Adidas, in its annual report 2023, has revealed how it has strategically leveraged digital innovation to enhance its e-commerce, membership, and broader operations, marking significant achievements in 2023.
The company focused on reducing promotional activity and driving full-price sales by building brand desire through engaging, relevant storytelling around key products and events. This approach enabled Adidas to provide premium, connected, and personalized shopping experiences across 67 countries, supported by exclusive products and member offerings.
Adidas says e-commerce platforms contributed 20 percent of total sales, while direct-to-consumer (DTC) sales, including e-commerce and retail, accounted for 41 percent of the company’s revenue. Adidas’s revenue was 21.427 billion euros in 2023.
Adidas, which is celebrating its 75th anniversary in 2024, does not reveal its spending on technology. In 2023, Adidas spent approximately 151 million euros on research and development (R&D).
Adidas spends almost half of its marketing investment on partners, with the remainder spent on brand marketing activities such as digital, advertising, point-of-sale, and grassroots activations. Adidas has over 29 million followers on Instagram, 40.95 million followers on Facebook and 38.2 million followers on TikTok.
A major digital achievement was the continued expansion of the ‘adiClub’ membership program, which is now present in around 50 countries. In 2023, Adidas broadened the redemption feature to 19 new countries, allowing members to redeem points for exclusive products, raffles, vouchers, and unique experiences. The introduction of the ‘Points x Premium Subscription’ and a partnership with Les Mills further empowered members, making adiClub one of the only loyalty programs where physical activity enhances membership status.
Adidas also innovated its digital race experiences, engaging over 450,000 members worldwide through virtual races that paralleled major events like the Berlin and Dubai marathons. These experiences, facilitated via the Adidas sports app, website, and social media, allowed members to feel connected to high-profile races, thus enhancing global inclusivity.
Another success was the Adidas ‘Confirmed’ app, which serves as a digital boutique for sneakerheads and fashion enthusiasts. In 2023, the app featured high-profile collaborations with brands like Moncler and Bad Bunny, refreshed its visual design, and introduced the ‘adidas Consortium Cup,’ a sneaker design competition that engaged global fashion influencers.
Operationally, Adidas improved its e-commerce service levels through distribution center automation and system upgrades. Its 65 distribution centers worldwide ensured efficient fulfillment of global demand. Adidas has 13 distribution centers in Europe, three in CIS, twelve in Emerging Markets, twelve in Asia-Pacific, eleven in Greater China, seven in North America, and seven in Latin America.
Adidas made investments in digital learning and development opportunities, such as LinkedIn Learning, Udemy, Circus Street, and Arizona State University. More than 59,000 employees invested a total of 1,020,000 hours in trainings and workshops that were completed in 2023 – an average of 17.9 hours.
In 2023, Adidas undertook digital surveys in 109 manufacturing facilities (2022: 133) across 16 countries (2022: 17), with more than 71,000 workers participating (2022: 85,000) through a mobile-phone-based application.
Adidas also utilized digital tools in its supply chain, including the ‘Worker Pulse’ project, which used mobile surveys to monitor worker perceptions and labor rights awareness in manufacturing facilities. This approach highlights Adidas’ commitment to both digital transformation and responsible business practices.
Baburajan Kizhakedath
