Adidas AG (ADDYY)

Adidas Group has the most sales in countries such as India, Japan, Korea, Thailand, Indonesia, and New Zealand. The company has an explicit strategy focusing on these emerging markets to promote its growth. Also, the company competes head to head with Nike in China, putting it in good position to capture and retain good market share there-by 2010, Adidas expects that China will be its second-largest market.

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Over the last two years, the apparel industry has struggled, seeing declines in each year. However, analysts at Standard & Poor's believe that strong luxury brands such as Adidas will rebound in 2010, predicting a low single digit increase in the industry for the year. Adidas, in particular, will benefit heavily from the 2010 World Cup (of which it is an official sponsor), and the related spike in apparel sales that it has already brought and will bring for the rest of the year.

Adidas has been able to weather the global recession in 2007-2008 because of its global reach. Adidas' sales Q3 2008 increased by 11% overall. This was driven primarily by a 39% and 23% increase in sales from the Latin American and Asian regions, respectively, despite a 7% decline in sales from North America.