FIRST AIRED: June 16, 2016

Nice work! Enjoy the show!

×

You’re busy. We get it.

Stay on top of the news with our Editor’s Picks newsletter.

US Edition
Intl. Edition
Unsubscribe at any time. One click, it’s gone.

Thanks for signing up!

We've got more news

Get our editor’s daily email summary of what’s going on in the world.

US Edition
Intl. Edition
Replay Program

Business

Adidas heading for record sales - CEO

Opening sequence

Opening sequence

Business

Adidas heading for record sales - CEO

0:00
17:41
More Info

COMING UP:Adidas heading for record sales - CEO

×

Transcript

00:00:01
>> With the Euro 2016 tournament in full swing, Adidas says it's expecting record sales of its soccer merchandise this year. The company's boots, shirts and balls are expected to rake in an unprecedented 2.5 billion euros, or nearly $3 billion. It's a turnaround after a tough couple of years for the German sportswear company.
00:00:24
Adidas was overtaken by its US rival Nike in 2014, forcing it to up its game. Achswatcher's correspondent Emma Thomasin, explains.>> When Nike overtook them in the market, the football boots in 2014, it was a bit of a wake up call for Adidas and they shifted strategy in a couple of ways.
00:00:46
I think most importantly, they signed massive sponsorship deals with Manchester United, with Uventist, and kicked Nike out of those clubs. They've also massively increased their presence on social media which was an area that Nike was always really strong in.>> Adidas is also kitting out nine of the 24 teams playing in Euro 2016, including reigning champions Spain and Germany.
00:01:12
But although the company says it expects to sell over a million Germany shirts this year, that's down from two years ago.>> During the World Cup year, when Germany won the World Cup two years ago, they sold 3 million Germany shirts. Some people are suggesting that lots of Germany fans bought a shirt.
00:01:28
Those fans are wearing that World Cup shirt to the Euros. Those that don't particularly want to fork out another 85 euros for new shirts.>> Adidas' sponsorship of UEFA and top teams at the Euros makes it highly visible on the pitch, a marketing strategy it's hoping translates into higher sales.
00:01:46
But with more players seeming to sport fluid colored Nike boots the German brand will need to keep working on its defense.