Shenzhen Futian CBDAdidasSouth China *** announced its closure, and this 50 million *** closed its doors in only two years. AdidasIn the past 8 quarters, the revenue in Greater China has declined continuously, and in the second quarter of this year, it was **1134.4 billion yuan. In the face of such a decline,AdidasThe former president admitted to making mistakes in the Chinese market. So, what exactly went wrong?
With China's huge consumer market,AdidasIt has more than 12,000 stores in China and has a revenue of 34.5 billion yuan, accounting for 34% of the total revenue. AdidasThe trump card product"Coconut shoes"In China, it was once speculated to a sky-high price of 100,000 yuan. However, when American and Western brands join forces against the Chinese apparel industry,AdidasIt was also involved in the storm of boycotting Xinjiang cotton. This incident caused a backlash from consumers, resulting in:AdidasHit hard at home. The data shows thatAdidasRevenue in the second quarter was only 53$4.3 billion, with a 71% drop in profits. Faced with this situation,AdidasA variety of strategies, such as discounts, price reductions, etc., were adopted to try to save the Chinese market, and even launched ** inspired by ancient Chinese clay potsShoes。However, this move has not been recognized by Chinese consumers. AlthoughAdidasThere is a 5% or even 2% discount on the "fracture price"**, but many stores are still deserted. WhileAdidasSpecially designed to please the Chinese marketShoesIt was also boycotted because it was questioned that "Chinese cultural relics were trampled under the soles of shoes on propaganda posters". In the face of the loss of reputation and the continuous decline in performance,AdidasThe new CEO, Björn Gulden, visited China in person and repeatedly stressed the importance of the Chinese market. However, netizens commented: "It's too late!”
In the past two years, domestic substitution has been inSneakers and clothingThere is a clear trend in the market. Domestic brands such as:ANTALi Ningand so on to further strengthen their competitiveness and catch up in an all-round way. In 2021,AdidasThe market share in the world and China has beenANTABeyond,ANTABecome domesticSneakers and clothingFirst place in the market. It's not just thatSneakers and clothingmarket, domestic substitution has also grown significantly in other areas of life. For example,Surgical robotsFields that were previously monopolized by American companies have now been localized, and more advanced 5G long-distance operation technology has been addedThe position in the field of men's health, which has long been occupied by overseas products, has also been successfully recaptured by domestic products and re-entered the market. With the deepening of the concept of health in people's hearts, the market size of sports and care categories continues to expand. Against this backdrop, 2022 ChinaSneakers and clothingThe size of the market reached 362.7 billion yuan. A domestic sportswear brand centered on innovation and product functionalityANTALi NingIt is close to the people and has been favored by the market. According to business intelligence data, compared with overseas brands, the threshold of domestic brands "Beta Qiang" has dropped to 98%, and more and more consumers think that domestic products are more affordable. Therefore,AdidasExcept"Coconut shoesIn addition, the lack of innovation in its other products has led to eight consecutive quarters of declining performance. Industry insiders point out that wantAdidasIt seems that a comeback has become difficult.
In the Chinese market,ANTALi Ningand other domestic brands inSneakersR&D efforts have been intensified, and the performance has risen rapidly, quickly ranking among the top three in the Chinese market. WhileAdidasfell to fourth place. Nowadays, domesticSneakersIt is not inferior to overseas products in terms of technological content and fashionable appearance. Some netizens mentioned: "I buy domestic products not because I can't afford imported goods, but because domestic products are more cost-effective." Zhang Yi, CEO of iiMedia Consulting, pointed out that the Chinese market is facing an upgrade in the consumption level. In the new consumption concept, people no longer blindly think that overseas brands are "high-end and high-grade". Domestic products have an advantage in satisfying consumer needs and emotions. The statistics show thatANTAThe revenue in 2022 reached 536.5 billion yuan, and the annual revenue increased by 8% year-on-year8%；Li NingThe results of 2022 show that the operating income reached 2580300 million yuan, an increase of 14 percent year-on-year3%。In the Chinese market, giveAdidasTime and space are running out.
Summary: With China's huge consumer market and the rise of domestic substitution,AdidasThe Chinese market is facing huge challenges. In the context of consumers paying more and more attention to cost-effectiveness and new consumption concepts, domestic brands have advantages in meeting consumer needs and emotions. WhileAdidasmishandling in the incident of boycotting Xinjiang cotton, as well asMarket competitionThe lack of innovation has led to a decline in brand image and performance. In the Chinese market, giveAdidasThe time and space for a comeback are becoming less and less, and the trend of domestic substitution is rising. Therefore,AdidasIt is necessary to carry out consumption transformation, strengthen product innovation and meet the needs of Chinese consumers, in order to compete in the fierce competitionMarket competitionre-emergence.