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Adidas Town "Sports" &Nbsp; Forward Three Or Four Lines

2011/8/20 8:53:00 69

Adidas Market Brand

A week ago, Gao Jiali (Colin Currie), who was interviewed in his office, looked much more relaxed than usual.

The promotion was not long ago.

Adidas

The managing director of Greater China will give himself a long holiday in a few days.

It has to be said that he has enough reasons to reward himself: in August 4th, Adidas group's performance showed that sales in the Greater China region increased by 41% in the two quarter of this year, and sales in the Greater China region increased by 38% to 552 million euros in the first half of this year, thus creating a record high in the region.


After the Olympic depression and high inventory, Adidas's inventory in China has recovered to a healthy level. Gao Jia Li said that by 2015, the German sports brand would like to be in China.

market

The annual growth rate of 15%~20% is achieved.

With the exciting growth, Adidas's new slogan, "sports and waiting", is making a high-profile appearance in the outdoors, TV, Internet and retail outlets of major cities.


However, even in the first half of this year, the report card of over two digit growth rate was handed over, and Adidas still did not dare to slack off.


In order to ensure the two digit growth in the next few years, Adidas's approach is to infiltrate the three or four tier cities.

The company plans to open 2500 stores in China in 3 years, most of which will be distributed in the three or four line market.

"For us, now is the best time to enter the interior. By 2015, we will cover more than 1400 cities in China."

Gao Jiali said.

At present, Adidas has 5600 stores in 550 cities in China, but most of its revenue comes from 20 big cities.


All along, Adidas believes that only in the first tier cities can powerful brands be allowed.

fashion

The urban population pays higher prices.

But in recent years, the local sports brand has risen rapidly by the low price strategy. Adidas has not taken advantage of it. In 2009, it was surpassed by Lining.

For Adidas, it's time to "encircling the countryside from the city".


However, it is not easy to complete the layout in the current economic environment.

The increase of raw material, manpower cost and logistics cost has narrowed the gross profit margin, and the price increase is not enough to make up for the loss.

Nike executives have said that the company will expand the price range to cope with inflationary pressures.

Under such circumstances, how does Adidas compete with local brands for the three or four line market share?


The first thing to do is to promote product mix suitable for the three or four line retail market.

According to Gao Jiali, more and more three or four line city consumers now expect to wear real international brands. "We find that when the price of local brands and international brands is about 50 yuan, consumers are more inclined to buy slightly more expensive international brands."

To this end, NEO, one of Adidas's most low-end sub brands, will focus on expanding its market share in the lower tier cities.

This brand, founded in 2007, is based on powdery green as the base of LOGO, with a younger user group and lower price. The gap with local sports brands is less than 100 yuan.

At present, Adidas has 600 NEO stores, half of which are located in two or three line cities.

This year, the company expects to open 200 new NEO stores.


What the company needs to consider is how to mobilize the enthusiasm of distributors in three or four line cities.

It is reported that

Distributor

The profit margins of agents such as Lining and Anta are slightly higher than those of international brands. For small and medium-sized distributors, they are more willing to represent the local brands with higher profits.

And a first-class distributor like BELLE does not necessarily have the experience and strength to penetrate into the inland market.


This shows that Adidas wants to advance into the three or four line, and needs to do much more than just to launch products.

Anyway, the new competition has already begun.

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