Adidas-Salomon has scrapped plans to launch a men’s fashion brand next year so as not to dilute its sports image.
Adidas’ executive board approved the development of a casual range of clothing for 20- to 35-year-old “high-income, urban men” – thought to be called Attribute (MW August 5 1999) – but decided to scrap it after it received a lukewarm response from US investment banks.
The board says: “We are, and will continue to be, committed to true sports.”
Adidas deputy chairman Herbert Hainer says the decision was based on the results of tests and market research: “Our brands, and our competence in the sports goods sector, still offer enormous potential for growth. We want to concentrate all our efforts on leveraging this potential and managing and building our existing brands globally.”
The development of the leisurewear brand – and a separate subsidiary to run it – was partly a defensive move to counter the encroachment of the fashion industry on the sports goods market.
Adidas says it intends to increase its presence in the active leisurewear market with existing brands rather than developing a separate brand.
The company’s results for January to September reveal a 4.2 per cent decline in apparel product sales to e1.7m (£1m) on total group net sales up 2.8 per cent to e4.2m (£2.6m).