Chinese And Foreign Sports Brands Are Playing The World Cup (1).

In this summer, China and foreign countries

In 2010, the first commercial trip after new year's day, Herbert Haina, chairman of Adidas group, chose China, accompanied by Du Bairui, the newly appointed managing director of Greater China.

Haina said Adidas will remain one of the leading brothers in China's sporting goods market, and the trump card in his hands is the world cup in South Africa.

Reorganization channel

In the first 6 months of last year, Adidas's total sales revenue amounted to 5 billion 34 million euros, and the Chinese market accounted for 7-8% of Adidas's global sales, that is, 3.52-4.03 billion euros, or 34.5-39.5 billion yuan.

Over the same period, Lining's income reached 4 billion 50 million yuan.

In terms of the Chinese market, Lining has even exceeded Adidas in the Chinese market.

At the same time, according to the announcement in November 4, 2009

Therefore, there are optimistic insiders predict that Lining is expected to overtake Adidas as China's sporting goods market leader.

In this regard, Haina said: "we recognize that China's local sporting goods manufacturers do have a very strong strength, but I also want to point out that there is still a certain gap between China's local sporting goods companies and Adidas and Nike. China's local companies are still pursuers. This pattern will not change in the short term. Adidas will still be one of the first or most leading manufacturers in the Chinese market."

Having said that, Haina and Du Bairui are facing many thorny problems.

Previously, Adidas's inventory was high due to overly optimistic estimation of the sporting goods market after the Beijing Olympics.

At the end of 2008, the value of the goods in stock was 1 billion 995 million euros, an increase of 22.5% over the same period last year, which led to the fact that most of the dealers in Adidas were busy with discounted inventory in most of the 2009. The discounts greatly reduced the dealer profits, and Adidas closed hundreds of retailers in the main dealers of China, BELLE and Daphne.

It is urgent for Haina to re purge the Chinese market. This is why he came to China immediately in the new year. He said: "China is a very important market for Adidas, ranking second in the global market of Adidas, and at the same time, it is also an unlimited potential market.

As the head of the Greater China region, Du Bairui is a very experienced manager in the Asia Pacific region. He hopes that under the leadership of the Chinese market, the Chinese market can be truly upgraded.

Du Bairui's urgent task is to rebuild channels.

Adidas sells products in China mainly through distributors such as Baosheng international. By the end of 2009, Adidas had about 5000 retail stores in China, most of which were opened by dealers, and few in self owned stores.

Although not long ago, the company suffered from "labor pains" such as BELLE and Daphne, but Adidas told reporters that Adidas will not change its channel strategy relying on distributors.

"We have a multi-level concept in terms of channel strategy. First and most important, that is closer to our channel partners, giving more effective support, which is the most important thing; in addition, we have made breakthroughs in network marketing; thirdly, we have selectively set up self operated stores."

He said.

In terms of inventory level control, Haina said Adidas's stock in the third quarter of 2009 has decreased by 8% compared with the same period last year, and its stock value has been reduced to 1 billion 652 million euros.

Du Bairui also said: "we will use more innovative ways to supply channels to the channel providers. We hope to achieve breakthroughs in the supply cycle, replenishment and cross departmental forecasts, so that we can effectively control the inventory level in the supply chain."