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    Nike Explosion Is Still Lagging Behind?

    2018/4/16 14:13:00 304

    NikeMarketAdidas

     Nike

    Another financial season has passed.

    Nike

    The base camp in North America is still weak.

    What is even more detrimental is that the company suffered the first quarterly loss in 20 years.

    According to the world clothing and shoe net, recently, according to the third quarter financial report released by Nike in the 2018 fiscal year, as of the third quarter of February 28th, the group achieved a revenue of 8 billion 984 million US dollars, an increase of 7% over the same period last year, but the net loss in the period reached 921 million US dollars, while the net profit in the 2017 fiscal year was 1 billion 141 million dollars.

    Among them, in North America

    market

    Nike's three quarter revenue fell 5.6% to $3 billion 571 million.

    In China, Nike recorded an increase of 24.3% to 1 billion 336 million dollars in the quarter.

    In response to a reporter's response to the loss, Nike said that the loss was mainly due to the fact that the United States issued a new tax reform bill in December 22, 2017, and recorded an additional income tax expense of $2 billion in the third quarter. In the current quarter, Nike group had a tax rate of 179.5%, compared with 13.8% in the 2017 fiscal year.

    At the same time, Nike and its rivals

    Adidas

    The competition is intensifying and the war is spreading to the Internet.

    Adidas CEO Kasper R rsted (Caspar Rosd) said in a media interview that the future will gradually reduce stores and bet on more online.

    He said earlier that the group's growth momentum will come from sustained online sales growth and huge potential in the Chinese market.

    The industry believes that the sports apparel industry is facing pformation, the two major sports giants in the digital and online contest will be more intense, in view of Adidas's recent frequent action of e-commerce, Nike also had to speed up the pace.

      

    Explosion is still lagging behind?

    According to the world clothing and shoe net, in the past March, Nike group released its third quarter financial report in fiscal 2018. As of the third quarter of February 28th, Nike group's revenue increased by 6.5% to 8 billion 984 million dollars, which was mainly driven by the growth of the international market and the Greater China region.

    However, Nike's net loss reached $921 million in the quarter.

    In a written reply to reporters, Nike wrote, "because the United States promulgated the new tax reform act in December 22, 2017, Nike recorded an additional income tax expense of $2 billion in the third quarter, which is mainly related to the company's accumulated overseas income and the reassessment of the pitional tax on deferred tax assets and liabilities."

    Among them, in the North American market, Nike's three quarter revenue fell 5.6% to 3 billion 571 million US dollars, and the market share also declined.

    In fact, in the second quarter of 2018 fiscal year ending November 30th, Nike's performance in the North American market has also shown a slump.

    When asked why the North American market continued to show weakness, Nike did not make a clear response, only quoted Nike's board chairman, President and chief executive officer Mark Parker (Mark Parker) to respond, "through the expansion of new innovation platform and enhance the differential NIKE consumer experience, the North American market at the end of the third quarter of the trend has been significantly better."

    For the Chinese market with heavy responsibilities, Nike said that the revenue of the Greater China region in the third quarter of fiscal year 2018 reached US $1 billion 336 million, an increase of 24% over the same period, and a two digit increase in the 15 quarter, but by contrast, the fourth quarter of Adidas increased by 31.7%.

    Although Nike Greater China has led growth in the group, its advantage may not be obvious relative to its competitors.

    Recently, Adidas also announced the new plan for the Asia Pacific market and set up Shanghai as the headquarters of the Asia Pacific market.

    In fact, in the Chinese market, Nike also showed a steady slowdown in growth over the past quarter.

    Cheng Weixiong, a clothing industry expert, told reporters that Nike's predicament in North America and its weakness in China's competition with Adidas were mainly due to the fact that products did not catch the trend of sports and leisure.

    He pointed out that in the past few years, competitors represented by Adidas took the lead and captured a large number of consumers with leisure and retro products. The cooperation between fast fashion, luxury brands and sports brands blurred the boundaries between sports and fashion, and Nike, which had always been known as sports professionalism, was hit.

    According to NPD group data, in the American sports shoes market, Adidas relies on Yeezy, NMD, Stan Smith and other sports shoes, and Adidas is taking more market share from Nike. In the year of May 2017, Adidas's market share increased by 5 percentage points to 11.3%, while Nike and Jordan brands dropped 1.2 and 3 percentage points respectively.

    There are many factors that can make a burst of money. The two accidental factors of star effect and rendering of public events are dominant, but the design intention is the foundation of word of mouth.

    Compared with Adidas, Nike's personal design in recent years lacks originality in terms of basketball shoes.

    The other is the problem of reducing distribution, referring to the 1-4 generation shoes of the Kobe series from 2006 to 2009. The evaluation at that time was very suitable for actual combat and casual wear.

    In contrast, after the decommissioning of 2016~2018 Kobe, the whole AD series is not as good as before, except that the price is unusually stable.

