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    How Does Adidas Counter Attack By "Exploding Money"?

    2017/9/28 11:04:00 63

    AdidasBrandMarket

    According to the world clothing shoes and hats net, in the early autumn of September 23rd, the rainy season in Shanghai.

    In the evening, 691 Huaihai middle road was jammed. Many young people were looking at Eddie Peng and Angelababy. They did not necessarily know that behind all this bustle was

    Adidas

    Shanghai

    brand

    The centre is reopened.

    This is a brand store that has been opened five years ago. It is suspended from business in June this year.

    Redecorating, Marc Le Roux, senior vice president of Adidas Greater China, said in an interview with reporters, "because we found the Chinese movement.

    market

    The development is particularly fast, especially in Shanghai. Sports consumption is upgrading. We hope that stores will look closer to sports and show more good products.

    In the official language, Adidas brand center has made changes in various consumer sectors from the design concept of "Sports Home" to the rich product line and personalized customization.

    There are five floors in the whole store. The product line of the German sports giant is almost all on the stage. One to four tier is a series of sports performance, including training, running, basketball, football, outdoor, women, teenagers and other products. The five floor is the site of Chao Adidas originals.

    The upgraded Shanghai brand center has the highest position in Adidas's store system.

    Recently, Adidas sales director Roland Oksel (Roland Auschel) accepted the "German business daily" interview, said that in the first 6 months of 2017, the Shanghai market sales has exceeded 100 million euros, this figure is even higher than the total sales volume of Austria and Switzerland.

    In 2015, the German brand announced the investment of 2 million 500 thousand euros, focusing on the six major cities in the world in five years, including the only Shanghai in Greater China.

    Two years later, it is clear that Shanghai has become a successful representative of this strategy.

    Adidas Shanghai brand center located in Huaihai middle road has a bright business, but retail under the line is still valued.

    In fact, compared with offline retail, online sales are the brightest figures in Adidas's recent performance.

    After formally taking over the position of Adidas CEO in October 2016, Kasper Rothd (Kasper Rorsted) immediately shifted its strategic focus from offline to online, with the goal of increasing the number of digital retail sales from 1 billion euros in 2016 to 4 billion euros in 2020.

    Prior to that, Roth worked in the German Henkel group, greatly improving the sales of electricity providers, and experienced in the field.

    In the past half year's earnings report, Adidas's online retail business has been advancing steadily.

    In the first quarter of fiscal year 2017, sales of German brands increased by 53% year-on-year.

    In the two quarter, this figure increased to 66%, of which the North American market grew by 80%, and the Greater China region doubled, and more and more consumers moved online.

    However, this does not mean that Adidas's physical sales have been greatly affected.

    "Last year, China's physical store sales increased by more than 30%, and physical retail sales continued to grow rapidly," Roman said.

    In its view, such an increase is satisfactory enough, and there is still room for improvement in offline retail.

    CEO Luo Si De also once said: "where is the consumer, we must follow where, regardless of is the entity shop, or Zalando or Amazon and so on electricity platform."

    Following the pace of consumers, Adidas currently has about 10000 entity stores in the Chinese market, and 23 cities, including Shanghai, contribute more than 50% of its performance.

    According to the five year plan established by the German brand in 2015, since 2016, 600 new stores have been added to China every year. Eventually, there will be 1.2 stores in 2020, and new stores will gradually sink into small and medium-sized cities.

    In order to raise the retail level, in December last year, the German brand opened the world's first Adidas Retail Academy in Hongqiao, Shanghai, an area of 2000 square meters. It has several teaching rooms, conference rooms and a simulated shop for employees to learn retail knowledge and enhance their consumption experience.

    Gao Jiali, managing director of Greater China, said: "shopping experience is very important to consumers.

    Generally speaking, the life of a store is limited. In order to attract consumers, regular shop form updating is very important.

    Before we were just a mere brand seller in China, buying, advertising, selling goods to dealers, now we need to learn to sell things by ourselves.

    Personalized service is a major feature of brand stores after upgrading.

    Shanghai Huaihai middle road brand center is a big assignment handed over by Adidas.

    In addition to the more complete sports category, Adidas uses the popular industrial rugged style in the store design to integrate motion genes and tidal elements.

    Adding personalized service is a major feature of store upgrading. Customers can find the most suitable pair of running shoes on the Run Genie running test machine, customize their own personal design in miadidas, or print the content on the dress through Print Shop.

    {page_break}

    In addition, the local elements are essential, including the outdoor walls depicting the character of Shanghai culture. The cloverleaf logo on the five floor wall is also integrated into the landmark elements of Shanghai.

    In the German brand vision, these are beneficial to narrow the relationship with consumers.

    Shanghai local element sports specialty also wants to be a fashion trend.

    The upgrading of Shanghai brand center has another notable feature: it is very fashionable and fashionable.

    The two entertainment star spokesperson Eddie Peng and Angelababy run through the whole process. Adidas will also launch the miadidas shoes designed by two people, totaling 691 models, offering the limited edition star design with the same gimmick, continuing the marketing thinking of Adidas's entertainment stars in the Greater China region in the past two years.

