Adidas: Effectively Resolve China's Inventory Crisis By Subdividing Category?

Adidas recently announced its earnings in 2015, excluding the exchange rate factor. The group's sales revenue increased by 10% last year, and its net profit increased by 29% to 634 million euros. It swept the haze of the fourth quarter's sharp loss last year, and China's business as its second largest market has contributed.

Adidas China said last year that Adidas was in Greater China.

Reaching 2 billion 469 million euros (about 17 billion 653 million yuan), an increase of 17.7% over the same period last year, not only overfulfilled the revenue targets set in 2010, but also completely reversed the market pattern five years ago, and the newly announced market share ranking has gone hand in hand with Nike, reaching 12%.

In 2010, with the high inventory impact caused by the rapid expansion in 2008, Adidas's market share in China ranked only fourth. The top ones were not only Nike, but also China's local sports brands, Lining and Anta.

To this end, Adidas has formulated a long-term plan for five years, aiming to achieve sales target of 2 billion euros in 2015.

In the past few years, Lining and Anta have experienced performance adjustment, while Adidas has accelerated the construction of channels for more remote cities.

"In 2010,

We have opened 5000 stores in 500 cities in China, and now we have entered more than 1000 cities, with 9000 stores.

Gao Jiali, director general of Adidas Greater China (Colin Currie), said at the press conference that Adidas had more than 500 new stores in the past year. "With the acceleration of urbanization and upgrading of consumption, consumers in those small and medium-sized cities also have demand for Adidas products."

The development of subdivision is another important move of Adidas.

At present, Adidas not only sells pure sports products in China, but also has the leisure sports brand of Adidas Originals, sports classic series, and leisure sports brand NEO, which aims at younger consumers. They contribute nearly 30% of Adidas's income.

Gao Jiali said that the growth rate of sports leisure and leisure in the future will still be faster than that of pure sports performance.

The question is, when Originals and NEO are too famous, can people first think of Adidas when they plan to buy running shoes? With the development of personalized demand, some niche brands are more respected. The rapid rise of the US sports brand UA is an example.

However, Mr Gao said that as far as the Chinese market is concerned, Adidas is also one of the two leading brands in the market even in the running market, according to their recent data survey. "We will continue to maintain this leadership position in the future."

Adidas plans to further increase the number of stores to 12000 by 2020, of which the number of women's specialized shops will increase to 20, and the sports classics range from 350 to 650. More attention will be paid to the expansion of small and medium-sized cities. "60% growth in the next five years will come from New cities".

In addition, in order to fight

The competition will start from the NEO series and shorten the original 180 day product cycle to 45 days.