Adidas is considered one of the global sports manufacturing brands, present in most markets
around the world. Operating in a diverse and competitive environment, Adidas is subject to many
impacts from both the micro and macro environment.
First is the strong impact of the macro environment on Adidas, under the factors politics,
economy, social culture, technology, legal, environmental (PESTLE).
1. Specifically for the Vietnamese market, the government places great emphasis on
supporting foreign investment for businesses like Adidas, and creating favorable
conditions for Adidas to effectively market and distribute products.
2.
Vietnam's economic growth has a strong influence on its revenue and strategy. In
particular, the stability of currency denominations also affects the stability and
maintenance of Adidas' long-term strategies in the Vietnamese market.
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August, but the fresh outbreak of COVID-19 in Vietnam and subsequent
lockdowns resulted in October imports falling 20.1% year over year, and
down 9.1% versus October 2019.The footwear industry has had to adapt,
with imports from Vietnam falling to a 27.4% share of U.S. apparel imports
in the third quarter from 31.5% in 2020. This was despite footwear imports
increasing overall, up 31.4% year over year.
3.
the young generation in Vietnam has a great influence on Adidas's marketing and
product development strategies. This is an important customer segment that helps Adidas
position its brand in the Vietnamese market.
4. According to statistics, Vietnamese people spend a lot of time on technology devices,
specifically social networks or online shopping. This is considered an advantage for
Adidas when building an e-commerce model to reach more customers.
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One of the fastest-growing areas of the digital economy in Vietnam is
e-commerce. the number of people participating in online shopping in Vietnam
has grown steadily, reaching 57.6 million people in 2022. This industry is
expected to continually grow, expecting to gain 70.0 million users in 2025
5. Regarding legal issues, intellectual and trademark protection laws are promoted and
thoroughly managed by the Vietnamese government, which helps Adidas ensure brand
integrity when bringing products to consumers.
6. Adidas has launched many policies and activities aimed at environmental activities in the
Vietnam market, such as using paper bags or covering shoes with paper instead of
non-degradable plastic. Building an environmentally friendly brand image is essential for
Adidas because most customer segments in Vietnam are quite picky about environmental
issues.
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Product Innovation drove Adidas sustainability pivot. By 2025, Adidas aimed for
9 out of 10 product articles to be sustainable – containing materials with
measurably lower environmental impacts.
Secondly, internal factors are considered factors that bring influence to Adidas, creating a
micro-environment that affects the company's business activities.
1. The Vietnamese market is becoming more and more vibrant with fashion and sports.
Adidas should focus on a group of young customers who love fashion and sports and can
have a stable income to build appropriate strategies and develop new products.
2. . Adidas customers also have increased confidence because the products are of uniform
quality and shipped quickly compared to user needs. Vietnam is considered one of
Adidas' main production units for both domestic and international markets. Close
relationships with local factories ensure efficient production and supply chain
management for Adidas.
3. Adidas always faces strong competitors in the market, typically Nike. Competition is also
an important factor for Adidas to develop differentiation for its products, while increasing
its customer value. Besides, according to Adidas Marco and Micro Environment, PUMA
is becoming a dangerous competitor to Adidas in the market today. If Adidas wants to
attract customers in the Vietnam market, it needs to build more differentiation in its
products.
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First adidas teamed up with ZMS Insights, making use of the ZMS Insights
Dashboard & Zalando Attitude Behavior Gap Report. In order to inspire
positive action in its target audience, adidas decided to shy away from a
preachy narrative, removing the friction of “sustainability at the cost of
fashion” by bridging the value action gap in customer shopping behavior.
4. Adidas is using things besides intermediaries to build a promotion system for its products
globally. such as social network channels, or traditional TVC. These intermediaries
cooperate with Adidas to ensure their product information reaches the majority of
customers. This is also an important factor in today's competitive market.
5. Adidas is the largest sports equipment manufacturing company in Europe and the second
largest in the Vietnam market with 19,45% percentage contribution, according to the
Export Genius business intelligence report on Vietnam exports sports footwear, its main
products are shoes, clothing, and sports accessories. Due to its multinational nature,
Adidas has many production facilities in countries, mainly developing countries. This is a
factor that affects this company's business plans
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According to the Export Genius business intelligence report on Vietnam exports
sports footwear(HS Code 64041190), Nike took the largest market share of
Vietnam’s sports footwear. This sports shoe manufacturer in Vietnam is a leading
footwear brand, capturing over 30% of the sports shoes market into the country.
Its total business of sports shoes valued US$ 1465649840 in 2017. Here are 10
largest sports footwear brands in Vietnam with their percentage contribution to the
Vietnamese market.
6.
All of these factors also affect Adidas' long-term plans and business orientation in new
markets. To be able to access the Vietnamese market more effectively, corporate culture
is also something Adidas should understand and deploy to suit the market.