Sportswear Giants Adidas’ Digital Surge

The sportswear giants reduce spends connected to events such as the European Championships 2020 but increased on the digital front as ecommerce sales almost doubled.

During the COVID-19 pandemic, the sportwear giants Adidas cut back on their marketing budget by 25% in the second quarter of this year. However, they now are looking to build that marketing budget back up to pre-lockdown levels.  They plan to pickup from where they left off in the second half of the financial year and receive an effective Return on Investment.

The sportwear brand reported a fall of nearly 35% in the three months of lockdown to the end of June to $3.5 billion. This was partly due to the postponement of major sporting events like the 2020 Tokyo Olympics and the Euro 2020, where Adidas sponsor both major sporting events.  Another reason was that over 70% of the brand’s stores were closed due to the country being in lockdown.

Adidas reported that their ecommerce store was effective and people are switching to online shopping faster than they were before. In the first half of the financial year, more than a third of all revenue was made on the digital platform. They have also taken a double down method when it comes to digital marketing as they wanted to keep in touch with all their customers through the ecommerce platform.

During the lockdown period, Adidas created a social media campaign ‘Ready For Sport: The Anthem’. The video reflected on recent sporting history and celebrating what sport does for the world. This video attracted more than 400 million views.

They also found that the use of their training app had tripled between March & May, while their sales on the Adidas app quadrupled compared to 2019. This shows that developing a mobile app could enhance your business and gives you another platform where you can reach your target audience.

The sportswear company has its own ‘Creators Club’ accounts for 6% of online sales, with the customers having double the lifetime value compared to non-members. Loyalty clubs are often effective for restaurants and pubs, although, this shows that it can also help ecommerce businesses increase sales. Consumers love being rewarded for their loyalty.

During the COVID-19 pandemic, companies have used the power of technology to communicate with their employees while working from home. This is set to continue with many people carrying on working from home at a more efficient rate. This will mean that people will swap their suit and dress for comfy leisure wear. This plays into Adidas’ hands perfectly with many people deciding to buy leisure wear from them.  

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