Adidas (ETR:ADS, OTC:ADDYY) has signed with retailer Pou Sheng International (3813.HK) to localize design, manufacture and sales of its high-end sports brand Reebok, China New Time reported May 31. The cooperation will shorten the release-time for Reebok products in China, giving more of an edge in the Chinese market, said the report.

Adidas plans to strengthen its retail business to improve profit margins, according to the report. In 2009, Adidas China's wholesale business declined 20% while its retail business soared 57%, according to the report. The company will also increase the number of its retail stores by 10% each year over the next one or two years, the report said citing Adidas Greater China Managing Director Christophe Bezu. By the end of 2009, Adidas has 5,400 stores in China, 60% of which are in first-, second- and third-tier cities, according to the report.

Adidas Greater China recorded sales revenues of €198 million in the first quarter of 2010, down 15% on an annual basis.