Nike Attacks Both Old And New Rivals.

And Adi, which is your choice?

Nike, which once dominated the sports industry, has been somewhat disappointed recently: it is facing a storm of layoffs and market value evaporation.

Forced pformation.

Not only that, but many of the sports brand's younger brothers are also threatening.

Is it difficult to make a new change in the pattern of sports industry?

Nike attacks both old and new rivals.

Act as

In the big brother, Nike's performance has maintained a relatively fast growth rate.

But over the past two years, the position of the industry leader has been somewhat precarious.

The Nike in the storm and the Adidas in the scenery

According to the world clothing and shoe net, in the last year and a half, Nike's market value has evaporated 24 billion 600 million dollars. In the middle of last month, Nike announced that it had laid off 1400 people, accounting for 2% of its global workforce. Nike also announced that the style of sneakers would be reduced by 25%.

Nike shares plunged 6.35% in the two days after the announcement.

After the storm, Nike's stock rating in authoritative investment banking institutions is also facing a crisis of decline.

Matthew Boss, an analyst at JP Morgan chase, believes that the sales performance of Nike in the North American market is likely to be worse. In addition, the competitive pressure faced by Nike in the field of sports products retailing will increase significantly. "(Boss)

But at this time, Nike's top competitor, Adidas, was in high spirits.

In 2016, Adidas achieved a record revenue of 19 billion 291 million euros, an increase of 14% over the same period last year, and net profit for continuing operations of 1 billion 19 million euros, an increase of 41.5% over the same period last year, and its growth rate far exceeded Nike.

According to NPD, a market research firm, sales of Adidas and Nike outside the US have been neck and neck.

Nike and ADI

Nike and Adi have been fighting for a long time. Although Adidas is unwilling to lag behind, Nike's position in the sports world has never wavered.

For example, in the Chinese market: in 2008, the market share of Adidas and Nike was less than 1%, that is Adidas's closest to the first time.

Since then, the gap has continued to widen.

But this time, Adidas looks even more serious.

First, the competition for spokesmen.

In the sports brand industry, Nike first launched a spokesperson system and turned it into its own brand logo, but last summer, it ushered in the heaviest blow.

In 2016, Adidas gave a higher price than Nike and robbed James Harden of NBA's long bearded legend, which is reported to be up to $200 million.

The move shocked the industry: Nike's spokesperson was really taken off by ADI.

Harden switch to Adidas

Job hopping is not only a spokesperson, but also a designer.

It is reported that Nike's "innovative kitchen" is the design center of Nike, where there are "libraries" and "innovative kitchens" displayed on every shoe produced by Nike, bearing the important expectation of the sports shoes giant, and can even be regarded as the cradle of the best sneakers in the world.

However, the 3 superstars in the kitchen, designer Dennis Dekovic, Mark Mcna and Marco Dolce, were picked up by Adidas, forcing Nike to fight back by legal means.

Dolce once helped Nike develop the most exciting products, including the air force 1 Series (Air Force 1), known as the pillar of hip-hop culture advocating flawless design.

Air Force 1

Besides, Adidas's technology is becoming more and more professional. Not long ago, Adidas developed a key innovative technology in the shoe line, namely revolutionary Boost shock absorber soles, which directly challenged Nike's Air series.

You know, technology sense is one of Nike's brand values.

Boost shock soles

Sniper of sports boy

In addition to Adidas, Skechers, Puma and other brands also showed a good momentum. After that, the market competition situation of Nike can be seen as a strong enemy.

According to the May statistics of foreign media statistics, the ranking of the five major leisure sports footwear brands did not even appear as Nike. The top five of the market share were Adidas, 23%, Skechers 20%, Converse 12%, Sperry 4% and Keds 2%.

In addition, sports brand rookie performance is also very strong.

For example, andmar, founded in 1996, has become one of the hottest companies.

In the past two years, Andemar's performance has kept up 30% per year, and the latest financial telephone conference shows that the company's earnings are more than expected.

Some people believe that Andemar is a powerful force in the market and is making efforts to become a giant in sports apparel in his own way.

Andrew official website screenshot

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What's wrong with Nike?

Some analysts believe that Nike's outstanding performance in the past ten years owes much to the lack of substantive competition in the industry.

In other words, Nike has no real rival.

However, the market rotation is changing rapidly, and Nike's big brother status is facing an important test.

Missed the "fashion first".

From the big environment, the trend of sports brand pformation to fashion trend has to be mentioned.

According to the Research Report of SARS Hanna financial group, in the high-end market of clothing consumption, the most important factor for consumers is whether the appearance is fashionable or not.

As for Nike, although it has not abandoned the pursuit of fashion, its deep-rooted functional orientation has always been the main position. For example, Nike's brand classification still maintains in the traditional five sports series.

Whether clothing or shoes, technology has always been the most valued attribute of Nike.

And his rival, ADI, has long put forward a multi brand strategy, not only to create "Trifolium", "Y3" and other fashion oriented sub brands, but also to combine the appeal of fashion tide people in marketing aspects to make preparations.

It is reported that Nike has also thought about similar routes and launched related brands, but worried about the impact of excessive fashion on its sports brand professionalism, and finally chose to shelve the above plans.

"Sales mode" is obsolete.

Analysts have pointed out that the challenging retail environment has brought about the consequences of reducing store closures and reducing shelf space for Nike.

The old sales mode led Nike to be self complacent and outdated.

In contrast, Adidas seems to be on the fast track of sports products: learning fast fashion brands like Zara and H&M, moving the explosive production line from Asia to Germany and the United States.

ADI said it expects sales of "fast production" to account for 50% of the total in 2020.

In addition, Adidas started the "speed factory" plan in the 2016 year of the year, which made the production fully computerized, digital and intelligent, avoiding the burden of overcapacity on enterprises. For example, we need to reduce the high cost of product inventory through the price reduction.

Is Nike likely to reverse in the future?

The catching up speed of Adidas and other brands has put a lot of pressure on Nike.

In order to remain competitive, Nike finally put down its shelves and made a counterattack.

In addition to adopting star marketing strategies which are more and more similar to Adidas and taking the fashion line, Nike has launched new material technologies such as Lunarlon, Nike React, and so on, and has made adjustments to the enterprise structure, such as the layoffs.

Not long ago, Nike also laid out the core markets for key development, including New York, London, Shanghai, Beijing, Losangeles, Tokyo, Paris, Berlin, Mexico City, Barcelona, Seoul and Seoul, covering ten countries in four regions.

Bela Hadid became the new spokesman for Nike.

In addition, Nike is also preparing to streamline its product line, which is expected to reduce its footwear by 25%, focusing on ZoomX, Air VaporMax and NikeReact.

And Nike also intends to shorten the production cycle from 18 months to 4 months, which is expected to save at least 10% of the cost.

In addition, it is not hard to see that Nike's determination to defend its hegemony is very firm.

But it is easy to attack the city, keep the city difficult, the market is changing rapidly, and competitors are besieged everywhere. Will Nike's position be firmly in prison? Let's wait and see...

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