Adidas how it?
To answer this question, first under a simple analysis of "how Adidas had."
In the Adidas annual report, talking about the performance of the Greater China market, the company CEOHerbert Hainer said: "We continue to straighten out the fourth quarter, channels, net of the exchange rate factor, which led to our performance this quarter, down 22% year on year." From last year year data, Adidas Greater China, down 16%.
Lenovo to previous media reports, Adidas in China, some large agents shut down stores, some small agencies out of the market, rather signs of the economic crisis. But in view of Adidas in China's local competitors have recorded more than 20% annual growth rate, so the decline in the performance of Adidas financial crisis blamed poor market conditions, it justified.
That is because prices are too high, can not grasp the crisis experienced consumers become price-sensitive? In accordance with HerbertHainer say, existed as early 2009 Adidas excess inventory problem, therefore, the company adopted the "additional means in case of low-margin" to digest inventory, in other words, Adidas in 2009 should also be very hard to do promotions, which can provide the appropriate marketing channel resources.
So, HerbertHainer reference to "channel rectification," is worth attention. In fact, the 2009 Adidas introduced a major organizational change, the original vertical organizational structure, transformed into cross-functional, cross-brand (Adidas and Reebok) of the new structure, brand and sales Functional separation of global sales by the HerbertHainer personally supervised the operation.
The most critical is that Adidas will be the sales department is divided into "distribution" (wholesales) and the "retail" (retail), and the establishment of a new leadership team Adidas retail business, including a dedicated election site "real estate team." In the annual report, made by Adidas this explanation: Since 2002, Adidas has 2,212 stores worldwide phase (including the Addy and Reebok) companies, from this perspective, "the company has evolved into a significant retail capacity to the company, "the future of retail development was regarded as" strategic business. " From a financial point of view, the margin distribution business in 2009 was 41.6%, while retail gross margins as high as 58.6%.
When Adidas in a more radical approach to develop its own retail business, the "channel rectification" imperative. Adidas global distribution operations in 2009 decreased by 9%, but the retail business is up 7%; which is especially typical of the Chinese market in 2009, Adidas in China's distribution business fell 20%, while retail 57% surge in business is, whether drop or increase in Adidas are in the world.
As a large regional differences in China, and the network competition had come to stable, if Adidas continue to advance their global self-important retail business, which may continue to affect the rate of expansion in Greater China. However, in the long-term advocate "asset-light operation" of the sporting goods industry, the gradual control of the terminal, so that the company "re-up" Adidas-style attempt concern.