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Supporting E-Commerce has helped many companies boost their sales exponentially.
Some have taken a step further and have created their own apps. One of the businesses that have taken this step in a widely successful manner has been Adidas. Let’s dig in into their e-commerce boom.
Adidas saw a 76 % revenue increase in the third quarter of the past year and a full year profit increase projection of 16 to 20 %. According to many at the top of the company and independent experts, part of the reason behind that boom is clear: E-Commerce.
Actually, the news took many in the company by surprise. Adidas’ E-Commerce efforts come from a strategy that integrated the development of an own app and integrated marketing using mainly social media and influencers.
Adidas e-commerce app was an absolute success last year, reaching more than 7 million downloads in more than 25 countries (and counting!).
If we consider that e-commerce is still a developing field, starting and betting early and having prompt success in the field can bring huge benefits for the business. This allows Adidas to foresee a great future in the market as one of the pioneers of e-commerce in their business.
Adidas had a record-breaking year in 2018, surpassing analysts’ sales and revenue prospects in each and every quarter of the year.
But if we take into account that it is expected to have a constrained growth in the first 6 months of 2019 due to supply chain issues, dabbling into e-commerce seems to be a wise way to go, especially as online business (not only via the Adidas app) saw a 36 % increase in the past year.
Adidas is experiencing an exponential increase in North America, doubling its operations in just three years, and the company has not been able to solve its supply chain issues and deliver the required demand of its products in the market.
That is the main reason why most experts, and even Adidas, agree that the company may see some impact in its North American sales in the first few months of the year.
The fact that the e-commerce strategy was so successful only made the supply chain problem bigger. Still, having too many clients is probably the best problem a business may have and one that can be solved easily if you have a healthy record.
Also, even though the business may slow a bit in the first half of the year, that does not mean the company will stop growing. Most experts agree it is just a temporary issue.
Another market E-Commerce is expected to help Adidas is Europe. Adidas’ growth in Europe stalled in 2018, and profitability figures did not look to good in front of competitors like Reebok, which raised many eyebrows.
However, according to their own projections, Adidas will probably grow again in Europe and will reach Reebok profitability at some point in 2020. A good part of this positive prospect is due to e-commerce.
Adidas e-commerce plan, developing its own app and integrating it in a broader digital marketing strategy shows perfectly how e-commerce may be a way to go for businesses trying to increase their operation and reach, and trying to regain spaces in regions that may seem lost in front of the competition.