Adidas: Transformation Of "Pure Brand Business"

In the two quarter of 2016, sales increased by 21%, and group revenue increased by 13% to 44.22 euros.

The growth rate in the Greater China region was the fastest, with an increase of 30% in the two quarter and a 30.2% increase in the first half of the year.

At present, Adidas group includes Adidas,

Reebok-CCM Hockey and so on.

The group's total sales in 2015 amounted to about 17 billion euros.

Among them, Greater China sales in 2015 amounted to 2 billion 500 million euros.

"The Greater China region's performance today owes to the two digit growth of sports performance series and sports fashion series, which provides a new impetus for our determination to become the 2020 largest Chinese market leading brand."

Adidas told reporters.

Meanwhile, as Adidas continues to introduce and promote innovative store models in recent years and accelerate the expansion of the number of retail outlets, Adidas's layout of the Greater China region is gradually strengthening.

Adidas group said it had raised its target for 2016, and expects sales in 2016 to rise by 16%-19%.

Previously, Adidas group's annual sales growth rate was around 15%.

In fact, after the 2008 Beijing Olympic Games, Adidas once faced a crisis of high inventory and weak channels, and the market share was surpassed by Lining and Anta.

This forced Adidas to seek pformation earlier.

Now, Adidas has already surpassed Lining and Anta, and the pain of the pformation just made today's Adidas.

Transformation of "pure brand business"

In 2010, Adidas broke the traditional distribution mode from simple brand to retailer.

At that time, the Beijing Olympic Games and the global economic crisis have been in the past two years. Adidas ranked only fourth in the sports brand's domestic market.

Compared with the distribution mode, the advantage of the direct retail mode is that the brand has more independent control over the store terminal.

In the traditional distribution mode, the brand is mainly responsible for product design and brand image promotion. After the product design is completed, the brand side will produce the task to the dealer, and the latter will customize the product and decide the quantity of the product.

Once the market is changing, the product that can not be successfully sold will become a stock in the warehouse.

The direct retail mode has narrowed the distance between the brand side and the retail terminal.

The brand can check the product data in the store everyday and respond promptly and quickly.

For example, the sales of a product is not as good as expected, so the store may adopt a sales promotion method to stimulate sales.

Today, Adidas's product sales network has already covered about nine thousand shops in more than 1000 cities across the country.

In a second tier city, Adidas has already opened subdivision stores.

Adidas official told reporters, "in the next five years, Adidas will continue to focus on the five major segments of football, running, women, children and sports classics, and strengthen the brand influence of key categories."

The industry believes that there are two major trends in the development of retail channels. One is to expand the flagship stores, including increasing floors and covering all product categories. Two, we need to set up professional shops to meet consumer demand in the field of segmentation.

In the second tier cities with relative market saturation, Adidas's classification of sporting goods is more detailed.

At present, Adidas has set up 5 women's specialized shops in the whole country, of which two are Chengdu and Shanghai, and one is Guangzhou.

Not long ago, Adidas opened the world's first football franchise in Guangzhou.

The sinking of sales channels is another important strategy for Adidas in the Chinese market.

In Adidas's view, the future of small and medium-sized cities will be an important driving force for Adidas Greater China.

Adidas analyzed the pformation strategy over the past 5 years.

"First: category attack, mainly for us in the first tier cities to further consolidate our position in the core category; second: expand the emerging cities, that is, for small and medium-sized cities, we hope to seize the opportunity there, to better provide consumers with their products to meet their needs; third: retail shop differentiation, the use of a new shop form to meet the needs of different consumers."

In addition, the classic series of expansion sports has become a hot sports fashion brand in the market. The success of the NEO series is also the key to Adidas's pformation.

keep up with fashion

In 2007, Adidas NEO series, the main sports and leisure industry, was formally established.

Unlike previous Sports Classics, the NEO series combines street fashion style with the target group of young people pursuing fashion, which is about half the price of Adidas sports performance series.

Unlike the classic sports series, NEO aims at sports and leisure market to approach young generation consumers in a fast fashion. The goal is to target consumers at the age of 18-25, with fashion, youth and vitality, and at the same time, the price is close to the people.

The NEO series meets the needs of Chinese consumers and can go into more small and medium-sized cities. Adidas also hopes to make it the first sports leisure brand in China.

When fast fashion brands quickly occupy the consumer market, Adidas's attention to sports and fashion is not too late.

Adidas divides sports performance and Sport fashion into two series of brands, offering products that can enhance athletic performance and fashion appearance for different categories of consumers, such as professional athletes, ordinary consumers and fashion groups.

"Adidas NEO series is aimed at sports and leisure market, so as to approach young generation consumers in fast fashion.

Targeting consumers at the age of 18-25, they are fashionable, youthful and dynamic, and the price is close to the people.

The NEO series meets the needs of Chinese consumers and can go into more small and medium-sized cities.

This is also the basic driving force for NEO to become China's first sports leisure brand.

Adidas said.

Yamamoto's launch of Y-3 series is another important member of Adidas fashion brand pedigree. It is also Adidas's first attempt to fashion brands in its real sense.

Every year, Y-3 will release its showrooms in the fashion capital of New York and Paris, and put a lot of advertisements in all fashion magazines.

Since then, Adidas products such as Stan Smith, little white shoes, NMD and Yeezy with more fashion and fashion elements have chosen to face the youth market and have been widely welcomed.

Take Adidas's latest NMD running shoes as an example.

On the day of sale, there was even a long queue at the door of Adidas's classic flagship store in Nanjing West Road, Shanghai. The purchase of NMD requires registration by ID card, and only one purchase per person is allowed.

"We witnessed many exciting new products this year, including the inheritance of Adidas classic genes and the integration of BOOST and Primeknit NMD series."

Adidas told reporters that Adidas has been closely integrated with fashion in the past few years.

The sports performance series is still the biggest part of Adidas's business. Meanwhile, the growth of NEO and sports classic series (clover) is also very fast.

Adidas said that the brand will set up more classic stores in China in the future.