A Brief Analysis Of Sports Giant Brands

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They are all deadly rivals. The two brands are fighting for their lives.

I didn't expect to kill a Under Armour in the past few years.

In 2014, Andrea became the second biggest sports brand in the United States, second only to Nike, and caused a sensation in the sports brand industry.

Nike, the industry leader, still dominated the US market. In 2013, Nike accounted for 59% of the American sports shoes retail market. Although the trend of leisure sports was very popular, sales of these shoes in the United States increased by only 8% in 2015.

At first glance, it seems that Nike can continue to flourish.

But this is not the case. In 2016, Nike's stock fell more than 10%, becoming the worst performing Dow Jones stock.

Let's talk about sports brand today.

Nike's revenue continued to fall for 3 consecutive days.

First quarter 2017 earnings report

In the first quarter of 2017, Nike reported its first quarter earnings (Nike's fiscal year from June 1st to May 31st of second). During June 1, 2016 to August 31st, Nike achieved a profit of $9 billion 60 million, an increase of 8% over last year's 8 billion 410 million yuan, and a 10% growth rate.

In the last three quarters, Nike's revenues were 8 billion 240 million, 8 billion 30 million, and 7 billion 690 million US dollars, and continued to grow.

In addition to the $8 billion 460 million revenue from Nike brand, Nike's CONVERSE brand also earned $570 million in revenue, up 4% from the same period last year.

The growth of CONVERSE brand came mainly from North America, and its performance declined in Europe and Asia Pacific region.

Nike earned a net profit of 1 billion 250 million US dollars in the quarter, compared with the growth of 6% in the first quarter of 2016, compared with 6% in the first quarter of fiscal year.

Nike's net profit in the second to fourth quarter of fiscal 2016 was 790 million, 950 million and 850 million US dollars respectively.

However, despite the increase in the average selling price of Nike products, Nike's gross profit margin in the first quarter of fiscal year 2017 dropped to 45.5% from 47.5% in the first quarter of last year due to changes in the exchange rate, sales and operating costs, more discounts and withdrawal from the golf equipment market.

Continued growth in Greater China

The Chinese are still the biggest fans and source of growth of Nike. The region has contributed $1 billion 20 million in revenue, an increase of 15% over the same period last year and a growth rate of 21% against the exchange rate factor, the highest among all regions.

Nevertheless, Nike's growth in the Greater China region slowed down compared with the 30% growth rate in the first quarter of fiscal year 2016.

In addition to the Greater China region, Nike has gained growth in North America, Western Europe, emerging markets, central and Eastern Europe and Japan, and Nike said it was mainly derived from its series of strong performances such as leisure series, running and Jordan brand.

Although revenue and net profit have increased this quarter, orders have declined.

The future order of Nike from September 2016 to January 2017 is US $12 billion 300 million, which is 7% higher than that of the same period last year, compared with the same period last year. Compared with the 17% growth rate in the same period last year, the growth rate of future orders in the previous quarter is down again, indicating that the demand for Nike products is not optimistic.

For this reason, Nike (NKE) has already paid a heavy price, and its share price has dropped by nearly 10% after its earnings announcement.

Nevertheless, Nike is still the leader of the global sporting goods companies, but this boss is not easy. Behind it is a joint attack between the millennium old man and her new rival. Nike is now facing the fierce impact of competitors such as Adidas and Andrew.

Why did Adidas make a comeback in 2016?

The growth rate of the company is considerable.

According to big brother, the main reason for the growth of Adidas can be seen from the growth rate of the company's total revenue in the past six months in 2016 compared with the growth rate in the first half of last year. Adidas's financial performance is the best.

Although Under Amour is far ahead of Nike and Adidas in terms of revenue growth, in the past six months, administrative expenses such as sales of Under Amour increased by $2 billion, up 26.6% over the same period last year, which greatly frustrated its net income.

As a result, Adidas's performance has been recovering recently, and for a mature company, the growth rate is considerable.

New style after changing

Over the past year, Adidas has successfully promoted the dilemma reversal plan formulated by Mark King, President of North America, shrinking the front line, focusing on running and basketball shoes, and promoting tangible "classic" clothing and clothing. The plan has achieved remarkable results in the past year, and it can be said that almost all of the world's green hands are small green tail, and retro wind is everywhere.

