Interpretation Of Adidas's Seven Year Long Run Back To Its Original Point

Back to the "origin", Adidas spent seven years.

In 2008, the market share of Adidas and Nike in China was less than 1%, which is Adidas's closest to the first time. Since then, Adidas has been steeply downward, and for a long time no longer qualify for "number one". Back to the finals, it was 2015.

Sending Adidas back to this position is a five consecutive year of revenue growth. "We have been close to Nike, and our brand has never been so strong." Gao Jiali, the managing director of Adidas Greater China, was relieved when he said this.

When Gao Jiali arrived in Greater China in 2010, Adidas ranked only fourth in China, with Nike, Lining and Anta in the front. "At that time, we were losing momentum and many brands were emerging." Gao Jiali has been sitting in this seat for four years, from fourth to the second night of the attack, led by him.

When he took over the stall, Adidas just got away from the whirlpool of inventory, trembling and weak, but decided to start catching up. This is a military order. Gao Jia Li does not have much time to prove himself. In the past seven years, he is the third owner of this seat.

In 2011, the Gao Jia Li team made a long-term plan for five years, and the name was "2015". Now, at the end of the last year, Gao Jiali wants to taste the sweetness of harvest with the speed of 100 meters sprint.

2014 fiscal year results show that sales in Greater China 1 billion 811 million euros, up 10% over the same period last year. On the other side of the coin, Adidas's profits are still falling. Net profit in 2014 was 564 million euros, down 27% from the previous year. "This is a way to seek transformation and transformation." Gao Jiali said. Adidas, who said goodbye to the hard times, welcomed a confrontation running, but fortunately Adidas was different.

When taking office, Gao Jia Li must first ensure that Adidas will not step into the same wrong river.

　　 Adidas CEO Herbert Heiner (Herbert Hainer) said in early 2008, "the Beijing Olympics will be the best opportunity we have ever had." He firmly believes that the Olympic Games will be a turning point.

Unfortunately, Haina's opportunity to show the world's products to the world has finally become a drag on several financial years. Adidas, who has exerted too much effort after entering the Olympic Games, is unable to extricate itself from the stock vortex. Nike was also dragged down by inventory at that time, but the decline was not as fast as that of Adidas.

To sum up, Adidas has taken different approaches and strategies with Nike on how to maximize the value of Olympic Games.

At that time, Adidas invested about 80 million to 100 million dollars, and was awarded the sponsor qualification of the Beijing Olympic Games. As a sponsor, it will provide uniforms and shoes for all the staff and volunteers of the Olympic Games to more than 10 people, and also provide the official uniform for the Chinese Olympic Legion. It also has exclusive rights to sell exclusive licensed sports fans in China. But this is a losing business. During the more than a year of preparation for the Olympic Games, Adidas invested a lot of money, high inventory, bad sales, and huge cash flow pressure.

On the contrary, Nike attaches importance to the sponsorship of individual Olympic teams and athletes in China. Charlie Danson, former Nike president, said the strategy would be more effective in business. "This is the best use of our resources, whether from the perspective of support campaigns or from the perspective of business and marketing." In the future, Nike experienced a concussion in the economic crisis, but it was not hurt.

These two different directions directly determine the Adidas's steeper slope than Nike after the Olympic carnival. The Olympic Games is a watershed, but Adidas missed the opportunity to climb the top, but it was not a day's loss.

According to Euro international, between 2008 and 2009, ADI's market share dropped by about 4%. What's most frustrating is that at that time, it was replaced by Lining, a local rival, in the second place of the Chinese market, which was the first defeat of Adidas after catching up with Lining in 2004. In the past year, Adidas has experienced "great sorrow and great sorrow". "There is nothing to lose a battle," said Du Bairui, former senior director of the High Commissioner and the then managing director of Greater China. "The key is to learn lessons." "To put it simply, our focus in the future is to shift from the previous emphasis on wholesale links, the increase of orders, to the increase in the sale rate of distribution links." Colin Currie It is said that when the dealer came to participate in the order meeting, he got the same product catalogue and chose to buy the product at will. But now that the change is starting, Adidas will cooperate with the distributors, and help them classify and order according to the climate characteristics and crowd characteristics of each region.

About 5%-20% of the large dealers' orders are purchased by Adidas, packed to the warehouse, and told them not to open the packaging, to which city, which place to open again, through this form to achieve more accurate supply. At the same time, Adidas can get the same from 80% of stores. Sales data It includes consumer sex and the products and price they choose.

All these efforts, Adidas wants to achieve is to better understand what consumers want most, what is the most popular in the market.

In the 2014 fiscal year, Nike Greater China recorded an income of $2 billion 602 million and a 1 billion 811 million euro in Adidas Greater China. But Gao Jiali prefers to evaluate his position from the perspective of consumers, "to see where consumers are more willing to shop."

There are two angles to investigate market share. One is the order quantity of wholesale suppliers. This is the data used by many official data or companies to make financial reports. The other is to see where consumers are willing to buy, that is, the rate of selling out. "In the past, some brands met the problem of high inventory. Although many orders were placed, they could not deliver goods at last." This is a wrong river that Adidas has eaten.

This is Gao Jiali's intention to transform the target from wholesale to sold out. In order to monitor the rate of selling out, Adidas conducts a large-scale market survey every year, looking for ten thousand consumers, offering a large number of products and asking which products they are most willing to buy in these products. The survey results in recent years show that Adidas and Nike are basically neck and neck.