Adidas'S Strategic Expansion And Frequent Market Opening

Nike closes Nanjing Road flagship store.

Industry trend is low today, why does Adidas frequently open large stores? Analysis shows that Adidas should speed up the "road to 2015".

In September 3rd, a 500 square meter Adidas store opened in Wanda Plaza, Shenyang.

It is the sixth comprehensive store opened by Adidas in China, and the other five are located in Shanghai (two), Wuhan, Changsha and Chengdu.

Today, when Nike closes Nanjing Road flagship store and sporting goods industry is in a downturn, why does Adidas frequently open big stores? Analysis shows that Adidas should speed up the "road to 2015".

"The road to 2015" is a grand strategic plan released by the Adidas group at the end of 2010. It aims to fully expand its capabilities and become the most leading sporting goods brand in the Chinese market.

According to the plan, there will be 2500 new stores in Adidas in 5 years, and annual sales in China will grow at a rate of 15% to 20%.

Channel sink, Multi Strategy expand market

In the past two years, Adidas has expanded 350 new cities in China, with existing stores covering 900 cities.

At present, the company has more than 7000 retail outlets in China, and plans to add 500 by the end of 2012.

Adidas responsible person believes that the Chinese market has great potential and broad consumer segmentation market, each market has its unique needs.

Therefore, different markets should implement different marketing strategies.

The market of the first tier cities has matured. The strategy of Adidas is to classify attacks and strengthen the advantages of running, football, basketball and women training.

Consumers of these categories also have more brand and fashion awareness.

Therefore, in the first tier cities, Adidas is more focused on providing distinctive high-tech products.

For the low tier cities, Adidas's main strategy is to provide low price products with sports performance series.

Because in these markets, price performance is the most attractive factor for sports products.

The NEO series is one of the representative products.

However, whether Adidas's channel sinking strategy can be successful? Zhang Qing, President of the key sports value research institute, pointed out: "the competitiveness of local brands in these markets is still strong. Adidas's brand influence is difficult to make consumers have strong purchasing power in the low line market for a time."

Adidas's main rival, Nike, is also actively expanding.

This means that Adidas's sinking strategy will face both the defense of local brands and the blocking of international brands.

Capacity pfer, cost advantage plan

Just before the London Olympics,

It is officially announced that it will close its sole wholly-owned factory in China in October.

This matter has aroused great concern.

Subsequently, Adidas will be in October this year to April next year and 300 generations of factories in China to lift the OEM agreement also spread like wildfire, outside the analysis of Adidas is due to cost pressures to take this series of measures.

Indeed, with the rise of China's production costs, especially the cost of labor, some Southeast Asian countries are indeed more attractive than China.

For an international brand, Adidas's ability to shift China's capacity to reduce cost pressures is understandable considering the strategy of reintegrating global resources.

But more crucial is that only by keeping the cost advantage, can we better add chips to the 2015 way of sinking the price advantage.

In the three or four line cities that Adidas will soon sink, Adidas must face the competition of local brands. If we want to compete for the market quickly, besides the brand effect, we still need to have the price advantage. That is why there is a rumour that Adidas will launch a 300 yuan price product.

To ensure the retail price and quality, Adidas must maintain its cost advantage before it can be profitable.

In addition, Adidas's response to China's

There is no slowing down.

Its new logistics center project in China's supply chain is in hot pursuit.

Adidas announced that the company plans to build a northern logistics center outside the Suzhou logistics center in the second half of 2012. The location will be in Tianjin.