The business of dressing teens

MANILA, Philippines - The Philippines has a young market, and this is what Adidas is hoping to capture with its latest brand, Adi Neo,” said Nolet Puno, Adidas Philippines country manager. “This year we plan to launch this whole concept of Adi Neo, our newest Adidas brand targeted at kids from 15 to 19.”

Adidas is a brand that traces its roots to the 1920s, when Adi Dassler set up his footwear company.  By 1930 Adidas became the number-one company in terms of the sports footwear business  football shoes, in particular.

The company has since expanded beyond athletic shoes to apparel. And, in 2006, Adidas acquired Reebok. Adidas divided the brand into three main groups with each having a separate focus: Adidas Performance was designed to maintain their devotion to the athlete; Adidas Originals was designed to focus on fashion and lifestyle; and Style Essentials, with its main group being Y-3.

Puno was quick to point out that although Adidas continues to be more popularly known as tops when it comes to athletic gear  as it is the heritage of the brand  the company is also aware of the growing markets in the country and in Southeast Asia and the need for the brand to stay in touch with all the trends. 

“We look at the Philippines as quite a big market in the aspect of fashion and lifestyle,” added Puno. “We believe that Adi Neo is going to play a major role in the retail industry in Southeast Asia.” 

Kids rule, Kids’ rules

A new collection: The 2011 spring/summer collection of Adi Neo

Enter any mall and you will notice how many more stores there are that cater to teens. As a matter of fact, Puno added that one of the main attractions of the malls is stores that cater to the younger set.

“The shops that have merchandise for the younger set are always busy,” quipped Puno. “I believe it is because the teenagers want to make their own statements, have their own lives.”

Of course, as the longest holiday season in the country approaches, Adidas believes that consumer spending will grow because of OFW remittances.  The other area that Adidas sees great potential in is the development of major malls outside Metro Manila, which will also spur the growth of retail businesses.

“Adidas wants to be part of that growth,” quipped Puno. “We want to be where our consumers are. We want to give them what they want and need.” 

In Manila, the malls have not stopped expanding either, a clear sign that many more retail businesses are coming up.

“We want to capture that opportunity to grow our market as well,” added Puno.

“Here at Robinsons Galleria, one of two malls that have Adi Neo stand-alone stores (the other one is at Market! Market!), the re-zoning has offered Adi Neo the space at the entrance to the Sports zone. And we had to be a part of that.”   

Market matters

Young vibe: The store in Market!Market!

Because of the heritage of Adidas, the company is hell-bent on making sure that it continues to provide athletes with the best equipment, shoes and apparel to enhance their performance. 

“There are our other two brands  Adidas Originals and Adidas Neo,” added Puno.  “For the Philippines we really look at Neo and Originals as really the core of the Adidas style.”

Adidas Originals is a well-known brand in the country. It is the brand that many look to for casual wear. But beyond that, Puno sees that there is a lot of business in the lifestyle of teenagers. 

“We created the Adi Neo store with a vibe that the younger set will feel and see,” said Puno. “There is an energy in the store that speaks to a younger segment of the market.”

“As a brand Adidas has two divisions: sports performance and sports style,” added Adrian Chan, senior manager, brand communications, Southeast Asia.  “Color is the way we distinguish the brand. Neo distinguishes it away from blue, which is our Originals line.” 

Green is the color Adidas Neo has chosen for its youth lifestyle line.

The shoes at Neo draw inspiration from Originals, but one will not find a pair of Adidas Supertars in Neo. The three stripes that the brand is known for will still be evident in some of the footwear and apparel. 

“In some of the shoes you will see the Adidas branding, which is very bold,” added Chan.  “Something that you will not find in the originals, which are sometimes more subtle.”

The Neo line also uses lighter materials. The brand is very colorful and very young.

“There is definitely a younger design team for the Neo brand,” quipped Chan. “These younger design people move quickly, just like the youth of today.” 

After all, the designs follow a very short lead-time compared to other brands. That’s because younger people change their styles so quickly, added Chan.

Fashion, I am told, has a shorter lifespan as it changes with each season, or even faster, unlike the technology studies that go into making a new sports shoe, which may take months or even years to perfect. 

One connected world

“We make sure that we provide apparel for the active lifestyle that they live,” added Chan. “The younger market has more access to media  because of this their networks have expanded and information is easy to come by.”

It is that whole concept of being able to interact with the rest of the world through the networking sites that in a sense there are not more real boundaries when it comes to young people making their fashion choices. 

“It’s being able to interact with people beyond their boundaries, “ said Chin.

“Adi Neo will make sure it provides what they want, at prices that are more affordable to them.”

The Neo is priced lower than the Adidas Originals. The reason behind this is that Adidas wants to give teenagers value for money. This way, the kids save up for something they might want to get at the Adi Neo store. 

“A stand-alone store is one that is more popular among shoppers,” said Puno. “I think it is because of the experience or maybe because of the perception that what is in the store is all original.” 

What is important to the folks at Adidas is that Adi Neo has casual sportswear focused on teenagers, which is a big segment of the Philippine shopping market. 

At Adi Neo Adidas believes that there is something that kids will aspire to own rather than get their moms or dads to buy for them. The brand will carry apparel that will appeal to its market, not necessarily to an older market. 

“Fashion transcends borders for sure, but young people are always in colors and they are always in T-shirts,” added Chan. “If kids see the Adi Neo and they like it, they could make it their own statement. Adi Neo wants to give Filipino kids what they want and as far as we know, the T-shirt never goes out of style.”