The company opened its largest outlet to date last week, inspired by last year's Russian sales.
Adidas-Salomon AG is a part of the adidas group of brands, which includes Solomon (skiing gear), Bonfire (snowboarding gear) and TaylorMade (golf gear).
The company, which has a 15 percent share of the world's sportswear market, had profits of 229 million euros ($247 million) in 2002.
The Russian market has more potential for expansion than the West, said group vice president Rolf Kotterer during a visit to Moscow last month.
The company's sales grew 50 percent in Russia last year, bringing profits to $90 million. World sales equaled 6.5 billion euros ($7 billion), while global growth was at 10 percent in 2002.
The company opened the new store in the refurbished Olimp center at 23 Ulitsa Krasnaya Presnya.
The 1,150-square-meter store, dubbed adidas-Olimp, is the largest adidas mono-brand store in the world. The company has similarly sized stores in Paris, Tokyo and Stockholm -- the Swedish store is only 50 square meters smaller than Moscow's.
Martin Shankland, general director of Russia's adidas subsidiary, said adidas-Olimp will sell, retail and wholesale, sporting goods for most Olympic sports and could equip teams.
Adidas leased the Krasnya Presnya building from Olimp Center, which is owned by the center's former staff, general director Vladimir Zheleznoi said.
Adidas' turnover in Russia is greater than its closest three competitors -- Reebok, Nike and Puma -- combined, Shankland said.
Adidas has 30 brand-name stores in Russia, including franchises, and it plans to open another 20 in 2003.
To increase its sales, the company plans to start using new distribution channels, such as boutiques and high-fashion clothing stores.
Adidas marketing director Dmitry Binevsky said the company is preparing to make presentations about adidas clothing brands to 450 boutiques in Moscow and 160 in St. Petersburg.
The shops would carry adidas Original clothing, with an average retail price of $40 to $50 per item, and the adidas Sport Style line, designed by Yoshi Yamamoto, with prices starting at $300.
Binevsky said Moscow boutique Le Form and Petersburg boutique Den i Noch have signed supply deals for the adidas Original brand. Sport Style is already on sale at the James boutique in Moscow.
Adidas is now selecting outlets where Sport Style could be sold, Binevsky said. "These stores have to be very prestigious and located in image-making places like Tretyakovsky Proyezd," he said.
Some store owners say selling the Yamamoto-designed clothing may not be profitable because adidas has strict requirements.
"Adidas demands are so high, we're not sure we're interested," said Alexei Volkov, marketing director for Fashion Continent, the parent company of seven Moscow boutiques.
Reebok-Russia marketing manager Alexander Maslov said adidas isn't the only sporting goods company trying to get into the fashion world.
"We also have clothing and shoes marketed to fashion-conscious young people, we pay special attention to making sure that there are elements of stylish design in the new stores we open," Maslov said.
According to Reebok, only 20 percent of its clients buy Reebok clothing for sports.
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