Adidas' new-concept store hopes to score with Beijing consumers

Under Adidas's Route 2015 strategy, the company will continue to open stores in lower-tier cities and Western China, while upgrading existing stores in bigger cities, said Gianni Conti, vice-president, retail for Adidas Group, Greater China Area.

Adidas operates more than 7,600 stores in the world's second-largest economy, of which many are in smaller markets. The company says it plans to be in 1,400 lower-tier cities by 2015.

One key area of the newly renovated store in Sanlitun is the Shoebase at Centerfield, which according to Conti, is the heart of the store.

"Footwear is a very important part of our business ... and we want to make sure it's at the center of our business," he said.

The company has had success with apparel in the past few years with rising market share but would like a bigger portion of its business to come from footwear, said Jens Meyer, vice-president of marketing, sport performance for Adidas China.

"We believe footwear is a less competitive segment than apparel. When you buy footwear that fits well, the likeliness of developing brand loyalty is much higher than with apparel," Meyer said.

According to research firm Euromonitor International, sports footwear in 2012 saw its value increase 4.6 percent compared with 2011.

Nike (China) Inc and Adidas Sports (China) Ltd led the sportswear market in China with market shares of 12 percent and 11 percent, respectively, in 2012, according to Euromonitor International.

Affected by the global economic downturn, the sportswear industry in China saw its overall market value decline from 9 percent in 2011 to 5 percent in 2012.

Domestic players Li Ning, Anta, Xtep and Peak - suffering from issues like high stock levels, a lack of technology and innovation, and rapid store expansion, - saw their market share drop.