Adidas: The Strategy Of "Establishing New" In The Next Five Years

The rebound in the sporting goods industry has led to higher brand performance.

Gao Jiali, managing director of Greater China, seems that if the sports industry is known as the diamond age in 2000-2008 years, then it has entered the golden age since 2014, and the future industry will grow with high number of units.

It is not easy for Adidas to go beyond this speed, "China" is not easy to practice.

The speed of change in consumers is shocking, and the change in every 2-3 years may take ten years in the western market.

Low line cities, subdivision stores and speed are the key words of Adidas in the next five years.

Pull by small and medium-sized cities

Gao Jiali shared a set of data. At present, Adidas has nearly 9000 stores in nearly 1000 cities in China, and in 2010 only 500 cities were covered.

Over the past five years, the number of Adidas stores has increased by no less than 500 per year. According to the strategy of establishing new products in the next five years, starting from 2016, there will be 600 new stores each year, and eventually reach 1.2 stores in 2020.

Most of these new shops are located in small and medium-sized cities.

The channel sink will inevitably encounter the sniping of local sports brands. Gao Jia Li is not worried. He thinks, "Adidas will be slightly different from the first tier cities according to the preferences of consumers in small and medium-sized cities.

But we find that small and medium consumers are becoming more and more knowledgeable consumers. Their consumption power and brand have caught up with the first tier cities and large and medium-sized cities.

In the current situation, Adidas has covered nearly 1000 cities in China, including 23 cities, including Shanghai, which have contributed more than 50% of the business. The business and operation of these 23 cities are more concerned about productivity improvement than expansion.

"We need to better improve services, improve the display of shops, and better enhance the consumer experience."

Adidas estimates that 60% of future growth comes from small and medium-sized cities.

Retail sales

Nearly 9000 stores in Adidas are not stereotyped. Take women's shops as an example.

"In 2012, we began to attach importance to such a market for women consumers. For 2013-2015 years, we held three very large women.

Marketing campaign. "

Gao Jiali said that the proportion of women's consumer goods in the entire sales increased from 22% to 27%, while more than 50% of the two major brands of Sports Classics and NEO came from women.

Before 2020, the number of women's specialized shops will expand from 4 to 20.

Subdivision stores are the process of Adidas learning from traditional brand retailers to retailers.

"Before we were just a mere brand dealer in China, buying, advertising, selling goods to dealers."

Gao Jiali said, "now, we need to learn to sell things by ourselves."

Including the two brand centers of Beijing Sanlitun and Huaihai Road in Shanghai, China's self owned stores contributed 12% of Adidas's revenue in 2015.

Speed is the core.

In the next five years of Adidas's "new strategy", speed is one of the key words. As a sports brand, Adidas shows more technology and products to the outside world, rarely talking about the rapid collaboration of the supply chain.

In response to the NEO series that has grown significantly over the past few years, Adidas has increased the supply of seasonal products by greatly shortening the production cycle. It takes only 45 days from design sketch to final design and production, and then to the store.

"All the products and clothes we sold a few years ago were designed 12 months ago and have not been designed and produced in season.

But now we can enter the store in the season and let consumers choose.

Gao Jiali explained, "NEO is a brand of sports and leisure products, and fashion and speed are very important to him."

Gao Jiali believes that clover, NEO and so on all series, products and consumers will pay more and more attention to fashion sense, which is also a reason for the global promotion of "speed" project.

"The speed of change in the Chinese market is shocking, and the change in every 2-3 years may take ten years in the western market."

Gao Jiali observed that over the past five years, the changes in the Chinese market and the speed of changes in the whole market were shocking, both in the first tier, small and medium-sized cities, and emerging cities.

"For us, the key point is how to better respond to the changing needs of Chinese consumers before 2020."

At that time, of course, Adidas's goal was not just that. Excluding the exchange rate factor, sales in Adidas Greater China increased by 17.7% to 2 billion 469 million euros in 2015.

Gao Jiali believes that if 2000-2008 years of sports industry is known as the diamond age, then it has entered the golden age since 2014. The industry will grow with high number of units in the future. Adidas wants to surpass this speed, and the ultimate goal is to become the best sports brand in Greater China in 2020.