Brand Predators Fight The Internet War

August 19th, yesterday,

Adidas wants to fight against the Internet.

Earnings showed that Adidas's revenue in China declined 16% in the first half of this year, making it the only negative growth area in the world's six largest market.

At the same time, its revenue last year was also overtaken by Lining's strategy of "encircling the city by the countryside" with two or three lines of attack.

Under the pressure of continuous high cost operation, the entry into the online retail market seems to be a new source of development for many international brand channels.

Whether you can successfully snipe Nike, who has not yet touched the net, will keep the market share no longer down, and Adidas will fight for it.

As for Adidas's active cooperation with Taobao in developing B2C business, in fact, it is in China.

Analysts believe that the rise of domestic brands such as Lining and Anta shows that the strategy of "rural encircling the city" which took the lead in the two or three tier cities has worked well.

In 2010, Lining's offensive didn't go down. Instead, he changed LOGO to take the international route and played the slogan of "post-90s Lining". In the first tier cities, he avoided the 70 and post-80s groups who had special emotional recognition for Nike and Adidas, and fought for the new generation market.

Su Huiyan, an analyst with AI consulting, said that with the growth of online shopping population, the trend of e-commerce of traditional brands will be more obvious.

Nike's aggressive price war is a double-edged sword.

Like Adidas, Lining's fury makes Nike unable to sleep.

According to the 2009 sales data, Nike, Lining and Adidas are not very different from the three.

But unlike Adidas's strategy, Nike rarely resorted to price cuts.

According to reports, in Nike's 2010 fiscal year conference call, Nike brand President Charlie Denson said Nike will launch NIKE series of different low price products, so as to enter China's two or three tier cities.

In fact, at the same time when Nike talked about the price reduction, Lining had already acted against it and launched the action of raising the price.

Reported that in the fourth quarter of this year's order meeting, Lining products footwear average unit price rose 7%, clothing rose more than 10%.

Analysts said that this is a conscious change in the proportion of Li Ning Co's high-end product structure.

In terms of sales channels, some dealers from domestic brands told reporters: "at present, the profit margins of brands such as Anta and Lining are generally about 5 percentage points higher than that of agent Nike.

For the majority of small and medium-sized distributors, they will prefer to profit from the same brand. "

However, Nike's first tier distributors such as BELLE do not necessarily have the experience and strength to penetrate into the two or three tier market, which is rather embarrassing.

Major brands accelerate online retail

According to the survey, many famous brands both at home and abroad have increased the emphasis on e-commerce channels.

Shortly before Adidas entered Taobao, Lining worked with eBay to enter the British and Australian markets, and accelerated the pace of international business by electronic commerce.

In the eyes of many people in the industry, Lining's e-commerce model is being emulated by more enterprises.

As early as April 2008, when the financial turmoil swept across the global economy, Lining took the opportunity to set up the Ministry of electronic commerce, officially launched the flagship store and direct brand discount store on Taobao, and established a huge online marketing system by incorporating existing online stores and differentially locating different online stores.

According to the data, in 2009, the total volume of Taobao online shopping was 208 billion 300 million yuan, of which clothing became the first gate category, accounting for about 1/4 of the total net purchase amount, while sneakers and sportswear were the most popular clothing categories.