ADI Defeated China &Nbsp; &Nbsp; Changing Agents To Open Shop Is Hard To Pull Away.

In the early August,

Adidas realized revenue of 5 billion 590 million euros in the first half of 2010, an increase of 11% over the same period last year. Almost all regional markets have achieved two digit year-on-year growth.

Its sales of soccer products are also expected to reach a record 1 billion 300 million euros this year.

However, in the Chinese market, which is generally recognized as a profit depression, Adidas's performance has shown a "declining trend". This has undoubtedly become an embarrassing problem that Adidas can not avoid in the past two years.

In this regard, Adidas announced that this is because the Chinese market needs to deal with inventory, thereby affecting the performance of the performance.

It turned out that the goal of Adidas CEO Herbert Heiner for Adidas after the Olympic Games was to sell more than 1 billion euros in China in 2010.

China is expected to become the world's second largest market in Adidas.

But due to the over optimistic estimation of the Chinese market after the Olympic Games, and the lack of estimation of the ability of Lining and other local brands to "catch up" in Beijing Olympic Games, Adidas has mistakenly enlarged the market demand.

The resulting increase in inventory has a direct impact on Adidas's sales performance.

Herbert Haina's goal can not be achieved, not only that. In the first half of 2010, China's market has slipped to the sixth place in Adidas's global market, resulting in a large number of stocks seriously affecting Adidas's sales performance.

In 2009, the global economy showed signs of recovery. However, the Adidas generation failed to usher in the spring of its sales performance.

It is understood that, in order to clean up inventory, agents want to reduce sales promotion, while Adidas is more concerned about brand image maintenance, and does not agree to price reduction.

There is no solution to the inventory problem, and the conflict of interests with agents is becoming increasingly irreconcilable.

Finally, the stock directly promoted Adidas's "merger" of China's channel.

Statistics show that in 2009, Adidas closed at least 200 stores.

In the end, the great changes in the channel directly affect Adidas's China performance.

This change, according to Lining's earnings report, 09 years Lining's income has exceeded 8 billion yuan, 8 billion 387 million yuan, has surpassed the sales volume of Adidas Greater China, and the sales volume of Nike Greater China area, and Lining's increase in the two or three line city's shop cutting, greatly increased Lining's sales revenue.

Faced with all kinds of pressure, Adidas's channel reconstruction plan is already in the firing line and has to be issued.

According to industry commentators, based on the decline of Adidas's China business in 2009, the optimistic estimation of market demand resulted in a serious inventory backlog problem. By 2010, adida had to rebuild its sales channels and was subject to a large number of stocks, so that Adidas did not create new stores in a big way, and could not rapidly improve its performance. Therefore, the stock may only be a catalyst for the Adidas channel problem, and the key to the future development of Adidas China market or effective reorganization of the channel system.

"The agency links of all industries are the same. Only by collecting money quickly can we pick up the goods quickly and achieve the effect of rotation. The inventory will undoubtedly hold down the lifeline of agents."

Liao Jierong, an apparel industry observer, said Adidas agents are also Acting other brands, and it is sensible to invest limited funds in other brands that sell well.

"What Adidas will do next is undoubtedly to support a number of dealers, and then abandon a number of dealers, so as to establish a group of loyal dealers."

One industry insider said that in the eyes of many industry analysts, Anta's growth was even higher than that of Lining. The main reason is that the majority of Anta's dealers are trained by themselves, with high loyalty and ease of brand management.

The purpose of Adidas's channel reconstruction plan is also here.

In addition, in order to expand the channel, in August 17th, Adidas opened in the official online store of Taobao mall.

In the view of dealers, the main purpose of Adidas's move is to digest inventory.

Through online shop discount, brand damage can also be reduced to a minimum.

The genuine Adidas with special labels has been popular with consumers.

Industry analysts say e-commerce is only a small part of Adidas's channel reconstruction plan.

What Adidas needs to do in the future is not only to increase investment in direct investment, but also to train a group of loyal dealers to ensure its control over the channel.

But this is doomed to be a long process.

In addition, with Nike's heavily deployed troops, Lining, Anta and other domestic brands are closely guarded. Adidas wants to reverse the decline and has a tough battle in the Chinese market.