Adidas Targets Teen Girl Fashion Market for $1.3 Billion in Sales

Adidas AG (ADS) already dominates the global soccer market. Now the company is targeting teenage girls more influenced by music and fashion than sports.

By expanding its NEO fashion outlets, which offer such looks as metallic leather boots, and by exploiting social-media platforms including Facebook and Twitter, the world’s second- largest sporting-goods maker hopes to attract 14 to 19 year-old girls. The company estimates the effort may bring in an 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.”

The three-year-old NEO fashion chain has made inroads in Russia, India and especially China, where it has 1,000 stores. With the opening in Hamburg this month of the first of 10 stores planned in Germany, Adidas is pushing into the more crowded and more competitive fashion market in western Europe, where Inditex SA and Hennes & Mauritz AB are already firmly established.

NEO, with 26 outlets in Russia, 60 in India and products for sale in such U.S. department stores as Kohl’s Corp., J.C. Penney Co. and Brown Shoe Co.’s Famous Footwear chain, generated sales of about 400 million euros in 2010 and 500 million euros last year, according to estimates by Mark Josefson, an analyst at Silvia Quandt Research GmbH.

Adidas has forecast group revenue of 17 billion euros by 2015, with growth being driven by expansion in China and Russia.

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