Where there are brands indulging more and more into the sportswear industry because of the growing trend of people towards the health and fitness, Adidas is taking a turn back.
Adidas’s American division is shutting off all its dedicated digital sports segment and encompassing the company’s work into “all areas” of its business. The brand is said to be closing its hardware division and getting out of the wearable fitness industry—at least when it comes to making its own gadgets.
The reports say that the brand is focusing more on the software side—specifically the Runtastic and its shopping app.
Runtastic was launched as a training log app but soon it expanded into running watches and accessories.
This decision will not be affecting the Adidas’ collaboration with Fitbit for launching an athletes-targeted version of the Iconic smartwatch in 2018. The spokesperson for the brand informed that both the companies are moving ahead as per the decided plan.
The closure of the segment would not be affecting the workers of the segment as Adidas is looking for new openings for the seventy-four affected employees.
The actual concern is whether this decision would come in way to the brand’s digital fitness efforts. The decision is taken considering a broader benefit of making Adidas much more responsive by folding the expertise and efforts of the digital team into other areas of the company for assisting in speeding up the decision-making processes and for improvising and devising new technologies for making them the spine of the brand’s products.
Adidas no more has a central unit for combining all its digital efforts, and there is only so much that the Runtastic could do to support.