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adidas Group Annual Report 2008 051
Sport Style: divisional overview
The market for streetwear and lifestyle fashion represents a
unique opportunity for sporting goods companies as it is more
fragmented and larger in size than the market for products
used in sports activity. In addition, profi tability in the sports
lifestyle market is typically higher as a result of lower R&D
expenses.
adidas was the fi rst brand to credibly leverage its sports assets
in the lifestyle arena and as a result is regarded as a legiti-
mate sports lifestyle brand. What started as a niche business
has developed into a signifi cant contributor to the brand’s
top line with potential to represent up to 30% in the medium
to long term. To best tap the potential of the sports lifestyle
market, adidas created a dedicated Sport Style division prima-
rily focused on its Originals and Fashion businesses (e.g. Y-3,
Porsche Design).
Sport Style – adidas Originals: from niche to
fashion mainstream
The cornerstone of the Sport Style division is adidas Originals:
the original lifestyle brand, born in sport heritage but living
in contemporary lifestyles. adidas Originals is uniquely posi-
tioned amongst its competitors in that it unites and touches
diverse pockets of popular culture around the world. Its biggest
strength and point of difference is the ability of the Trefoil to
be a relevant part of people’s lives – in whatever lifestyle they
have: skater, rocker, artist, musician, sneakerhead, sports
fan, etc.
With a holistic offering in products and communications, adidas
Originals speaks to and engages the youth audience in authen-
tic, creative and new ways with the “Celebrate Originality”
philosophy.
To address the needs of its diverse consumer groups and
maximise business opportunities, adidas Originals takes a
two-tier strategy to brand and product marketing: Statement
and Core. Statement product concepts aim to generate buzz
and to add freshness to the brand. Core product concepts aim
to generate sales volumes by presenting a constant collection
that is uniquely adidas. In essence, Core is the bread and butter
of adidas Originals and includes all collections that consumers
have come to depend on.
The brand marketing focus is with the core consumer, so in
2008 the marketing efforts behind adidas Originals were also
increased signifi cantly with the fi rst global campaign including
television and cinema, the “Originals House Party”, featuring
entertainment icons like Missy Elliott and Katy Perry, or sports
icons from Ilie Nastase to David Beckham celebrating “60 Years
of Soles and Stripes”.
In 2009, adidas Originals will complete the full transition
from niche marketing to mainstream with the largest global
Originals brand campaign ever, coinciding with the 60th anni-
versary of the brand.
Sport Style – adidas is fashion: Y-3 and the
adidas SLVR Label
Since 2002, adidas has rapidly expanded Y-3, a collaboration
with one of the most innovative and highly regarded global
designers: Yohji Yamamoto. Y-3 successfully combines the
worlds of fashion and sports and makes adidas a true pioneer
in the fi eld of sport-inspired high-end, premium fashion.
adidas is the only sports brand with a greatly anticipated and
well-regarded show at each New York Fashion Week.
Controlled space will be the main strategic priority for Y-3
in the upcoming years. By the end of 2010, adidas targets to
have 40 Y-3 stores (including franchise and own-retail stores)
located in the world’s top shopping destinations. Furthermore,
a Y-3 online store has been launched in the USA in 2008, with
the extension of e-commerce to other markets following in the
future.
The opportunity or “new-ness”, however, will come through
leveraging what has been created through Y-3 and Originals to
expand the brand’s fashion lifestyle offer to more and different
consumers. In 2009, adidas will bring the Sport Style division to
another level with the launch of the adidas SLVR Label, a pure
fashion brand for the modern cosmopolitan consumer, offering
“simply perfect” garments, shoes and accessories. The adidas
SLVR Label celebrated its premiere at the New York Fashion
Week in February 2009, which will be followed by the opening
of its fi rst store worldwide.
Sport Style – extending brand reach through
adidas Style Essentials
In 2008, adidas took a big step forward with the expansion of
the Sport Style division through the introduction of adidas
Style Essentials. adidas Style Essentials is a complete offering
of footwear, apparel and accessories which takes its design
inspiration from the entire brand, both Sport Performance and
Sport Style, but offers it up in different distribution channels
and at more accessible price points. It capitalises on existing
trends and brings them to market more rapidly than traditional
sporting goods timelines. adidas Style Essentials is primarily
distributed through mono-branded stores in Asia and through
key account partners in North America and Europe.