China'S Three Or Four Tier Cities Will Be The Main Battleground Of Adidas'S Future.

January 11th, recently

But in developing the strategy of the three or four tier cities, Nike executives seem to be trying to maintain a vague, often vague statement, while Nike's "old enemy".

In November 2010, Gao Jiali, managing director of the newly appointed Adidas Greater China, revealed to reporters that China's market development strategy for Adidas in the next five years. China's small and medium-sized cities, that is, the three line and the following cities, will be the focus of Adidas's future business.

Gao Jiali said that by 2015, Adidas plans to open more than 2500 shops, mainly distributed in small and medium-sized cities in China. After completion, the number of cities covered by Adidas shops will increase from 550 to more than 1400.

In December 2010, Nike held the second quarter results of the 2011 fiscal year conference call, Nike

The importance of China's three and below cities to Adidas and Nike was very clear after the outbreak of the international financial crisis in 2008.

Adidas and Nike entered the Chinese market and first tested the water in a second tier city in China. Through the development of the second and second tier markets, Adidas and Nike quickly surpassed Lining as the "leader of the sporting goods market" in China. The so-called "Cheng Xiao He also defeated Xiao He". The international financial crisis which broke out in 2008 has a great impact on the domestic second tier market. However, after the shock wave extended to China's three line and below cities, the concussion gradually weakened or even "no surprise."

In 2009, Nike and Adidas, which take the domestic and the second tier cities as the main market, were not good at all. They even encountered "Waterloo".

In the 2010 fiscal year (June 1, 2009 to May 31, 2010), the revenue of Nike Greater China was $1 billion 742 million, which was negative compared to the 1 billion 743 million US dollars in the previous fiscal year.

Adidas's 2009 Greater China income was 967 million euros, compared with 1 billion 77 million euros in 2008, a decrease of 110 million euros.

Lining, Anta and XTEP, which take China's small and medium-sized cities as the core market, were relatively moist. Lining's income in 2009 was 8 billion 400 million yuan, up by more than 20% over the same period last year. The industry estimated that in the Chinese market, Lining's income scale had surpassed Adidas and was equal to Nike.

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Domestic small and medium-sized cities have been the world of domestic sports brands such as Lining and Anta. Transnational sports brands such as Adidas and Nike have already entered the small and medium-sized cities and domestic sports brands. However, their own pricing is too high, the purchasing power of consumers in small and medium-sized cities is limited, "the heart is surplus but not enough".

Gao Jiali believes that with the development of urbanization in China, the purchasing power of small and medium-sized cities is growing. Adidas will adopt a new strategy to return to China's small and medium-sized cities, and the new stores in the future will be able to stay in these areas.

The support of Gao Jia Li's confidence is that Adidas's newly promoted sports fashion brand "NEO" is expanding rapidly.

Du Bairui, former general manager of Adidas Greater China, said that in 2007, Adidas launched the "NEO" predecessor "AdidasSportsEssential" series, which is different from Adidas's brand professional sporting goods. "NEO" or "Adidas Sports Essential" is a series of sports fashion products that cater to consumers in China's small and medium-sized cities.

According to industry sources, a "NEO" T-shirt costs about 98 yuan, and the coat is around 298 yuan, while the price of Adidas's "clover" series is 500~600 yuan, and the "NEO" which has a cost-effective and design and trendy will open the door for Adidas to open the small and medium-sized city market.

In 2007, Adidas launched the "NEO" product, opened a 30~40 trial store in about two years, and began to open stores in 2009. The total number of shops has reached 700.

Adidas global CEO Herbert Hainer predicts that the sports and fashion products such as NEO will become popular in the next 5 years. Adidas will earn 11 billion euros in the next year, 25% in sports fashion products, and 30% in the next 5 years. Adidas's global revenue in 2015 will reach 17 billion euros, or about 25 billion US dollars, and the gap will be further narrowed compared with that of Nike's 2015 income of 27 billion US dollars.