Adidas which is flourishing plans to further vie for the market share of Nike in America

The adidas group for German sportswear releases the claim that owing to the positive state of group in America, as well as increasingly resurgent signs of its another American sub-brand “Reebok”, the group is anticipated to promote American market shares from the lower proportion to 15%-20%. It is predicted by the market analyst that adidas approximately accounts for 10% in current American market.

The chief financial officer(CFO) of adidas, Hans Ohlmeyer, claimed that the increase of American market for the infrastructure of the group in American was so fast when he was interviewed. Consequently, adidas will establish a new logistics center in American this year so as to eliminate the bottleneck phase of the supply. In addition, he revealed that Reebok was hopeful to recover the growth this year after experiencing recombination, whereas there was still a wide gap far from the expectation of the group.

In the third season on the deadline of September 30th, under the powerful growth and rising of the double digit in Chinese mainland market and e-commerce, the amount of sales for adidas group increased from 9% to 5.677 billion euro, the net profit increased from 36% to 0.527 billion euro, and the gross profit rate was 50.4%. During the period, the amount of sales of the major brand- adidas increased from 13.2% to 5.091 billion euro, which accounted for 89.7% of the sales. The sales of Reebok only increased from 0.6% to 0.485 billion euro, which was mainly on account of the negative influence that was affected by some strategies of distribution network and product adjustment in America

In the meanwhile, being conducive from the effective digitization strategy, the sales for e-commerce of Adidas group increased to 39% year-on-year. It is said that the official website of Adidas and Reebok have already become the largest source of income for e-commerce. It is anticipated for the group that the sales of e-commerce platform will reach to 4 billion euro.

Confronting with the competition of adidas, the sales of Nike in American market of the past 3 years will depress in successive two seasons for the first time. Within the 3 months on the deadline of November 30th, the sales of the Nike group for American sports brand(NYSE:NKE)increased from 5% to 8.6 billion dollars year-on-year, surpassing 8.39 billion dollars that was anticipated by analyst, the gross profit rate accounted for 43%, and the net profit depressed from 9% to 0.767 billion dollars. The sales depression of Nike brand in northern America decreased from 5% to 3.485 billion, which is mainly affected by the sales depression of shoes and equipment products with 7%-14% depression.

What deserves to be mentioned is that in the report of sneakers market that was released by the NPD Group last August, the sales of American sneakers increased from 1.85 billion dollars, to 1.86 dollars year-on-year with small growth. Of which adidas had already replaced Jordon as the second largest brand for sneakers, the sales of sneakers had more than half growth, the share of the market increased to 13%, and the sales of the basketball shoes increased to 40% year-on-year. Although Nike still ranks in No.1, the sales of the basketball shoes decreased to 20%year-on-year with the depression for two years, while the Jordon depressed around one third

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