Adidas Antenna

For high-end sports brands, there are still many places in the wider three or four tier market in China.

After all, local brands such as Lining, Anta, XTEP and so on, which take China's small and medium-sized cities as the core market, have been entrenched here.

At present, the income of Adidas Greater China comes mostly from 20 big cities in China.

Colin Currie, managing director of Adidas Greater China, has revealed more than once that in 2011, the income of Adidas Greater China will grow by two digits. In order to promote the growth of performance, Adidas plans to open 2500 stores in China in 3 years, most of which will be distributed in China's three or four line market.

In 2011,

Covering more cities

Asked about the current global market share of Adidas,

Colin believes that in the past few years, China's sports industry and sports culture have developed rapidly.

"In 2010, China's sports industry continued to grow at around 20% growth rate, creating over 30 billion dollars in value, of which 80% came from sporting goods sales.

Obviously, with the improvement of people's income in all parts of China, they begin to look for new and more interesting ways of leisure activities. More and more people choose sports and fitness as an important part of their lives. "

To ensure two digit growth,

Colin said that by 2015, Adidas is expected to achieve annual growth rate of 15%~20% in the Chinese market.

"At that time, Adidas will cover more than 1400 cities (up to April 2011, Adidas has covered 550 cities)."

Colin said that in order to achieve this goal, in 2011, Adidas will continue to open its shop and add more than 500 stores, of which there are more than a dozen private stores.

Self owned stores occupy a very small proportion in Adidas stores.

At present, Adidas has about 5800 stores in China, of which only 109 stores own.

More than half of the 5800 stores are located in one or second tier cities.

According to Colin, new outlets will be distributed and located according to the needs of different lifestyles, shopping needs and disposable income of consumers.

"Adidas is the world's leading sports brand, almost all categories, such as football, basketball, running and training.

We will continue to consolidate our dominant market position and do our best to tap the potential of emerging markets and rapidly expand the market share of its clover brands so as to enhance brand recognition and enhance Adidas market share.

At the same time, the NEO brand, one of the Adidas brands, NEO, is located between 14 and 19 years old. The design style is more fashionable and casual, the price is about half of the clover brand, and the price difference between the local sports brand and the local sports brand is about 100 yuan. It has been developing rapidly in brand image and sales, and its value proposition has rapidly penetrated into the three or four line city.

Tailored marketing strategy

Entering a large number of three or four line cities with a single small scale, the huge logistics cost brought by it is a big problem. But Colin thinks that logistics cost is not a unique problem of Adidas.

"The whole industry is faced with the problem of increased input costs. We are doing our best to solve these problems.

In short, logistics cost is only one of the factors. I think we should strive to provide consumers with suitable shopping locations, higher quality and more suitable products and suitable prices.

Guiding Adidas China business is the needs of Chinese consumers. When setting prices, we will carefully consider their requirements and our operating environment.

Colin believes that meeting the needs of consumers is the root of Adidas operation.

"Many of our efforts are aimed at meeting different needs of consumers.

For example, by introducing innovative products and participating in market innovation and competition, joint partners sponsor the most exciting and influential sports events, attract consumers' attention through various activities, win the favor of consumers, and enhance the image of brands in the minds of consumers.

Although it is ready to enter the three or four line market with low consumption capacity, Adidas has no intention of reducing prices and lowering its own product grades.

"Our brand will remain at the top grade brand.

Of course, we will also have seasonal sales like other brands, but price reduction is not our core strategy.

We will sell the right products at reasonable prices to consumers in need in a suitable retail environment to expand the market share of Adidas in the lower tier cities.

We hope that in the near future, 2/3 of our growth opportunities in the Chinese market can be realized in three or four line cities.

For a lower tier city, we will enhance the competitiveness of our brand through the introduction of competitive products and pricing. "

In addition, Adidas plans to deploy more than 2500 stores with POS machines in three or four line cities, and appropriately "combine and split" products to meet the different consumer buying patterns and habits of the high-income and low-income groups, and at the same time, to create a price acceptable to consumers for a range of products, so as to make their products more in line with the local retail environment.

In addition to tailor-made marketing strategies for three or four line cities, Adidas will also adjust the location and design style of the stores according to the specific circumstances of the three or four tier cities.

"For stores, we generally follow the following criteria: store mode must be globally supported; design style is responsible for Adidas brand concept design team; development beyond standards should follow certain principles.

In lower tier cities, stores will reduce standards to match local economic conditions.

Colin said.

Market insight

Adidas has made a serious study of the three or four line market that will soon enter.

Colin shares some interesting phenomena found in the market research with the new marketing reporter: "there are several conclusions that are interesting, such as the" 50 dollar theory ". If the price difference between the low-end products and international brands, such as Nike, Adidas and more high-end local brands, is about RMB 50 yuan, consumers are more inclined to buy international brands.

In addition, we conducted a global survey of Adidas consumers and divided them from extreme sports, outdoor sports enthusiasts to seven types of otaku women.

They are our customers, from fashion to fashion.

We make corresponding sub brand positioning based on these seven types of consumers.

Generally speaking, the global consumer interest in sports is growing.

Consumers have different styles of dress at different times of the same day, such as work, play, fitness, etc. we try to satisfy this way of life with our products.

Colin believes that for all competitors in the market, including China's domestic brands and international brands, the size and growth rate of the three or four tier market obviously make the Chinese market more attractive.

In response, Colin made a very interesting statement: "today's rural areas will become tomorrow's cities."

He acknowledges that these regions have great potential for development. In 3 to 5 years, these areas are likely to become valuable and important markets with high purchasing power.

We hope to bring convenience and benefits to consumers through the Adidas brand, expand and deepen the three or four line market.

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"Adidas has always been a dominant brand in the field of sports and sports in China. We will continue to focus on further innovation, developing new products and holding very influential marketing activities to maintain our leading position in this important market.

We are very confident that the strategic measures to enter the three or four tier cities will effectively lay the foundation for our long-term healthy growth in the Chinese market.

Survey data show that consumers in the three or four tier cities have strong consumer preferences for international brands.

Colin said: "although for the past three or four years, the competition in the Chinese market has become more and more intense for Adidas, but we believe that in the long run, some local competitors will find it increasingly difficult for them to pose a threat to Adidas.

Moreover, international brands are often seen as highly desirable, convenient and affordable luxuries, which will also provide an additional growth opportunity for Adidas. "