According to the sales data of Adidas, the sales volume of three major business centers in North America, Western Europe and greater China in the first half of 16 years increased by more than 20%, and the growth rate in North America reached 23%. In particular, the sales volume of "classic" sales increased by more than 60% over the same period. In addition, the hot sale of new AlphaBOUNCE also helped ADI to become the fastest growing sports brand in North America.

In the first half of Under Armour2016, sales growth was 21.5% in the first half of, and sales in North America were basically flat.

Adidas also made many strategic plans in 2016.

In China, it signed an agreement with Wanda Group to set up China's triathlon, football and basketball competitions, and is expected to open 3000 new stores in China in 2020.

In Europe, Adidas and Chelsea Football Club jointly launched the 2016/17 season jerseys.

And launched the new Speed Of Light football game.

In addition, Adidas has made a lot of profit from the Rio Olympics in 2016 and the UEFA Football Championship held in France.

Of course, over the past year, Adidas has also made some new plans, not only to invite olive star Von Miller to endorse, but also to invite pop star Kanye West to work together to create a hot product coconut shoe Yeezy Boost.

From a year's share price growth, Adidas is far ahead of Nike and Under Amour.

Adidas's coming from behind shows that Nike should take the time to adjust itself to meet the new challenges.

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Wolf wolf Andemar (UA) once defeated Adidas.

In the sports market of North America, competition for second is much easier than competition. In 2014, the total revenue of Under Armour exceeded 30 billion billion dollars, surpassing Adidas, but this is still only 1/10 of Nike.

However, in the stock market, the price of Under Armour listed in 2005 was almost two times that of Nike.

In the past 19 years, UA's sales rose from $17 thousand in 1996 to $3 billion 800 million today. The whole history of growth can be described by a miracle.

Moreover, UA is the only enterprise in the S & P 500 index that has a sales growth of over 20% in each quarter in the past 21 quarters.

How does UA achieve wind speed growth?

Big brother looks like all good companies are rooted in the core competitiveness that can not be replaced. The core competitiveness of UA is black technology and unique brand positioning.

The difference between UA and mass sports brand positioning can be described by athletes and athletes.

Making every consumer an athlete is the unique competitiveness of President Planck, UA.

That is to say, every person wearing UA in the gym has "I am a professional, and the psychological superiority of your slags" is the competitiveness of UA.

This can also be seen from the image of UA's exclusive store: half of the shop salesmen are professional athletes, because Planck believes that only athletes know athletes, who want to be athletes or athletes.

The star effect brings the performance to gallop.

When President Obama did physical training, he wore UA's "presidential" sports shoes specially tailored to him. This moment was photographed and widely spread by the media.

The first leg of the universe mold (Taylor Swift) also love to wear UA out of the street.

Including the bet in 2010, it was a great success in Phelps.

Even 5 years ago, UA was still a brand unknown to ordinary people. The biggest movement was probably in 2014. Durant, who had wanted to sign NBA superstar Nike from the hands of NBA at a high price (10 years and 300 million years), did not succeed, but she did not yet sign an immature Kuri.

Kuri, wearing UA basketball shoes, is growing rapidly. The league's most valuable player, NBA champion, the beloved in the eyes of the world, has no time to play.

In the summer of 2013, in 2013, she gave up the contract and signed the contract. UA became the Nike's heart failure that could not be relieved until now. Data show that in recent years UA's sales of shoes in the United States have increased by 350%, and the commercial value of its exclusive sneakers is higher than that of all players except Jordan, including Nike's James and Kobe.

In March 2016, analysts told the media that the value of UA was equivalent to $14 billion.

There is still a long way to go for Adidas or Andrea to catch up with Nike.

Nike's ambition is big, and its global revenue is expected to reach US $50 billion in 2020. Their confidence comes from the rapid expansion of its direct mode.

To achieve this goal, Nike will expand the scale of its shops in a new way, strive to provide consumers with more personalized experience and provide consumers with more powerful digital services on their personal digital platform Nike+.

However, if any company can really narrow the gap with Nike, it also needs to count Adidas.

The attacking Adidas set up their three big carriages: popular products, high-profile endorsements and the aura of celebrities.

Adidas will continue to grow in the US market.

Andemar's sales will continue to expand, and the market share will also increase slightly. For Nike and Adidas, Andrea is still a noteworthy competitor.