The latest financial report shows that Adidas net profit attributable to shareholders in the second quarter of this year, only 900 million euros, 93% plummeted, the industry believes that with the continued weakness in the domestic market sales of Adidas, the domestic brand Li Ning's domestic sales have May be more than Adidas this year.
Adidas announced on the 5th of earnings, due to the worldwide decline in demand, resulting in sharp decline in net profit year on year. In addition, adidas second-quarter sales fell 3% to 2.46 billion euros; operating profit fell 66% to 72 million euros. In the first half of this year, adidas Group net profit fell 95% to 13 million euros; sales fell 2% to 5.03 billion euros.
Sporting goods observer Guan Shengkun told CBN reporter: "In the Nanjing market, Adidas audience appeared on the shelves to buy a new 30% off, and dealers to 5.1 to 5.2% off the purchase price, together with the dealer's operating costs, new products to 7 fold the price The sale means a loss to the dealer. "
In the past six months, Adidas almost every corner of the global market in a quagmire. Excluding the exchange rate, Adidas sales in Europe decreased by 8% YoY, sales in North America decreased by 10% YoY, sales in Asia mainly to China and Japan decreased by 9% YoY, sales in Latin America alone increased by 24% YoY, But only 443 million euros, unable to reverse the overall situation.
In fact, affected by the financial crisis is not just Adidas, domestic sports brands are also affected, but the impact is much smaller than Adidas. Guan Sheng Kun introduced: "Adidas sales discount before the average is 10 percent, now becomes 8.2 ~ 8.3 fold; domestic sports brand sales discount rate is generally 8.5 to 8.6 fold, now dropped to 7.5 to 7.6 fold, gross margin from 2008 About 45% of the Olympic Games in the year dropped to about 30%, but the domestic sports brand did not hurt.
Ma Gang, industry insiders said: "The excess inventory of the impact of Adidas is very far-reaching.Adidas in the country's major markets in first-tier cities, first-tier cities to open a new store is very high cost, the number of stores can not be a substantial expansion to the second and third tier cities it Of the product price can not compete with the domestic brand of 200 yuan of products, so the increase in sales by Adidas can only rely on the same store growth.However, due to inventory too much, the original weekly can be updated once the goods, and now only 2 weeks update And the same-store growth of sales resulted from the limited frequency of product updates. "Adidas's financial report shows that in the first half of this year, the stock value of Adidas was 2.041 billion euros, an increase of 13% over the same period of previous year, excluding an exchange rate factor, an increase of 8% over the same period of last year.
Magang said that most of the domestic sports brand market in second and third tier cities, sales growth is not dependent on the same store growth, but by the rapid expansion of the number of stores in the international financial crisis, even if a store sales decline, the new Sales in open stores can also offset the declining portion, so the growth of domestic brand performance is still impressive in the first half of this year. Sales of some brands can grow by about 20% YoY.
Adidas and the domestic sports brand in the performance of a minus one has its position in the Chinese market poses a threat. Analysis of the industry, in 2008 in China's sporting goods market, Nike brand revenue of about 10 billion yuan, Adidas brand revenue of about 8 billion yuan, Li Ning brand about 6 billion yuan revenue, Anta brand revenue of about 4 billion yuan, as Adidas in Sales in the Chinese market fell into continuous weakness, while domestic sports brands still maintained double-digit growth rate, Li Ning's sales are likely to exceed Adidas this year, to sit on the second top spot in the domestic sports brand.