Sports Brand Nike Is Weak In China, ADI Continues To Grow

< p > Nike and Adidas are the leaders of sporting goods industry.

At the moment, the two encountered in China are very different.

Recently, Nike has suffered huge losses from the sale of UMBRO brand, and has been accused of commercial fraud.

In addition, its performance in China continued to slump. In the third quarter of 2013, Nike's Greater China revenue was $635 million, down 9% from 694 million US dollars in the same period last year.

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In contrast to Adidas, Adidas achieved 28% growth in the Greater China region in 2011 and a 15% increase in 2012.

In an interview with the times weekly reporter, Gao Jiali, director general of Adidas Greater China, avoided the situation of Nike. "We are not easy to say other sports brands, but we are full of confidence in ourselves."

Meanwhile, Mr Gao said that outdoor sports products and children's products are two important areas of growth in the Chinese market in the context of slowing growth in the sporting goods industry.

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< p > < strong > in Hua Kang, /strong > /p >.

Less than P, Nike may not have thought that the acquisition of UMBRO five years ago would be a complete defeat.

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In 2008, Nike bought UMBRO, an old British football maker, at 285 million pounds. P

But in December 2012, four years later, Nike abandoned UMBRO and sold it to us brand management company Iconix B Rand Group Inc at a price of $225 million.

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< p > Nike initially bought UMBRO to complement its gap with Adidas in football.

After the completion of the acquisition, Nike did not have no expectation of UMBRO, and even set up Nike sports (China) Co., Ltd. UMBRO China responsible for developing UMBRO's business in mainland China.

But in the four years after the acquisition, UMBRO was swept away by Nike.

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Xiong Xiaokun, a researcher at CIC light industry, said, "from the price point of view, Nike sells UMBRO at a price of 225 million US dollars, which is sold at a loss."

However, Nike's entry into UMBRO has provided sufficient help for its development in the field of football.

For UMBRO, the introduction of Nike is not wise. On the one hand, Nike did not help UMBRO bring brand, channel, performance and so on; on the other hand, UMBRO's business in the field of football was also grabbed by Nike, and its market competitiveness declined significantly.

Not only that, Nike's sale of UMBRO's behavior has also been considered by the industry, "after squeezed UMBRO's football resources, choose to abandon."

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In addition to selling UMBRO, Nike also stripped its Cole Haan brand last year. < p >

Nike said that stripping Cole Haan was mainly due to its brand positioning leisure style and conflicts with Nike's main strategic areas.

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Less than P, Adidas is not without trouble because old rivals are in trouble because of brand sales.

In June 27th, the Beijing Consumers Association announced the results of a comparative test of 58 kinds of washing products. 6 products were not up to standard, and Adidas Energy Series Men's shower gel products were also on the list.

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< p > < strong > sales performance is very different < /strong > < /p >

< p > in addition to being blamed for poor handling of UMBRO's affairs, Nike's recent market performance in China is also very low.

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< p > in the 2013 fiscal year, the income of Nike Greater China decreased by 5% compared to the same period last year.

According to Christopher Svezia, a senior industry analyst, China accounted for 25% of the pre tax profit of Nike, accounting for 10% of total revenue, which even exceeded the pre tax profit of North America (40% of total revenue).

All these data indicate that the Chinese market is very important to Nike.

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"P" and Adi have made continuous progress in China in recent years.

In 2011, sales in Adidas Greater China increased by 28%, and in 2012, it continued to maintain a 15% growth.

In the first quarter of this year, its growth in China slowed down to 6%.

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< p > Adidas has not suffered a painful lesson.

In the marketing war of the 2008 Beijing Olympic Games, Adidas has great ambitions and hopes to achieve the pcendence of Nike in China.

However, facts have proved that Adidas miscalculated the situation and suffered a setback.

After the 2008 Olympic Games, Adidas was in a dilemma of high inventory.

Instead, the local brand became more fierce after its first operation in 2008.

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< p > the key to Nike and Adidas's performance in China is Zhang Qing, founder of sports Consulting Co. Ltd., commented: "Nike and Adidas take two different strategies to deal with the Chinese market."

Adidas has done more fashion and leisure products in the absence of mainstream lifestyle.

However, Nike has always insisted on the pursuit of sports values.

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< p > with the changes of the economic environment, consumer demand and competition, Nike and Adidas need to face an increasingly complex situation. In addition to the overall slowdown in China's sporting goods industry, consumer demand upgrading, the low market potential of cities, and the fierceness of local enterprises are coming.

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< p > even if Adidas has maintained a relatively fast growth in recent years, its pressure will not be easy.

Industry analysts pointed out that Adidas based on Sports attributes, product style is more fashionable, perhaps in the short term can be effective, but in the long run there is also pressure.

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< p > in the face of the declining performance in China today, Nike is also determined to change its job.

The general manager of Greater China will be MichaelSpillane, the current Vice President, and former general manager pferred to Nike vice president and general manager of children's wear.

But it remains to be seen whether Nike can be revitalization in China.

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