250 Million Europe To Renew The Contract, To Return To Basketball And Fight, And Puma Is Not At Ease.
Puma officially announced cooperation with the Bundesliga club Dortmund to renew its Jersey. Cooperation has been extended for 8 years, sponsorship cost is 250 million euros, and investment over 30 million euro per year is three times that before.
Football is still a very important area for Puma. After announcing its return to basketball last year, Puma has made the sport more competitive. And after last year's revenue surpassed Andrew's third campaign, its competitive relationship with Adidas and Nike has become more intense.
Puma sponsors 12 clubs in the five major leagues, approaching ADI.
At present, there are 12 clubs sponsored by Puma in the five major league matches. The Premier League has sponsored Manchester City, Crystal Palace and Newcastle League; the Spanish side has sponsored Valencia; the Bundesliga has sponsored Dortmund and the Monchengladbach; Italy has sponsored AC Milan; the French has sponsored Marseilles, Bordeaux, Ryan, Amiens and Nimes.
In terms of sponsorship of the five major leagues, Puma is second only to Nike and Adidas. The 13 clubs sponsored by Adidas are: Arsenal, Manchester United, Leicester, Xie Feilian, wolves, Waterford, Real Madrid, celA, paramount, Bayern, Munich, Juventus, Lyon and Strasbourg. Nike has sponsored 18 clubs: Chelsea, Tottenham, Brandon, Atletico Madrid, Barcelona, Granada and Seville, Wolfsburg, Augsburg, Frankfurt, Berlin, Herta, Leipzig Red Bull, international Milan, Rome, Monaco, Saint Saint Germain (Nike's Jordan brand sponsorship), Monaco, Maes, and queen.
In terms of sponsorship, Dortmund's 8 euro 250 million euro is not the most expensive Puma shirt sponsorship contract. It was the sponsorship contract signed by Manchester City last year, which was 50 million pounds per year, while Manchester City's sponsor was Nike.
However, football's most expensive Jersey sponsorship contract is still sponsoring Manchester United's annual 75 million pounds for Adidas, followed by its sponsorship of Bayern's 60 million pounds a year and Nike's sponsorship of Chelsea's annual 60 million pounds.
Obviously, both Nike and Adidas are slightly better than the number of sponsors or the amount of money. It seems that Puma has joined the sponsorship of the fairy fight in football. However, looking at the history, it is clear that Puma was the leader.
In 1948, Rudolf dartler chose to separate Puma from Adidas's predecessor, and his brother chose to register Adidas trademark. When Puma was formally established, the company's first pair of soccer shoes were born at the same time. After that, Puma also began to be famous for its football products.
Especially in 60s and 70s twentieth Century, Puma accompanied Bailey, who had won the three World Cup, and helped the Brazil team to win the three championship on the spot, and accompanied Bailey to win the best player in the world cup. Before the 1970 World Cup 1/4 finals, Bailey accidentally applied to tie the shoelace to the referee, so that Puma shoes appeared in live broadcast for 16 seconds. This behavior is now a classic case of stealth marketing. Since then, in 1974, when the world cup was sponsored by Adidas in Holland, Cruyff insisted on playing the Puma equipment, and the controversy also produced a wave of advertising for Puma.
In 80s, Maradona and Matthaeus also made Puma's influence wider. During the 2006 World Cup, Puma also sponsored 12 national teams, far ahead of Adidas's 8 team and Nike's 6 team.
In Adidas, Nike has a strong position in the basketball industry, and the two sides have expanded their territory in the field of football. Puma's popularity and popularity in China are slightly lagging behind, but Puma is unwilling to do so.
After 17 years to return to basketball, Puma changed to be recognized by the new generation.
At present, Nike's position in basketball has been firmly established. Puma chose to return to professional basketball last year. This is Puma's return to basketball after 17 years in 2001. Although some of them are late, Puma still signed up in the 2018 NBA draft, Eton and pat eye, and chose kexins as the home star, hired rapper Jay-Z as the creative director of basketball.
At the same time, Puma has become a partner in the NBA market, but it is far from the identity of Nike NBA's sponsors. Plus Nike's Jordan Brand, Nike's CONVERSE also returned to basketball this year, the basketball market competition is more intense, Puma needs to do more to stabilize its feet.
After CONVERSE signed the Chinese player Abdul Sarah M in the first half of the year, Puma announced the signing of Liaoning defender Zhao Ji Wei in August, apparently also found her basketball spokesperson in China. Meanwhile, in October, Puma officially signed Lakers star Kuzma.
In 2017, Puma signed a Chinese entertainment star as spokesperson. Li Xian, Liu Haoran, Zhang Yuqi and Gu Li became spokesmen for the Greater China region. Yang Yang and Liu Wen became spokesmen for the Asian region, so as to approach young people's lives. In China, in fact, Puma's advertising marketing is not as good as Adidas and Nike. But this summer, Li is now playing the flames of the TV drama "dear love", and his brand in the show is also a fire.
Internationally, in 2014, pop queen Rihanna became the creative director of Puma. The launch of the joint product made Puma's position in the fashion world go up substantially. Many young people chose Puma's products. The positioning of their "cheap luxury" is obviously more acceptable to young people who do not have too much wealth. This has brought new vitality to the brand and has changed many people's impression of Puma's shoes.
At the same time, the joint name with other brands has also led many young people to choose Puma, jointly with the original Chinese brand Taka Sha, and jointly launch Sesame Street and Tetris. Jointly launched with Balmain, boxing style joint products, combined with Paris's advanced custom style, please Cara Delevingne endorsement, obviously Puma's innovation in the current environment.
Revenue goes beyond Andrea to third, and Nike is still two mountains.
At the end of October this year, Puma released its 2019 third quarter financial report, which showed that global sales grew 17% to 1 billion 478 million euros, and net profit increased 29.7% to 105 million euros. The cumulative sales in the first three quarters have reached 4 billion 15 million euros. At the same time, the Asia Pacific region, including the Chinese market, has reached a two digit sales growth rate, maintaining a strong momentum. In 2018, Puma's revenue had gone beyond Andrea's return to third.
At the beginning of 2018, Puma announced its annual financial report for the year. Its sales volume reached 4 billion 648 million euros, up 1 billion 240 million euros compared with the same period last year, reaching a new high. Meanwhile, footwear reached a 2 billion euro mark. In the Asia Pacific region, its annual growth of 28.8%, especially the growth of 38.5% in the fourth quarter, is probably closely related to double eleven. In the first three quarters of this year, Puma has accumulated a total of 4 billion 15 million euros in revenue. Therefore, it is estimated that Puma's annual revenue exceeded 5 billion euro in 2019.
However, Adidas and Nike remain the insurmountable peaks in front of Puma. This year, Adidas's third quarter revenue was 6 billion 410 million euro, more than that of Puma's annual revenue. 2018 Adidas's annual revenue was 21 billion 915 million euro, and Nike group's revenue reached an astonishing 36 billion 397 million US dollars.
In early November of this year, Adidas announced that Eric Liedtke, the brand director, would be leaving in December 31st. Nike also followed the announcement that CEO Mark Parker will leave in January next year. Similarly, Andrew also announced the replacement of CEO. And the changes in the top three brands are speculated that the performance of the transformation period is unfavorable.
For Puma, Nike and Adidas are the two big mountains in the front. They can not surpass in the short term. But when competitors are already trying to transform, Puma also needs to keep pace with the pace of the times and seek new opportunities in the process of change.
Source: sports big business writer: Zhang Jiaxi
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