Adidas The Strong Recovery In The US Market Is Eating Into The Nike Market.

Latest data display Adidas Sustained strong recovery in the US market is eroding competitors. Nike The market.

According to the world clothing shoes and hats net, YAHOO finance May footwear Market share data, Adidas's share of the American sports shoes market jumped from 6.3% last year to 11.3%, pushing Jordan Brand to 11.8%. Although Nike's market share is still in the lead, it has been on a downward trend, from 35.9% last year to 34.7%. The share of other major sports brands Skechers, New Balance, Converse and Under Armour in the American sports shoes market is 6.3%, 3.7%, 3.6% and 2.4% respectively. NPD and Adidas, a market research firm, said earlier that sales of Nike and the United States had been on the same page.

Some analysts believe that Nike really needs to be vigilant. After all, adidas has increased its market share by only 6% in one year. In April, Adidas's share of the American sports shoes market recorded a record 13%, exceeding Jordan Brand for the first time.

The data also showed that the number of sports shoes sales in Nike had a single digit decline in May, while sales of Under Armour dropped by 19%, while Adidas sales surged by 74%. When Addias's three classic sports shoes are becoming more and more popular, Nike's sports shoes are slowly cooling down, and Under Armour, which has no fashion, is also in a weak position.

Some analysts believe that Nike's outstanding performance in the past ten years owes much to the lack of substantive competition in the industry. In other words, Nike has no real rival. But now things are changing dramatically.

To compete with Nike, the US market is very important. According to the earlier statistics of Deutsche Bank Deutsche Bank, as of March, the share of Adidas in the American sports shoes market was 11%, while Nike was 55%. Now the data have changed dramatically, but this is also a tough battle for Adidas. Adidas CEO Kasper Rorsted also said that Adidas will increase investment in the US market in the future, improve the speed of the supply chain, and expect to sell more full price products. It is reported that the company will test the water with the young brand NEO, so that the brand can break the industry standard of new products within 12-18 months, and shorten it to 45 days.

Susquehanna Financial Group LLLP. sports shoes analyst Sam Poser said earlier that in December last year, orders for the North American region of the Nike fell by 4%, the first decline since the 2009 recession and the 9% decline in orders in the following quarter.

In December last year, Nike chairman and CEO Mark Parker stressed for the first time that the recognition group felt the competitive pressure of rival Adidas and Under Armour and would continue to continue. However, he reiterated that the group revenue target before 2020 would increase to $50 billion.

For this phenomenon, some analysts believe that it is related to the rising trend of sportswear.

According to the industry, the biggest reason why Adidas is red is that the market trend has changed. Leisure sportswear mainly refers to leisure sports shoes and clothing, which is more biased towards everyday Street products. This is precisely the strength of Adidas. According to the latest data in May, the ranking of the five major leisure sports footwear brands did not even appear to be Nike. The top five of the market share were Adidas, 23%, Skechers 20%, Converse 12%, Sperry 4% and Keds 2%.

Mark Parker also pointed out that at present, about 75% of Nike's sales come from Nike Style. Reducing the shipment volume of this category 25% is conducive to stimulating consumers' desire to buy products. Some analysts say that this means that Nike will follow Adidas's very successful hunger marketing strategy last year. Nike is redesigning its retail strategy, and plans to spanform it into a fast fashion model to counter Adidas.

It is noteworthy that in order to cope with the increasingly fierce market competition, Nike announced last week that it will enter the global electricity supplier giant Amazon to stimulate sales growth and better clean up unsalable stocks, and plans to lay off 1400 people to make the company structure more flexible, improve operational efficiency and reduce operating costs. And adidas has been keeping pace. Besides maintaining the hot selling of existing products, it is still seeking new explosions.

Nike is not the only sports brand to reorganize the spanformation. Adidas put forward a new spanformation plan as early as last year. Its goal is to become the first truly fast response sporting goods group in the world, and decided to focus its sales and marketing activities on 6 key cities in New York, Losangeles, Lun don, Paris, Shanghai and Tokyo. This also means that Adidas will launch a positive fight with Nike.

It is noteworthy that last year, excluding the exchange rate factor, Adidas's global sales revenue increased by 18%, and net profit exceeded 1 billion euros, setting a new historical record. Sales in the Greater China region grew by 28%, becoming the fastest growing market in the adidas world.

Since last year, adidas has been far ahead of Nike in terms of sales and profit growth, brand exposure and share price performance. It is known that Adidas was the worst performing brand in 2014. Data show that in the past year alone, adidas has sold 8 million pairs of Stan Smith and 15 million double Super Star.

C dric Rossi, an analyst at Garnier Bryan investment bank, points out that the pace of development of Adidas is accelerating and is approaching the position of the supremacy of Nike sports industry. In the three months ended February 28th, Nike Group sales increased by 5% to $8 billion 400 million, less than expected, benefiting from lower tax rates, and its net profit rose 20% to $1 billion 100 million over the same period. Among them, Nike brand sales increased 7% to 7 billion 920 million US dollars compared with the same period last year, while Converse brand sales increased 3% to 498 million US dollars compared with the same period last year.

From the stock level, Adidas stock has risen 22% this year, while Nike shares have hardly increased.

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