Performance, the position of the positioning of the position of the movement, the foreign brand "drops the powder" in China

China Commercial Daily (Reporter Fu Yanwen/Picture) How long have you not bought Nike and Adidas products? The latest financial report data shows that Nike has "lost" the Chinese market for three consecutive quarters. Another sports brand giant Adidas' performance in the Chinese market is not good. Some analysts believe that behind the loneliness of Nike and Adidas, more and more young consumer groups are more popular with domestic sports brands. Why is the older brand that is more qualified now?

The foreign brand can't run a little bit

On June 27, local time, Nike announced its fourth quarter and annual financial report of the fiscal year and annual financial report as of May 31 this year, showing that Nike's annual revenue reached 46.7 billion U.S. dollars, an increase of 5%year -on -year, and removing changes in exchange rate changes. It has an increase of 6%year -on -year. However, the performance of Greater China in the fourth quarter fell accelerated, achieving revenue of 1.561 billion US dollars, a year -on -year decrease of 19%. The annual revenue of Greater China was US $ 7.547 billion, a year -on -year decrease of 9%, and the impact of exchange rate changes fell 13%.

It should be noted that Nike has "lost" the Chinese market for three consecutive quarters. As of the third fiscal quarter of February 28, 2022, Nike Greater China revenue decreased by 5.2%year -on -year to US $ 2.16 billion. In the last fiscal season, sales revenue in Nike China fell 20%to 1.844 billion US dollars.

Or affected by this news, on June 28, US stocks closed, and Nike's stock price fell nearly 7%. The market value evaporated between 12 billion US dollars a day, or about RMB 85 billion.

How does Nike look at the short -term failure of China and how to lay out in the future? In this regard, a reporter from the China Business Daily called Nike, but as of press time, the reply has not received a reply.

Tang Ruoxiu, president and CEO of Nike Group, said: "We have long been optimistic about the huge potential of the Chinese market and the future, which has never shaken. We will continue to increase investment in China and strengthen our digital business capabilities through the China Technology Center. Implement the strategy of 'in China, for China', and better serve Chinese consumers. "

In fact, not only Nike, another sports brand giant Adidas also "frustrated" in Greater China. The first quarterly report released by Adidas released by the 2022 show that its sales in Greater China decreased by 35% year -on -year, and "big landslides" appeared, so it dragged down the overall performance. From the second quarter to the fourth quarter of fiscal year, the sales of Adidas Greater China were 1.03 billion euros, 1.155 billion euros, and 1.037 billion euros, respectively, a year -on -year decrease of 15.9%, 14.6%, and 24.3%.

Regarding the future development, Adidas also announced the replacement of Chinese business leaders while being committed to digital transformation and strengthening marketing. The Adrian Siu (Adrian Siu) has replaced Jason Thomas as the managing director of Greater China from April 1.

Falling the Chinese market

On the one hand, Nike and Adidas have recently retired frequently in China, and on the other hand are domestic sports brands such as Anta and Li Ning.

The National Bureau of Statistics recently announced the relevant data of the total retail sales of consumer goods in 2021. Among them, the sales of clothing and shoes and hats were RMB 1384.2 billion, an increase of 12.7%year -on -year, the size of the clothing market was huge, and in recent years, it has continued to grow. With the rapid rise of domestic clothing brands, domestic consumers' consumption recognition of domestic brands has gradually increased. A number of high -quality domestic clothing brands such as Anta, Li Ning, Hongxing Erk once again "became popular", and sales have risen all the way, ushering in a "wild consumption" boom.

Anta's financial report shows that in the first quarter of 2022, the retail amount of Anta brand products increased by 10%-20%of the positive growth compared with the same period last year. In the whole year of 2021, Anta's total revenue reached RMB 49.32 billion, surpassing the revenue of 4.597 billion euros of Adidas Greater China, and was very close to Nike Greater China $ 8.29 billion in revenue. According to Li Ning's operating data, as of March 31, 2022, Li Ning's sales point (excluding Li Ning Young) has achieved 20%-30%of the high -segment growth year -on -year retail flow of retail flow of the entire platform.

