Adidas: Defeat Europe Wins In China

In the first half of the year, the German sports giant Adidas suffered a decline in sales in the European market, with sales falling by 3%, to 7 billion 130 million euros in the first half of the year, due to the European market downturn and unfavorable exchange rate. In this way, Adidas's annual sales growth rate is expected to be lower than 5% of the market estimate. The company also had to adjust its sales expectations in the near future.

However, through the balance of total profits from other "dominant" markets such as China, Adidas's profits still increased by 6%, from 455 million euros in the same period last year to 480 million euros. In the depressed market environment, sports Clothes & Accessories How do giants plan future growth models?

　　 Losing the European market

In the first half of this year, Adidas's performance in emerging markets in Western Europe and Europe was poor. clothing Sales fell by 9%.

"Rising raw material costs, unfavorable market exchange rate factors, performance failures of last year's grand sporting events, European Championships and London Olympic Games, and the continuing weakening market environment in Europe have brought different impacts on the sales of European companies in the European market. For the Western European market, the group will continue to face the challenge of unfavorable trade environment in the future. Adidas CEO Herbert Heiner said.

However, Adidas's performance in other parts of the world has also partly eased its pressure on sales in Europe. Haina said: "at present, our performance in Latin America and China is very outstanding, and this good momentum will continue. In the first half of the year, despite the setbacks in the European market, Adidas's sales in China and Latin America increased by 7% and 9% respectively. The good performance of the two markets has finally raised the gross profit margin of the group by 2.1 percentage points to 50.1%.

　　 Reebok's counterattack growth

After constantly adjusting the brand value added and marketing strategy, Adidas, known as the "dragging hind legs" brand Reebok, has seen a strong growth. In the second quarter, Reebok's sales increased by 11%. Therefore, in the first half of the year, the sales of the converted brands decreased by only 4%. If deducting the influence of the NFL brand which lost the lucrative profits last year (the termination of agency relationship between Reebok and NFL), Reebok's profits fell by only 1%.

More valuable is that in the first half of this year, Reebok's gross margin increased by 4.1 percentage points to 39.4%, achieving the highest profit point since it was acquired by Adidas in 2006. "Along with this confident development trend, I believe that Reebok will show greater potential for growth in the future and eventually drive our annual sales growth." Haina is full of expectation.

Adidas also said that the performance of Reebok's retail market will affect the gross profit margin of the company in the second half of this year, expecting Reebok's sales to reach 2 billion euros in 2015.

　　 Pursue high-end innovation

The market pressure of garment giants will be even higher, which requires enterprises to constantly innovate to find a more suitable way for survival and development. At present, Adidas is accelerating the pace of innovation. Adidas has recently promised to accelerate product design, optimize brand service, upgrade marketing strategy, create innovation from design to retail, and improve supply chain and manufacturing plant. Adidas is also particularly concerned about the Chinese market, which is improving its supply chain efficiency in China with partners, accelerating product circulation and increasing store sales.

"Our job is to establish a strong consumer chain and increase market capacity to promote long-term development of the company. By providing innovative products and creating product differentiation, improve profitability and overall productivity. " Haina said.

"However, we know that today's success is negligible. We still have many areas to improve. It is hard to predict how to quickly capture the pattern of sustainable economic growth. If we want to succeed in the future, this means that we must further explore deeper consumption relationships, enhance product and channel innovation, and enhance high-end retail experience and operational capabilities.

　　 Look for indoor sports clothes

What are the opportunities for sports apparel in the future? Spin Although the consumer confidence index of the world's major economies is still not optimistic, the market demand for indoor sports and fitness clothing will continue to rise, despite the fact that the consumer confidence index of the world's major economies is still not optimistic, according to the latest report by Performance Apparel Markets. At present, as more and more consumers, especially women, begin to realize the importance of indoor fitness for health and shaping beauty, the indoor sportswear with functional and comfortable design starts to show a new round of market fever.

Some suppliers who are good at capturing market information have taken the lead in starting the action to cater for the needs of the market. As early as 2000, Lululemon, a famous Canadian Yoga sportswear retailer, enjoyed the market share of the American yoga clothing alone. In 2000~2012, according to market research and demand analysis, Lululemon increased the production of indoor sports and fitness products, and its market share and yield also increased rapidly. This has also attracted the attention of Adidas, an indoor sportswear giant, for what was once considered a "too small" market. The industry also generally believes that with the continuous growth of new market demand, apparel retailers, in addition to sportswear giant Adidas, are increasing the market share of indoor sportswear to varying degrees, especially increasing their attention to functional and comfort products. In the future, the market prospect is bright.