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    Adidas Accepts Reebok To Compete With Nike

    2008/8/18 11:47:00 8

    Sports Shoes Adidas Reebok

    The United States can be said to be the vane of the world's sports shoes market, and it is leading the world trend.

    From the mid 80s of last century, three sports shoes companies of Adidas, Nike and Reebok formed a "three feet stand" trend in the world sports shoes market. By 2005, Adidas announced the merger and acquisition of Reebok, and the world sports shoes market began to enter the stage of "competition between Chu Han".

    In 2005, the global brand sports shoes market reached 24 billion 200 million dollars, Nike accounted for 36.6%, Adidas accounted for 22.2%, while other manufacturers did not exceed 5%.

        阿迪達斯風光不再 耐克和銳步成后起之秀

    "New wealth" reported that before the advent of Nike in the 70s of last century, Adidas has dominated the world's sports shoes market, and has occupied 70% of the U.S. market, but by 1990, it has dropped to 2%.

    Nike and Reebok became a rising star in 70s and 80s.

    1979 is the golden age of Nike.

    According to the company's information, Nike launched its first pair of air cushion sneakers "Tailwind" and began to manufacture and sell sportswear that year, so that its annual sales revenue reached nearly half of the sporting goods market in the United States, and it is far ahead in the sports shoes market.

    In 1980, Nike issued 2 million shares and was publicly listed on the New York stock exchange, with sales revenue of US $269 million.

    However, Nike sports shoes emphasize functionality, and the main customers are men.

    In 1984, the United States "jogging hot" ebb, the rise of women's aerobic exercise, Reebok founder and CEO Paul Felman lived in this opportunity, so that Reebok realized sales revenue of more than 300 million US dollars in 1985, of which 60% comes from aerobic sports shoes and fitness shoes.

    Reebok became the representative of fitness and fashion sports brand and completed the listing in that year.

    In 1986, Reebok sold more than Nike in the US.

    In December 1986, Nike announced a 10% layoff, fired about five hundred employees, and David Chang, Bob Woodell, Rob Strasser and other entrepreneurial team members resigned at this time.

    Although Nike's gross profit margin remained at around 38%, its net interest rate was only 5%.

    In 1987, Nike's sales revenue decreased from $1 billion 70 million to $877 million, down 21% from the same period last year, and net profit also decreased by 38.98%. Reebok's sales revenue increased by 23% over the same period last year, accounting for two times the share of the US sports shoes market.

    Nike made a series of adjustments from 1987 to 1988: the establishment of a matrix organizational structure; the appointment of new management; the focus of product design shifted from "what is the most advanced sneaker technology" to "how to design shoes that can attract customers to buy".

    It is worth noting that in order to expand the sales market and product range, Nike acquired high-end fashion shoe company ColeHaan in 1988 and entered the field of casual shoes.

    Since the beginning of 1988, the market of aerobic sports shoes in the United States has been saturated, and the growth of Reebok's superior products is weak.

        復制耐克做法銳步“東施效顰”

    In 1990, Nike's sales revenue was flat with Reebok, and its net profit exceeded Reebok's.

    In the 1990 annual report, Nike's goal is to become the largest and most profitable company in the market, trying to continue to compete for the market from its competitors.

    While Reebok is more concerned about brand building, the goal is to become the world's first brand of sports and fitness.

    From 1992 to 1994, the overall market for sports shoes and sportswear in the United States was sluggish. According to the American Sporting Goods Association, total market sales increased by -0.46%, -5.53% and 0.32% respectively.

    As Nike and Reebok grew stagnant, both sides began to attack each other's territory.

    In 1992, Nike launched aerobic fitness shoes against Reebok's advantages in the fitness market. However, due to the sluggish market, it did not achieve the intended growth target.

    In 1994, the sales volume and the average selling price of Nike sports shoes both dropped by 2%, and net profit dropped again.

    From the perspective of geographical composition, Nike not only lost 5% of its sales revenue in the US market, but also dropped 3.2% of its sales in the international market.

    However, Nike remained committed to the international market. Sales and administrative expenses increased by 5.6% over the same period last year, and the share of sales revenue increased from 23.5% to 25.7%.

    In order to open the male market, Reebok put the focus on the basketball shoes and introduced new technology to strengthen the functional characteristics of Reebok basketball shoes.

    In 1991, after launching Pump technology, Reebok launched the Blacktop series basketball shoes products. In 1992, when it launched Instapump and Graph Lite technology, it also launched The Above The Rim basketball shoes series.

    Reebok also copied the way Nike created Jordan, the product spokesperson, who did the "hero worship" style advertising, pushed NBA star O'neal, copied Nike's naming of new sneakers with Jordan and other signboard players, and launched a sports shoes called "Shaq Attack".

    However, Reebok's marketing strategy did not work, and its market share dropped to about 20% from 23% in 1989-1992 years.

