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    Adidas Adjusts Its Business Strategy

    2013/5/14 17:35:00 160

    AdidaFast FashionSports BrandTransformation

    Recently, the reporter learned that in pursuit of faster response speed, sports brand giant Adidas has H&M and ZARA Wait until fast fashion brand "digs" some talents.


    In the opinion of analysts, this means that Adidas will speed up its product design and launch in the future, and the competition for channels is ongoing.


    Fast fashion impacts sports brands


    In the face of the fast fashion "group" competition, sports brands can not sit still. The introduction of fashion brands and the increase of the proportion of fashion products have become an important weight for sports brands to break through against the trend.


    The reporter learned that Adidas has "recruited" some talents from fast fashion brands such as H&M and ZARA. Gao Jiali, the managing director of Adidas Group in Greater China, pointed out that sports fashion can drive the growth of Adidas.


    In the view of the industry, the poaching of fast fashion brands such as H&M and ZARA means that adidas hopes to speed up product design and launch. Zhang Qing, founder of Keyway Sports Consulting Co., Ltd., told reporters that it is an objective requirement to improve the supply speed of goods. "Traditional sporting goods have a long cycle from ordering to listing, so fast fashion and e-commerce have put a lot of pressure on them. The faster solution is to recruit talents from the other side and learn the corresponding things."


       clothing Independent industry commentator Ma Gang It is believed that an enterprise needs talents of different types and structures at different stages of growth. For Adidas, there is still room for development in sports fashion. Last year, Adidas achieved 15% growth in the Chinese market, and sports transformation and fashion contributed a lot.


    It is worth noting that although adidas has tasted the sweetness of sports transformation fashion, it is still unknown whether it can really become as fast as fast fashion brands.


    It is understood that the turnover period of fast fashion brand goods has been much shorter than that of sports goods. Zhang Qing said that for Adidas, the supply chain and distribution model will be greatly changed, which is a challenge. However, sporting goods will not become fast fashion completely. They have their own niche markets, but they need to learn from their business strategies.


    Sports brand layout in small and medium-sized cities


    Adidas' financial report for the first quarter of this year showed that its global sales revenue was 3.751 billion euros, a decrease of 2% compared with 3.824 billion euros in the same period of last year, of which the sales in Greater China region was 409 million yuan, an increase of 6% compared with the same period of last year, but its growth rate dropped significantly compared with 26% of last year.


    Nike has also experienced a slowdown in growth and decreased orders in China. In the view of analysts, the market performance of Nike and Adidas in China proves that consumers' enthusiasm for sports products has shifted from function to leisure and fashion.


    Previously, Nike was located in Wangfujing Street, Beijing apm The first flagship store in China has not renewed its contract after the lease expires. Instead, it is the fast fashion brand H&M.


    In the opinion of the industry insiders, these brands from overseas will change their window displays and main products in one or two weeks on average, and their product lines cover Clothes & Accessories Almost all series in the field, and the style design follows the route of "international famous brand". With the slowdown of global economic growth, the price and fashion sense of fast fashion clothing just cater to many young consumers with low income, and grab the sports brand market.


    Zhang Qing said that in the first tier cities, the efficiency of fast fashion (referring to the efficiency of 1 square meter of terminal stores) is higher. Under the impact of e-commerce, there are many international brands fading out of stores. "From a certain point of view, the competition between sports brands and fast fashion is not only brand competition, but also channel competition."


    Zhang Qing pointed out to reporters that the war between sports brands and fast fashion is moving down to second and third tier cities. It is understood that this year, Adidas plans to open 800 stores in China, two thirds of which are planned to open in small and medium-sized cities. Zhang Qing believes that Adidas is not avoiding the direct conflict between first-line cities and fast fashion, but is opening up new battlefields and seeking new revenue growth points.


    The above analysts pointed out that for sports brands, under the impact of fast fashion, they need to completely change their distribution model to improve the response speed of the supply chain and the terminal efficiency. "The five major listed companies of local brands are closing their stores, and the direct reason for the decline in performance is not the closing of stores, but to a large extent the decline in the efficiency of stores."

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