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Adidas Y-3 new gorgeous upgrade
Adidas has long been known for its sports performance, but in recent years, the brand has made a bold move into the high-end fashion market. A regular Adidas sports top priced at 500 yuan is significantly cheaper compared to the SLVR series, which costs about three times as much, and even more so when compared to the Y-3 line, which can be over ten times pricier. This positioning suggests that Adidas is no longer just competing with traditional sportswear brands—it's targeting luxury names like Prada instead of Hummer.
In 2009, Adidas faced one of its toughest years, with net profits dropping by 62% year-on-year. CEO Herbert Hainer admitted that 2009 was a challenging period. In response, Adidas launched three key strategies for 2010: capitalizing on the World Cup to boost football product sales, launching a global campaign for its high-end sports fashion line, and regaining momentum for Reebok. While the outcomes of the first and third initiatives are still unclear, the second strategy—focusing on fashion—has positioned Adidas well in the market.
Chinese consumers have noticed a shift in Adidas stores, where high-end fashion products now play a bigger role. Market research shows that demand for premium sports fashion is growing, and Adidas is responding by expanding its high-end offerings.
Since 2002, Adidas has been developing its Sports Fashion Collection, working with renowned designers like Yohji Yamamoto. This collaboration led to the creation of Y-3, a high-end line that blends sportswear with fashion. The concept of "fashion integration" is central to Adidas' vision for the future of sportswear.
The brand’s two main business lines are the Sports Fashion Series and the Sports Performance Series. Within the Sports Fashion Series, there are multiple styles, including Street Style, SportFashion, and SLVR, along with the Essentials line. Each line targets different segments of the market, from casual wear to high-end fashion.
Lu Ruxi, a senior manager at Adidas, explained that Y-3 targets “fashion leaders†— individuals who influence style trends. The brand has carefully selected its retail partners and locations, ensuring that Y-3 stores are placed in prime commercial areas, such as Beijing’s Guomao district.
Y-3 made a strong entrance into the fashion world in 2002, with its first collection presented on the runway in Paris rather than in a traditional exhibition setting. The collaboration with Yohji Yamamoto was a defining moment for Adidas, helping it gain a foothold in the luxury fashion industry.
The Y-3 line is divided into three tiers: the most affordable frontline products, mid-range designs with better fabrics, and high-end pieces sold exclusively at quarterly events. These products cater to a younger, fashion-conscious audience, mostly aged between 20 and 30.
After Y-3’s success, Adidas began to see the potential of the fashion market. The company projected that the sports fashion segment could eventually account for up to 30% of total revenue. Y-3 is a unique division within Adidas, with Yohji Yamamoto as creative director and Michel Michalsky acting as a liaison between the two teams. Designers from both companies work closely together to create each season’s collections.
In terms of marketing, Y-3 is very selective about where it sells its products. Stores are not just chosen based on profit margins but also on their location and image. For example, while some shopping malls may offer good returns, they are often rejected if they don’t align with the brand’s image.
Adidas has also expanded its collaborations beyond Yohji Yamamoto. Stella McCartney, a designer known for her work with luxury brands like Hermès, has partnered with Adidas on the "adidas by Stella McCartney" performance line. Despite these fashion moves, Adidas remains committed to its core sports identity, with 80% of its products still focused on performance.
Another trend in the industry is cross-border collaboration. Brands like Hummer pioneered this approach in 1999 by partnering with high-end fashion labels like Jil Sander. Nike followed suit by acquiring brands such as Converse and Hurly, and bringing in fashion experts to reshape its apparel business.
The competition in the sports fashion space is fierce, with major players like Prada, Ralph Lauren, and Armani all entering the market. As consumer preferences evolve, the demand for stylish yet functional sportswear continues to grow.
Chen Y, the China image director for Y-3, noted that while stars and fashion influencers might wear Prada or Gucci at events, they often prefer casual, stylish clothing for daily life. This creates an opportunity for Adidas and other sportswear giants to capture a share of the market.
As a result, Adidas is no longer just competing with Nike or Hummer—it’s facing off against high-end fashion brands as well. Whether it can maintain its position in this competitive space remains to be seen.