The latest data shows that adidas is nibbling Nike's market share in the United States, the United States is the latter's largest market. The picture shows a shop in adidas USA.
Adidas, the German sports brand group, is reviving the American market. The average monthly market share of Adidas in the United States from January to September last year was 4.3%, and Nike was 41%. According to the latest data from the NPD Group, adidas’ market share rose to 7.1% this year and Nike fell to 38%. From the comparison of data, it can be seen that although Nike still has obvious advantages, Adidas is rapidly nibbling on Nike's market. In addition, this year Adidas also took the second position of American sports shoes from Skechers.
Adidas' second-quarter results continued its strong momentum in the first quarter, particularly in the US market dominated by Nike, and also defeated Under Armour as the fastest growing sports brand in this market. In the region, Adidas’s turnover soared 22.6% to 788 million euros, which was higher than the 21.6% increase in the first quarter. In the second quarter, Adidas’ total revenue increased by 13% to 4.4 billion euros. Under the constant exchange rate, it rose by 21%, far exceeding analysts' expectations.
According to the data from Fashion Headlines, Nike Global's future orders only increased by 5% between September and January next year, which was lower than analysts' expectations and far lower than 14% in the same period of last year. The order performance of the Chinese market was also better than expected. difference. In addition, Bloomberg analyst Chen Grazutis pointed out that the latest quarter, Nike's gross margin is falling, which means that the company will rely more on discount sales to increase sales, is a very bad sign.
An analysis of the Financial Times pointed out that Nike, once the ruler of the sportswear market, is facing a fierce market competition environment and is speeding up the loss of its ruling market, and has recently received new and old competitors including Adidas, Under Armour, Reebok and Lululemon's strong challenge, market share rapidly declines, and strong Nike is becoming vulnerable.
Analysts said that Adidas is making a change and its market prospects in the United States have become clear. In January of this year, after the company announced that Kasper Rorsted replaced Herbert Hainer as CEO, Adidas' stock price rose to double digits. Adidas’s stock has risen 78% this year due to its strong performance. In contrast, Nike’s shares have fallen by 17%, making it the worst performing sports brand.
Herbert Hainer, the former CEO of Adidas, entered the sales department of Adidas since 1987 and became the CEO in 2001. He has served for more than 15 years. It is worth noting that the new CEO Kasper Rorsted is different from his predecessor and is a sportswear industry. A layman, however, he gathered a group of admirers during the eight years of managing the German beauty brand Henkel. Now he is even more proving himself to continue to challenge Nike. Kasper Rorsted said that the company has learned lessons from past mistakes. Adidas did not pay attention to consumer demand a few years ago. Over-static has caused consumers to lose their enthusiasm for the brand.
There is no doubt that Adidas is currently the biggest headache for Nike. Thanks to the strong growth in footwear, last year, Adidas' profits returned to the level of 1 billion euros.
In order to revitalize the American market, Adidas actually started a large-scale restructuring two years ago, and sent 200 employees directly from the German headquarters to the United States, including the chief designer, in order to break the situation of independent operation in two places. According to industry sources, Eric Liedtke, adidas’s global branding officer, has worked in both the German and US markets and has extensive experience in brand operations. The restructuring of the company allows the senior management team to better understand the US home market, and is pressing harder to challenge Nike. It is also the reason why Nike can't sleep well.
Matt Powell, an analyst at the NPD Group, pointed out that Adidas has not provided US consumers with products like shoes and casual shoes for the past two years. For example, adidas has smartly integrated old products and new products in the past two years. Products, the brand in the United States this year back to school quarter of the top five best selling products in the two models are classic style. Mark King, president of Adidas North America, said that everything is possible, because the company is giving up on the old-fashioned approach to speed up.
In July of this year, Adidas raised its 2016 annual performance forecast. It is expected that the net profit of continuing operations will increase by 35% to 39% year-on-year, that is, between 975 million and 1 billion euros. The company previously estimated that its net profit from continuing operations will increase by 25% from the previous year. .
Articles and pictures transferred from fashion headlines
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