On July 5th, Credit Suisse Bank adjusted the target price and profit forecast of the shares of the sports goods industry. The latest choice of Anta and Li Ning. Both ratings are "running a big market". The target price of Anta was adjusted from HK $ 111 to HK $ 120, and the target price of Li Ning rose from HK $ 83 to HK $ 90.

According to Ouromonitor data, China has become the world's second largest sports apparel market. From 2015 to 2020, the compound growth rate of retail sales in China's sports apparel industry reached 14%, and the compound growth rate of the global sports shoes and clothing market was only 4%at the same time. However, Xu Shaolian, chairman of Cool Deer Sports, believes that local companies must be alert to the disadvantages of low investment in research and development. "At present, Chinese sports brands are actually in the domestic competition stage. The local market is large enough to make people lie in a comfortable area. But there is no way to walk in the world. The reason why Nike and Adi continue to invest in research and development must have its rationality."

Why "drop the powder"

For a long time, Nike and Adidas' performance in China can be described as a red dust. Now, why are the older "foreign brands" who have become older?

When browsing the official flagship store of Nike's e -commerce platform, a reporter from China Business Daily found that under the comment areas of different products, some bad reviews were particularly conspicuous. "Trademark coloring", "rough workmanship", "obvious upper glue", "obvious" and "not smooth refunds" and other feedback are not a minority. Regarding issues such as the refund of the goods feedback from the above consumers, the reporter asked the shop customer service. The shop "customer service robot" said: "Store products support for 7 days without reason to return and exchange. We are sold twice. "Screenshot of the internal evaluation of the official flagship store of Nike's e -commerce platform

The reporter asked a consumer randomly in the sports brand floor of Beijing No. 1 Shopping Center. The consumer said that he has not bought Adidas or Nike's clothes for two or three years. , But in the past two years, more and more people around them have begun to recognize domestic goods. It turned out that wearing an international brand is very trendy, and now it has become popular. "

There are also consumers told reporters that Nike's half -sleeve I bought before is easy to fade, and some styles of shoes are not resistant to wear. The price is expensive but the quality is not good. "It is fake, and now friends around you also buy domestic goods, cost -effective and good quality.

Jiang Han, a senior researcher at Pangu Think Tank, told a reporter from China Business Daily that within a long period of time, international sports giants occupy an important position in the Chinese market. However, the development of China's economy and the continuous progress of Chinese brands, domestic sports brands have gradually risen, and competitiveness is increasing.

Jiang Han believes that the advantages of domestic sports brands in the Chinese market are relatively obvious. The industrial chain has a differentiated competitive advantage, and domestic sports brands are more cost -effective and market competitive. On this basis, as domestic sports brands are more familiar with the Chinese market, they can firmly grasp the needs of consumers and user pain points in the development process of the market, thereby designing products that are more in line with the needs of the Chinese market.

Wu Yanqi, CEO of Shenzhen Siqisheng Company, believes that from the perspective of data, Nike and domestic head brands have presented this state of time. This phenomenon may have the following four reasons: First, in the past year, " The negative news of Xinjiang cotton does affect some of the viewers' views on some brands. Second, the cultural self -confidence and the rise of Chinese people are indeed an unstoppable trend. Third, based on consumption habits, the DTC sales model (directly touching the consumer's business model) is an important aspect of affecting business development. Fourth, based on Anta, Li Ning and other brands, they have excellent marketing capabilities, especially in a large number of Beijing Winter Olympics champion athletes, traffic stars endorsements, and sponsorship sports events, which has obtained a substantial growth in business.

Jiang Han said that from the perspective of long -term market development, international giants have gradually losing their market advantages in China, which is an inevitable result of the development of the Chinese market to a certain stage and belongs to normal phenomena.

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