    Today, the German brand's entertainment stars include Lu Han, Di Ali Gerba, Zheng Kai and so on. Compared to the professional athletes lineup, Adidas's star lineup is the most luxurious among all sports brands.

    "Exercise is not just about exercise itself," he said. "Exercise is not just a pair of running shoes to run. It's more of a lifestyle. If you love sports, you want every detail of your life to have its shadow. When you go out, you can also wear sportswear, not confined to the gym or basketball court. These sports stars can bring these influences."

    Eddie Peng, Angelababy and senior vice president of Greater China brand Roman (H)

    There is no doubt that Germany's old brand has the right to speak in the field of sports and fashion.

    From Stan Smith to Superstar, the two big street explosions, and the hip-hop star Kanye West jointly launched and sold the Yeezy series and the extremely popular NMD. Over the past two years, Adidas has created numerous trends, and the Boost series, which is the main technology concept, has also gained word of mouth and sales.

    The creation of "explosion fund" is also related to the five year strategy focusing on the six major cities in the world.

    Over the past two years, the German brand has allocated a lot of expenses to the six major trend cities, and has launched the upsurge of lifestyle sports shoes in the product line, and has continuously made contributions to the star shoes.

    In addition to social media communication, many stars or fashion bloggers wear Stan Smith series to fashion week, with a view to influencing the dress concept of young urban consumers.

    Adidas's intentions are very clear, creating a culture of sports in big cities, and at the same time spreading and radiating it to a wider area.

    The result is satisfactory. Under the impetus of fashion stars and fashion culture, Adidas has come into contact with a wide range of market audiences, among which women are more concerned about fashion attributes.

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

    The five floor of the brand center is Originals area.

    All of this turned into real figures eventually.

    In the 2016 fiscal year, Adidas group's footwear sales surged 53% over the same period, the output reached 360 million pairs, sub brands Originals, NEO and Y3 and other sports and leisure footwear rose 45%, two times the number of functional sports products, and Stan, Smiths and Superstars sales of evergreen style remained strong.

    Market research firm NPD Group's report shows that compared with last year, the heat of Stan Smiths and Superstar has dropped slightly, but Originals released shoes Tubular Shadow, NMD series, and Ultra Boost, which takes into account fashion life and technological innovation, has become a new growth point for Adidas.

    {page_break}

    Under Armour is in sharp contrast to Adidas.

    Because sports products are prone to professional functions and are out of the market rhythm, American brands have harvested their performance records for two consecutive quarters.

    In order to reverse the decline, Under Armour is launching a sports life product category and following Adidas's steps to sign rappers A$AP Rocky, hoping to make the brand more fashionable.

    But before that, American brands need products that really attract consumers.

    The crowd of people watching the unveiling ceremony of Adidas can't sell bad products.

    In fact, Huaihai Road is a microcosm of global sports brands competing for the market.

    Including Adidas, PUMA, Nike, ASICS and Under Armour, the flagship store of international sports brand has formed a promenade here, and it is also a brand store or a key experience shop.

    At present, Adidas is one of the most beautiful sports brands in this street.

    Just three days before the reopening of the Shanghai brand center, NPD Group announced the report of the US sports shoes consumption in the first 8 months of 2017, and Nike remained the most unsuspense.

    Immediately after that, Adidas replaced Jordan to second place. The market share of German brand increased from 6.6% in the same period last year to 11.3%, nearly doubled, while Jordan brand returned to third.

    At the same time, Adidas also gains a good news in the second-hand footwear market. Data from Foot Locker show that two years ago, the market share of Jordan brand used shoes exceeded 90%, Adidas occupied only 1%. Two years later, the market share of German brands in the second-hand footwear market has reached 45%, and the growth rate is considerable.

    As early as the first half of this year, Adidas's performance in the North American market has improved.

    In the first quarter of fiscal year 2017, its sales grew by 26% to 1 billion 14 million euros, and the 24% quarter to 3 billion 412 million euros in the two quarter.

    Because North America occupies 1/3 of the world's sporting goods market share, such an increase can not be ignored.

    Luo Manhe attributed the success of the US market to the contributions of specific products such as Stan Smiths, Superstars, Ultra Boost and Yeezy.

    In fact, whether in the huge potential Chinese market or the largest North American market in the world, the key to the German brand's past two years' performance counter attack and the burst of funds is that products that really meet the market demand have been launched.

    In the fourth quarter of 2014, Adidas lost 140 million euros, and in the North American market for the first time, it was surpassed by Under Armour to third.

    At that time, Eric Liedtke, the group's global brand official, made a clear statement: "we should make up for the shortage of the US market from the perspective of product design."

    Even the best store experience, marketing or sports fashion concept can not sell bad products.

    Adidas, who has tasted the sweetness, is continuing the idea of this focused product.

    In July this year, the German brand opened in New York Broolyn's creative studio. Adidas called it "creative farm". They hope to get more inspiration in this trend.

    This warehouse pformed studio is considered to be a secret weapon for German brands to continue to attack North America and even the global market.

    In Adidas's view, it is only a beginning to surpass Jordan in the North American market.

    Indeed, the demand for sports goods is becoming more and more fractionated and the level of consumption is escalated in the global market, and the new round of competition in China's sports consumer goods market is just beginning.

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

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