Andemar'S Erroneous Trend Of "Fashion" Brings Resistance To China'S Development.

Recently, the founder and CEO Kevin Plank of Under Armour (UA), a well-known sports brand, told the financial times that the brand was established to help consumers participate in sports more. Although Andemar will continue to focus on the innovation of style in the future, attention will be focused on the production of professional sportswear.

"We grew so fast that we lost focus."

He said.

As a once brilliant sports brand, but now it is wrong to follow the "sports fashion", leading to the development of resistance in China.

The industry believes that Andrea needs to catch consumer demand in time, improve online and offline channels, and readjust its brand positioning.

Andrea is very young compared to Nike and Adidas.

However, Andemar, founded in 1996, has been the best performing company in the past ten years. From 2009 to 2015, the company's share price has risen 25 times.

Public information shows that in 2005, Andemar listed on the NYSE, and its performance continued to grow. Sales grew from initial $87 million to nearly $about 4000000000 in the past two years, and quarterly revenue grew by 20% over the 26 quarter.

In 2014, Andemar's sales in North America surpassed Adidas for the first time, and became the second largest sport brand, with a market capitalization of $15 billion.

However, rapid expansion also foreshadowed the rapid decline in the future.

In 2017, Andrew's total revenue reached $4 billion 977 million, up only 3.13% from the same period last year, a loss of 48 million 260 thousand US dollars, a sharp decline of 75.6% in net profit and a fall in the share price from around $27 in the peak period to 10 US dollars.

This also led to the departure of AdrienneLofton, the highest level marketing manager of the company, the senior vice president of global brand management in 2018.

It is reported that Adrienne Lofton has joined the two times since 2008, and has accumulated over eight years.

It is worth mentioning that she is not the first marketing executive to leave Andrew in the near future.

In November 2017, AndrewDonkin, the chief marketing officer of Andrew company, and PamelaCatlett, senior vice president, left Andemar.

It is worth mentioning that AndrewDonkin has only worked in Andrew for 15 months, and after leaving office, he returned to his old club, Amazon, as the global marketing director of Prime Video&Original.

In addition, according to the financial magazine BizJournals, "business journal" recently, Kevin Plank recently interviewed in Washington, said that if someone gave the appropriate takeover price, he would consider selling Andrea because she needed to be responsible to shareholders.

Beginning in 2016, as Puma, Adidas and other major sports brands added "sports fashion" elements into their products, Andrea also gradually expanded the market and opened up new product lines.

The brand, which specializes in professional sportswear and fans of many fitness enthusiasts, is also working with fashion people to create a product that combines sportswear and fashion.

According to reports from Wall Street, Andrew hired TimCoppens, a young fashion designer with a reputation, to develop its high-end fashion line UAS to attract young consumers, especially to expand the female consumer market.

Kevin Plank also said in a conference call after the fourth quarter 2016 earnings report that Andemar's products need to be more fashionable.

However, the sales of UAS products did not achieve the desired effect.

Andemar's sales in the North American market are on the decline, and the company's share price is also dropping sharply.

Even with the endorsement of NBA all star players, it did not bring any improvement to the company.

Today, the failed UAS product line has been shut down.

According to MarketInsider Riva, an analyst at GlobalDataRetail, a consulting firm, more and more American customers have given up Andrew because they have no idea what Andemar is representing, and what part of the sports market is Andrea is good at, according to Anthony Riva.

AdheerBahulkar, partner of ATKearney, a consultancy, also said that when Andemar decided to enter the sports fashion market in 2016, it was too late.

"When you realize that you have lost the market, you should at least withdraw the pure sportswear market."

The failure of the North American market will give Andrew more attention to the Chinese market.

In 2015, Kevin Plank proposed that in the next 5 to 10 years, he will strive to turn China into the second largest self market of Andemar.

But according to Andrew official website "UA line shop" plate, as of December 31, 2018, Andemar in China's market only 229 stores.

Adidas's official website shows more than 1 stores in China, and domestic brand Anta has more than 1 outlets.

In fact, in the Chinese market track, Andrea has a lot of resistance.

There were Nike, Adidas, Anta later.

Among them, Nike and Adidas entered the Chinese market as early as 80s and 90s of last century. In addition, Adidas set up a 29% sales growth record in China in 2017. China has become the fastest growing market in the world, and has set up Shanghai as Asia Pacific headquarters in 2018.

The market value of Anta has exceeded HK $120 billion, or about US $15 billion 300 million, far exceeding the market value of Andrew 6 billion 800 million, becoming the third largest sport brand in the world. If Anta acquired amamwin sports, its body size will expand.

It also means that under the dual pressure of international brands and domestic brands, Andrew will not be easy to fight in China.

An expert in China's clothing industry association who does not want to be named thinks that there are several reasons for Andemar's pressure to develop in China. The first is that he is not sensitive to the change of consumer demand.

He said.

Second, the experts believe that the consumer experience of offline stores is not good enough.

The China Commercial Daily reporter interviewed a number of consumers at an entity store in Andrew, Beijing. They believe that Andemar's store lacks interaction with consumers. Some sports brands will install treadmills and other devices to enhance consumers' shopping experience.

In addition, the experts said that Andrea needs to provide a better e-commerce shopping experience, personalized customization needs for consumers, fully display products, enhance communication with consumers, so as to establish their own brand image.

Author: Jie Yu Xing