Adidas, following the largest fashion retailers, is switching to the fast fashion concept.
The retailer will be one of the first sports manufacturers to choose this business model. Adidas plans to start a quick reaction to the market with its youth brand NEO: its sales in 2015 are planned at $ 1 billion. The brand is already receiving new models within 45 days from the start of development, for this Adidas has accelerated production processes in Asian factories. Well-selling models can be delivered to stores in literally weeks.
“In our industry, nobody is fast, so we have a great opportunity to gain a competitive edge,” Adidas Global Operations Chief Glenn Bennett told Reuters.
By 2020, the company intends to increase the share of fast fashion in operating profit to 10%. At the moment, the pioneers of this model, H&M, have this figure of about 17%.
The concept of "fast fashion" involves changing the assortment of stores several times a season by copying expensive models. The costs of changing the assortment quickly are covered by the high volume of sales. Zara was the first to use such a business model.