Adidas has had negative revenue growth for 5 consecutive quarters, why did it lose China?

This is undoubtedly a huge loss for them, and this move has caused them to start a cliff in the short term**, and their market share is shrinking. Compared with domestic enterprises in the same industry, brands such as Hongxing Erke are thriving day by day. After all, the eyes of the masses are clear, and we will not allow anyone to harm our country and our nation.

It doesn't matter, you are not the only one in the production of sportswear series, our national brand is also very good, and the cost performance is high, why not? It is the brands that have voluntarily given up on the Chinese market, not that we have abandoned them. Therefore, their revenue continues to grow negatively, which is purely self-inflicted.

<> at the end of the day, I just didn't realize my mistake at all. They are used to being arrogant, thinking that they can be arrogant and even hurt others when they go to the **. But they were wrong, this is an ideological deviation, and it is the most fundamental reason why they lost the Chinese market.

Adidas does not respect Chinese consumers and does not have a clear understanding of itself, coupled with the rise of Chinese domestic products, so it will lose China.

Because the impact of the epidemic has led to a reduction in people's spending power, coupled with the Xinjiang cotton incident, there are also some shortcomings in their own management.

On the other hand, the impact of the epidemic is due to the poor quality of Adidas' products, and the clothes are not comfortable enough compared to other brands of clothes at the same price.

Adidas lost to China, its sales rate and turnover plummeted, and related stores are also decreasing, with negative revenue growth for five consecutive quarters, why did Adidas lose to China? With the rise of domestic brands, people are increasingly supporting domestic products. Domestic brands are constantly on the rise, such as:

Anta, Li Ning, Hongxing Erke, etc

It is this brand that looks down on our cotton in Xinjiang, so the Chinese are unanimously opposed.

It is because of their inappropriate remarks that they have annoyed Chinese consumers, so people will not choose to buy their products.

Because Adidas did not indicate that it was Chinese cotton before, it had already caused dissatisfaction among many netizens at that time, and it has not apologized until now.

The Xinjiang cotton incident and the epidemic gradually led to a decline in Adidas' turnover, returning to the sales share of six years ago.

Sports brands have a very strong brand advantage, on the one hand, because many young people are particularly fond of sports products, and sportswear and shoes have become the first choice of young people. On the other hand, because national fitness is not just talking, more people have bought cost-effective sports products out of consideration for their own safety.

In the current situation, although the sports brand market is expanding, the epidemic will also cause the turnover of some brands to decline. On the other hand, Adidas' sales growth trend in China has not been satisfactory for five consecutive quarters, and the negative growth has made it more difficult for Adidas to expand the market.

The epidemic has had a certain impact on offline physical stores. Although merchants who rent out their shops can reduce some of their rent, the rent base of the ** location is too high. Even if the merchant deducts it, the merchant will have to pay a significant amount of money each month.

Adidas has established offline physical stores in ** locations in many cities, and a large amount of rent will increase the capital expenditure of the Adidas brand.

Xinjiang, China has maintained a stable cotton production, and at the same time, the quality of Xinjiang cotton has been trusted by more and more partners. However, Adidas was caught in the Xinjiang cotton incident, and after consumers expressed dissatisfaction, Adidas was still doing its own thing. Neither expressed the most appropriate position, nor did it adjust Adidas's reaction to the Xinjiang cotton incident in a timely manner.

Chinese consumers are very patriotic, since the brand side has not been able to determine the position, don't blame consumers for buying products from other sports brands.

In general, China has become increasingly strong, and the presence of many brands in the Chinese market highlights the stability and development potential of the Chinese market. When a brand loses in China, external factors are equally important as internal factors. Since brands want to expand into the global market, they must speak with facts.

The company's inventory of goods is piling up due to declining consumer demand in China and Western markets, prompting it to issue its second profit warning in three months.

Adidas' net profit in the third quarter was 63%, and I personally think that there are many sports brands in China now, which are very good, and it is difficult for Adidas to continue to maintain the market in China.

The reason why it is not so good is that there must be some problems or some problems in sales, or there are some special problems in quality, and there is no adjustment on the top, so it is.

Adidas' negative revenue growth in Greater China is due to the fact that Adidas' quality has been successfully surpassed by domestic brands, and also because Adidas does not have a very good cost performance, in addition, because the homogenization of Adidas' products is very serious.

Although Adidas was once popular with many young people in China, after a series of negative news**, Adidas' sales have also shown a rapid decline, and Adidas's revenue in Greater China has shown negative growth.

Although Adidas is an internationally renowned sports brand, the quality of Adidas has been criticized by consumers because it has not met the needs of consumers in terms of quality. With the rapid rise of domestic brands, the product quality of domestic brands has also surpassed Adidas, so under the impact of domestic brands, Adidas will have negative revenue growth. <>

In fact, the reason why Adidas is no longer popular with young people is not only because of quality problems, but also because Adidas has a serious ** inflated situation. It is precisely because Adidas is unwilling to reduce its products** that Adidas has lost enough cost-effective advantages, and after consumers have better choices, Adidas' revenue will have a significant negative growth. <>

Although Adidas' product styling has been favored by many young consumers, as Adidas is no longer keen on launching new designs, Adidas has always been in the same situation. In terms of product design, Adidas' products have also begun to appear homogeneous, if you don't find a way to launch new design concepts, then Adidas' market share will be constantly eaten up by other brands. <>

The reason behind the first point is that his overall sales are not particularly good, and the second point is that the entire marketing model has problems, so it has become this negative growth trend.

Due to the epidemic, sales were poor; Xinjiang cotton was boycotted, which was opposed by everyone.