    At the same time, sales and administrative expenses continued to rise, the proportion of sales revenue rose from 24.4% in 1991 to 28.7% in 1995.

        效法耐克和銳步 阿迪達斯向時尚轉變

    In 1993, Frenchman Louis Dreyfuss became Adidas CEO. He reappointed the management, hired more than 12.5% Nike executives to conduct marketing, changed Adidas's product positioning from functional to fashion, emulated Nike and Reebok's "light asset operation" strategy, and increased the sales and administrative expenses of Adidas from 6% to 12.5%.

    Dreyfuss once said, "what I have done is learned from Nike and Reebok."

    In 1992, Nike launched aerobic fitness shoes against Reebok's advantages in the fitness market. However, due to the sluggish market, it did not achieve the intended growth target.

    In 1994, the sales volume and the average selling price of Nike sports shoes both dropped by 2%, and net profit dropped again.

    From the perspective of geographical composition, Nike not only lost 5% of its sales revenue in the US market, but also dropped 3.2% of its sales in the international market.

    However, Nike remained committed to the international market. Sales and administrative expenses increased by 5.6% over the same period last year, and the share of sales revenue increased from 23.5% to 25.7%.

    In order to open the male market and focus on basketball shoes, Reebok constantly introduced new technologies to enhance the functional characteristics of Reebok basketball shoes.

    In 1991, after launching Pump technology, Reebok launched the Blacktop series basketball shoes products. In 1992, when it launched Instapump and Graph Lite technology, it also launched The Above The Rim basketball shoes series.

    Reebok also copied the way Nike created Jordan, the product spokesperson, who did the "hero worship" style advertising, pushed NBA star O'neal, copied Nike's naming of new sneakers with Jordan and other signboard players, and launched a sports shoes called "Shaq Attack".

    However, Reebok's marketing strategy did not work, and its market share dropped to about 20% from 23% in 1989-1992 years.

    At the same time, sales and administrative expenses continued to rise, the proportion of sales revenue rose from 24.4% in 1991 to 28.7% in 1995.

        效法耐克和銳步 阿迪達斯向時尚轉變

    In 1993, Frenchman Louis Dreyfuss became Adidas CEO. He reappointed the management, hired more than 12.5% Nike executives to conduct marketing, changed Adidas's product positioning from functional to fashion, emulated Nike and Reebok's "light asset operation" strategy, and increased the sales and administrative expenses of Adidas from 6% to 12.5%.

    Dreyfuss once said, "what I have done is learned from Nike and Reebok."

    After substantially reducing losses in 1993, Adidas's sales revenue increased by 25.6% in 1994, while sales in the United States increased by 56.7% and realized profits.

    Many industry analysts believe that this is mainly due to the emergence of a "retro" trend in the United States around 1994. The old sports products such as Adidas and Puma (Puma) have benefited greatly.

    In 1996, Adidas's sales revenue reached $3 billion 130 million, very close to Reebok, and its net profit exceeded Reebok's $202 million.

    However, the top ten retailers account for 40% of Adidas's sales in the US, indicating that the main way to occupy the US market is relying on large independent retailers such as fuller and other customers. Although occupying the market is fast, the risk of customer churn is also greater.

    Adidas has a lot in common with Nike and Reebok.

    They all start with sports shoes and build strong brands in the sports shoes market before they extend to clothing, equipment and other fields. They all have almost all kinds of sports shoes, and the products are relatively balanced.

    Adidas's sports shoes cover more than 30 sports, basketball shoes, running shoes, soccer, tennis and training shoes have an important share.

    Facts show that companies that succeed only in a certain market tend to lose market share or be merged.

    On the other hand, Adidas has a great difference in product mix with Nike and Reebok. Clothing has always accounted for a large proportion of its revenue. In 1992, its sportswear accounted for 39.3% of the total revenue. During the period from 1993 to 1996, clothing grew faster than sports shoes. In 1996, it accounted for 55.5% of the total revenue. It played an important role in promoting the revival of Adidas, which showed the characteristics of differential competition.

    However, the gross profit margin of clothing is lower than that of sports shoes, which is one of the reasons why Adidas's gross margin level is lower than Nike and Reebok.

    In addition, Adidas and Nike's marketing methods are very different. Adidas has always attached more importance to the Olympic Games and the world cup sponsorship than Nike, and Nike often adopts ambush marketing in these competitions.

    This may be related to the products of both sides: the traditional strength of Adidas is soccer shoes, which can not be popularized as casual shoes or fashionable shoes like basketball shoes. Moreover, sportswear accounts for a significant proportion of Adidas's income, of which 60% is a training suit suitable for a wide range of sports events.

        銳步被阿迪達斯收購 與耐克競賽走向尾聲

    In the mid 1995, Nike set forth a new strategic goal in the report: to become a global company rather than an American company that develops international business.

    And formulated a series of specific measures to expand sales revenue: expand the European team; deeply participate in the football game; become a real clothing company.

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