Adidas Is Now The Biggest Headache For Nike.

Nike, once ruler of the sportswear market, is facing fierce competition in the market environment. It is accelerating the loss of its ruling market. Recently, it has 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 fragile.

In July of this year, Adidas raised its 2016 annual performance forecast. It is estimated that the net profit of continuing business will rise 35% to 39% over the same period, that is, between 975 million and 1 billion euros, and the company's expected net profit of continuing business increased 25% over the same period last year.

From 1 to September last year, the average monthly market share of Adidas in the United States was 4.3% and Nike was 41%. According to the latest data of NPD group, Adidas's market share rose to 7.1% this year and Nike fell to 38%.

It can be seen from the data comparison that although Nike still has obvious advantages, Adidas is rapidly eating the market of Nike.

In addition, this year

He also took the us from Skechers.

Second market position.

Adidas's second quarter performance continued strong momentum in the first quarter, especially in the US dominated market dominated by Nike, and defeated Under Armour as the fastest growing sport brand in the market.

In the region, Adidas's turnover surged 22.6% to 788 million euros, up from 21.6% in the first quarter.

In the second quarter, Adidas's total revenue grew by 13% to 4 billion 400 million euros, rising by 21% on the basis of constant exchange rate, far exceeding analysts' expectations.

The world's future orders increased by only 5% from September to January this year, lower than analysts' expectations, far lower than 14% of the same period last year, and the performance of the Chinese market was worse than expected.

In addition, Bloomberg analyst Chen Grazutis pointed out that the gross profit margin of Nike in the latest quarter is on the decline, which means that the company will rely more on discount sales to get sales growth, which is a very bad sign.

Analysts say Adidas is making changes, and its market prospects in the United States have become clear.

In January, when the company announced that Kasper Rorsted took over Herbert Hainer as CEO, Adidas's share price rose to two digits.

Driven by strong performance, Adidas's stock has risen 78% this year, while Nike shares fell 17% to become the worst performing brand.

Adidas's former CEO Herbert Hainer has entered Adidas's sales department since 1987, and became CEO in 2001 for a term of over 15 years. It is worth noting that the new CEO Kasper Rorsted is different from his predecessor. He is a layman for sports apparel industry. He has gathered a group of admirers in the eight years of managing German beauty brand Henkel, and now he has made more achievements to prove that he can continue to challenge Nike.

Kasper Rorsted said that the company has learned from past mistakes. Adidas did not pay much attention to consumer demand a few years ago. Too static led to the loss of consumer enthusiasm for brands.

In order to revitalize the US market, Adidas started a large-scale reorganization two years ago, sending 200 employees directly from the German headquarters to the United States, including the chief designer, with the aim of breaking the two independent operations.

According to industry sources, Adidas global brand Eric Liedtke has worked in two markets of the United States and Germany, and has rich experience in brand operation. The reorganization of the company has made the top management team understand the American market more closely and challenge Nike step by step. This is also the reason why Nike can not sleep well.

Thanks to the strong growth of shoes, Adidas's profits returned to the level of 1 billion euros last year.

Matt Powell, an analyst at PD group, points out that in the past two years, Adidas has not provided us consumers, especially footwear products, such as retro shoes and leisure running shoes. But in the past 2 years, Adidas has been very clever in integrating the old products and new products. The 2 brands of the brand in the 5 best selling products in the US are back to the school season this year.

Mark King, President of Adidas North America, said that everything is possible because the company is abandoning its old and old practices to accelerate its progress.