In addition to the impact of the new crown epidemic, Adidas itself has "made mistakes", and Chinese consumers have gradually matured and have their own values and understanding of the brand.

It has been five consecutive quarters of decline in China's performance, Adidas has not reasonably solved the problem of inventory, and for the problem of Adidas ** chain, the advantages must be well played, and the technical and marketing aspects of the product have not played its main advantages. <>

Relevant news shows that Adidas' performance in China has been declining for 5 consecutive quarters, and it does not fully understand the relevant information of Chinese consumers. Because of various reasons such as the epidemic situation, Adidas has been in a state of high inventory and low cash flow, and the inventory has reached more than 4 billion euros, so let them continue to discount and ** in the sales process of the past few years, and various discount activities have made their economy continue to decline, so we must speed up the cleaning of inventory, which is also an important measure to increase efficiency, and can promote sales through discounts, but may promote the reduction of gross profits. It is necessary to continuously solve the problem of overstocked inventory reasonably, so as to avoid the increase of losses.

It is also proposed to strengthen the problem of Adidas chain to solve the production of many sports shoes, which is very difficult to provide in a timely manner, which has a great impact on the market, and reduces the efficiency of the company's inventory and transportation in all aspects, so it will also reduce efficiency and reduce economic benefits. So it's very important for economic benefits. <>

The technical and marketing level of Adidas products is also lacking, and the design and quality of various old models cannot meet the current consumer needs, and many people forget that there are more new trendy brands at the marketing level, which will affect its sales amount. Therefore, we must start to strengthen the use of this new way of thinking and new model.

Adidas has done bad things in China, which has been disliked by some consumers and affected by the epidemic, so its performance has declined.

The main reason is that people's consumption concept has changed, and now people will buy some practical clothes, and basically will not buy such expensive clothes anymore.

Half-year revenue fell by 35% and the stock price ** nearly half, despite this, Adidas cannot easily withdraw from the Chinese market, because the Chinese market is very large, and the profits that can be earned are also very high, and Adidas has a great reputation in China, so it is impossible for Adidas to give up this market that has been developed for many years, which is definitely a big loss. <>

The large Chinese population and very high consumption power also cause the Chinese market to be very large, and the target consumer groups are much larger than other countries. Therefore, although Adidas' half-year revenue has declined significantly, it is still able to rely on consumer groups to make a profit as a whole, which is very rare in other countries, so Adidas will never give up such a vast market and give up the market to other sports brands, which is an impact on the development of the entire brand. <>

Moreover, Adidas became well-known and became a national brand back then, which took a lot of effort and time. If you give up the Chinese market, then all the previous expansion and cost are all in vain, after all, it is so well-known in China, which means that the brand benefit is already very high, if you blindly choose to withdraw from the market, then it will become a complete injustice.

The most important point is that Adidas has a variety of stores all over the country, and if it exits the Chinese market, the loss of these stores will be very large, and the debt problem will definitely be very terrible. After all, a lot of labor costs not only have to be spent, but also liquidated damages and so on. Therefore, the entire Adidas brand has taken root in China, and it is definitely not easy to exit.

Although Adidas has experienced a storm of boycott and cannot find a Chinese spokesperson, after all, it has a certain popularity, and there are still many people to buy, so it can still be profitable overall, and the blow of withdrawing from the Chinese market will definitely be greater.

Of course, this brand is not making money in China now, and if it does not withdraw from the Chinese market, it will continue to lose money, and it may eventually close its doors directly.

Adidas may also withdraw from the Chinese market, after all, the impact of this matter is also very serious, and it has hurt China's national feelings before, which also makes many Chinese people unable to forgive this brand, and the subsequent impact is also very serious.

Actually, no, because they feel that the Chinese market can turn them around against the wind, and they believe that these difficulties are temporary.

Adidas is a well-known sports brand, especially popular among teenagers, Adidas shoes** are generally more than 400 yuan, and the cheapest is more than 300 yuan. Regarding Adidas' revenue decline in Greater China in the second quarter, why is Adidas not fragrant in the Chinese market? I think there are the following main aspects.

First of all, as a brand sports series, Adi has been deeply involved in the Chinese market for many years, and is very popular among young people, with very good style and quality, but the national tide brand has gradually risen, and foreign brands like Adi and Nike have been affected. Secondly, in recent years, the country has been advocating domestic products, and compared with Adi, consumers are more inclined to buy domestic products such as Hongxing Erke, Xtep, Anta, and Li Ning. Finally, the domestic market is gradually opening up, and it is also going to the world.

The design and style of domestic shoes are slowly catering to the public's aesthetics, so everyone is willing to support them, which is the responsibility of every Chinese.

One: Consumers' eyes have shifted to the domestic market.

As a brand sports series, Adi has been deeply involved in the Chinese market for many years and is very popular among young people, with very good style and quality, but the gradual rise of national fashion brands has affected foreign brands such as Adi and Nike.

Two: The market is constantly changing.

In recent years, the country has been advocating domestic products, and compared with Adi, consumers are more inclined to buy domestic products such as Hongxing Erke, Xtep, Anta, and Li Ning.

Three: The shoes of domestic brands are very good-looking and of good quality.

The domestic market is gradually opening up, and it is also going to the world. The design and style of domestic shoes are slowly catering to the public's aesthetics, so everyone is willing to support them, which is the responsibility of every Chinese.

Regarding Adidas' revenue decline in Greater China in the second quarter, why is Adidas not fragrant in the Chinese market? If you have anything else you would like to add, please leave a message below the comment area. If you also agree with this article, remember to like and follow.