Twelve consecutive increases in the Chinese market—how far can Adidas’ localization go?

Against the backdrop of intensified volatility in the global retail environment and rising industry competition, Adidas is attempting to rebuild growth momentum with products and scenarios.

On April 29th, Adidas disclosed its Q1 2026 results. On a currency-neutral basis, the company achieved revenue of 6.6 billion euros, up 14% year-on-year; operating profit grew 16% year-on-year to 705 million euros.

Among these, the Greater China region achieved revenue of 1.14 billion euros, up 17% year-on-year, marking twelve consecutive quarters of double-digit growth.

Running and football, the two core sports scenarios, are becoming key levers for Adidas to rebuild brand momentum and drive sales.

At the recently concluded 2026 London Marathon, all three runners in the men's sub-2 camp were wearing Adidas Adizero Pro Evo 3 running shoes, garnering widespread attention in both the professional running circle and the mass market.

The performance of the Chinese market is further bolstered by the continued implementation of localization strategies.

In recent years, the size of the local running population has continued to expand; the revival of marathon events and the rise of urban running culture have provided a broader demand foundation for professional running shoes and running gear.

Meanwhile, football—as a traditional advantageous category—continues to play a dual role in stabilizing demand and increasing brand exposure, thanks to the overlap of event cycles and content dissemination.

Earlier this year, Adidas announced it would become the official strategic partner and exclusive jersey supplier for the 2026 Jiangsu Provincial City Football League, marking its first launch of specialized custom jerseys for China’s non-professional football leagues.

Product-side changes are also worth noting.

In Q1, the new Chinese-style jacket series launched by the Shanghai Creative Center sparked “reverse purchasing” in overseas markets. The thin-soled shoe series “ANFU,” “CHANGLE,” and collaborative products with CLOT continue to reach the younger consumer demographic.

However, the flip side of growth is a more complex external environment.

Adidas reiterated its full-year 2026 guidance in the financial report: at fixed exchange rates, sales are expected to achieve high single-digit growth, with operating profit around 2.3 billion euros. But at the same time, the company takes a more cautious view of the retail environment: “extremely volatile with heavy discounting.”

The strengthening of the euro directly led to a decrease of about 350 million euros in sales during Q1; the company expects tariffs and exchange rate factors to drag operating profit down by about 400 million euros for the whole year.

CEO Bjorn Gulden also candidly stated that he hopes the market environment stabilizes and promotions return to normal, but these are not variables that companies can control.

The Chinese market likewise faces the new challenge of a “high base.” Twelve consecutive quarters of double-digit growth, while providing certainty, also raises the difficulty of future growth.

Against the backdrop of the continued rise of local brands and intensifying competition, whether Adidas can maintain this pace through product innovation and localized design remains to be seen.

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