity endorsements like this to increase visibility and credibility: |
 Source: Instagram of Adidas India |
| Sometimes, they also partner with influencers, which can have better engagement: |
| Overall, their strategy is more about their products than about the consumer. |
| While it can create an aspirational quality, if they want to engage the audience better, they might consider including engaging posts in the content mix. |
| Distribution Strategy: |
| Adidas has around 450 stores across India. This allows consumers to experience the brand first-hand by trying on the products. |
| It also opened its flagship store in New Delhi’s Connaught Place. |
| It covers four floors with a total area of 5,900 sq ft! |
| It is meant to be immersive with digital touchpoints like ceiling screens, immersive screens, and digital plinths. |
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| Source: The Economic Times |
| Apart from its website, Adidas strategically partners with leading Indian e-commerce platforms like Myntra and Flipkart. |
| This expands their reach and allows them to leverage the established customer base of these platforms. |
| Customers can browse online, visit stores to try on products, and then purchase online or in-store, depending on their preference. |
| The omnichannel approach is beneficial both ways – it makes the consumer experience easier and makes for better inventory management by offering options for online fulfillment from physical stores. |
| Challenges and Solutions: |
| 1. Obstacles in the Indian Market: |
| Despite its success, Adidas faces several challenges in the Indian market: |
| Intense Competition: The sportswear market is fiercely competitive, with established players like Nike and Puma vying for market share. Additionally, there’s a growing presence of budget-friendly domestic brands. Counterfeit Products: The presence of counterfeit Adidas products can damage brand image and erode sales. Evolving Consumer Preferences: Consumer preferences in the sportswear market are constantly evolving. Adidas needs to stay agile and adapt to these changing trends. Price Sensitivity: Price remains a crucial factor for many Indian consumers. Adidas needs to strike a balance between offering premium products and remaining affordable. |
| 2. Strategic Pivots and Adaptations: |
| Adidas addresses these challenges through strategic pivots and adaptations: |
| Focus on Innovation: Constantly innovating product design and technology keeps the brand relevant and differentiates it from the competition. Strong Online Presence: Leveraging the increasing online shopping trend allows them to reach a wider audience and compete effectively. Omnichannel Strategy: Integrating physical and online retail channels provides a seamless shopping experience for consumers. Localized Products and Marketing: Understanding and catering to local preferences through culturally relevant campaigns and product offerings strengthens their market position. |
| 3. Sustainability Goals and Technological Investments: |
| Adidas recognizes the importance of sustainability and is investing in as much re-cyclable material as possible. |
| This will help to reduce the waste and environmental impact, supporting their cause to save the oceans. |
| In a Nutshell: |
| Adidas has expertly navigated a competitive landscape, embraced local preferences, and leveraged the power of digital marketing to become a dominant force. |
