Adidas achieved record sales of €19.3bn in 2016 thanks to a growth of almost 60% in its ecommerce business, leading the company to double its digital targets for 2020.
The German sports brand unveiled its 2016 annual report today (8 March), revealing a 59% growth in its ecommerce business after sales hit the €1bn mark for the first time.
Speaking at the annual results presentation chief executive, Kasper Rorsted, revealed the strong digital performance helped the company achieve an overall sales growth of 18% and resulted in what he summed up as an “exceptional year” for Adidas.
The brand had previously set a target of €2 in ecommerce sales by 2020, however the acceleration in its digital business led the company to set a new target of €4 in the same period, representing a sales growth target of between 10-12%.
Discussing the value of the digital sales, Rorsted, said: “This has many strategic implications for us, the most important is the direct engagement with our consumers which allows us to understand how consumers shop and gives us much more intimate feedback.”
Adidas’ effort to continue strengthening its ecommerce business has included the implementation of an Uber inspired model on mobile where growth comes from consumer referrals.
Across the entire business the main areas of growth were in its football, running, training and originals lines. Its TaylorMade golf arm declined though, leading the brand to confirm that it was seeking a buyer to offload the troubling business.