Nike ADI Wrestled China's Top Sales

Just after the "May 1" holiday, the reporter found that he had run his own running record through WeChat friends circle. The number of runners who had walked all day by phone pedometer was obviously increased, and fitness exercise had become a holiday scene.

According to Euromonitor, an international consultancy, the revenue of fitness clubs in China has nearly doubled in the past 5 years. China Sports last year Sportswear Sales increased by 11% to 187 billion yuan (27 billion US dollars).

China's National Fitness Program (2016~2020 years) has proposed that by 2020, the total consumption of sports goods in China will reach 1 trillion and 500 billion yuan, making national fitness a driving force for stimulating domestic demand and forming new economic growth points.

As a result, international brands are constantly increasing the Chinese market and pursuing dividends. It can be said that the fitness economy has made the Chinese market an arena for international sports brands.

Then, how big is the scale and potential of international brands in the Chinese market? What is their impact on China's sporting goods market? What are the new trends of international brands in the field of technology development?

　　 Nike ADI wrestled China's top sales

At present, Nike and Adidas It is still the most popular sport clothing brand among Chinese consumers. Statistics show that both of them account for 1/3 of China's sports equipment market share.

It has been reported that Kasper Rorsted has been to China for the two time in less than 1 years since serving as CEO of Adidas. In late April, he met with employees at Adidas's China headquarters in Shanghai for the first time in China. This frequency of visits is enough to prove China's importance to Adidas.

At present, Greater China is already the fastest growing market for German sports brands. The Chinese market is Adidas's second largest market, and its 2016 fiscal year sales account for 16%, slightly lower than the 18% of the US market. In the 2013 fiscal year, its sales in the US market were two times that of China.

"In fiscal year 2016, Adidas's sales in Greater China increased by 28% to 3 billion euros. This stems from increasing participation in sports and the policy support of the Chinese government. Kasper Rorsted confidently told reporters: "by 2020, the group will add 2000 stores on the basis of 10 thousand stores in the Chinese market." Kasper Rorsted said Adidas had a 35% profit margin in China last year.

Its "strong enemy", the US Nike, is paying more attention to the Chinese market. Nike plans to achieve sales of $6 billion 500 million in the Chinese market by 2020. Not long ago, Nike's earnings report showed that from December 1, 2016 to February 28, 2017, sales in Nike China reached 1 billion 75 million US dollars, up 15% over the same period last year. China is still the fastest growing region in Nike.

Puma's first quarter earnings report showed that the group's net profit almost doubled, up 92.2% from a year earlier, from 25 million 800 thousand euros a year earlier to 49 million 600 thousand euros. The Chinese market is the most powerful. Among them, the largest category of footwear sales rose 24.8%, to 498 million 900 thousand euros, clothing and accessories 9.5% and 3.9% respectively.

According to the French sports brand Decathlon's earnings report: in 2016, Decathlon's global sales revenue exceeded 10 billion euros, an increase of 12% over the same period last year. The number of shopping malls in China increased by 48 to 214, second only to those in France. The number of employees in China is more than 15 thousand, and it may reach 30 thousand people in 5 years. It is estimated that by 2020, Decathlon will sell its own brand products in 100% of all shopping malls in China.

　　 Fitness is far from being popularized.

Recently, media reports said that Adidas's decision to withdraw some of China's production lines back to Speed Factory, an intelligent concept factory in Germany, was replaced by manual manufacturing.

In this regard, Kasper Rorsted clarified in an interview that Speed Factory is a technical experiment and attempt to help meet the needs of niche market more efficiently. However, the output of Speed Factory is limited, and there is no significant impact on the production pattern. "We only produce 1 million pairs of shoes a year in German factories, and in Asia, we produce 1 million pairs a day. 90% of our products are still produced in Asia, and this scale will not change at present. A sophisticated robot factory will also be introduced to Asia, especially China.

Colin Currie, managing director of Adidas Greater China, also believes that there is still a deeper market for sports brands in China. For example, in the field of sportswear, China's per capita consumption is far lower than that of Brazil, Britain, Germany, Malaysia and other countries, and its consumption potential is unlimited. "The Chinese attitude towards fitness is far from being popularized. With the continuous development and application of fitness programs, more and more Chinese consumers will find their own sportswear in the niche market.

Adidas has seen new opportunities in some niche fields, and has started to set up stores for women consumers in China, which are also the most popular running and Yoga series for women. "By 2020, the company plans to increase the number of such stores to 20 in China. Adidas is also trying to replicate this pattern to more areas, such as soccer and children. We are concerned about consumers, not competitors. Colin Currie talked about it in an interview.

Nike has also opened a women's experience store in China. In March this year, Nike joint tennis women athlete Li Na released the exclusive clothing series for Chinese women athletes for the first time.

It is reported that in the spring and summer of 2017, the Nike Li Na series includes clothing products for women's fitness and women's sports lifestyle, from sports underwear, training vest, tight pants to T-shirts, hoodies and woven sports pants, which can meet different sports needs of women.

From the past "big to the whole" to the "small and beautiful" now, the major international brands are increasing the market share of professional sports. The North Face, new brun, Puma and other brands have their own expertise.

　　 Deep ploughing intelligent production line, international brand creativity unlimited

Although Kasper Rorsted explains that Adidas has not cut down China's capacity, intelligent production has become an important direction of Adidas's future business strategy. In the face of rising production costs, the best way to increase production efficiency is to organize intelligent production. According to media reports, according to Adidas's plan, sales of products manufactured by intelligent factories will occupy half of Adidas's sales revenue in 2020.

It is reported that Speed Factory will help Adidas to completely transform traditional production methods. In the past, a pair of shoes had been built from prototype to shelf for 18 months. 3/4's shoes entered the promotion phase in less than 1 years. The biggest advantage of Speed Factory is shortening the supply chain time. Once the shoes are completed, it will be possible to reach the shelves in less than 1 weeks or even 1 days.

At the same time, wearable smart devices have also become the major competitive areas of international development.

The basic sports equipment of a pair of running shoes and a towel has long been out of date. At present, runners not only focus on subdivision of professional sports apparel, but also arm themselves on wearable intelligence.

Last November, the world's first sports shoes, Nike Hyper Adapt Trainer 1.0, which can tie their own laces formally went public. The shoes cost 720 yuan (about 4938 yuan). The heel position of sneakers is integrated with sensors. When the user wears Hyper Adapt sneakers, the heel sensors will be activated, and the sneakers will start to automatically adjust the tightness.

In addition, Puma has launched a concept sports shoes called "Autodisc". It is understood that the shoelace in front of this shoe can be tightened by one key, or set up through the supporting mobile App, which can support the 3 gear tightness adjustment.

Reporter in Decathlon Beijing store saw a sports underwear with Bluetooth heart rate device installed. "Heart rate monitor is an instrument used to measure the number of heartbeats per minute," according to a salesperson in the store. By monitoring heartbeat, measuring heart rate, helping athletes find the right movement rhythm, to achieve better running results. Regular runners do not necessarily prepare heart rate detectors for running. In this regard, Decathlon developed this kind of running T-shirt and women's underwear for sensors in fibers. It is reported that this month's sales volume of wearable smart clothing is at the forefront.

For more information, please pay attention to the world clothing shoe and hat net information report.