How Does Adidas Challenge Digital Pformation?

According to the world clothing and shoe net, at the beginning of this month, the Gartner L2 issued a report on Activewear 2018, which has 74 business in the US.

The capability of digital service is analyzed.

The conclusion is that Adidas rolled Nike to become the highest number of "Digital IQ Index", the only one being rated as the highest level of "Genius" sports brand.

The report said, "selling directly through consumer channels, whether online or offline.

They all demonstrate the potential for sustained growth.

Regardless of whether the evaluation criteria in this report are controversial in the industry.

An obvious fact is that in recent years, Adidas has caught up with Nike in fashion fashion and fashion modeling.

As the first brand of sport, Adidas not only grasped the forefront trend of sports fashion, but also made remarkable progress in its performance.

Adidas group's latest 2017 results show that group sales rose 15% to 21 billion 218 million euros, the first time to enter the 20 billion euro club, operating profit surged 31% to 2 billion 100 million euros, net profit rose 7.9% to 1 billion 100 million euros over the same period.

From the perspective of channel, all the distribution channels of Adidas group have achieved double-digit high growth, especially in the electricity supplier channel, with an increase of 57% in revenue. The channel of e-commerce is the most important source of revenue for Adidas.

So, in order to adapt to the new

Demand has made consumers more concerned about brands and achieved digital pformation of brands. Adidas has accelerated the digitalization process in sales, products and services, as well as production and supply chain, and many of their attempts have become the weathervane of the industry.

Last year, Adidas electricity supplier sold 1 billion 600 million euros.

But according to the plan, Adidas is expected to invest nearly 900 million euros in digital operation this year.

The whole channel digitalization, as well as the digitalization of products and services.

This month, Adidas group CEO Caspar Rothd told reporters that Adidas group plans to close some of its stores in the next few years to enhance its power.

In the future, online websites will become Adidas's most important store in the world.

Adidas plans to increase its online sales from 1 billion 600 million euros in 2017 to 4 billion euros in 2020.

In the era of mobile Internet, mobile phones have become a part of people's body. Anytime, anywhere, they can check the relevant product information directly from their phones.

Before, Adidas's main online sales channel is the official website and the third party sales platform. With the change of consumer habits now, Adidas is aware of the need to develop more channels, and the official website can no longer meet the needs of consumers.

So, in November 2017, Adidas launched its official shopping App in the United States, Britain and Germany.

Of course, this time is not too early.

App's launch, on the one hand, realizes the digitalization of sales channels, the mobile terminal App plus the PC end official website, and realizes the full coverage of digital channels.

In addition, it can enhance cooperation with more third party platforms.

In the United States, Adidas and Amazon have maintained good cooperative relations. At home, Tmall and Jingdong platforms also had Adidas self operated stores.

On the other hand, brand App also helps to digitize products and services.

For example, App integrated into the AI experience, and consumers can track their orders in real time.

By using artificial intelligence to extract past shopping records and personal information, App can generate personalized recommendation according to consumer interest and behavior. It can not only provide more suitable products, but also push news, sports events and other news.

In real time interaction with consumers, strengthening the relationship between brands and consumers can also stimulate further sales growth.

Gartner L2's report revealed that Adidas's e-commerce platform has information rich product pre-sale and distribution pages, including video and personalized content generated according to user habits, and shows real-time inventory of products.

Of course, the self built online channel is accompanied by the logistics problem. Therefore, after the brand was launched, Adidas began to strengthen the construction of the logistics system.

Adidas CFO Hamm Ormeier said at the 2017 earnings conference that they are increasing investment in logistics and striving to achieve the day in major markets in order to stimulate the volume of e-commerce channels.

This is the common problem that many brands need to build on their own online channels.

Because the logistics system that fits the electricity supplier and the logistics mode of Adidas are completely different.

"When you ship to a large retail chain, the target goods may be a whole batch of sneakers, but when facing the online terminal customers, you may only need to deliver a pair of shoes or a suit."

Close shop, but more emphasis on offline store experience and brand communication significance

After the circulation of offline stores, official website and App, the brand has more comprehensive control over the product channel, but the smooth shopping experience is not enough. Consumers are more inclined to brand with emotional needs.

As the brand master Ogilvy said, ultimately deciding the brand's market position is the brand itself, rather than the insignificant difference between products.

Just like apple is not only a cell phone in many people's eyes, Starbucks is no longer a coffee in many people's eyes. Adidas is not just sportswear and equipment. It's the ultimate goal of a brand to become a target group's attitude and way of life.

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So, the question is, how can we let consumers experience and perceive the attitude and way of a brand's life? There is no better way than a real offline store.

"As time goes on, we will have fewer stores, but the overall performance will be better."

Adidas CEO Caspar Rothd told the media that the number of Adidas stores will shrink in the coming year.

It has been reported that in 2018, Adidas light had 110 stores closed in the United States.

At the same time, a substantial reduction in the physical stores, Adidas began to strengthen the experiential development of offline stores, the store was defined as the main brand driving force, instead of sales for the purpose, but to increase the brand image as the goal, to convey more brand culture to consumers.

Adidas stores will make a comprehensive change in the design concept, product line and customization, and enhance the sense of consumer experience.

"10 years ago, our store was the most important source of income. In the future, they will also become the driving force of the brand.

Taking a new store in Chicago as an example, the brand is working closely with local artists to show more different products. This is one of the new models of the store. "

Caspar Rosd introduced this case, is now many brands keen cross-border cooperation and new line experience shop exploration.

The purpose of these experiential stores is mainly to interact with consumers, convey brand culture and influence, and achieve emotional and practical connections with consumers.

Now, the brand flash store's physical store strategy is also used frequently, because it is more conceptual and interesting, and can provide consumers with more new product experience.

For example, this spring, Adidas opened a coffee flash store in the AUNN CAFE of Jingan Temple, Shanghai, China. There are several different theme rooms in the shop. Every room will have staff to help take photos, together with photos from three locations, you can print a posters of your own.

Smart supply chain in the future: rapid response and market demand

In the context of the retail krypton star, the digital channels, products and services of the brand also provide data bases for intelligent supply chains and intelligent factories.

In fact, Adidas is speeding up the supply chain, creating an intelligent factory, SPEED FACTORY, which starts using intelligent technology to make shoes to keep up with what the industry calls "fast fashion" consumer demand.

Of course, at present, Adidas intelligent factory can only meet a small part of production needs, and also needs to cooperate with other production lines to meet the production volume.

But for Adidas, the emergence of intelligent factories is of great significance to explore new technologies and to get closer to consumers, whose biggest feature is "consumer customization".

For example, Adidas SpeedFactoy has produced a pair of revolutionary rugby football boots, which are equipped with brand new digitally designed AM4MN studs.

The production speed of SpeedFactory is 3 times that of standard shoes. The key point is that every pair of shoes is tailored for each player and can be adjusted according to different properties in digital engineering.

SpeedFactoy uses NASA ARAMIS motion capture technology to understand the precise needs of athletes' feet in football matches. The front part of shoes is interlaced to improve the supporting, protecting and stability of shoes.

Adidas calls it "the future of making and customizing football shoes".

"We want to change the design process and make all the raw materials ready, so if the product is sold well once the season is sold, it can be reproduced in the season and replenish again to meet the needs of the market quickly, especially in a market like China."

In improving the speed of the supply chain, Adidas hopes to achieve two goals: "first, if a product sells well, Adidas can have enough capacity to quickly organize reproduction, replenish and enter the market.

Second, with this rapid production process and material preparation, the introduction of multiple rounds of products in a single season can respond to the needs of the market better and faster.

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