Adidas And H&M Snatch Nike Fashion Costumes

Less than p ago, Nike could open new stores in China and wait for emerging middle class consumers to flock to shop, foreign media said.

But this kind of day is gone forever.

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< p > despite the fact that it has entered the Chinese market for 30 years, the world's largest sporting goods manufacturer is being robbed of its customers by Adidas's more fashionable Street apparel and H&M's cheap fashion.

To make matters worse, Nike is deeply trapped in the a href= "//www.sjfzxm.com/news/index_h.asp" inventory less than /a, because the company had expected that the surge in sales after the Olympics did not come true.

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Less than a year and a half ago, when Nike was in the Chinese market, the company expects to double its annual sales volume to 4 billion US dollars in 4 years, P reported.

Nike now says sales in China are likely to continue to decline in the next 2 quarters, which will be the 5 consecutive quarterly decline.

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< p > New York analyst a href= //www.sjfzxm.com/pioneer/ > camelo Leon < /a > said: "as a retailer, you must be smarter.

Today, consumers are more educated and more globalized.

Everyone is forced to become more alert. "

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"P" reported that so far, Nike's challenges in China have not caused panic among investors, because sales growth in North America is still strong.

In the past year, the company's revenue in North America has increased by 18%.

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P Nike executives blamed the slowdown in China's sales and the change in consumer tastes in China.

Mary Remusi, a spokesman for Nike, said that the company still believed that its strategy in exploring China's huge growth potential was right.

In the last fiscal year, sales in China accounted for only 9.6% of Nike's global sales, but profits in China accounted for 25% of the world's total.

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< p > however, Nike's growth momentum has disappeared and stock has started to increase.

Adidas also suffered the same problem, but the company adopted a reduction strategy earlier than Nike to clear up the stock.

In the summer of 2012, Nike's inventories grew faster than sales.

In the last fiscal year ending May 31, 2013, China's revenue dropped by 5% to $2 billion 450 million, while China's national retail sales increased by 10%.

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< p > Nike has said that the size of Nike clothing can not meet the needs of consumers for more self-cultivation style.

When Nike's brand power is strong enough to change a product, the right size is not so important.

New York securities analyst Fay Lund said: "at that time, people's demand for Nike clothing was very strong and business was doing well", so the size problem was not important. "Nowadays, executives realize that they still have room for improvement."

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P, Adidas based in Germany, launched the NEO brand in China. This brand is aimed at young people and seeks to take the middle road between sportswear and fast fashion.

China has become the largest market for NEO brand.

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Lu Hairui, general manager of Shanghai P business consulting company, pointed out: "Adidas has led its competitors by virtue of its understanding of Chinese consumers.

Adidas knows how to satisfy consumers' demand for fashion and sports.

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< p > 20 > < a href= > //www.sjfzxm.com/news/index_p.asp > > Shanghai < /a > student Eric Yang said that he prefers Adidas to Nike because Adidas's products are more affordable.

He said: "outside our school, Nike and Adidas discount stores are next to each other.

Adidas stores are always overcrowded, but Nike stores are not many people.

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< p > reported that many young Chinese are attracted by cheaper fast fashion.

18 year old Zhejiang girls used to wear Nike and Adidas, but nowadays they seldom wear sportswear.

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"P," she said, "when you were little, you didn't care about that. You could wear whatever your parents bought.

But when I get older, I can choose for myself. Nike and Adidas are a bit expensive for me.

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< p > reported that in a rapidly changing society, Nike's marketing strategy is also facing obstacles.

The company is still using sports players to spread the idea that anyone can succeed. In modern China, this technique is becoming more and more difficult because Chinese parents are focusing their attention on books instead of basketball or tennis.

By contrast, Adidas has pformed its previously unchangeable sports concept into a concept that focuses on fashion and lifestyle.

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< p > with Nike's difficulty in recovering its lost land in China, it is gradually reducing inventories, updating products and changing marketing strategies.

In May 2013, the company replaced the general manager of China.

Donald Blair, chief financial officer of Nike, said at a conference call on June 27th that sales of the company's largest retail partner in China are growing. This is an encouraging sign.

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"P," he said, "despite this, we still have a lot of work to do."

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