Source: wechat official account: Daily Yijian has been authorized
A few days ago, a friend complained to me that his black sheep daughter-in-law gave him a pair of 299 Adidas sneakers as a gift.
My friend smiled bitterly. ADI can’t find such a cheap one. He must have bought a high imitation, this silly daughter-in-law.
But after listening, I casually sent him a picture: “is this the pair your daughter-in-law bought you?”
He was surprised: “how do you know“
I said, “don’t worry, the ADI your daughter-in-law bought for you is absolutely real, and it can’t be a high imitation.”
He was quite happy to hear that.
But then, I said something that made him feel sorry for a long time: “because he sold these shoes for 299 yuan, and your daughter-in-law bought them more expensive. Now it only costs 229 yuan…”
Well, yes, you heard me right.
Official flagship store, genuine products are included.
Adidas, as long as 229.
First of all, let me state that this article is not soft and wide. I don’t sell shoes, and I won’t buy adidas shoes. As for why, you will understand after reading the article.
In fact, my friend is not the worst. He only lost 70 yuan. After I opened the comment area, I found that some netizens were even more miserable. After two days of buying, it dropped by more than 80 yuan.
Pay attention to the time. This was his evaluation 11 days ago.
If he had read my article today, he would have wanted to die.
499 actually paid, now 229
It’s only been half a month, and one pair of shoes can buy two pairs…
Unexpectedly, one day, Adidas’s price reduction will be so strong.
Is it beyond the understanding of many people?
In the impression of most of us, Nike and Adidas are middle and high-end foreign sports brands, and there are hundreds or even thousands of clothes in any one suit.
Even for some friends living in the countryside, Nike and Adi are proper “luxury goods”.
I remember when I was a child, when a child around me celebrated the new year, his parents bought him a whole set of Nike or Adidas clothes, shoes and hats, and everyone around him envied him for a whole semester.
Although now with the development of the economy, everyone has money in their pockets, it is not uncommon to buy a Nike ADI. These two brands are not related to luxury goods at all.
However, in the inherent impression of many people, Nike and Adi are high-end brands.
Especially for some salespeople who work in brand stores, their concept is even more deeply rooted.
In 2021, many media reported:
A migrant worker husband and wife took their son to a Nike store in Kunming to pick up new clothes, but because Mr. Mao was usually not particular about his clothes, he was discriminated against and treated differently by the shop assistants.
After reading this news, we must of course criticize the clerk for being too blind to people, let alone Nike. Even if you are Hermes, you can’t look at people with tinted glasses like this.
You’re just a salesman. This shop is not your own. How much does it cost? What’s your concern? Is it worth showing off here?
However, this news also reflects from one side: Nike and Adi are indeed high-end brands in the inherent impression of some people.
Otherwise, the clerk could not have that superiority.
For example, have you ever seen an aunt selling vegetables in a vegetable market who has a sense of superiority? Does she look down on you because she sees you wearing slippers and doesn’t sell you vegetables?
In fact, this is the brand influence that Nike and Adidas have built up over the years by deeply digging into the Chinese market.
Don’t underestimate the brand’s influence.
Why can a bag sell for tens of thousands of yuan? Isn’t it because his name is LV? Maybe, after you open the genuine bag you bought, it still has threads inside. The quality is not as good as the woven bag at home when you were a child.
The key is that the woven bag at home can still hold 30 to 50 pieces of clothes, and there is no problem at all.
But when you buy that LV, will you take it to stuff clothes and carry luggage?
Of course, this example is a bit extreme.
LV is impossible to compare with woven bags at home, and there is no comparability between them.
But what I want to say is that when LV lost its brand value, when he changed his name to not LV, but just an unknown, ordinary handbag.
Will there still be so many people to buy it?
This is brand influence.
Originally, Adidas could also rely on this wave of brand influence to sell for a few more years, lie on the merit book, and eat some old money.
Even though the current ADI is nominally imported from abroad, in fact, its production place has become Indonesia…
However, ADI is ADI after all. As long as this brand still exists, there will still be people in China who will recognize it and continue to buy it.
But all this has been completely rewritten with the arrival of the epidemic in 2020.
In 2020, after the outbreak of the global COVID-19 epidemic, all walks of life were impacted. People were locked at home and did not go out to shop. At most, they bought some necessities online. Adidas, as a sports brand, was naturally left out in the cold.
Everyone doesn’t go out and stays at home every day. Why do we need to buy clothes and shoes? At most, we need to buy two pairs of slippers. Why do we need to buy sports shoes? Can we run at home?
As a result, Adidas’s sales dropped sharply.
At this time, who is the most anxious? Of course, it’s ADI’s CEO rod.
The guy on the cover of the article.
The drop in sales volume has directly brought about a large amount of inventory backlog in stores, financial stress and sudden pressure on the company.
What should we do?
At this time, Roth saw that the epidemic in China was first controlled, and it took only two months for the people to resume their normal production and life.
So he made a bold decision.
It is also this decision that has led to the decline of ADI today.
That is to ship all the overstocked inventory to China.
There is so much inventory. If it is shared with each dealer below, it will be three or four times the usual volume. If it can’t be sold, it will all fall into your hands. Capital is a big problem.
