On a trial run, Adidas has experienced a major sales boost on Instagram. Since March, Instagram introduced a new feature called ‘Checkout’. It lets the user shop for products and track their shipment.
Instagram is reported to charge a certain amount to the companies for using their platform. The selling fee is not conformed yet. The selling fee is to primarily cover shipping funds and shipping funds.
The German sports apparel brand garnered a net profit of 707 million dollar in the first quarter of 2019. The company saw a 17% increase in profit from last quarter.
Adidas CEO, Kasper Rorsted admitted the role of Instagram in an earning call last week. He stated, “There was no doubt that Instagram had a positive impact for our online business in the first quarter. Product launches and Instagram checkout tools were the two most important things for our online sales business in the first quarter.”
Adidas crafted its marketing strategy revolving around Instagram. They exclusively launched more and more products that can do well on Instagram.
Rorsted added more, “Our online growth is very much dependent on which product launches we have within a given quarter, what we focused on is ensuring we have the consistency of launches.”
The checkout feature is only available in US because of its trial period. Instagram announced in March, they are going to introduce more and more shopping features to their platform.