Case Study: Adidas and channel business game

Adidas and Nike are well aware of the channels proxy malpractice after big business. They do not want to see the channel eventually being dominated by two or more channels, but also do not want to hurt the market because of radical reform. Adidas and Nike and channel agents game is secretly under way. Nike canceled a number of provincial-level dealers in the agency, Adidas is brewing a series of "chasing the right movement," but it is facing the Belle and other national dealers. Informed sources told reporters, including Belize, including several large sporting goods dealers, and Adidas sat at the negotiating table. Dealers hope to be able to get out of stock pressure, including the sale of discounted products. However, Adidas brand stability from the point of view, does not recognize the dealer's behavior. The conflict between Adidas and the dealer is escalating. Previously, due to overestimation of the Olympic business, resulting in many dealers still have a large inventory. The new order cycle has arrived, many dealers have no cash to pay the cost. Dealer inventory difficult to digest Adidas, a partner of the Beijing Olympic Games, announced during the Olympic Games that it had surpassed its rival Nike by 21% in its market share of 22% and thus became the No.1 brand in China's sportswear market. Its recently released 2008 results show that in all regions except North America, adidas sales have achieved double-digit growth in Asia, sales increased by 20%, of which China's strong sales growth as the main driving force. Behind its dazzling financial data, it is accompanied by escalating conflicts with domestic distributors. As in 2008, Adidas did not choose to become a global sponsor, but to become the Beijing Olympic Games sponsor. By April 2009, all products bearing the Beijing 2008 Olympic Games logo have been declared expired. Prior to that, because many dealers overestimated the Olympic market, take the goods before the Olympic Games. However, the Olympic Games did not bring the expected outbreak of the dealers' needs to the sporting goods industry, resulting in serious dealer inventories. As a result, the inventories of many dealers have so far failed to be digested. "Adidas and Nike are the futures system, order six months in advance, cash on delivery." An adidas distributor in Hunan, told reporters that because not in accordance with the actual market demand to buy, many dealers backlog of goods stacked in the warehouse In, and led to the funds were under pressure. In order to clean up inventory, dealers are thinking of ways around the cheap promotions. But this is not what Adidas is licensing - excessive discounts can damage the brand and consumers will no longer be willing to buy regular priced goods. Into the new sales year, the funds have been forced to continue to purchase the dealer, and the purchase of the previous year can not generally decline too much, or dealer qualification will be adjusted, from A to B, or B Level to C, get goods policy will also be adjusted accordingly, "This more harm than good," the dealer said so. Not just Adidas, in the sporting goods industry, many dealers at the same time agents such as Adidas, Nike, Li Ning and several other brands, all brands are more or less the existence of Yahuo situation. However, due to Adidas Beijing Olympic sponsor status, it seems that the situation is more serious than its competitors. On the one hand is the brand owner who strongly defends his own price, brand and delivery policy, on the one hand, the dealer who carries the burden on the stockpile, which has plagued the sporting giant since the Olympics. Brand, channel negotiation ability exchange This reporter was informed that at present, several major domestic sporting goods dealers, is negotiating with Adidas, hoping to bring down the number of goods this year. Adidas said it may recover some of the distributors of the agency, including even its largest distributor Belle part of the dealership. An adidas dealer told reporters that from adidas point of view, I hope the company's performance in China will have steady growth. But last year's performance, many of them are dealers overestimate the Olympic market, more than the actual demand for payment. These dealers in 2009 will certainly reduce the number of getting goods again, which may result in Adidas' performance this year, "very bad-looking." This also forces Adidas to frequently exert pressure on dealers. Reporters have called Barry shoe market director Lei Jinzhao, she said after listening to reporters express their inconvenience this comment, saying the reporter can go to learn more about the needs of small dealers. Adidas Marketing Department official told reporters that there is indeed a part of the inventory problem on the market, adidas company is also active communication with the dealer to find solutions. So far, all communications with Adidas distributors have been healthy and effective. Ge Xing, senior consulting consultant with AMT Consulting, said that the current stalemate just reflects the role interchange of the channels and brands in the domestic sporting goods industry at the negotiating table. Early Nike, Adidas, the two super-giants through agents control, forcing agents to rapidly compete with each other and expansion. Among them, Belle raised substantial cash through the listing of Hong Kong in recent years, the acquisition of integrated channels in the country wantonly to quickly get into the domestic footwear industry's top spot. Bao Yuan with the backing of Taiwan's Baocheng Group, the world's largest manufacturer of sports shoes, is also trying to expand the site. Together with the regional distributors from Shenzhen Longhao, Shenyang Pengda, Sichuan Jinlang and other groups, the domestic channels are one-third of the world. In particular, Belle and Bao Yuan, their control over the channel has repeatedly strengthened. "A few years ago is Adi, Nike strong, and now Barre is the dominant bargaining power of other channels in the negotiations - if the channel because of the common interest demands and together." Ge Xing said that in 2006 Belle only NIKE a brand Sales, allegedly reached the brand in China total sales of 1/4. An industry expert who asked not to be named said that through this time negotiations with several major distributors, Adidas and Nike certainly more clearly aware of the shortcomings of the channel bigger. They do not want to see the channel is ultimately dominated by two or more channel operators, but hopefully there will be sufficient competition among dealers. Therefore, how to weaken the dependence on several large channel distributors and develop more small and medium sales channels, or the two sporting goods giants most recently thinking about the channel. Petite: adidas adidas Chinese as Adidas, a German sporting goods manufacturer, is a member of Adidas AG. Named after its founder, Adolf Adi Dassler, Adidas started production of footwear in 1920 in Herzogenaurach, near Nuremberg. August 18, 1949 registered as adidas AG. Adidas clothing and sports shoes are usually designed to see three parallel bars, also visible in the logo, three bars are Adidas's features. Adidas originally was co-founded by two brothers, and after parting, Adolf's brother, Rudolf Dassler, opened the rival sporting brand Puma. In 1948, the founder of adidas, Mr. Adi Dassler, composed the first three letters of his adi and dassler to create "adidas" as a brand and apply for registration; the following year, adidas' third-line Trademarks come out. Adidas main rivals Puma and Nike. In August 2005, Adidas announced its acquisition of Reebok, one of its rivals, for $ 3.8 billion, which helped to increase its market share in North America and promote its presence in the field with "Nike" In the position played by. Adidas currently ranks second in sportswear market share following Nike. Adidas trademark on a slogan is: no impossible (impossible is nothing)