BRAND HEALTH CHECK: What’s behind Adidas’ brand surge in China?

In a fiercely competitive market dominated by both global giants and rising domestic brands, Adidas has managed to carve out a winning strategy in China, even amid changing consumer preferences and geopolitical challenges. With a 10% year-over-year sales increase in 2024, the German sportswear giant is reaping the rewards of a marketing approach deeply rooted in cultural relevance, digital innovation, and strategic partnerships. 

From collections inspired by traditional Chinese aesthetics to high-impact activations on platforms like WeChat and Xiaohongshu, Adidas is showing that success in China isn’t just about presence, but it is also about resonance. Strategic partnerships and a deep understanding of community-driven engagement are turning cultural insight into commercial impact.

Adidas’ seven-quarter growth streak in China is a testament to its hyper-local strategy, which includes initiatives like the Chinese New Year collection, a pet-wear line and even a pop-up Chinese teahouse in Chengdu, a city in southwestern China known for its relaxed lifestyle. What are the underlying factors contributing to sustained growth in one of the world's most competitive markets?

Campaign asked senior marketing and brand strategists who had extensive experience in China marketing to decipher the success of Adidas' code and what’s next for the brand.

What strategies enabled Adidas to not only survive but also thrive in a rapidly changing retail environment?

Tom Zhang
Associate Partner
Prophet Shanghai

Beyond localised collections, Adidas’ strong comeback in China is driven by:

1. Dual-engine strategy (Sports + Lifestyle): While riding the Samba wave, Adidas doubled down on its sports credibility in key verticals like Running (including marathons) and Football, activating its ‘You Got This’ brand campaign
2. Consumer-centric approach: Adidas deepened its local insight mechanism - translating Chinese consumer insights into local product creation (beyond just special collections), sharpening product marketing based on consumer motivations and occasions, and further optimising retail channels and experiences
3. Sustained brand relevance: The brand maintained cultural relevance through consistent activations, ranging from global collaborations (Wales Bonner, SFTM) to local icons like Edison Chen and a carefully selected ambassador roster across sport and entertainment.

Deric Wong
Founder & CEO of DJM Consulting
Global chief business officer of EternityX

Adidas’ resurgence in China is not just a result of seasonal or novelty product drops; it’s the outcome of a profound structural transformation aimed at regaining cultural relevance and operational agility. Key drivers include: 

• Localised autonomy: Adidas granted its China team complete operational control across product development, marketing, and channel management, executing its “In China, For China” strategy. This localised governance empowered teams to act quickly, align more deeply with consumer preferences, and scale relevance across product lines and retail expansion.
• Supply chain re-engineering: Today, more than 80% of Adidas products sold in China are manufactured locally. This shift has significantly reduced time-to-market, improved cost efficiency, and enabled the brand to respond in near real-time to local demand and trends, critical in a fast-moving and competitive market.
• Cultural immersion: Initiatives like Shanghai's "Superstar experience" (a four-story shoebox activation) blended street culture, music, and sneaker heritage, showcasing community-driven engagement that goes beyond just products.

It’s exciting to see Adidas making such strides in the Chinese market. The brand’s local-first approach, shifting from demographic to community-driven marketing, coupled with investment in culture activations, signals a redefined strategy. The key to continued success lies in its execution. Key areas of its strategic success include:

• Tribal engagement: Adidas targeted wellness communities (e.g., female runners, street-style enthusiasts) via Xiaohongshu and Bilibili. The launch of a pet-wear collection under  #AdidasOriginals provided tailored content and an “inclusive power” narrative that helped scale KOL influence within the community-driven ecosystem. 
• Emotional storytelling: The brand moved away from performance-focused messaging to identity-driven narratives. Recent campaigns like "YOU GOT THIS" (你行的) emphasised personal growth and empowerment over athletic medals, striking a chord with Gen Z consumers seeking authenticity and purpose over perfection.
• Omnichannel integration: Adidas effectively leveraged platforms such as WeChat (mini programs and adiClub), Tmall, and Douyin for livestreaming and CRM, contributing to strong DTC growth. Collaborations with creators like Bad Bunny and Edison Chen further amplified organic reach and cultural relevance.

Looking ahead, what strategic steps should Adidas consider to ensure long-term, sustainable growth in the Chinese market?

Tom Zhang
Associate Partner
Prophet Shanghai

1. Defend against niche challengers: As niche brands like On and Hoka (running) and Arc’teryx and Salomon (outdoor) gain traction, Adidas must proactively defend its turf. This means building more premium, signature product lines with clear storytelling, elevated design, and dedicated channel experiences 
2. Disciplined expansion into ‘value’ segments: Growth in lower-tier cities and among lower-income consumers must be pursued with care. Takedown versions of hero franchises must be selective, balancing accessibility with brand integrity to avoid dilution
3. Invest early in the next generation: Chinese youth today view global and local brands more equally than past generations. Adidas needs to earn their preference and loyalty early by actively engaging them with youth-led platforms and grassroots sports communities      

Deric Wong
Founder & CEO of DJM Consulting
Global chief business officer of EternityX

As Adidas looks beyond recovery, the next frontier is cultural indispensability. This requires evolving from campaign-centric marketing to building a sustained brand platform that lives at the intersection of lifestyle, community, and brand purpose. Strategic priorities for the future:

• Build a consumer ecosystem, not just campaigns: Adidas should transition from episodic storytelling to an always-on brand platform where products, content, services, and communities intersect to create continuous value. This ecosystem approach increases consumer stickiness and brand relevance over time.
• Expand within China’s wellness and lifestyle economy: Leverage China’s growing demand for holistic wellness by offering digital services such as fitness challenges, mindfulness content, and nutrition education. These can be delivered through co-branded apps, creator-led series, or integrations with existing platforms, positioning Adidas as a wellness enabler, not just a product brand.
• Invest in the creator economy as co-owners, not just promoters: Rather than treating influencers as media channels, Adidas can embed them in product design, narrative development, and even revenue-sharing structures. Adidas can deepen relationships with creators by involving them in product co-design, brand storytelling, and even revenue-sharing models. When Generation Z consumers see their values, voices, and creativity reflected in the brand’s core operations, they form more lasting emotional attachments.
• Accelerate expansion in lower-tier cities: With over 68% of China’s population living in lower-tier cities, Adidas must balance its flagship halo in cities like Shanghai with cost-efficient retail expansion and localised storytelling in emerging urban centres. These markets offer scale and loyalty when engaged authentically.
• Make purpose-led actions visible and localised - Sustainability, gender equality, and youth empowerment should not remain buried in global ESG reports. Instead, Adidas must activate these values through hyperlocal partnerships, credible Chinese media channels, and user-generated storytelling, turning corporate purpose into community impact.

To secure long-term leadership, Adidas must evolve from being a brand that performs well in China to a brand that is indispensable to Chinese identity. That requires more than just product relevance - it demands cultural fluency, platform-level thinking, and a visible social role in shaping the future of Chinese youth culture.