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    Shopping Arcade Of Adidas And Nike

    2009/4/11 0:00:00 38

    Adidas and Nike are clearly aware of the disadvantages of channel agents.

    They do not want to see that the channel is ultimately controlled by two or several channel operators, but they do not want to hurt the market because of radical reform.

    The game between Adidas and Nike is in the middle of the channel agent.

    After Nike abolished the agency rights of many provincial distributors, Adidas is brewing a series of "cutting rights campaign", but it is directly facing BELLE dealers and other national distributors.

    People familiar with the matter told reporters that several large sporting goods dealers including BELLE sat at the negotiating table with Adidas.

    Dealers want to be able to get rid of inventory pressure, including discount sales of inventory products.

    But from the perspective of brand price stability, Adidas does not recognize the above behavior of dealers.

    The contradiction between Adidas and distributors is escalating.

    Previously, due to overestimation of Olympic business conditions, many dealers still have a large number of stocks.

    The new order cycle has come and many dealers have no cash to pay the cost.

          經銷商庫存難消化

    As a partner of the Beijing Olympic Games, Adidas announced that during its Olympic Games, it announced that it had surpassed its old rival Nike's market share by 22% of its market share, and became the first brand in the Chinese sporting goods market in the hope of becoming 21%.

    Its recent 2008 performance report shows that Adidas has gained two digit growth in all regions except North America, and its Asian sales increased by 20%, of which China's strong sales growth has become the main driving force.

    Behind its brilliant financial data, it is accompanied by a continuous escalation of contradictions with domestic distributors.

    Because in 2008, Adidas did not choose to become a global sponsor, but became a sponsor of the Beijing Olympic Games.

    Before April 2009, all the goods marked with the logo of the Beijing 2008 Olympic Games were declared overdue.

    Before, because many dealers overestimated the Olympic market, they took the goods before the Olympics.

    However, the Olympic Games did not bring the expected market break out for the sporting goods industry, which led to serious inventory of dealers.

    "Both Adidas and Nike are futures, ordering six months in advance and cash on delivery."

    A Adidas dealer in Hunan told reporters that because of the fact that they did not purchase in accordance with the actual market demand, many of the dealers' backlog goods were stacked in the warehouse, causing funds to be occupied.

    In order to clean up inventory, dealers everywhere are thinking about low price promotion.

    But this is not permitted by Adidas. Excessive discount will damage the brand, and consumers will no longer be willing to buy a good price.

    In the new sales year, dealers with funds being pressed will have to continue to purchase, and the quantity of purchases can not be reduced much more than that of the previous year. Otherwise, the qualification of dealers will be adjusted, from Grade A to B, or from B to C, and the policy of taking delivery will be adjusted accordingly.

    Not only Adidas, but also in sports products industry, many dealers are acting as brands such as Adidas, Nike, Lining and so on, and brands are more or less pressurized.

    However, thanks to Adidas's sponsorship as an Olympic sponsor in Beijing, it seems to be more serious than its competitors.

    On the other hand, it is a brand dealer who striving to maintain its own price, brand and supply policy. On the other hand, it is a dealer who carries inventory burden. It has plagued sports giants since the Olympic Games.

         品牌、渠道談判能力互換

    The reporter learned that at present, several major sporting goods dealers in China are negotiating with Adidas, hoping to reduce the number of goods seized this year.

    Adidas said it may recall some of the dealership's agency rights, including some of its first largest distributor BELLE's distribution rights.

    A Adidas dealer told reporters that from Adidas's point of view, it is sure that the company's performance in China will grow steadily.

    But many of its achievements last year were much more than the actual demand after dealers overestimated the Olympic market.

    These dealers will certainly reduce the number of goods to be taken again in 2009, which may lead to Adidas's performance this year.

    This has also forced Adidas to exert pressure on distributors.

    The reporter once called Lei Jinzhao, director of marketing of BELLE footwear industry. After listening to the news reporters, she said she could not express her opinion on this issue, and said that reporters could go to know more about the needs of small and medium dealers.

    The head of Adidas's marketing department told reporters that there was indeed a partial inventory problem in the market. Adidas is also actively communicating with distributors to find solutions.

    So far, all communication between Adidas and distributors is benign and effective.

    The current stalemate reflects exactly the role exchange between the channel providers and brands of the domestic sporting goods industry at the negotiating table, Ge Xing, senior consultant of AMT consulting firm, said.

    In the early days, the two super giants of Nike and Adidas controlled the agents, forcing agents to compete with each other and expand rapidly.

    Among them, BELLE has raised a lot of cash through Hongkong listing, and has been buying and integrating channels in the domestic market in recent years.

    Baoyuan, the world's largest sports shoe manufacturer behind the Taiwan Baocheng group, is also making great efforts to expand its territory.

    With regional distributors from Shenzhen, Shenyang, Sichuan and Sichuan, the domestic channel is at one three.

    In particular, BELLE and Bao Yuan have repeatedly strengthened their control over the channel.

    "In the past few years, ADI and Nike have been strong, and now the bargaining power of BELLE and other channel operators is leading in the negotiations if the channel is united by common interests demands."

    Ge Xing said that in 2006, BELLE sold only one brand of NIKE, which is said to have reached 1/4 of the brand's total sales in China.

          一位不愿具名的業內專家表示,通過此番與幾家主要經銷商的談判,阿迪達斯和耐克肯定更為清楚的意識到了渠道做大后的弊端。他們不愿意看到渠道最終被兩家或者幾家渠道商所控制的局面,而是希望經銷商之間也能有充分的競爭。因此,如何削弱對幾家大型渠道商的依賴,發展更多的中小銷售渠道,或將是這兩家體育用品巨頭最近在渠道上思考最多的問題。

    Editor in chief: Xu Qiyun

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