The article is announcing its opening up of the world’s biggest Adidas shoes store in China. Adidas is aiming to overtake its rival Nike, Inc. in Beijing China where the 2008 Olympics is set to open in August, this year.Being the largest outlet and being situated in the capital’s main entertainment district, the store is easily accessible to consumers.
The China Adidas store will be the company‘s second largest market coming after the United States.[1]By the company’s estimate, the company sales will exceed $1.58 billion in 2010,[2] which is will be already higher than what its competitor Nike’s 2007 sales of $1 billion.The opening up of the store in China is believed to be strategic for Adidas given the flattening of the of level of demand in the US and the declining stock price in the US as evidenced by recent news and in the light of China’s hosting of Olympic games in the place. The company is banking on huge Chinese population, low retail rents and a good number of retailers as favorable conditions to its decision in putting up the store in China Incidentally, Adidas would be at the same time locating its biggest store in a place which is known to be the biggest counterfeit market and such would be a hurdle that the company must face.
Its officials are not however worried about piracy because of company’s past successes in making violators for trademark infringement answer for what they have caused the company. The company is banking on its status as official Olympic sponsor due to the expected support from the Chinese government to protect the official Olympic logo.[3]If I work for Adidas, I would recommend for strengthening the protection of the patent or anti-infringement law to ensure that the Adidas product popularity may not be taken advantage by the pirates during the company’s expansion.Although the company has cited its successes in prosecuting its piracy complaints against violators in the US, China is still a different country with different laws and court systems which the company must understand familiarize.
Given the support that the company expects from the Chinese government due to its being an official sponsor, it would do much if the company will maintain a good relationship with the government officials before, during and after the 2000 Beijing Olympics. At the same it must fulfill its promises and representations to about its products to its customers in China that such are above counterfeit quality.Work Cited:Fong, M., Adidas Bets Big on Beijing, 2008 {www document} URL, http://online.wsj.com/article/SB121502808513023827.htmlAccessed, July 21, 2008-[1] Fong, M., Adidas Bets Big on Beijing, 2008 {www document} URL, http://online.wsj.com/article/SB121502808513023827.htmlAccessed, July 21,2008-[2] Fong, 2008, see above[3] Fong, 2008, see above
