Adidas And Nike Are Recovering, And Competition In Chinese Market Is Heating Up.

Adidas's recent 2014 fiscal year results show that sales in Greater China are 1 billion 811 million euros, up 10% over the same period last year, which is also the fifth consecutive year of growth in Adidas since the 2010 fiscal year. But Adidas's profits continued to slide. In 2014, its net profit was 564 million euros, down 27% from 773 million euros last year. To make matters worse, Adidas's market share in the US has recently been surpassed by the US sports brand Under Armour.

ADI's biggest competitor Nike Also in China's market performance recovery. As of November 30, 2014, Nike's Greater China revenue grew by 21%.

The competition between Adidas and Nike in the Chinese market is still fierce. In the 2014 fiscal year, Nike achieved a revenue of 2 billion 602 million US dollars in Greater China, and 1 billion 811 million euros in the 2014 financial year of Adidas Greater China. It has a long way to go to catch up with Nike on the scale. Nike's ambition in the Chinese market is more than that. In 2014, Nike signed a sponsorship contract with Adidas for 12 years instead of Adidas. "Competition in the Chinese market is not a sprint run by 100 meters, but a marathon race." Mark Parker, chief executive of Nike, once said with great interest.

Since the second half of 2011, the domestic sporting goods industry has seen a sharp decline in its performance and a large scale of closing shop. In the first half of 2013, Lining, Anta, PEAK, China trends, XTEP and 361 degrees, and other six Chinese brands, the total number of closed shop is as high as 2249.

In 2014, the transformation of some local sports brands achieved initial success. Anta sports released 2014 results show that its operating income was 8 billion 923 million yuan, an increase of 22.5% compared with 2013, net profit increased 29.3% to 1 billion 700 million yuan compared with 2013. Lining is still in the low valley, and is expected to lose more than 820 million yuan in 2014.

"Before the local sports brand is a large wholesale mode, do not pay attention to retail, operation efficiency is relatively low." The key road sports consulting company, CEO Zhang Qing, told the Beijing Morning Post reporter that when the market environment changed, the local sports brands were greatly influenced by the impact of electricity suppliers and fast fashion. Zhang Qing pointed out that there are only two ways for local brands to go. If we continue to follow the concept of sports and leisure before we have to compete with leisure brands, if we take the professional sports field, we need a long process.

"The gap between local sports brands and the world's first-line brands is actually widening," Zhang said. However, because of the huge Chinese market, there will be one or two local brands hoping to become the top of the whole category.

Though in Chinese Market There has been a rebound in performance, but in the face of new Buren's explosive growth performance, Nike and Adi both look gloomy. Overnight, the new brand of running shoes has become a fashion commodity for young consumers in China, and the word "N" appears in the streets. From 2012 to 2014, the number of new stores in mainland China increased from 301 to more than 1600, and sales reached three digit growth in two years.

In the eyes of the industry, new burlen has seen explosive growth in the Chinese market in recent years, thanks to its strategy of adapting to local conditions and constantly adapting to the local market. strategy It has a strong reference for other brands. Insiders pointed out that the new brand of running shoes is not high end in the US market, but in the Chinese market, the new battalion became a sales miracle after giving away the magic weapon of direct battalion and product subtraction. Insiders pointed out that the rapid expansion of the new wave in China is catching up with the transformation period of the Chinese sports market and the catalysis of the "star effect". But it can not be ignored that the transformation of the new production system is one of the important factors for its success.

"Most of the people who buy new hundred Lun running shoes are not running." An industry insider pointed out that the sales myth of new Bai Lun came from its popular combination of classic series and casual wear. The popularity of new hundred Lun threatens Nike and Adidas even in the subdivision area. Zhang Qing pointed out that although Nike and Adidas are not on a single level, but in the field of sports function running shoes, new brun poses a threat to Nike, Adidas and other old brand sports brands.

New brun led the "jogging trend" to the local sports brand. At present, local brands are gradually increasing their running category. XTEP has launched the slogan "love running, love XTEP", and many brands, including Anta, have started running activities. Zhang Qing pointed out that in the category of running shoes, jogging shoes occupy 8 of the share. Sports brands can only push their jogging shoes in a rush. "Though competition is more intense, they have no choice".