As a result, ADI China began its crazy discount promotion.
Especially in the double 11 that year, ADI’s price war was even more fractured. There were 50 children’s T-shirts, more than 100 children’s shoes, 200 sports shoes, and 300 men’s hoodies. In addition, you can buy one for one, and there are full discounts and exquisite gifts in the online mall…
The Chinese market really has great potential. In just one year, all the overstocked inventory of Adidas around the world has been eliminated.
According to statistics, in the first quarter of 2021, Adidas’s growth rate in China exceeded 150%…
ADI’s size is already so large, and it’s really insane to grow so much against the trend.
However, behind the huge growth performance, there is also a huge crisis.
That is the discount expectation in the hearts of consumers.
You were so cheap before, so why don’t you cut the price now?
Before, you could have a pair of shoes worth more than 200. Now you say that you have restored the original price to 500. Why?
To put it harshly, consumers are “spoiled”. Adidas, which was originally relatively high-end, has become a bargain that can be easily discounted by 50% in everyone’s mind.
When the brand influence we mentioned before began to collapse gradually.
Here comes the trouble.
In addition, in 2021, there was a nationwide sensation.
That is Xinjiang cotton.
At that time, western countries spread rumors about the Xinjiang issue many times, and many international famous brands began to boycott Xinjiang cotton.
At that time, many people knew that the HM incident was very noisy.
Actually:
Adidas was the first to come forward and announce that it would boycott Xinjiang cotton.
Now, it’s a bit like cooking.
With the outbreak of the epidemic, you have a large backlog of stocks all over the world, all of which are shipped to China. It doesn’t matter. Give us a discount, and Chinese people are willing to buy them.
However, just after our front foot helped you solve the crisis, your back foot did it.
I really thought I was full and made two dollars, so I didn’t know how to go? Staggering, still want to touch porcelain and Xinjiang cotton?
So, from this moment on.
The adidas crisis has completely arrived.
After the Xinjiang cotton incident, almost all domestic sports brands ushered in explosive growth, while Adidas shrank in the Chinese market.
What shall I do?
On the one hand, with the previous wave of discounts, the brand tone of adidas has disappeared. On the other hand, because of the Xinjiang cotton incident, the popularity of Adidas in the minds of Chinese people has plummeted.
Many people started not to buy it.
ADI began to worry, because if 10% of the people chose not to buy, what would they do if they wanted to keep their performance from declining?
You can only exchange your sales volume for profits. Your sales volume must be increased by 10% or even more than 20% to equal the previous profits, right?
So, how to improve sales?
There is only one way, or discount.
Well, you are also discounted. Although the sales volume will increase slightly in the short term, your brand tone will drop again.
Brand influence is gone, so more people will buy it.
You can only continue to discount and exchange profits for sales.
Thus, it fell into a vicious circle.
In fact, ADI wants to recycle the price and maintain its brand tone after 2020.
After all, we have made money, and it doesn’t matter if we sacrifice a little sales.
Unexpectedly, as soon as the Xinjiang cotton incident came out, they had to reduce prices passively in order to regain the support of consumers.
Therefore, this price, after the avalanche, can never go back.
When it goes down, ADI’s price is low enough.
One day, when people suddenly found that the price of authentic ADI and Putian shoes was the same, how do you guess they would choose?
The quality of ADI has been obvious to all in recent years. What kind of environmentally friendly glue? There is an endless stream of things that open when you go out of the store. In addition, the store also deceives customers, and the after-sales attitude is very poor.
On the contrary, the shoes produced in Putian can be easily rubbed on the concrete floor and can be used everywhere.
No brand, no quality.
Besides, you fucking took the lead in resisting our Xinjiang cotton.
Excuse me, who will continue to buy you?
I turned to buy Anta. Isn’t it fragrant?
So, under this trend.
Anta has just released its 2022 semi annual report. The revenue of Anta Group in the first half of the year was 25.965 billion yuan, an increase of 13.8% year-on-year.
The revenue volume is equivalent to 1.1 Nike China, 2.1 Li Ning Company and 2.13 Adidas China.
This is the first time that Anta has surpassed Nike and Adi to become the king of Chinese sports brands.
Data will not lie.
In front of the sharply declining performance, the shrinking market and the brand power that has been lost.
ADI CEO finally started to reflect.
Yes, foreigners have also learned to reflect.
Roth finally admitted: we made mistakes in China.
I don’t know whether the “mistake” he said should be nodding to resist Xinjiang cotton, or whether the price should not have been cut so hard at the beginning.
Anyway, the Chinese market will not give Adidas a second chance.
Therefore, under such pressure, Roth announced that he would leave three years ahead of schedule.
You should know that German companies rarely change their CEOs, unless there are major mistakes that can’t be undone.
Take adidas for example. From 1990 to now, they have only changed three CEOs in more than 30 years.
It can be seen that Roth really hurt ADI very badly this time, and he had no face to stay any longer.
In fact, as a shoe seller, you can sell shoes well?
Do a good job in products and improve quality. What kind of politics is there?
Isn’t this exactly the old saying that lifting a stone falls on one’s own foot.
Ah no, you should be lifting a rock and smashing your own shoes.
What’s more, it’s still a stone that Americans have urinated on. It’s really shameful.