The Adidas Group is switching the branding of its Adidas Outdoor range to Terrex, a new brand concept that has been driving an ample rise in sales for the company in the European outdoor market. The branding is to be applied from 2017 for nearly all of the Adidas brand's outdoor footwear and all of its outdoor apparel range, which has been restructured.
The company says that the change was pushed through after extensive consumer research that pointed to the positive perception of the Terrex name among consumers. The survey conducted in Europe, the U.S. and China found that Adidas Outdoor was too generic. Another finding was that the segmentation of the range was overly complicated, with five division including the children's range.
European sales of Adidas Outdoor jumped by more than 30 percent this year, which has been aided by the entire Adidas group's reorganization in Europe, with more focus on key accounts, harmonized product and marketing approaches. The company is projecting another sales jump of at least 30 percent with the upcoming ranges in Europe.
As part of the changes, Adidas has invested to expand its outdoor footwear range, which makes up by far the largest share if its European turnover for outdoor products, while reducing the apparel range by about 30 percent for the upcoming spring season. Terrex products are to be sold in both brand-driven and commercial accounts, but the focus is on specialist retailers.
The upcoming Terrex range was built around the consumer approach to mountain sports that was confirmed by the survey. It found that consumers increasingly engage in multiple activities, such as cycling, trail running and climbing, which requires more versatile products. Most of them practice their outdoor activities in a day, instead of heading out for several days or weeks.
As previously reported, the Adidas Outdoor category has been integrated into the Heartbeat Sports division at the Adidas group, which covers other activities such as cycling, swimming and tennis. This transpired in June when it was announced that Rolf Reinschmidt, who has driven the Adidas brand's business in the outdoor market since 2007, was stepping aside to become an internal consultant. The outdoor business is now supervised by Tim Janaway, head of the Heartbeat Sports business unit. He will wear both hats until further notice.