A Famous Sports Goods Manufacturer

The second biggest sports goods manufacturer in the world has returned to the track of growth after experienced transient pain of high inventory crisis. Years later, people will view 2008 Olympic games as a dramatic turning point in the field of China sports products market. Adidas didn't win the champion as it was vowed, in market of China, on the contrary it was exceeded by Lining. After the blowout accident failed unexpectedly, all sports goods manufacturers were overwhelmed by huge inventory. Thus Adidas began its one-year long recession, but local brands flourished very fast. Lining, Anta, PEAK, XTEP etc all showed strong growth in financial statements and people assumed that a new era has started.
But at present the condition is being reversed. At the end of 2010, Adidas announced its ambitious plan leading to 2015, which will extend from 550 cities at that time to 1400 cities, including cities with a population of fifty thousand to five hundred thousand and 2500 new stores will be added. The result of this swift expansion was directly reflected in the semi-annual of 2011: sales in great China area has been increased 38%, reached to 552 million Euros, and rose to a historical new high in this area. The managing director of Adidas great China area, Colin Currie said proudly to "Global Entrepreneur" that "once again we aroused the dealers' confidence and what they feedback was Adidas comes back again.
This condition of opening stores rapidly seems to have been met before. As early as 2006 to 2007, Adidas had experienced this kind of rapid growth, with more then 15% year growth rate. But in 2008, due to single-stores' poor growth, the global CEO began to reflect on whether they should pay attention to quantity rather than quality, thereby the speed of expansion was slowed down. Without too much to say about the subsequent awful situation, spending huge sums to sponsor 2008 Beijing Olympic Games, Adidas was looking forward to another outburst of the market, but they didn't foresee that the wonderful expectation was destroyed by the following economic crisis.
Being experience sales low growth or negative growth, this emulative contestant has consecutively hibernated from 2009 to 2010. Clearing out massive stock; repairing tensions with distributors to obtain more intimate cooperation; regulating regional structure; refreshing goods strategy.
Lining, at one time exceeded Adidas and transiently won the second place in China market, gets into trouble at present, so Adidas has determined to carry out a all-sided counter offensive through this chance of capturing the rival's soft rib, driving into low-line cities, which are the rival's previous advantageous positions. Adidas' careerism didn't change: exceeding Nike and being the first in China market. Adidas senior sales vice president told "Global Entrepreneur" that "I can use a metaphor to describe. The engine is broken while I'm driving, whereas I can't stop to mend it leisurely and return to the road afterwards. No not likely to do so, for everyone in the market is driving at a high speed".