ADI Little White Shoes Can No Longer Be Attractive?

Stan Smith in

The trend makers are the shoe brands that have been selling well in the history of Adidas, but now they also face challenges.

As consumers are becoming more and more fresh, Stan Smith, which has been selling well in Adidas history, is also facing challenges. According to the world clothing and shoe net, the second quarter results of the US sports goods distributor Foot Locker have been disappointing, and CEO Dick Johnson has made several big moves.

Slow sales, including

The Jordan brand and Adidas's Stan Smith.

Foot Locker and Hibbett on Friday led to a decline in share prices of sporting goods companies, while Foot Locker fell 27.9%, the highest 28.1% decline in intraday trading, the biggest decline since its listing in 1980.

On the same day, Nike shares fell 4.4% in the US market, the largest drop in the intraday market, 5.7% in Adidas and 0.5% in the US market, and 3.7% in intraday trading.

Almost every important indicator of Foot Locker's performance is weaker than expected, including profits, sales and profit margins.

Foot Locker also predicts that sales for the rest of 2017 will continue to decline.

Since the beginning of this year, the stock price of Foot Locker has fallen by 33%, while the S & P 500 index has gained 8.5% during the same period.

Foot Locker has a total layout of more than 3000 stores in the field of sportswear. Apart from the US, it also distributes in Europe, Canada and the Asia Pacific region. Foot Locker has a high authority in predicting the number of sports shoes retail.

Before importing goods into the storefront, they will conduct data analysis with the major brands to speculate on what the next trend is.

If a product is sold objectively, Foot Locker will consult with branding providers to increase the volume of supply, rely on big data, Foot Locker and even have the ability to lead the trend, through the issue of cooperation and joint products to stimulate sales, such as the fire around the world NMD.

Data show that the Stan Smith series sold 8 million pairs in 2015.

Since its appearance in 1971, the shoe has sold more than 50 million pairs of shoes.

The Superstar, which was born almost the same time as Stan Smith, was launched by adidas Group in 2015. After launching 50 color matching with Pharrell Williams in 2015, the total sales volume reached 15 million pairs, which contributed more than 1 billion US dollars to Adidas. In the first time in ten years, it beat the competition and became the best selling sports shoes in America last year.

Although adidas has not released specific data, NPD Research Institute expects sales of Adidas in the us to grow five times over the same period last year, including sales of Adidas Originals series including Stan Smith and Super Star. The sales volume increased by 80%, which is more than three times the sales volume of professional shoes such as basketball and football.

But the golden age of Stan Smith may be declining.

Some analysts say that Stan Smith is the core product that is most likely to help Adidas achieve its goals, but in fact, more and more products are being pferred to discount stores because of poor sales.

To better compete with Nike for market share, Stan Smith alone seems to be a bit of a struggle for Adidas. Looking for the next couple of "Stan Smith" is becoming an urgent task for the group.

Adidas brand strategy and business development director Arthur Hoeld also said earlier that the group's confidence in Stan Smith has been far behind, hoping to develop new best selling products and develop new products to stimulate and maintain consumers' sense of freshness.

At present, the United States is the largest footwear retail market in the world with sales of about $60 billion.

In China, at least 3 billion pairs of shoes are consumed annually, the largest footwear consumption market in the world.

What can not be overlooked is how to captivate Chinese consumers who love to follow suit and pursue freshness.

According to the world clothing and shoe net, the performance of Adidas Greater China continued to be strong in the first quarter of this year. Sales revenue rose 28% to 865 million euros over the same period last year. It will soon become another brand of the 1 billion euro club in the market.

Obviously, the German sportswear retailer is working hard to make himself cool and increasingly becoming the Nike's biggest headache.

According to the world clothing and shoe net, Nike group (NYSE:NKE)'s profit in the fourth quarter increased 19% to 1 billion 10 million US dollars over the same period, exceeding analysts' expectations. Sales increased by 5% to 8 billion 630 million US dollars, the growth rate slowed down compared with the same period last year, and the growth rate was 6% in the same period last year.

Among them, Nike group's Converse performance increased more than the core brand Nike, Converse sales increased by 10% to $554 million, Nike brand sales increased from 7% to $8 billion 100 million.

According to YAHOO's May footwear market share data, Adidas's share of the American sports shoes market jumped from 6.3% last year to 11.3%, pushing the 11.8% of the Jordan brand.

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.

According to NPD, a market research firm, sales of Adidas and Nike outside the US have been neck and neck.

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In order to reverse the declining trend of being hit by Adidas, Nike, who persisted in athlete professionalism, began to bow to celebrities and explosions.

According to earlier reports, although this year is a tough year for Nike, Morgan Sole analyst Jay Sole believes that sales of Nike will rise in the coming months. He has upgraded Nike's rating from holding to wait-and-see, predicting that Nike earnings will expand and share price will rise at most 20%.

Jay Sole analysis said that the key driving force for the rise of Nike stocks was the new Air VaporMax, which was launched in March this year. The new shoe is expected to bring up to US $1 billion in sales for Nike.

He thinks that the new products released by Nike and the improvement of Nike market ability are faster than expected, which will reverse the decline experienced in the past 18 months.

However, it is worth noting that Foot Locker emphasizes the lack of innovative products in current sports brands.

Quo Vadis Capital analyst John Zolidis advises investors to stay away from the stocks of sports apparel and footwear industry, saying that the trend of fashion has changed, and that the movement and leisure trend has ended and that companies in the field will experience years of labor pains.

There is an analysis of the industry, sports brand to follow the trend is a game of risk chess, a little careless will be completely abandoned by the original loyal customer group.

When the explosive money has been carefully manufactured, the burst mode has become a replicable success, but the easier it is to copy, the easier it is to be replaced.

Puma, which starts with sports equipment, relies on fashion elements to get rid of its predicament, but it seems embarrassed slightly.

Puma no doubt saw this short board, began to realize this problem, and began to lay emphasis on the professional sports market. Currently, the sponsorship team involves running, football, golf and even racing.

Another analysis also pointed out that the challenge of sports brand's market prospect will also strike against its upstream supply chain.

According to the world clothing shoes and hats net, both Nike and Adidas have the same large supplier in China -- Shenzhou International (2313.HK).

Among the four important customers of Shenzhou International, the fast fashion sales company from Japan's fast fashion UNIQLO company accounted for 21.2% of the revenue, and Adidas's revenue accounted for 20%, and Nike's revenue accounted for 19%.

According to website data, Hongkong listed 551.HK is also the agent of Nike and Adidas.

Yuyuan group's 50% stake is held by Baocheng industry (9904.TT), which is listed in Taiwan.

Yu Yuan also acts as an agent and retailer in sportswear products in China through 3813.HK.

More interesting reports, please pay attention to the world clothing shoes and hats net.