Free Articles  >>  Business And Finance >>  Page 1503  >> 

Swift Expansion of Adidas

The second biggest sports goods manufacturer in the world has returned to the track of growth after experienced transient pain of high inventory crisis. 2008 Olympic Games will be regarded as a dramatic turning point in the realm of China sports goods market years later. Adidas didn't get championship in Chinese market like it was swore formerly, instead, it was surpassed by Lining. All sports products manufactures were inhibited by enormous inventory after the blowout accident failed suddenly. Adidas started its one-year long reconstruction phase from then on, however domestic brands prospered rapidly, such as Lining, Anta, PEAK, XTEP, they all revealed fleeting growth in financial statements so that people supposed that a new age appeared.
But now the situation is being turned back. By the end of 2010, an ambitious plan of Adidas leading to 2015 was declared. Adidas stores will be stretched from 550 cities then to 1400 cities, containing cities with a population of fifty thousand to five hundred thousand, and 2500 new shops will be increased. 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. Adidas great China area's managing director, Colin Currie said with pride to "Global Entrepreneur" that "we evoked the dealer's confidence once more what they feedback was Adidas is back again.
The situation of opening stores swiftly is familiar. 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.
From 2009 to 2010 this competitive player had always hibernated with sales slow growth or negative growth. Huge inventory was cleaned; tense relationship with dealers was repaired in order to gain closer cooperation; Regional structure was adjusted and products strategy was combed again.
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".

About Author li qing hua :

<a href="" target="_blank"></a>

Article Source:
Article Url:

Article Added on Tuesday, March 20, 2012
Publishers / Webmasters
Article ID: 356597
DELINK URL from Authors Bio
REMOVE Article
Tell A Friend
Leave A Comment!
Download this article in PDF
Report Article!
Search through all the articles:

219 Users Online!!
Related Articles:
Latest Articles:
Business And Finance >> Top 50 Articles on Business And Finance
Category - >
Advertising Advice Affiliate Programs Automobiles
Be Your Own Mentor Careers Communication Consumers
CopyWriting Crime Domain Names DoT com Entrepreneur Corner
Ebooks Ecommerce Education Email
Entertainment Environment Family Finance And Business
Food & Drink Gardening Health & Fitness Hobbies
Home Business Home Improvement Humour House Holds
Internet And Computers Kiddos and Teens Legal Matters Mail Order
Management Marketing Marriage MetaPhysical
Motivational MultiMedia Multi Level Marketing NewsLetters
Pets Psychology Religion Parenting
Politics Sales Science Search Engine Optimization
Site Promotion Sports Technology Travel
Web Development Web Hosting WeightLoss Women's Corner
Writing Miscellaneous Articles Real Estate Arts And Crafts

Disclaimer: The information presented and opinions expressed in the articles are those of the authors
and do not necessarily represent the views of and/or its owners.

Copyright AwareINDIA. All rights reserved || Privacy Policy || Terms Of Use || Author Guidelines || Free Articles
FAQs Link To Us || Submit An Article || Free Downloads|| Contact Us || Site Map  || Advertise with Us ||
Click here for Special webhosting packages for visitors of this website only!
Vastu Shastra

Bulk Email Solutions India Provided By AwareIndia

Company IDS