After Adidas'S New CEO Took Office, Greater China Occupied The German Sports Brand Market.

October 2016 became

Since the new CEO, Kasper Rorsted has arrived in China for the two time in less than a year.

In April 20th, he met with the staff of Adidas headquarters in Shanghai, and interviewed the media for the first time in China.

This frequency of visits is enough to prove China's importance to Adidas.

Greater China is already the world's fastest growing market for German sports brands.

In 2016, Adidas's sales in the Greater China region increased by 28%. In the fourth quarter, sales in the Greater China region increased by 25%, driven by Adidas sports performance series and sports fashion series.

Kasper Rorsted

No brand can afford to ignore the Chinese market, so that they are similar in strategy -- rapid expansion, occupation of market gaps, and the start of larger scale market cultivation.

Adidas plans to open 12000 stores before 2020, and now it has 10000.

Starbucks also gave a similar goal. Before 2020, the number of stores was more than 1800, averaging one daily.

Similar strategies include Muji, UNIQLO and so on.

Its old rival, Nike, is also betting on the Chinese market. It plans to achieve a profit of $6 billion 500 million in the market by 2020.

Adidas has also experienced a low tide in the Chinese market.

According to Research Institute Frost & Sullivan, Nike and Adidas occupied 18.8% and 14.9% market share respectively in China in 2008, and their market share dropped to 10.2% and 9.6% respectively in 2009, and Adidas was surpassed by Lining.

In 2010, Adidas China formulated the "road to 2015" and began to catch up.

It began to optimize its own channels and inventory management and plan in small and medium-sized cities.

This is a clever move.

The Boston Consulting Group's research shows that multinationals in the emerging market of China have concentrated on big cities in the past and will bring about some market saturation problems.

Future growth will depend more and more on small cities and in remote markets which are more difficult to enter. They have more opportunities in these markets.

Adidas expands in small and medium-sized cities

Data from Euromonitor, a market research firm, showed that its share in the Chinese market increased from 8.5% to 13.8% between 2011 and 2015, greatly reducing the distance from Nike.

And this strategy will still be one of Adidas's future expansion directions.

So far, Adidas has entered more than 1000 cities in China with a total of 10000 stores.

"In China, we have studied 2000 cities, and now there are stores in 1000 cities. That means there will be opportunities to open stores in about 1000 cities in the future."

Colin Currie said, "we also believe that the future growth of these emerging cities will account for 50% of our total growth."

"But how many stores there are in China is not a problem.

In 2016, we opened thousands of stores, the key is to open a good store is our real concern. "

He added at last.

Colin Currie's so-called "good" can be understood to conform to market demand.

Any brand is eager to find new growth drivers from market segmentation and personalization, but the key is to grasp the trend accurately.

These are more reflected in the consumption of an increasingly mature second tier cities.

According to the economic conditions and past sales performance, Adidas chose 21 cities, and Hongkong and Taiwan formed 23 key cities. These 23 key cities occupy 50% of the Greater China market.

After studying these key cities, Adidas saw new opportunities in some areas.

For example, since 2014, Adidas has started opening women's specialized stores in China, which are located in new front-line cities such as Shanghai and Chengdu, ahead of competitors Nike's actions.

Several Adidas women's stores in China are more gentle in product display and lighting tones, while wooden interior decorations are used.

The products sold are also the most popular running, training and Yoga series for women, and the more fashionable designer Adidas by Stella McCartney.

Adidas women's special store

In the fourth quarter of 2016, Adidas moved beyond Nike to become the most popular sports brand popular among Chinese female consumers, according to FT Confidential Research, the financial times research service.

Adidas is trying to copy this pattern to more areas, such as soccer and children.

Guangzhou tianhecheng square, the world's only Adidas flagship store, provides Adidas with all the products of football, including the equipment of many Adidas teams of Manchester United, Real Madrid and AC Milan, as well as exclusive hot stamping services.

"Shopping experience is very important for consumers."

Colin Currie said in an interview with the interface news, "the life of general stores is limited. In order to attract consumers, regular shop updating is very important."

What he calls "important" is that after the upgrade of the store, the sales performance of the unit area has also improved, so some dealers are enthusiastic about the promotion of the store.

"We used to be simple brands, but now we are learning to do retail."

But as you can see, its competitors are doing the same thing.

At the same time, Adidas's competitors are now not just Nike or other sports brands.

If you have been to the Huaihai middle road in Shanghai, you will understand today.

The competition is fierce.

On this road, there is a Adidas "Rubik's Cube" (which is its name for the flagship store). It has been competing with Nike and puma for a long time.

In the past two or three years, new Jin

Under Armour has opened a new store here. Muji has also put the world's largest flagship store here. There is also a LINE Friends Store that sells toy dolls. It also appeared at the end of last year, and the queuing crowd could reach hundreds of meters away.

"After studying the data, we find that in some shopping malls, Starbucks and fast fashion have the same traffic volume, so Starbucks usually sees fast fashion brands."

Durbin, general manager of RET ruyd leasing business, told the interface news.

Market boundaries are blurred according to the category. These brands are launching a brand new battle for consumer wallet in the market, so when Rorsted is asked about Adidas's competitors, it will reply so: "if consumers buy their products instead of our products, then they are our competitors."

"But as a company, we are concerned about consumers rather than competitors," Rorsted said.

Competitors can be Nike, Anta, or UNIQLO, or some other brands. "

For more information, please pay attention to the world clothing shoe and hat net information report.