The Competitive Weapon Of Adidas Nike

Referring to the world's sports brand, Adidas and Nike are undoubtedly "double pride". In the Chinese market, they are the same.

According to the Boston Consulting survey, Adidas's market share in China is 28%, while Nike's market share is 33%.

The difference is not big, but both sides are working hard for the gap. At present, China's sports shoes market is very competitive. At least one Reebok, Adidas or Nike brand store is open every day.

This pair of "arrogant double pride", each of them has some weapons that some opponents do not have, and Nike's weapon is the shocking star lineup. What about Adidas?

In 2005, after the acquisition of Reebok, Adidas group also had two brands of Adidas and Reebok, and at the same time possessed the resources of these two brands.

Reebok's biggest resource is Yao Ming, signed in 2003, especially in China. The biggest resource of Adidas brand is undoubtedly the sponsor of the 2008 Olympic Games, which was won by US $1 billion 300 million.

Can the Yao Ming + Olympic combination be able to meet the 5% gap and become the turning point of Adidas China?

In September 25th this year, Reebok announced that it will open its largest marketing theme in the Chinese market in November, which is "unlimited combustion of Yao," and runs through 2008.

This activity will be launched in digital media, traditional media, outdoor key areas and shops.

Echoing it, Reebok will also launch an interactive website called www.reebokyao.com for Yao Ming fans to express their full support for Yao Ming's Olympic Games.

This is the symbolic event of Yao Ming's beginning to play a role, and Adidas group also attaches great importance to Yao Ming's trump card and expects it.

Bai Wenkang, managing director of Adidas Greater China, Mr. Paul Harrington, President and chief executive officer of Reebok International Limited, and Zheng Jie, general manager of Reebok China, attended the press conference in September 25th.

Zheng Jiecheng: "from a news conference like Reebok, we saw the hope of our group for Reebok. We really spent a lot of time behind it to promote Reebok's development in China."

Paul Harrington, President and chief executive officer of Reebok International Limited, also said that China is one of Reebok's most important markets and has great potential for growth.

It is understood that this year, Reebok's sales in China increased by 45%, and it is expected to grow by 55% next year.

In addition, Reebok's orders in Asia in the first half of this year increased by 50% over the same period last year.

Despite the market share, Nike is still the boss, but Adidas brand has always been in the leading position in international sports events.

The three Olympic Games, the world cup and the European Cup are the traditional spheres of influence of Adidas. Nike is hard to enter and can only play guerrilla warfare.

2008 will be the eightieth year for Adidas to join hands with the Olympic Games.

With the approaching of the Beijing Olympic Games, Asia, especially China, is the focus of Adidas's work in the next few years.

Herbert Heiner, chief executive of Adidas group, said: "our goal is very clear: in 2008, Adidas will strive to become China's top sports brand, and by 2010, Adidas will become the first brand in Asia."

For the Adidas group, which is entering a good "competitive state", they expect the combination of Yao Ming and Olympic Games to become an inflection point of Adidas group in China. However, this is not easy. After all, it is the merger of the two giants in the sports field. It is the merger, conflict and friction between the two companies in Germany and the United States, and the dispute between interests and power is impossible to avoid.

They will strive to achieve this goal, "successful marketing" reporter interviewed Bai Wenkang, managing director of Adidas Greater China, President and CEO of Reebok International Limited, Paul Harrington, Reebok general manager Zheng Jie.

V-MARKETING successful marketing: Adidas is a German company and Reebok is an American company.

Did the two companies face difficulties in cultural integration?

Bai Wenkang: if it is described in terms of culture, it is too concise.

Because Adidas is a global company. It has both German culture and French culture as well as Asian culture.

What we are doing is to open up the market in the field of sports products, so we want to win either from Adidas or Reebok.

This is our common belief.

From this perspective, it can be consistent and can come together.

V-MARKETING successful marketing: after Adidas's acquisition of Reebok, is the two brands going hand in hand, or one of them, weakening one?

Zheng Jie: our integration does not depend on one brand to replace another brand or to weaken another brand.

On the contrary, our aim is to enable two brands to continue to thrive in their respective fields.

Our group has spent a lot of efforts to promote Reebok's development in China.

Of course, Adidas also occupies a very advanced position in China. It is the Olympic sponsor in 2008.

ADI also has its own strategy to promote its development in China.