    Joe, who runs a shoe store in Taobao, told reporters.

    Footwear expert Wang Yongjun told reporters, "in fact, Nike's lack of explosive and innovative products has improved. It can be noted that Nike has recently launched a series of new product combinations, including Nike React, Air VaporMax's extended series VaporMax 2 and Utility, and the first women's AJ and AF series 1Reimagined, which correspond to running, lifestyle and basketball categories."

    Correspondingly, Nike has speeded up the progress of the innovation platform, for example, the three development platforms in 2017: ZoomX, Air VaporMax and Nike React; its product development cycle has also shrunk by half, and the Express Lane business, which has been launched in North America, Western Europe and China, will shoulder the responsibility.

    However, online discussions about Nike's lack of innovative products are continuing.

    {page_break}

      

    With his opponent at Hua Boyi

    In the Chinese market, the pressure of competition from rival Adidas is increasing.

    According to the world clothing and shoe net, recently, Adidas said it would bet more on digital operations.

    Adidas Group CEO Kasper R rsted said in a media interview that it will gradually reduce stores in the next few years, but will continue to optimize the offline retail experience.

    At present, Adidas has 2500 direct outlets, 1.3 franchises and 15 wholesale stores worldwide.

    Regarding this, Adidas China told the media that television is still a major and very important media channel for Adidas in China.

    Sun Jingbo, the head of China's public relations department, said: "the CEO is talking about the global strategy, but there are different characteristics in different markets, and there will be different ways to carry out the strategy."

    Wang Yongjun pointed out that under the changing rhythm of e-commerce and the Internet, the sportswear industry is facing pformation and has to face the severe challenge of physical shop saturation. Sports brand is no exception.

    Even in the Chinese market, the Chinese Internet market looks more complicated.

    In fact, sports brand giants are facing the same problem in the attempt of mobile e-commerce providers, that is, how to set up their own right to speak in the new environment of the Internet and introduce themselves to a new generation of young customers. The customers will spend more than half of their time online in real time.

    In China, online competition between Nike and Adidas may be more intense.

    With the help of the official website and the retail channel of Tmall and Jingdong, Adidas's online sales in China have gained a good response.

    According to the data provided by Adidas, in the second quarter of 2017, the growth rate of Adidas's sales channels exceeded two digits, of which the growth of electricity providers in Greater China was more than 100%.

    Nike, who did not lag behind in cooperation with China's e-commerce platform, also tasted the sweetness.

    In 2012, Tmall's Nike came to Tmall. At present, Nike's Tmall flagship store has more than 9 million fans. Trevor Edwards, the Nike brand president, said after last year's "double 11" that the Nike Greater China region has maintained double-digit growth for tenth consecutive quarters, of which "double 11" is the key to promoting the growth of the whole direct business.

    CEO Zhang Qing, a key sports consultancy company, told reporters that "Nike and Adidas in the Chinese market are relatively early to test the water to do business, but the emphasis is different. Adidas has a higher demand for goods itself in terms of electronic commerce, including the introduction of fixed goods and analysis of the products themselves, and will also pay more attention to collocation. Nike hopes that the interaction on the online media will be more interactive, so as to narrow the distance from consumers and play a leading role in sales."

    In addition, in digital marketing, in December last year, Nike launched the SNKRS APP in China, Mark Parker said that the first month of the application was downloaded 2 million times. It is understood that the main function of the APP is to provide information on the sale of shoes for NikePlus members, and enhance the viscosity of members.

    In addition, Nike in March this year, in WeChat game jump jump in the Nike React word module, Nike React refers to Nike last year launched a sole material technology, used this sole of the same name running shoes in March 1st just officially on sale.

    Nike has not responded publicly to the cost of implantation, but the spread of the Internet is not less than 20 million yuan.

    At the same time, Nike, a former sports professional star, has begun to contact more traffic stars and small meat in China in recent years. For example, Nike and Wang Junkai and Dongyu Zhou have been working together in social media such as micro-blog and WeChat last year.

    Joe pointed out, "this strategy is hard to judge right and wrong, but there is no doubt that Nike used to use traffic stars to get attention.

    That is to say, Nike seems to be in a passive state in today's competition.

    Zhang Qing believes that in China, the consumer demand for professional sports products in this industry is relatively low. Only about 10% to 15% of the products are targeted at professional people, most of whom still like to buy tidal products.

    With the popularity of sports and leisure, Adidas is becoming a beneficiary of the change of consumers' tastes. It is more like "using styles and cross-border stars to please consumers directly".

    Keep a sense of mystery -- celebrities or "net red" endorsement become the topic of social networking - Limited sales, which seems to be more proficient in Adidas. Before that, the 50 year old tennis shoes Stan Smith was brought back to people's eyes, and it was directly perceived.

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

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