Always dreamed of catching up boss Nike Adidas, in 2009 ushered in a bad start - sales in all business units are negative. Obese people is always difficult to run off to some, now, sports brand Adidas has encountered such an embarrassment. May 5th, the adidas Group announced first quarter earnings this year, Group sales in all business units is negative growth, described as "sound of a falling": Adidas brand sales down 6%, Rui Step brand sales down 4%, TaylorMade adidas Golf brand sales down 6%, mergers and business down 10 %...... Negative growth in the face of the first quarter, net profit is only the poor Adidas 900 million euros, 250 million euros a year earlier compared to net profit, up 97% Pujiang! To know, although the market has already lowered expectations Adidas net profit in the first quarter, but forecast is also given 97 million yuan. Experienced after the 2008 harvest, Adidas in 2009 ushered in a bad start. "Overly optimistic in estimating consumer dema nd for 2009." Adidas's explanation of the poor performance of the first quarter. Adidas given in the statement, the cost increases, currency devaluation, increased market challenges as well as restructuring costs and other reasons for its poor performance, in addition to "inevitably affected by the financial crisis." But most eyes were focused confused outside this monster of huge amount of inventory. A month ago, China Brand Research Institute published "Report of the Olympic marketing," said Adidas, Heng Yuan Xiang, Olympic sponsors and other large Aokang overly optimistic estimate that since the Olympic market and blind increase production, resulting in a large number of stocks can not digestion. In the report, Adidas to stock up to 10 billion topping the list. Although the response to the report Adidas "baseless", but in its 2008 annual report, or in the humble office that "stock value than in 2007 increased by 22.5%." Now, a new quarter earnings more that "a quarter o f inventory value substantially higher than the same period in 2008, up 28%, up 2.016 billion euros." 8 years of continuous double-digit net profit growth of high-speed running and has been simmering out effort to go beyond the German giant Nike had figured a faster yourself "weight loss program." In fact, over the past seven months, groups and brand Adidas has implemented a series of strategic review and decided to focus on commercial opportunities in business, and help in the immediate commercial success of the business is cut. With taken a series of actions, such as reduction of Reebok, Rockport, and TaylorMade-adidas Golf staff in November of last year's acquisition of Ashworth TaylorMade-adidas Golf integrated into the system in Europe and Latin America, Arab-Israeli Adidas and Reebok and other associates. "The current economic environment has increased the sense of urgency, we need to speed up the program." Adidas Group Chairman and CEO Herbert Hainer (Herbert Haine r) said. "One quarter earnings have shown that weight loss alone these past few months is obviously not enough. Now, Adidas made a more large-scale "weight loss" plan: a global layoff of about 1,000 people, restructuring the wholesale business, based in Hong Kong and the abolition of the regional headquarters in Europe, the establishment of specialized retail management team in consultation with the regional team, close some stores and so on. Heiner hopes that these initiatives more effective, Adidas could save the cost of 130 million U.S. dollars. The speculation, in addition to the above-mentioned initiatives have been made public, the production line adjustment is likely also to be used Adidas, which since last year, the clamor of the Chinese factory relocation can glimpse clues. Latest information, as the world's largest ball Adidas OEM contract manufacturer in Dongguan Humen Crown Sports Equipment Factory has decided to celebrate the end of the production line in all of Inland. And Heiner in clarifying "Adidas plans to withdraw the Chinese production line" rumors, also admits to provide 55% of products in China, Adidas increasing cost pressures, the future will be more inclined to choose India, Laos, Cambodia, Vietnam and other countries for cheaper labor costs to set up factories. In fact, its old rival Nike has been one step ahead of its shoe factory in China, the only one moved. However, in the Chinese market seems more willing to treasure Adidas pressure in strengthening the marketing and building its own sales channels. 2008 Adidas brand in China amount to 1 332 direct sales stores, contributed 18% of the Chinese market turnover, while in 2007 the figures were 1003 and 17%. One month before the opening of the Beijing Olympics, Adidas has opened the world's direct sales stores in Beijing, the largest brand center, shops staggering 3170 square meters area. Magang sporting goods market observers believe that, in China, Adidas nationa l and regional dealer channel cross-coverage lead to overstock, and Tao Bo sports, Po Sheng International, Shanghai Rui Li, several agents annual sales have reached 2 billion, has strong bargaining power, Adidas dragged lower profit margins may result. Both by expanding direct sales stores move to control costs, but also to reduce dependence on channel agents. The trend of annual sales for 2009, Adidas has been lowered a frustrated gesture of triumph last year, the year is expected to be single-digit negative growth. However, a series of "lose weight" action, the Heiner did not seem pessimistic: "In the past 8 years, our group has seen fantastic growth. Now we must look forward, of the Company to achieve a higher level medium-and long-term success to prepare. "
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