T-Mobile is one of first advertisers to run a 1-minute video ad.
Adidas also targets $651 million in global e-commerce sales by 2015.
Web sales for athletic shoe, apparel and equipment maker adidas Group grew nearly 80% in 2012, but the company is still less than half way to achieving its e-commerce goal of $651 million (500 million euros) in sales within two years.
- Global web sales increased year over year 77.5% to about $205.2 million (158 million euro) from about $115.6 million (89 million euro). The company didn’t break out specific regional numbers for Asia, Europe or North America.
- Total sales increased 11.7% to about $19.32 billion (14.83 billion euro) from $17.29 billion (13.32 billion euro) in 2011.
- Retail sales grew year over year 21% to about $4.38 billion (3.37 billion euro) from $3.62 billion (2.79 billion euro).
- Net income decreased 14.2% to about $683.0 million (526 million euro) from $796.0 million (613 million euro) in 2011.
- The web accounted for 1.1% of total sales compared with 0.7% in 2011.
As a manufacturer and direct marketer, adidas already operates multiple international e-commerce sites for brands such as adidas, Reebok, TaylorMade, Rockport, Reebok-CCM Hockey and others. But in order to make e-commerce a bigger part of its overall business—as much as 500 million euro in annual web sales as soon as 2015—the company has embarked on an ambitious strategy to grow its Internet sales channel. In the past few months, adidas has launched more than a dozen e-commerce sites in Russia, Europe, Canada and South America in the past year on a single e-commerce platform from Demandware Inc.
To build up its e-commerce base under a multi-year plan under chief e-commerce officer Harm Ohlmeyer, adidas is also building specialty e-commerce sites for specific new product launches such as Y3, a new line of women’s exercise apparel. Adidas grew faster than other athletic apparel and shoe manufacturers in 2012. Based on data in Internet Retailer’s forthcoming 2013 Top 500 Guide, Nike Inc. generated Internet Retailer estimated 2012 web sales of $422.1 million, up 23% from $343.2 million in 2011 while Under Armour Inc. grew sales year over year 27.7% to an Internet Retailer-estimated $157.6 million from $123.4 million.
But with e-commerce sales of $205.2 million in 2012, adidas is only about 41% to reaching its goal of $651.0 million in web sales. To achieve that goal adidas CEO Herbert Hainer says in 2013 the company will continue to launch more international sites with a goal of being in 20 countries by the end of the year, adding more styles and size options to its various web stores and more yet-to-be identified features and functions.
“The success of our e-commerce strategy rests on our ability to attract, convert and retain the consumer in a crowded marketplace,” Hainer wrote in the recently released 2012 adidas annual report.