Adidas will increase china stores by 9 % to 6,100 Next Year

Adidas AG, the global sportswear manufacturer second stores in China will increase by 9 percent, to 6,100 at the end of next year as expected sales growth of at least 10 percent in the country.

Adidas plans to 500 net openings in the world's most populous country, with higher sales in China expected to exceed 1 million euros (1360 million dollars) next year, CEO Herbert Hainer said in an interview today in Shanghai.

The clothing and footwear market in China could be worth 334 billion yuan ($ 50 billion) in 2010, nearly double what it was five years ago, data from Euromonitor International show. Adidas compete with Nike Inc., the world's largest maker of sporting goods, and Li Ning Co. in China, where retail sales growth averaged 18.3 percent in the 10 months to January.

"I'm very confident" in China, said Hainer. "We will see double digit growth in China over the coming years. It is a large population and a lot of people who want their sneakers."

Adidas plans to add about 2,500 small shops in Chinese cities over the next five years, expanding its presence to 1,400 cities in 550 now.

Consumers want smaller cities 'access to global brands,''Christophe Bezu, Great Adidas' chief of China, said at a press conference in Shanghai.

Suppliers

Adidas faces the challenge of managing its prices in China as raw material inflation and increased costs, said Sophia Wu, a Shanghai-based analyst at Sinopac Securities. She has a neutral rating on Li Ning.

China is the largest source of products for the enterprise in Herzogenaurach, Germany-based for at least another 10 years, and providers can "have to raise the wages of their workers," said Hainer, 56, in another interview on Bloomberg Television. Adidas buys 35 percent to 40 percent of its products from suppliers in China, he said.

Belle International Holdings Ltd. has the largest market share in China's clothing and footwear market with 6.5 percent, according to Euromonitor. Li Ning, the Chinese sportswear maker founded by a former Olympic gymnast, was second with 2.6 percent and Anta Sports Products Ltd. was third with 2 percent in 2010, according to the researcher.

Adidas said today that Colin Currie will take over as CEO Bézu for Greater China, effective January 1. Bézu is director of e-commerce company next year.