It has been negative revenue growth for 5 consecutive quarters! Why did Adidas lose to China?

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?

Domestic brands are constantly on the rise, such as:Anta, Li Ning, Hongxing Erke, etcIts sales and the number of stores are skyrocketing, and supporting domestic brands is not just a slogan, but also a national action. In contrast, the current situation of Adidas and Nike is a little miserable, Adidas in Greater China, the revenue in the first and second quarters fell by 35% year-on-year, and it has been five consecutive quarters of negative business growth, and the number of related stores is also plummeting!

The rise of domestic brands has increased the competitive pressure in the market!

The Xinjiang cotton incident caused a stir, and many domestic brands issued documents to support Xinjiang cotton, but they were boycotted by many high-end brands, Nike and Adidas officials made different decisions, stood in the wrong line, and lost the hearts of the people. Many people said that they would not buy any of their products when they saw Adidas's official post, and they boycotted it!

Affected by the epidemic, many people have suffered from different economic pressures, Adidas and Nike-related manufacturing plants moved from China to Vietnam, which has led to a lack of confidence in this brand among many people, since Chinese are not allowed to make money, why do they want Chinese to buy high-end products?

The concept of contemporary consumers is constantly changing, young people feel a different social reality, they have experienced different hardships, no longer pursue high-end luxury, no longer blind comparison, but the pursuit of related product service attitude and quality. Not only that, the consumer market is also constantly changing, the pursuit of luxury is a small part of the people, the practical life of people is a large part, more and more people are looking at domestic brands, support domestic production!

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.

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.

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.

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.

The epidemic, the Xinjiang cotton incident, quality and other problems are the main reasons for Adidas' defeat.

Adidas is a German sports brand, since entering China, sales have continued to rise, and the Chinese market has grown rapidly, opening many stores across the country. It has also become a very well-known brand. It is no exaggeration to say that the Chinese market is one of the countries that contribute the most to merchants.

However, as a businessman, he released some inappropriate remarks that caused dissatisfaction among the Chinese people.

German brand Adidas

Adidas is a German sports brand founded in 1949 and is a member of Adidas AG. The founder is Adolf. Adi.

Dassler, the brand is named after him. Originally, the company was founded by two brothers, but later the two went their separate ways, and the elder brother opened PUMA and quickly occupied the market. Later, he entered China and won a place in the Chinese market.

Adidas has three series of brand logos: three-stripe, clover, and spherical shape. The three logos also herald the continuous progress of this world brand. <>

Adi Zao Sundas's domestic offline stores have shrunk, and revenue has been negative for five consecutive quarters

In the past few years, Adidas has not had a good time in the Chinese market due to many reasons. According to the inquiry, Adida's annual report in 2021 increased its sales revenue by 15% compared with the same period in the world. The Chinese market accounts for 3% of the market, which shows that the Chinese market is still a very important sales channel for Adidas.

However, now Adidas has experienced negative growth for five consecutive quarters, and its stores have to be reduced, and the business situation is not optimistic. <>

What was the reason for Adi's defeat?

If you think about it carefully, Adidas finally developed into such a situation, in fact, there are traces to follow. On the one hand, the quality of goods, false publicity, and shoddy problems are frequent, and some inappropriate remarks released have caused dissatisfaction among the Chinese people, coupled with the epidemic and other reasons, which have led to the current situation of Adidas. <>

The main reason for this situation is that Adidas's behavior has been very seriously affected, and there has been a serious decline in China for five consecutive quarters, which has also led to Adidas' inability to gain a foothold in the Chinese market.

Adidas' main company in China is Adidas (China) Co., Ltd., which was established in August 2005 with a registered capital of 100 million yuan and is wholly owned by adidas International B V. The company has invested in 1 company, Adidas Sporting Goods (Shanghai) ****, the sporting goods company has a total of 107 branches across the country, of which 105 are in a surviving state. According to the risk information, Adidas (China) Co., Ltd. was fined 8,880 yuan for producing and selling substandard products to pass off as qualified products.

Adi doesn't understand what Chinese consumers really need to return to their limbs, there are more and more competitors, and Adi has not handled the Xinjiang cotton matter well, so it will lead to defeat and call the world away.

Insulting the Chinese, and infringing on China's imitation of Zen, it has caused dissatisfaction among many consumers, making many consumers very disgusted with this brand, and there have also been wrong marketing methods with big stools.

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. <>