Adidas Plans To Expand Its Sales Network To 1400 From 550 Cities Now Covered By 2015.

December 10th, local brands Lining Decided to take the high-end route to China's big cities and even Singapore. Adidas The decision is reversed. Adidas global CEO Herbert Haina plans to open more than more than 2500 stores in China by 2015, most of which are distributed in two or three line cities, when Adidas's Sales network It will expand from the 550 cities now covered to 1400.

Previously, due to the erroneous estimation of the growth of market demand in mainland China, Adidas has been stranded in inventory problems in its channels. In mid 2010, Adidas executives predicted that the inventory crisis would be lifted in the third quarter of 2010 - the third quarter of 2010, which confirms that the sales of the Greater China region increased by 9% in the third quarter, and that the wholesale channel sales revenue achieved the first positive growth since 2008.

While Adidas was busy digesting inventory, its competitors were lucky. Nike ranked first in China. In 2009, Li Ning Co sales revenue was 8 billion 387 million yuan, an increase of 25.4%, exceeding Adidas as the second largest Chinese market.

However, the annual growth rate of China's sports consumer goods market has dropped to about 15% from 5 consecutive years to 30% after the economic crisis. Chinese consumers lack brand loyalty and their interests are changeable. This makes it difficult for anyone to win. In order to gain more profit increment, Lining, the leading figure in the two or three line market, tried to enter the product market with a price of more than 400 yuan. To this end, it opens the store to a second tier city with strong consumer demand. In 2010, 400 new stores were opened, and Lining opened up 1/4 in several big cities such as Beijing and Shanghai. According to a report, the market for sports goods in the two or three tier cities now occupies more than half of the mainland market. But Adidas and Nike believe that Chinese people always admire European and American culture, which makes them take advantage of their brand effect.

Adidas's products to enter the two or three tier city are SportsPerformance series: basketball, soccer, training and running series. In the past, Adidas gave all the operations of these cities to the management of large dealers. Now, Adidas will let its channel teams personally select and control important distributors in these cities. And its other sports fashion series (SportStyle), like the clover brand's core target market, is still a tier one city.

But this move is not without risk: Although the two or three tier cities still have room to expand the retail terminal, but due to the increase in rent and labor costs, the single shop profit margins of sports consumer goods are declining. Although Adidas has developed products that meet the consumers' tastes of less than 400 yuan in the region, cheaper local rivals such as Lining and Anta have taken the lead. Compared with Adidas with black decorative stores, Nike's brand image and storefront design have become more fashionable and fashionable, and they are also trying to enter this field.

Adidas spent 1 and a half years solving Olympic inventory problems.

01, allowing price reductions to range from 70 percent off to 30 percent off, and enter new channels such as Carrefour and Taobao.

02 the dealer handles the stock to a certain discount, and Adidas gives the amount to compensate. Because the discount is too low, dealers often do not make money, which means that Adidas and distributors should share the losses together.

03 for those dealers who want to quit, Adidas is also supporting the change of contract and negotiation exit mechanism.

04 allow dealers to open discount stores, or even around the shops.