So, these two brands are two independent brands with different characteristics from the consumer's point of view.

In addition, although we belong to a group, these two brands are developed by independent teams to develop their own strategies.

In the background resources, the two brands can share some resources, such as finance, human resources, procurement and so on, so that we can reduce our cost.

The operation mode of these two brands in China is also an example for Adidas global market.

Because it is also in the sporting goods market, so the competition between the two brands is inevitable.

However, there are some differences in positioning between these two brands to meet the different needs of consumers. Our competitors in the Chinese market are a lot of foreign sporting goods brands.

The Chinese market has a unique feature, which is to survive in the market with a single brand.

The so-called single brand, whether department stores or shopping centers, each brand has a fixed sales mode in a fixed place, is like a separate retail store, to contact the target consumers.

In such an environment, in fact, the competition we face is very benign, because every channel of our two brands display the best things of their brands to consumers, so that consumers can choose them by themselves.

V-MARKETING successful marketing: just now, Adidas and Reebok have some differences in positioning to meet the needs of different consumers. Would you like to talk about differences in detail?

Paul Harrington: in the sponsorship of Olympic Games, Adidas is one of the main sponsors and wants to become a member of the Olympic culture.

They focus more on team sponsorship, while Reebok is for individuals.

For example, for personal packaging and launch.

For the Olympic Games, we all have individual athletes, such as Jankovic and Yao Ming.

Reebok emphasizes individuals, while Adidas emphasizes teamwork.

In addition, geographically, Adidas has done better in Asia and is doing quite well.

And we are different from it. From this perspective, the two are different.

V-MARKETING successful marketing: what is the difference between target consumers?

Paul Harrington: from Adidas's point of view, like us, of course, it is attracting more customers and more consumers. This is our ultimate goal.

From a consumer perspective, they also want more selectivity.

The more choices, the more powerful they are.

Reebok brand emphasizes itself as a product of fitness, and has the concept of fitness, which advocates personal leisure style.

Bai Wenkang: from the point of view of Adidas, we have a very broad consumer group, covering all levels.

Our target consumers also focus on young consumers like Reebok.

We have specialized areas for athletes, and more are consumers who like to use Adidas products.

Generally speaking, our consumers have a wide coverage.

"V-MARKETING successful marketing": Adidas has been acquiring Reebok for two years. What is the actual effect of integration to the two companies?

Bai Wenkang: basically, we have achieved our goals, and we have seen a drop in the cost of products.

After integration, our resources are further increased, and there is a coexistence of competition in the sports market, rather than malicious competition.

Strategically, our strategic position has improved and is in a more advantageous position.

At the same time, our cost is decreasing.

From the perspective of market share and financial situation, two countries in Asia have done more prominently: one is China, and our market share is bigger and bigger in China, and the market share of Japanese market is also increasing.

In terms of product cost reduction, we have achieved our goal.

Cost savings of 17 million 500 thousand euros this year. It is estimated that the cost savings will be 175 million euros by 2009.

When we merged in 2005, we set our goals.

Today, two brands can achieve their goals. The Chinese market is the best example of this.

Our two brands have gained rapid growth and reduced costs.

V-MARKETING successful marketing: what will be the layout of Adidas's advertising budget in 2008?

For the media with Olympic Broadcasting Rights, such as CCTV, will Adidas pay more attention when it is launched?

Bai Wenkang: I can't reveal too much detail, but I can assure you that we will definitely put it in the new media, including the traditional media. Our budget will be huge, but it is not easy to disclose it now, because we will know our details soon when we reveal our competitors.

V-MARKETING successful marketing: Adidas is a partner of the 2008 Beijing Olympic Games. Will Reebok of Adidas also have Olympic marketing activities in the Olympic Games with Adidas's Dongfeng?

Zheng Jie: because Adidas is an independent treaty signed with the Beijing Olympic Organizing Committee. Of course, we will make use of some resources, we can have some platforms to play, but in the Beijing Olympics, Adidas has an independent treaty, so we will abide by the requirements of International Olympic Committee and Beijing Olympic Organizing Committee, so Reebok is relatively independent from the market promotion.

Reebok has its own way for Olympic marketing. Today, Yao Ming's endorsement is Reebok's way.

We will not be with Adidas, for example, Reebok can not use the LOGO of Beijing Olympic Games.

So from the marketing point of view, we are relatively independent. Of course, we can share some resources.