Adi s performance continued to decline, with a loss of 11.3 billion in 3 months, and the reasons beh

Mondo Finance Updated on 2024-01-29

Adidas, as an internationally renowned sports brand, has been declining in recent years, especially in the second quarter of this year, with a loss of 1134.4 billion, with a shrinkage rate of 27%. This makes one wonder why a once-brilliant brand is in such a difficult situationThe article analysis pointed out that Adidas's performance declined not only because of fierce market competition, but also because of a series of problems in the Chinese market.

First, Adidas' brand image was damaged due to mistakes in the Chinese market. After the outbreak of the Xinjiang cotton incident in 2021, Adidas' company directors made inappropriate remarks, provoking Chinese people's feelings and further intensifying the dissatisfaction of Chinese people with the brand. The move caused strong outrage among domestic consumers and caused immeasurable damage to the brand image of Adidas.

Second, Adidas lacks product innovation and core competitiveness. Compared with domestic Guochao sports brands, Adidas' product line is relatively simple, and the style is relatively monotonous, which fails to meet the needs of Chinese consumers for personalization and diversification. In the Chinese market, consumers' pursuit of fashion and innovation is becoming more and more intense, and Adidas has failed to keep up with the changing trends of the market, resulting in a decline in brand recognition.

Foreign companies are gradually realizing the huge potential of the Chinese market, and some companies are beginning to take the initiative to cater to the Chinese consumer market and formulate localization strategies. As a typical example, Adidas' new CEO Bjor Guldenma not only personally apologized to Chinese consumers, but also proposed a localized product strategy for the Chinese market. This move shows that Adidas has realized that the Chinese market is essential for its revival.

In addition, there are some emerging foreign companies that also aim to cater to the Chinese market and customize their products according to the needs of Chinese consumers. For example, in the emerging field of men's health, some foreign companies have launched men's care products for the Chinese market, which has attracted great attention. This shows that foreign companies can succeed in the Chinese market by understanding the Chinese market, identifying consumer needs, and developing a matching product strategy.

In order to reshape the sales engine and return to the top, Adidas can learn from the successful experience of Beiliyin products in China's health consumption track. First of all, Adidas needs to find a new positioning and respect the needs of consumers in the Chinese market. By learning lessons, re-establish your brand image and increase consumer acceptance. Secondly, Adidas needs to carry out product innovation and enhance its core competitiveness. Considering the needs of Chinese consumers for innovation and personalization, adidas can launch more creative and diversified products to meet the needs of Chinese consumers. Finally, Adidas needs to increase its localization strategy for the Chinese market. Through in-depth understanding of the Chinese market, closely follow fashion trends, and launch products that meet the tastes of Chinese consumers, we can enhance market competitiveness.

To sum up, there are many reasons for Adidas' continued decline in performance, among which mistakes in the Chinese market and lack of product innovation are the main reasons. However, by adapting to the needs of the Chinese market, strengthening product innovation, and implementing a localization strategy, Adidas still has the opportunity to reshape its sales engine and return to the top. Most importantly, Adidas needs to learn from the failures of the Chinese market and face up to the needs and emotions of consumers, so as to use this as an opportunity to reform and achieve sustainable development.

In my opinion, the success of a brand is not only a comprehensive reflection of factors such as product quality, ** and marketing strategy, but also depends on the recognition and emotional resonance of the brand in the hearts of consumers. The Chinese market is a large and diverse market, and consumers' pursuit of innovation and personalization is constantly increasing. Therefore, for foreign companies to successfully enter the Chinese market, they must have a deep understanding of consumer needs, and market positioning and product innovation to meet these needs.

At the same time, foreign companies should also pay attention to respecting the local culture and values, as well as the characteristics and laws of the Chinese market, when entering the Chinese market. It is not simply to move foreign products and strategies to the Chinese market, but to localize and improve them to form emotional resonance with consumers. Only in this way can we achieve lasting success in the Chinese market and achieve sustainable development of the brand.

In the highly competitive global market environment, companies must constantly adapt to change, keep up with the pace of the times, and innovate products and marketing strategies. It's not easy for a brand like Adidas to reinvent the sales engine, but only by actively responding to changes and finding new opportunities for growth can we get back to the top of the industry.

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