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    Is The Inventory In The Chinese Market The Focus Of Adidas's Consideration?

    2015/3/30 15:53:00 47

    China MarketInventory ProblemAdidas

    Compared to the poorly performing North American market, Adidas performed well in the equally competitive China region: in 2014, Adidas's Greater China sales reached 18.11 billion euros (about 12 billion 247 million yuan), up 10% over the same period last year.

    This is also his.

    Greater China

    Since the 2010 fiscal year, sales have been growing for fifth consecutive years, with a total increase of around 80%.

    The inventory problem, which has been mentioned since the Beijing Olympic Games, seems to be gone.

    At that time, Adidas invested 80 million to 1 billion US dollars in sponsorship, and at the same time produced a large number of thematic products.

    But after the Olympic Games, the serious inventory problem made the company's cash flow pressure huge. At that time, it was backlog on Adidas.

    Warehouse

    The total amount of goods in China is even up to 100 million yuan.

    This decline lasted until 2010 years, and closed more than 200 stores in 2009.

    Ultimate salvation

    Adidas

    The Greater China region's performance is a reform plan called "to the 2015": tracking the user habits through cooperation with distributors, eventually increasing the order quantity and product sales rate, replanning the store layout, paying more attention to the vast four to seven line city market; and investing in a second tier city with relatively more saturated market, with stronger investment and more profitable subdivision stores.

    But in the gradual recovery of sales volume, Adidas did not get the simultaneous growth of brand influence.

    A more comparable example is New Balance: with running becoming a new trend in the city, New Balance shoes have become a fashion trend among young Chinese consumers.

    From 2012 to 2014, the number of New Balance stores in the mainland of China increased from 301 to 1600, and sales reached three digit growth in two years, and even threatened Nike, who also worked in the field of jogging shoes for several years.

    Whether they are Adidas or Nike, they all understand the importance of catching young people.

    What's different is that Adidas still uses traditional methods: looking for cool looking endorsers, or launching joint brand with designers to show brand characteristics.

    To launch joint brands with Yamamoto Teruji and Stella McCartney, or to choose non athletes such as Eason Chan as spokesmen, these practices have been very effective in the Chinese market: it allows young consumers to think that Adidas without three bars can be counted as a fashion item, but the growth of the Greater China region in the past three years has also come from the selling of its sub brands such as Trifolium and NEO.

    Nike's ideas are more subtle: it can affect their consumption behavior by changing the lifestyle of young people.

    For example, sponsoring marathons in China, organizing people to take part in night running, encouraging people to record data through NIKE Running, and let your friends use the corresponding App to cheer you up in running.

    But the more central issue is that adiddas has few new products for the new market - even if it is, the impression left on the market is not clear.

    Relying on the spokesperson, the market persuasion is much smaller.


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