Adidas Men’s Wearhouse to invest in US women’s apparel business
Adidas is to launch a US-based apparel business as it ramps up its efforts to compete in the high-end women’s fashion segment.
The US-headquartered luxury footwear maker said it plans to invest $1bn in the company by 2019 and will also invest in women’s brands such as Men’swear, which it bought for $9bn in 2013.
The move will allow Adidas to take full advantage of the burgeoning US market for luxury brands, as it competes in an industry that is expected to grow at more than double its annual growth rate by 2020.
It is the first time the company has committed to investing in women, which accounts for about 40 per cent of the company’s sales.
“This is the right time for us to build a women’s business that will drive the growth of women’s footwear and apparel,” said Adidas chief executive Mark Parker.
“We will leverage our experience with women’s shoes and apparel, including our vast knowledge base, to create new brands and brands that will help us compete against the best in the industry.”
It will also create new jobs, which the company said it will invest to create 10,000 new jobs in the US, which are part-time and include many of the key roles in the footwear industry.
The investment is part of a broader effort by the brand to diversify its portfolio of products, from shoes to clothing.
The company has been aggressively targeting emerging markets, including the Middle East, where it has invested heavily in shoes and clothing.
In addition to footwear, it is also focusing on the growing range of consumer electronics.
Last year, it said it would invest $3bn to expand its range of smartwatch technology, with the goal of producing more than one million units in the next 12 months.