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    Adidas'S Attitude Towards Dealers Is Uncertain.

    2010/2/25 20:19:00 41

    Distributor

    In pairs

    Distributor

    Adidas seems to be entangled in power and decentralization.


    The stockpile crisis in 2009 has not yet passed, and the German company can not wait to do a major operation in the Chinese market.

    In addition to changing the team, it also includes an unprecedented Adventure: the Reebok, the second largest sports brand that was bought in high profile four years ago, has been built into a brand specially designed for China.

    Distributor

    Baosheng international.


    This seems to have come to the opposite of 2009: this year,

    Adidas

    Rather than

    agent

    The majority of Daphne negotiations broke down.

    agent

    The right to recover.


      放權


    For the newly appointed managing director of Adidas Greater China and the pragmatic Frenchman, Du Bairui, whether he can be better than his predecessor depends on whether he can bring the company back to profitability.

    Behind this is the new competition pattern that Adidas has to face.


    At the beginning of January, Adidas group announced that its Reebok brand, which was once in high hopes, will be jointly designed and produced by Baosheng international and will be implemented after April 1, 2010. Reebok in the future will "take China as the center."


    Baosheng international is one of the main retailers of Adidas's Reebok and Nike's CONVERSE and other sporting goods. As of September 30, 2009, Baosheng Group has direct retail outlets in China.

    Join in

    The number of shops was 2377 and 2913 respectively.


    After the stockpile crisis in 2008, the mainstream of Adidas

    agent

    All businesses in China have suffered from varying degrees of "poor performance".

    But their choices are different.

    Baosheng international also failed to avoid the pressure of loss.

    The annual report released in January 20th showed that the turnover in the 2009 fiscal year increased by 19.1% compared with the same period last year, but the net loss for the whole year was 6 million 300 thousand US dollars.

    Cai Naifeng, chairman of Baosheng international, said stock accumulation is the main cause of poor performance.


    For Baosheng International's Reebok brand, its positioning has undergone a 180 degree turn.

    In Reebok's sports resort, Beijing's brand shoes and shoes are sold from seventy percent off to half off. The cheapest even 133 yuan has been lower than the Jinjiang sports brand.

    To define it as "tailor-made for China" means that the direct competitor of Reebok will be Jinjiang sports brand and those with higher cost performance.


    Reebok's past represents high-end.

    The brand was bought by Adidas group in 2005 for $3 billion 800 million, when it was called the largest merger in the history of sports commodities.

    At the time of acquisition, Reebok was already the second largest brand in the United States, especially in basketball, with Yao Ming's lifetime sponsorship.


    Adidas believes that Baosheng and its regional joint ventures operate 9952 retail outlets in China.

    With this retail network and the new local design and local production mode, Reebok can bring faster reaction speed.


    Prior to this, Reebok had a product with a speed of 12 months.

    The Chinese market needs short and fast merchandise, and the speed of PEAK's pair of shoes is 1 months.

    Adidas hopes that the speed of Reebok's shipment will be reduced to 6 to 9 weeks thereafter.


    Adidas Group Chairman Haina said: "we cooperate with Reebok and hope to tailor it for Chinese consumers.

    Made in China

    Production and distribution in China.

    It brings 3 benefits: faster, more refined and more efficient.


    A regional manager of a domestic brand sporting goods company told reporters, "Adidas is right to do so. It is very difficult to compete with domestic enterprises on the basis of its own strength.

    It's as if KAPPA bought Chinese people to buy branding business. If the Chinese can do better, why not? "


    In the first half of 2009, Adidas's Chinese market revenue was about 3 billion 450 million to 3 billion 950 million yuan.

    Over the same period, Li Ning Co's revenue has reached 4 billion 50 million yuan.

    Adidas has been unable to ignore China's rivals.


      收權


    Adidas does not blindly hand over the right to distributors. It does not want to see that dealers are finally controlled by two or several Qu Daoshang. At the same time, it does not want to hurt the market by radical reform.


    In 2009, the market continued the downturn in the second half of 2008, as the sports apparel market continued to "go out of stock".

    Meanwhile, in 2009, Adidas encouraged distributors to close inefficient shops.

    "Closing stores, reaching a consensus with BELLE and other distributors together to determine whether some stores failed to meet expectations, and must be closed to support new store operations and ensure the sustainable development of distributors and companies."

    Haina said.


    Hainer thinks that if we have better survival, we will ensure that new stores are supported by resources, and some shops which are not very efficient in terms of productivity must be closed.


    This triggered Adidas and channels.

    agent

    The secret game of businessmen.

    A store that closes to improve efficiency will cause dealers' dissatisfaction.

    A dealer in Shanghai told a reporter, "Adidas is doing a good job. It is slow to open a shop and close to stores."

    It takes 1 months for a store to be approved by Adidas, while a few days for domestic brands are enough.


    In addition, Adidas has strict control over prices.

    It is understood that the general suburbs or second tier cities are not allowed to do discount stores, dealers hope 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.

    second line—an advisory post

    wholesale

    The price of goods is 40 percent off, and there are many discount stores around the city, and half off goods are everywhere.

    wholesale

    Business has created stress.


    As a first-line brand, Adidas needs to maintain the price system and maintain the brand premium policy. As a distributor, it needs to rush out of the inventory burden.

    Bigger dealers grow with their own brands.

    agent

    With the increase of brand, the right to speak is also increasing.

    Three reasons have led to a deadlock in the negotiations between Adidas and dealers.


    When Adidas entered China, with its super giant position, through the manipulation of agents, agents quickly competed and expanded.

    At that time, Adidas and other negotiable powers were stronger, and now the bargaining power of BELLE, Daphne, Baosheng and other channels began to rise.

    A regional manager of a sporting goods company in China told reporters that Adidas had to think about how to weaken its dependence on several large channel providers.


    It is understood that Daphne has been negotiating with Adidas, hoping to reduce the number of goods seized.

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


    According to the 09 half year performance report released by BELLE, BELLE's Nike and Adidas grew by 2.5% over the same period last year.

    The performance of Nike and Adidas's sub brands, such as CONVERSE and Reebok, are not increasing or decreasing.

    In order to curb the declining trend of the brand performance of the agency, BELLE made a decision to close the store.


    Daphne international last year also announced that it will withdraw from Nike, Adidas two brand clothing agency business.

    It is understood that as of June 30, 2009, half a year closed 21, Daphne agent Adidas sales point only 107.


    At this point, the 2008 Olympic inventory crisis has not yet passed.

    "We will further reduce inventory by June 2010.

    We hope that the second quarter of 2010 will ensure that the stock level is normal.

    Haina said.

    "This is also a lesson worth learning."

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