Adidas is leaving behind TV advertising as it seeks to quadruple its e-commerce revenues by 2020, Chief Executive Kasper Rorsted has told CNBC. Rorsted said the firm would focus primarily on digital channels to capture younger consumers, a crucial demographic for the sports clothing line.
“It’s clear that the younger consumer engages with us predominately over the mobile device,” Rorsted added. “Digital engagement is key for us; you don’t see any TV advertising anymore.”
Rorsted took to the helm of Adidas last year and has placed increased digital retail sales at the center of his overhaul strategy, aiming to grow revenues from 1 billion euros (Rs 7,100 crore) in 2016 to 4 billion euros ($30,175 crore) by 2020.
Rorsted is lauded with having significantly boosted e-commerce sales while at the helm of German chemical and consumer goods company Henkel. “All of our engagement with the consumer is through digital media and we believe in the next three years we can take our online business from approximately 1 billion (euro) to 4 billion (euro) and create a much more direct engagement with consumers,” he said.
The firm also announced last week that it is investing heavily in the digitization process, including 3-D printing and smart manufacturing methods.