Four Reasons For Adidas'S Depressed Market In North America

Adidas is in trouble.

Sales in the North American market fell for three consecutive years, especially when market share plummeted by about 40% last year.

Investors have questioned the management capacity of Adidas's top management.

Adidas used to be the biggest competitor of American sports brand Nike in the United States.

But in 1996 last year, the Under Armour, the US sports brand, came up and came back, pushing Adidas up to second and Adidas to third.

Well,

What's wrong? What's the following analysis from the US media?

"I can't hear you."

"Adidas refused to listen to retailers' opinions," New York said.

Retailer Nohble founder Christine Noh says retailers are clear about what consumers need and what they sell best.

As far as Germany's top executives are concerned, they do not have to look around. Of course, they do not understand the situation in all parts of the United States, and these situations are hard to give feedback to superiors, so let alone solve these problems.

Adidas executives have been aware of this problem. At present, the company is planning more "American style" new products.

Mark King, head of North America, said in an interview: "the thinking mode of the United States and Germany is so different.

We have just realized this.

"Not finding the right person."

Adidas has no discerning eye for spokesmen.

In 1980s, Adidas did not choose Jordan Michael Jordan as endorsement. Adidas thought fans preferred higher players, but Nike seized the potential stock of Michael Jordan.

30 years later, despite the fact that Jordan has been away from NBA for more than ten years, Jordan Brand (Nike's brand) is still creating billions of dollars in revenue for Nike.

In addition to Michael Jordan, Nike also invited more American athletes to speak for them, far more than Adidas.

The figure below shows the difference in the number of sneakers worn by NBA players in the 2014-2015 season, and Nike is far ahead.

Product development cycle is too long

Germans are known for their rigour. Adidas takes 18 months to design a product from design to rack.

But the trend change is fast changing.

The long development cycle has made the company miss many fashionable elements.

Adidas said that the company is now vigorously shortening the product development cycle with a goal of 6 months.

Referring to the high purchase, a senior Adidas executive said: "when we saw the figures, we realized that the business would be very difficult because we had to pay too much money."

The former senior executive said: "Reebok was in a predicament at that time, and Adidas had to pfer funds from its main brand to improve its business."