The market research is based on the sportswear industry. The sportswear sector is a diverse industry covering a wide variety of products for all sports personalities. The sportswear industry covers a wide range of products from apparel to footwear in sports such as basketball, tennis, and golf. The global market industry market capitalization as of 2020 was $365 billion and is estimated to grow at a compound annual growth rate of 5.5% to reach $530 billion in 2027. The sector’s main players include; Adidas AG, Nike Incorporation, Puma SE, Under Armor, and New Balance.
The specific market segmentation research is aimed at Adidas AG (Adidas). Adidas is a multinational corporation, founded and headquartered in Herzogenaurach, Bavaria, Germany. The company designs and manufactures footwear, apparel, and accessories. Adidas products are traditionally marked with a three-stripe trademark, which is used as a promotional logo. The company sells its products under three different brand names; Adidas, Reebok, and TaylorMade. In 2019, the company’s net sales amounted to an estimated 23 billion euros making the company largest in Europe, and second-largest worldwide.
The shifting dynamics regarding the increase in health awareness has led to the development of a market niche involving athleisure footwear (Abbasi, 2020). Athletes prefer light sneakers when exercising as it offers less resistance thus conserving more energy. More people are joining the fitness bandwagon thus the sneakers are a perfect fit for performing indoor and outdoor exercises. The sneakers can also be used in formal and casual occasions as trendy and stylish footwear. The preference for sneakers is changing from not only being an athletic shoe but also a fashion trend (Abbasi, 2020). The types of strategic changes required include; new markets for the current Adidas sneakers and the development of new athleisure sneakers for the new markets. The company’s strategy is the development of athleisure aesthetic sneakers that are versatile in their styling where the design is structured to be a perfect motif for almost any outfit, such as monochrome tracksuits and t-shirts, and jeans laid back style. The sneakers will possess similar characteristics as athletic sportswear.
Related: Strategic Marketing in Sportswear Industry | Business Homework Help
