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    Adidas: Effectively Resolve China'S Inventory Crisis By Subdividing Category?

    2016/3/21 15:46:00 77

    AdidasLeisure Sports BrandFashion Trend

    Adidas recently announced its earnings in 2015, excluding the exchange rate factor. The group's sales revenue increased by 10% last year, and its net profit increased by 29% to 634 million euros. It swept the haze of the fourth quarter's sharp loss last year, and China's business as its second largest market has contributed.

    Adidas China said that sales of Adidas in Greater China last year reached 2 billion 469 million euros (about 17 billion 653 million yuan), an increase of 17.7% over the same period last year. It not only overfulfilled the revenue targets set in 2010, but also completely reversed the market pattern five years ago, and the latest market share ranking has reached 12% with Nike.

    In 2010, Adidas's presence in China was affected by the high inventory caused by the rapid expansion in 2008.

    market share

    Just in fourth place, not only Nike but also China's local sports brand Lining and Anta are in front.

    To this end, Adidas has formulated a long-term plan for five years, aiming to achieve sales target of 2 billion euros in 2015.

    In the past few years, Lining and Anta have experienced performance adjustment, while Adidas has accelerated the construction of channels for more remote cities.

    "In 2010, Adidas opened 5000 stores in 500 cities in China. Now we have entered more than 1000 cities, and the number of stores has reached 9000."

    Gao Jiali, director general of Adidas Greater China (Colin Currie), said at the press conference that Adidas had more than 500 new stores in the past year. "With the acceleration of urbanization and upgrading of consumption, consumers in those small and medium-sized cities also have demand for Adidas products."

    The development of subdivision is another important move of Adidas.

    At present, Adidas not only sells pure sporting goods in China, but also has a fashionable sports brand named Adidas Originals, sports classic series, and aims at a younger consumer group.

    Leisure sports brand

    NEO, they contribute nearly 30% of Adidas's revenue.

    Gao Jiali said that the growth rate of sports leisure and leisure in the future will still be faster than that of pure sports performance.

    The question is, when Originals and NEO are too famous, can people first think of Adidas when they plan to buy running shoes? With the development of personalized demand, some niche brands are more respected. The rapid rise of the US sports brand UA is an example.

    However, Gao Jia Li still said that, as far as the Chinese market is concerned, they are the most recent.

    data

    In the survey, even in the running market, Adidas is one of the two leading brands in the market. "In the future, we will continue to maintain this leadership position."

    Adidas plans to further increase the number of stores to 12000 by 2020, of which the number of women's specialized shops will increase to 20, and the sports classics range from 350 to 650. More attention will be paid to the expansion of small and medium-sized cities. "60% growth in the next five years will come from New cities".

    In addition, in order to compete against fast fashion brands, the product cycle of the original 180 days will be shortened to 45 days starting from the NEO series.


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