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    Lining's Nike &Nbsp And Adidas's Bipolar Strategy.

    2010/12/9 9:05:00 40

    Lining Adidas Nike

       A series of target figures, Adidas, the second largest sporting goods manufacturer in the world, suddenly appeared to be "giving power". Recently, Adidas headquarters announced that it will open 500 new stores in China next year. By 2015, the number of product distribution cities will double, which means opening up more three or four tier city markets.


    In addition, Adidas said its new stores based on advanced clothing series will be set up in first tier cities because consumers in these places prefer Nike's biggest competitor in China and the world.


    If High-end strategy Directed at Nike, the expansion of sales scope is obviously aimed at crossing the Lining, the domestic sporting goods brand standing on its head. In 2009, Adidas was replaced by Lining, the market leader. In China, only more than Lining In order to reach Nike. It's time to test Adidas's cash flow by choosing two high and low lines at the same time.


       Adidas announces 5 year plan


    "We are working on a plan to win first." Adidas C E O Herbert erbert H ainer told the media that China is an important market for us, and consumers want to contact our products. Haina did not say which Chinese consumers he had communicated with and understood their "Hope". On the contrary, Adidas's intention to communicate with more Chinese consumers is obvious. The most important thing is the layout of the small and medium-sized market.


    It is understood that, according to Adidas's latest plan, as of 2015, plans to open more than 2500 stores, and provide a reasonable price for the market segments, to meet the different consumption patterns of different cities. At the same time, the number of cities covered by Adidas shops will also increase from 550 to more than 1400.


       Haina This is called the "Route 2015" plan, which includes some brand actions as well. (2015) He said that with the strong rebound in performance in the second half of this year and the strong management team to take over, Adidas group is entering a new stage of development in China.


    Not long ago, Adidas released its performance report for the third quarter of this year, of which the group's global sales increased by about 10% (according to the exchange rate unchanged). Among them, the Greater China region grew by 9% (according to the exchange rate unchanged), and wholesale channel sales revenue also achieved the first positive growth since 2008. In 2008, due to the overoptimistic market forecast for the Beijing Olympic Games, Adidas's sales fell to a low level and its stock surged. It was not until the second half of this year that the inventory was adjusted to normal level slowly.


    "I am pleased to confirm that Adidas has returned to victory in Greater China." Du Bairui, managing director of Adidas Greater China, said he expects the Greater China region to achieve an annual growth rate of two figures. However, since January 1, 2011, ColinC urrie, the now senior vice president of marketing and sales in Greater China, will succeed Du Bairui as the managing director of Greater China. "Gao Jiali" Du Bairui will remain in the Adidas group's Greater China board and continue to serve as the group's chief e-commerce officer. But according to Adidas's official statement, two executives are reporting directly to Haina, and the "2015 way" plan for Greater China will be jointly implemented by two people.


      Developing small and medium-sized cities is a tough battle.


    "I firmly believe that greater China will be the main driving force for the future development of our group," Haina's voice is confident. But at the moment, he is also full of confidence in China's two leading competitors, Lining and Nike. In the first two years of Adidas's relative downturn, the two rivals were not "lenient" but more powerful than before. For several consecutive quarters, Lining, the largest domestic sporting goods manufacturer in China, has surpassed Adidas and has become the second largest sporting goods salesperson in China.


    Adidas did not mention Lining's "old rival" in China's rapidly rising market in recent years. However, these series of shop plans for small and medium-sized cities are almost impossible to get around Lining.


    "All along, the first tier cities represented by the north, the upper, the broad and the deep tend to have a preference for global activities and international brands, while consumers from three to five cities are different." Liao Jierong, an apparel industry analyst, said they are more concerned about China's strong projects such as badminton, table tennis and gymnastics. "This makes it easier for them to feel proud. It is also because of the long-term sponsorship of such projects in the national team, Lining brand in the three to five tier cities, whether sales or brand penetration, are better than Adidas.


    This is not only a topic of Adidas, but also a common problem faced by all foreign sports brands such as Nike. In recent years, sports competitions in China have been increasing, and the sports craze has become more and more prosperous. Most of the domestic brands that have broken through the first tier market have sprouted in small and medium-sized cities and become the "defending side" of Adidas.


    Therefore, in addition to large-scale accelerated shop opening this way through capital strength to open up the market, there is news that Adidas will further launch the leisure brand N E O for young people, the price of the brand will be half of other Adidas brand goods. For N E O, Adidas's goal is to make it a bridge to guide consumers towards more high-end products.


    This will obviously be a tough battle, because small and medium-sized cities are also the targets of Nike, and the domestic sports brands represented by Lining will not sit still. According to the information released by Lining, the sales growth of Lining same store increased by 3.2% over the same period last year during the seven days of National Day holiday. The same store sales growth in the third quarter increased 4% compared with the same period last year.


       Protracted war with old enemy Nike


    According to statistics from market research firm Frost&Sullivan, in 2006, the share of Nike in China's sporting goods market was 16.7%, Adidas was 15.6%, and Lining was 10.5%. In 2008, the three share was 18.8%, 14.9% and 11.1% respectively. By 2009, the ranking changed, and the one or two share of Nike and Lining was 10.2% and 10%, respectively, while Adidas was 9.6%. It appears that the share of the three major brands has decreased, but the total market growth figures are quite alarming from the US $3 billion 800 million in 2006 to US $14 billion in 2009, and the three brands can go hand in hand.


    In addition, judging from the market share in 2009, the third ranking Adidas wants to surpass Lining, which seems to need only one step. If this step is bigger, it will not be a problem to surpass Nike. Because of this, Haina's "leading to 2015" in addition to the "development" for small and medium-sized cities, the consolidation of the first tier cities is also placed in the same important position, and the biggest competitor in the market is Nike.


    According to the plan, Adidas already hopes to win or maintain the leading position in the field of basketball, football, training and running series in the first tier cities with strong coverage. Especially in the field of basketball, Adidas's investment has not been as strong as that of its competitors. The executive said that the basketball game would be integrated into marketing activities and product design. There is a view that this is obviously a challenge to Nike. All along, through a large number of star endorsements, Nike's position in the field of basketball can no longer be right.


    In addition to deep tillage in the field of subdivision, Adidas will also expand the O riginaLS in a relatively high fashion fashion series to enhance its brand influence and market share. "The group will expand its sales network in the whole country, especially in the first tier cities, in order to boost sales growth."


    Not only is China, but Adidas has always surpassed Nike as the first target all over the world. However, according to Adidas group's global plan, the target was to increase sales to 17 billion euros (US $24 billion) in 2015, up by 60% over 2009. Also, with the 2015 limit, Nike's global sales target is US $27 billion. That is to say, if these two companies can achieve their goals, Nike will still be ahead of Adidas.


    number


       According to statistics from market research firm Frost& Sullivan, in 2006, the share of Nike in China's sporting goods market was 16.7%, Adidas was 15.6%, and Lining was 10.5%. In 2008, the three share figures were 18.8%, 14.9% and 11.1% respectively. By 2009, the ranking changed, and the one or two share of Nike and Lining was 10.2% and 10%, respectively, while Adidas was 9.6%. The background of share change is that the total market has risen from 3 billion 800 million US dollars in 2006 to US $14 billion in 2009.

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