Can Adidas Keep Its Market Advantage?

Last year, in China, an unprecedented 28% sales growth was achieved. The question is, can such growth momentum continue?

According to the world clothing and shoe net, no one will deny the success of Adidas in 2016. It has made NMD and coconut shoes become a hot pursuit for many people in the North American market.

Squeezed back to the market, second of the market.

In terms of business data, its global sales growth of 18% is also the biggest competitor.

Be inferior by comparison.

All this has nearly doubled Adidas's share price last year.

But for this beautiful pcript, Adidas's new CEO Kasper Rorsted is calm and rational.

As early as last year's group's third quarter earnings report, he had told the media that, in view of the fact that Adidas's performance in the past has reached a "record" level, it is difficult to maintain such a rapid growth in sales in 2017.

If you want to compare figures, Adidas's performance in Greater China is even brightest.

Its sales grew by 28% in 2016, becoming the fastest growth year for Adidas in China since the stock crisis in 2008.

The Greater China region has become the world's second largest market and one of the most successful markets in the world.

So, is Adidas and its new CEO Rothd worried that there will be insufficient growth in the Greater China market with faster growth? How will the company maintain its advantage in this "most successful market"?

In a media conference in April 20th, Roth mentioned the future development of Greater China, which will continue to expand its stores, and the future development of e-commerce in the future.

By the end of 2016, Adidas had entered more than 1000 domestic cities and opened 10000 stores, and its plan is to increase the number of stores in China to 12000 in 2020.

This means that in the next 4 years, it will open 1.34 stores a day on average.

Emerging markets, which are not yet saturated, and are not so competitive, have become one of the possibilities for Adidas to seek more development in China in the future.

"We have studied 2000 cities, and now we have stores in 1000 cities. That means there will be opportunities to open stores in about 1000 cities in the future. We believe that the future growth of these new cities will account for 50% of our total growth."

Gao Jiali, managing director of Adidas Greater China, said.

The Malaysia steering company, which has served as senior vice president of marketing and sales in Adidas Greater China, has been in China for 6 years. It did let Adidas survive in the stock crisis after 2008.

Adidas did not disclose how it would guarantee the speed and quality of its shops, but it seemed to think of how to ensure the sales ability of each store after rapid expansion.

At the end of last year, it set up a group's first retail Institute in Shanghai to improve the operational capabilities of retail store staff in practice.

This retail school has both classrooms and an analog shop that will not usher in any customers.

Adidas said such an arrangement would enable trained employees to practice in the simulation store immediately after learning the theory.

In Adidas's explanation of the retail Institute, it also has the ability to shorten the training cycle of store managers from 27 months to 18 months.

This means that the company can pfer the middle level talents to the domestic stores faster, thus increasing the possibility of improving the operation ability of the stores.

What's interesting is that the only retail school in the world is now open near ShangHai HongQiao Railway Station, which seems to facilitate the training of retail staff from all over the country.

As for the development of electricity providers, this became Rothd's strategy of further attention after he performed the Adidas CEO in October last year.

In one official information, Adidas mentioned that it would increase the revenue from e-commerce business from 1 billion euros in 2016 to 4 billion euros in 2020.

Although neither Roth nor Gao Jiali mentioned the geometric weight of the Chinese market in the 4 billion euro, they all said that the company should start to study more consumer demand and consumption habits from the big data collected on the online platform, and use social media and WeChat platforms and consumers to maintain communication and interaction.

At least in the past year, many of the effects of NMD and coconut shoes have been attributed to the marketing of Adidas and celebrities from all walks of life on social networks.

In March of this year, it opened another UltraBOOST customization function on the official website.

But Adidas still faces the same problem as China in the world.

Over the past two years, the success of its explosive products has pushed it into a super fast lane. If we can't continue to launch the shoe, it will not only involve product development, but also whether it can continue to exert power in marketing.

The areas where the shoes are located are known as sports and leisure wind, and the new competitors are not less than the more professional sports performance. Nowadays, PUMA and Skech are already showing their edge in sports and leisure.

Perhaps Roth is not "modest" - Adidas will have to maintain its 2016 edge and growth in the next few years, which is really not an easy task.

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