Adidas May Also Consider How To Save Its Brand.

Unlike the three brands (Performance, Original, NEO) that Adidas has owned for many years, the three brands Reebok (Reebok), Lok step (Rockport) and golf product Telme (TaylorMade) have suffered from the presence of danger machines:

Reebok, which was bought in 2006 to expand the North American market, has maintained a weak growth in sales over the past five years.

However, due to the lack of effective complementarity between Adidas and its location, the 2013 year old group repositioned it and became a major concern.

Brand, which means that its competitors suddenly changed from Puma.

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Also known as the "white house shoes" in 2006, Adidas's sports brand is a sport.

Former president Carter and Bush have advertise the brand.

In the past 8 years, which was bought by Adidas and operated as an independent brand, its annual sales maintained a steady downward trend. It was finally sold at the price of 280 million euros in January 2015, and the sales revenue data of the previous year were not included in Adidas's earnings report.

Taylor Mei is a relatively unfamiliar golf brand for Chinese consumers. After being sold, it became the weakest brand in the group. Although sales revenue of more than 20 billion euros in 2014 has been maintained, its sales volume has dropped by 28%.

Another question Adidas needs to consider is whether this multi brand strategy is valuable.

In short, the brand name of Adidas is losing its appeal to young people, and there is not much time left for it to fight back.

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The latest report released by the Institute of wealth and quality, a luxury Research Institute, said that the consumption of Chinese luxury goods in the mainland in 2014 decreased significantly, to 25 billion US dollars, down 11% from the same period last year. However, the number of Chinese overseas purchases increased by 20% annually, reaching 81 billion US dollars in 2014, that is, about 76% of China's luxury consumption occurred overseas.

A large number of luxury stores in China have been reduced to billboards, display shops and fitting rooms. Most people choose the size and color of their counters in China, waiting to buy them in Europe or bring them back from the sea.

If these overseas purchases return to China, the Chinese market will become the undisputed largest luxury market in the world, not Hongkong.

Since then, Hongkong has been ranked the world's largest luxury market by virtue of its large consumption from mainland China. Even in the regional division of luxury brands, Hongkong and Japan are independent of the Asia Pacific market.

Because of the sluggish sales in China, reducing the market cost in China has become the unanimous choice of many brands.

Chinese managers in various brands are even more complaining, and have repeatedly protested to headquarters about China's pricing strategy.

Liu Wei, a deputy editor in chief of fashion COSMO, said a luxury brand China marketing director was asked to reduce advertising in China by headquarters. He responded: "as long as you don't worry about global sales falling together, finally, the advertising budget is rising."

"The management method of luxury brands is headquarter management. The regional markets can only obey and have no right to speak."

The high level of Chinese brands that can be a foreign brand is rare. It has been the summit of president of BV China, but still chooses to quit and start business. It is precisely because he wants to win the decisive power of the market.

Lu Yi Si, President of Cartire China, also admitted that the market management method of luxury brands is different from that of the auto industry in decentralization to the regional market.

"Over the years, the brand side has opened up stores in China with high operating costs and huge investment, but sales have not risen or fallen, which has seriously dragged down the company's profit and earnings.

Therefore, price adjustment is the last resort.

Taking Chanel as an example, sales revenue in 2013 was 4 billion 980 million euros, or about 6 billion 600 million US dollars, slightly higher than that in 2012, but its net profit dropped sharply from 1 billion 150 million euros in 2012 to 7.26 billion euros.

There are similar situations in the world's three largest luxury goods groups, LVMH, Li Feng and Kai Yun, especially men's wear and watch business, which dropped by 13% and 11% in 2013 and 2014 respectively.

Since the factors that affect prices, such as taxes and logistics, are not controlled by the brands, they can only make changes within the scope of their own pricing.