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In the first year after the global CEO took office, Adidas Greater China revenue increased by 8.2% year-on-year.

In the first year after the global CEO took office, Adidas Greater China revenue increased by 8.2% year-on-year.

In his first full fiscal year after taking office, Adidas Global CEO Goulden led Adidas Global to get back on track, and the performance in Greater China was also very impressive.

On March 13, Adidas announced its fourth quarter and full-year financial report for 2023: Adidas global revenue in 2023 was 21.427 billion euros, the same as last year under currency neutrality (the same below); operating profit was 268 million euros, higher than expected at the beginning of the year Nearly 1 billion euros higher; gross profit margin increased by 0.2 percentage points to 47.5%.

Among them, Greater China’s revenue in 2023 will be 3.190 billion euros, a year-on-year increase of 8.2%; not only has it achieved “quality growth” for three consecutive quarters throughout the year, but it has also achieved strong double-digit growth in the fourth quarter, with revenue of 670 million euros. , a year-on-year increase of 36.8%.

Goulden said that performance in 2023 “exceeded expectations.” “Although not good enough so far, the performance in 2023 is better than expected, with operating profit increasing by 1 billion euros compared with the forecast at the beginning of the year and reducing inventories by 1.5 billion euros. More importantly, we have gained a lot from consumers We have received positive feedback from our global dealer partners, and classic shoes such as Samba, Gazelle, Spezial, and Campus continue to be popular in the market.”

Goulden said in the financial report that large-scale sports events such as the Paris Olympics and the European Cup to be held this year will ignite sports enthusiasm around the world, all of which will lay a better foundation for Adidas’ global performance in 2024. “The company has already seen some growth in the first quarter of the year and expects to see even stronger growth in the second half of the year.”

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In September 2023, Goulden visited China for the first time after taking over as the company’s CEO. He mentioned, “China is one of Adidas’ three major strategic key markets in the world, and Adidas is full of confidence in the future development of the Chinese consumer market.”

The better-than-expected performance of Greater China in 2023 is first and foremost inseparable from Adidas’ localization efforts in the Chinese market.

Adidas has a localized management team in China. Goulden once said: “The Chinese team has full autonomy to make decisions for the local market. We very much trust and support them to do the right things and support them faster and more efficiently.” Respond flexibly.”

Xiao Jiale, Managing Director of Adidas Greater China, also expressed sincere emotion: “Fortunately, over the past year or so, I have gained great support and great trust from our headquarters, allowing me to build a localized elite. The team gives us more space to do the right things for Chinese consumers and the Chinese market.”

Specifically, China’s local management team has the right to decide which global products will be launched in Greater China, whether it is cooperating with artists, actors, designers, or sponsoring some activities and competitions, as long as they are close to the Chinese market and in line with Chinese consumer preferences , Chinese culture and stories, the Adidas China management team can make decisions.

Focusing on the Chinese market, Adidas has achieved three major aspects of localization. The first is design localization. With the help of its creative center in Shanghai, Adidas creates more products that meet the needs of Chinese consumers and integrate into local culture; the second is localized procurement. With the help of China’s top supplier resources, Adidas is vigorously increasing its production volume in China; secondly, it is localizing its operations, including sponsoring local events and local athletes, while upgrading supply chain flexibility, digitally empowering retail, and so on.

Xiao Jiale mentioned, “Currently, Adidas has a 35-person designer team and more than 100 creative staff in the Chinese market. More and more products we sell in the Chinese market are designed and manufactured in China. It is expected that this One figure will reach 75% in 2024.”

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Adidas Greater China’s continued “quality growth” benefits from the continued recovery of domestic consumption. It is also related to Adidas’s continued deep penetration into the Chinese market and its efforts to improve quality and efficiency in localized operations, product innovation, brand marketing, and supply chain logistics.

