This Year’s 2012 Adidas Revenue Aim Remains Invariant
Adidas keeps on its targeted double-digit growth in 2012 China market income. The year of 2012 may be not the doomsday towards interior sporting businesses, however it is claimed to be the worst year during the recent ten years. Lining Corporation is the biggest China native sports brand, but in the second quarter of 2012, its order amount’s year-on-year increasing rate is zero.
The second biggest local sports brand, Anta is also not in a good condition. Compared with the same period in 2011, Anta’s order amount in the first half of 2012 was increased by low single digit.
Another local sports brand, PEAK is in a better condition, but it is difficult to achieve double-digit growth for the second season’s order amount in 2012.
Compared with the above-mentioned three companies, China Dongxiang’s circumstance could be worse. The bleak performances made its CEO announce his resignation after taking office within a year. Chairman of the board, Mr. Chen took over the post of chief executive officer and he hopes to make vigorous efforts to turn the situation.
On January 11th, Colin Currie, Adidas Greater China area’s general manager said to the reporter of "First Financial Daily" that part of Chinese native sporting brands sunk into negative increase or their 2012’s revenue increasing aim was lessened to single digit, nevertheless this year’s Adidas revenue aim of double-digit increase remains invariant.
Within over 1000 Adidas new-blown stores, approximately half of them is situated in middle scale and smaller cities, meanwhile some Chinese native sporting brands’ main market is also concentrated in middle scale and smaller cities. Colin Currie said: "at present, Enterprises of Chinese local sporting brands are out of trim and their sales growth has been slowed down, so a developing opportunity is just provided for Adidas".
Such brands as Lining, Anta, these enterprises’ staple growing bases are always in small and middle-scale cities, however after over ten years fast expansion, the psychology and consumption trend of small and middle-scale cities are varying, which has brought more advantages to these transnational sporting brand such as Adidas and Nike. In Ma Gang’s opinion, small and medium sized cities’ consumers were originally faithful consumers of brands like Lining and Anta. These consumers are growing up and their purchasing power is gradually enhanced, so now they need products with bigger brands and international colors. If Adidas and Nike are turning into small and middle-scale cities for the time being, they could ponder to these customers’ spending upgrade demands.
Colin Currie referred to the above presentation on the media interview of Shanghai flagship store’s opening ceremony. On the basis of data issued by Adidas, the great China’s region’s sales proceeds gained 28% year-on-year increase from January to September in 2011, and its various brand all achieved double-digit sales increase.
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