Tuesday, 14 July 2009

Adidas Philippines bullish on sales, opens concept store in Mindanao

Geefe P. Alba
BusinessWorld
http://www.bworldonline.com/BW071409/content.php?id=043

CAGAYAN DE ORO CITY — Adidas Philippines, Inc. is expanding its sales network in Mindanao, where sales of sports wear and shoes are increasing despite earlier projections of a business slump from the global economic downturn.

"We will open new stores in Mindanao starting in this city because the malls are near residential areas where [stores are] more accessible compared with bigger cities," Adrien Semblat, Adidas Philippines’ senior manager for key accounts, said on Friday.

Shopping malls closer to residential areas would be good locations for the company’s shops considering sales of personal items are generally high during weekends.

Mr. Semblat attended the opening of the seventh Sports Central outlet, an affiliate of SM Prime Holdings, at this city’s SM City Cagayan de Oro. An Adidas franchisee, Sports Central invested at least P1.2 million for the opening of the Adidas concept store here.

Rodel Mercado, Sports Central senior marketing manager, said the reason for opening a concept store here is increasing sales in local outlets during the last few months. This was in the backdrop of wide-scale retrenchments in Northern Mindanao’s manufacturing plants in the first quarter of the year.

An economist from a local university said consumers were shifting to buying smaller and personal items during hard times instead of bigger durable goods such as cars and expensive appliances.

Mr. Mercado said: "The consumers here purchased high-quality products and we have seen that in our surveys." These consumers were mostly young professionals, and demand from this segment allowed the firm to meet sales quotas in the last few months, he said.

Mr. Semblat said Adidas Philippines believes its local market is not affected by the slowdown.

Another Adidas concept store will be opened at the SM City North Edsa by the end of the month. The ninth store will be opened by the third week of September in SM City Iloilo.

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