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    Profits Fell In The First Quarter, ADI Nike Encountered Bottlenecks In China'S Market

    2014/5/7 10:45:00 51

    AdidasNikeSports Brand

    < p > < strong > Adidas < /strong > /p >


    < p > < strong > sales net profit double decline < /strong > < /p >


    < p > quarterly report shows that besides the decline in sales and net profit, the gross profit margin of the group also decreased by 1 percentage points to 49.1%.

    Adidas said the company's first quarter performance was worse than expected, mainly due to its sharp decline in its TaylorMade golf business. In addition, the low exchange rate of emerging countries such as Russia and Argentina was also an important reason for the decline in performance. The company expects second of Ji Yeji to perform strongly, thereby driving the company back to growth.

    < /p >


    < p > earlier Adidas released 2013 earnings report, the group's global sales revenue period decreased by 3% to 14 billion 492 million euros, if the exchange rate unchanged, the Group sales revenue increased by only 3%.

    The Greater China region, the most favored by businesses, also dropped from double-digit to unit number, increasing by only 7%, the lowest in nearly three years.

    In 2012 and 2011, Adidas's sales in China increased by 15% and 23% respectively.

    < /p >


    < p > for Adidas's weak growth in performance, the sports information industry believes that on the one hand, it is influenced by fast fashion brands such as ZARA and UNIQLO, on the other hand, it has been blocked by local brands in the three or four tier cities.

    < /p >


    Less than P, what makes Adidas headache is that its performance advantage in the European market is also being eaten up by Nike.

    According to the survey released by Ou Rui International, Nike accounted for 12.4% of Western European market in 2012, while Adidas accounted for 13.2%.

    In the first half of fiscal year 2014, sales in Nike Western Europe rose 11%, while Adidas fell 6% in the third quarter.

    < /p >


    < p > Reuters reported that Adidas could not shrink its market share from its old rival Nike. Investors may refuse to support Adidas management at the forthcoming shareholders' meeting.

    < /p >


    < p > < strong > Nike < /strong > /p >


    < p > < strong > Greater China accounted for a slight decrease in revenue < /strong > < /p >


    In the first three quarters of 2013, Nike's Greater China business income accounted for 9.3% of total revenue, a slight decrease of 0.4% compared to the first three quarters of last year. P

    In addition, emerging markets also fell by 1.1%.

    < /p >


    < p > but in the sales of classified products, the business income of footwear and clothing in Greater China increased. In the first three quarters of 2013, the total business income of footwear in Greater China was US $1 billion 160 million, an increase of US $70 million over the first three quarters of 2012, while the number of shoes and clothing increased by US $33 million over the same period last year.

    < /p >


    < p > Nike has faced many challenges in the Chinese market in recent years.

    In the international brand, Adidas's NEO brand has attracted a large number of young and low consumption groups. The new Bai Lun, which doubled over the past year in China, has absorbed some of the audience who are fashionable in sports.

    Nike is obviously more interested in making professional sports technology brand, but Nike headquarters recently made a slight layoff for its wearable device department, Fuel Band.

    < /p >


    < p > industry analysis shows that this may be just a temporary bottleneck for the sports giant in the field of wearable devices. Nike is thinking about remodeling products with the Internet thinking, and its Chinese market is mainly concentrated in the second tier cities. Once it expands the market of the three or four tier cities, it will bring new growth points to the company.

    < /p >

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