In addition to localizing the Chinese market, Goulden has repeatedly stated that Adidas will continue to increase investment in this important market in China. In 2023, Adidas invested 1 billion yuan in the Suzhou Automated Distribution Center The maximum daily processing volume exceeds one million pieces.

Suzhou Automation Center Construction provides leading samples.

Using this distribution center as a starting point, Adidas is promoting the upgrading of flexible supply chains in China. The ReAct plan, launched in the first half of 2023, covers the complete “end-to-end” process of design, procurement, production, and sales, and gradually realizes the transformation from “product-based” to “product-based”. Upgrading from “fixed sales” to “fixed production based on sales” to create a more flexible, efficient and sustainable business development model.

China’s strong retail network and shoe and clothing manufacturing capabilities have laid the foundation for the implementation of ReAct, and Adidas will present a more flexible posture in China.

Adidas already has clearer goals for increasing investment in the Chinese market: First of all, Adidas has more than 8,000 employees in China and will provide more jobs for the Chinese market in the future while increasing support for more Chinese locals. Designers and creative teams; secondly, Adidas will invest in more stores, and the size of a single store will be larger; thirdly, Adidas will increase marketing investment according to market conditions and strengthen channel layout and branding in third-tier and other emerging cities Image creation.

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In addition to increasing the emphasis on “Created in China”, Adidas has been actively creating deeper sparks with traditional Chinese culture at the product level, interpreting “in China, for China” in multiple dimensions, and deepening the emotional connection with Chinese consumers.

In February, Adidas released a new brand proposition “YOU GOT THIS”, which successfully resonated with the public about their original intention to love sports. To interpret this new brand proposition, Adidas invited well-known Chinese athletes Li Yingying, Su Yiming, Liu Qingyi, and Wu Yi? to perform together with ordinary sports enthusiasts in the classic song “Under Pressure” by Queen. Find the purest love for sports and enjoy the most authentic happiness of sports.

2024 is the Year of the Dragon in the traditional Chinese calendar. As one of the symbols of the Chinese nation and culture, the dragon has a unique status in the hearts of the Chinese people. In the New Year of the Year of the Dragon, Adidas released the “Adidas & Century-old Art Masters Joint Series”, starting from traditional Chinese culture and inspired by the classic creative elements of three Chinese art masters, Qi Baishi, Zhang Daqian, and Li Keran, and launched a variety of new styles that are in line with China. The new products for the Year of the Dragon “co-branded” by art giants have been welcomed by consumers.

In addition, the joint series created by Adidas with China’s outstanding young designers Qiu Shuting and Zhou Rui, as well as the Year of the Dragon New Year series jointly launched with Chinese designer brand SAMUELGUÌYANG Yang Guidong, have also continued to set off fashion trends. The three-party co-branded shoes brought by Adidas, Edison Chen and NEIGHBORHOOD recreated the long-lost “sold out in seconds” scene as soon as they went on sale.

Adidas has always taken many actions to support the development of sports in China. For example, Adidas is behind events such as the Chongli Super Cross Country, Beijing Marathon, Shanghai Half Marathon, Hong Kong Marathon, Taipei Marathon, and China Track and Field Street Tour. At the same time, Adidas has provided long-term support for the development of youth sports. By joining hands with the Youth Sports Department of the State Sports General Administration, the Chinese Football Association and the China Football Development Foundation, it launched the “2024 Organization of Western Region Women’s Football Youth to Go to Germany to Aid in Study and Training” international public welfare project. As well as sponsoring Jr. NBA campus basketball games, etc., it helps the high-quality development of Chinese youth sports.

Xiao Jiale recently stated that 2024 is the 75th anniversary of the founding of New China, the 75th anniversary of the founding of Adidas, and a great year for sports. “Looking forward to the new year, Adidas will adhere to the concept of ‘in China, for China’, use sports as a bridge, increase investment in sports infrastructure, professional events and mass sports, so that more and more people will fall in love with sports and pass Sports change lives.”

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