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    Adidas Has Become The Fastest Growing Sport Brand In The US Market.

    2016/8/8 10:58:00 80

    AdidasNike Trend Front-EndSports Brand

     

    Compared with functionality

    Adidas

    Use fashion design to compete with Nike in sportswear market.

    Germany

    Sports brand

    The second quarter results of giant Adidas continued the strong momentum in the first quarter, especially in the US and the Greater China market, which shocked the industry. In the first 3 months of June, Adidas defeated Under Armour and Nike as the fastest growing sports brands in the two markets. With the promotion of performance, Adidas shares rose more than 100% in the past year to become the biggest black horse.

    In the second quarter, Adidas showed strong strength in the Nike dominated US market, and its turnover in the region surged 22.6% to 788 million euros, higher than the 21.6% increase in the first quarter.

    Under Armour said last week that its turnover increased by 21.5% to $827 million, while the Nike turnover was flat at $3 billion 700 million in the first three months of the end of 5, which is Nike's two quarter earnings.

    An analysis commented by the financial times pointed out that Nike, once ruler of the sportswear market, is facing fierce competition in the market environment. It is accelerating the loss of its credibility in the ruling market. Although it is still the largest sports brand in the world, it has recently been challenged by new and old competitors including Adidas, Under Armour, Reebok and Lululemon. The market share has declined rapidly, and strong Nike is becoming so fragile.

    Adidas's total revenue in the second quarter increased by 13% to 4 billion 400 million euros, up 21% on the basis of a constant exchange rate.

    In the first half of the year, its performance far exceeded analysts' expectations, and Adidas decided to raise its 2016 full year forecast. Thanks to the early termination of sponsorship with Chelsea football club, Adidas's net profit from business rose by 99% to 291 million euros, far exceeding analysts' expectations of 25%, while operating profit increased 77% to 414 million euros.

    Authorities believe that Adidas, a German sports brand retailer, is becoming cool now.

    For the two major giants of the Greater China region market, the growth rate of Adidas is also ahead of Nike. In the second quarter, Adidas recorded the fastest growth in the region, with an increase of 30.1%.

    Greater China is one of Adidas's most important markets in the world.

    Last year, Adidas sales in China increased 18%, up 2 billion 469 million euros, operating profit soared 40.4% and recorded 866 million euros.

    Thanks to the sales of shoes Stan Smith and NMD, the Greater China region business income increased by more than 30% in the first quarter of 2016.

    In June of this year, Adidas and Wanda cooperation football project launched a Nike attack on the Chinese market from the side.

    Adidas has also recorded rapid growth in Europe, with sales surging 26% to 1 billion 200 million euros, although sales in Latin America and Russia have declined, but the two regions still achieve 7.9% and 7.2% revenue growth respectively.

    In addition, Adidas expects sales to grow by more than 15%, thanks to more favorable product pricing and high profit golf products.

    Adidas CEO Herbert Hainer pointed out that the strong performance in the second quarter is the best proof of the success of the group's business strategy. Adidas will create a new record in 2016.

    The group's new CEO Kasper Rorsted will join the company in August this year and formally take up CEO in October.

    A French department store executive said that Adidas's performance exceeded their expectations. Consumers were very keen on Adidas's Stan Smith shoes, and sales of Stan Smith accounted for 60% of the total sales volume of the Adidas brand of department stores.

    In addition, Adidas Superstar, Adidas and Stella McCartney cooperation and NMD shoes were also very successful.

    Adidas is using fashion design to enter sportswear to challenge Nike. Some analysts believe that compared with functionality, Adidas and Puma pay more attention to fashion than Nike. The former two have enhanced fashion creativity through cooperation with Kanye West and Rihanna. Rihanna has helped Puma to a new level of cool feeling, and has helped them to enhance their brand image, and their performance has been revived.

    In addition, Adidas and Kanye West have launched an unprecedented success in Yeezy sports shoes. Many analysts believe that after launching the Boost running shoes, Adidas has redefined the original understanding of running shoes in the minds of consumers and further promoted the sales performance of the company.

    After Kanye and Adidas cooperate with Yeezy Boost limited series, its high-end fashion dress series is also popular.

    Since Adidas and Kanye West have cooperated, Adidas brand has been defined as a sports giant who can ascend to the fashion show. In addition, Adidas has also behaved more like a flexible fast fashion retailer.

    Some analysts believe that the German sportswear retailer is starting to try to cool itself up. The skills learned from the fast fashion giants Zara and H&M will help Adidas achieve sustained profitability, just as the sparkling Stan Smith has been standing.

    Front end of power flow

    At present,

    Nike

    Three major challenges are facing: competition in women's sportswear market is increasingly fierce, clothing sales are still weak and Nike's most popular basketball shoes will become the past.

    Some analysts believe that Nike has long been a leader in sportswear and is facing fierce competition from smart competitors, who are more professional and cool.

    Basketball is the biggest advantage of Nike, but with the changing concept of consumption among young people, the project is rather awkward for Nike.

    If NBA doesn't have the status in the next 5 years, if no one inherits the kingdom of James, where will Nike fans go?

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