By Manuela Mesco and Ellen Emmerentze Jervel. Sept. 3, 2015 12:13 p.m. ET
After suffering losses in the U.S. market, German firm Adidas AG has been making plans to update their brand. Amongst these plans, including a new more ‘urban’ line of clothing labeled, Adidas Original. Adding more street wear and accessories to their catalogue, collaborating with famous artist such as Pharrell Williams in design, and contracts for marketing with Kanye West - all in an effort to regain market share and increase their credentials with American youth. This marketing strategy was successful, increasing sales by the first half of the year.
In addition to these plans, Adidas AG has partnered with small Italian eyewear maker, Italia Independent SpA to enter the lower designer eyewear market. This strategy has been used by many firms in the past by larger companies like Chanel, Armani, and Gucci. Italia Independent is a young company that was founded in 2007. Unlike other deals that have joined designer brands with eyewear companies, Adidas plans to include both their name, as well as Italia’s on the product. This method will increase the market exposure for Italia in addition to exposing Adidas to a new market.
With all of the competition that Adidas currently has, both in the sportswear and now the eyewear market, their strategy will be very important. Using the Originals collection to introduce new accessories, such as watches, was a great way to prime the market for their new eyewear line. The partnership with popular celebrities was also very beneficial to Adidas and hopefully this influence will place them into an advantageous position. Though Adidas has never been a favored brand of mine, their advertising has always been very visible, yet as we know visibility does not always equal success. One can only hope that the release of the new eyewear collection this coming January will be what consumers are looking for.