August 2005 a news shocked the sports goods industry: Europe's largest sports goods maker Adidas Salomon 3 Germany announced that it plans to spend EUR 3.1 billion acquisition of Reebok USA to further challenge the world sports goods Nike U.S. manufacturing supremacy. Reebok is the second largest after the United States, Nike sports goods manufacturers, ranked third, according to the agreement, Reebok will continue to retain their own brands, the headquarters still in Canton, Massachusetts. Nike acquired 后阿迪达斯 enhance their battle with the strength of the vital U.S. market. Coupled with the earlier, Adidas as the Beijing 2008 Olympic Games, beating Li Ning Sports Goods category the only partners of a similar size with NIKE's new campaign merchandise kingdom surfaced.
Adidas legend
Committed to creating the world's leading sports brand Adidas Salomon is operating sports apparel, footwear items, equipment type, a renowned international companies, is Europe's largest sports goods manufacturer. Currently 阿迪达斯索 Solomon Group's three brands to its family made a new building - will be divided into three series of Adidas brand, including Adidas sports performance series (formerly " Sports endless "series), sports the traditional series (formerly the classic series) and sports fashion series, giving each family its own flag, were localized in different populations. This division orientation fundamentally changed the traditional sports apparel and footwear companies classified according to the method. At present the main offerings include: ADIDAS - soccer supplies, seasonal types of clothing (jogging suits, football clothes, basketball clothes, etc.); Bonfire - ski equipment and clothing; Erima - football team equipment and supplies; Mavic- - bike sports equipment: gear, variable speed devices.
From 1920, began manufacturing the first pair of sports shoes to the factory in 1927, to mark the 1972 introduction of clover, Adidas has been the forefront in the movement of goods. However, since the establishment of leading-edge but also a 1995-1996. With the introduction of the new logo and company in Paris, flange to overcome the market, Adidas sports goods essential to establish the Kingdom of shape.
The company has operations in the global market. Market segmentation: Asia, Europe, the Americas. The company's main subsidiary of the Ministry all over the world, directly or indirectly, through holding, divided into Germany, the Americas, Europe, Latin America, Asia Pacific.
ADIDAS through its worldwide subsidiaries, wholesalers, licensed operators and agents to make our products almost every country in the world are sold. Its branches spread over 50 countries and sells to more than 160 countries and regions, is the world's number one sporting goods company. ADIDAS product of many, the main one is soccer shoes, annual production of 28 thousand pairs of more than 500 varieties in over 150 countries occupy the top sporting goods sales. ADIDAS established accomplished in the framework of the market, including ownership and management will be clearly defined; a product management point of intersection; to centralized management tools, and in Europe and North America to establish design and development center; set up regional sales subsidiary company structure ; and distributors with the original joint venture, directly improving market position.
Outsourcing logistics operations to protect the Kingdom
If the success of NIKE brand, marketing, logistics, combined with the embodiment of (the next period will be referred to) Adidas brand strategy is not very good in case of success originated from the cost savings. This point is vividly embodied in the supply chain.
NIKE ADIDAS logistics strategy and not the same. NIKE through long-term development, has established a good logistics infrastructure, using its own logistics system; ADIDAS been costing more likely to outsource their logistics operations to reduce operating costs.
As early as mid-year 1996, should not affect the level of service to customers under the conditions, ADIDAS companies focus more on logistics cost control, by repeated weighing, ADIDAS in 1996 decided to clothing in the United States to the UPS global delivery outsourcing logistics companies to bear; the first half of 1997, and CALIBER logistics companies, to the factories in the United States SPARTANBURG distribution of sports shoes outsource CALIBER. Logistics co-operation with these companies so ADIDAS produced good benefits, not only significant savings in cost and improved logistics service quality, rapid delivery of its products to customers.
The year 1996, ADIDAS continue to adjust its sales channels, the part of the royalties and the distributors to become a subsidiary, due to this change, ADIDAS in the year 1996, royalty income decreased slightly, from 1 in 1995 100 million German marks reduced to 097 million marks. However, the remaining royalties and the distributors are still better than the 1995 revenue increase of 8%.
1997 in Latin America to achieve complete control of the ADIDAS brand, is expected in 1998, district management, will continue in viable areas of product distribution over ADIDAS.
ADIDAS through cost control efforts to reduce costs. In the original SALOMON distributors to sell products through the country, to use the institutions in these countries ADIDAS product sales, reducing costs and improving efficiency. ADIDAS sales channels will rationalize and coordinate ADIDAS SALOMON their sales and distribution channels, with retailers using ADIDAS footwear products in strong cooperation, to promote SALOMON sales, such as SALOMON products in the skating industry sales. The TAYLOR MADE Golf products at retail on the strength also helps ADIDAS clothing and footwear sales.
ADIDAS-SALOMON 1998 within the Group to conduct a comprehensive logistics operation was restructured. ADIDAS 1998, the strategic focus of the first merger is completed and SALOMON. In 1998, the new golf and bicycle business sector gathered TAYLOR MADE ADISAS advanced equipment and clothing and footwear in terms of outstanding experts. The two institutions through the use of existing distribution channels, joint product development, promotion of their own sales.
In the group restructuring, ADIDAS TAYLOR MADE U.S. golf golf with the merger, and moved to the location TAYLOR MADE, California CARLSBAD. Europe, in the United Kingdom set up specifically for golf product sales and distribution agency, to establish a base, to better service the region's sales channels.
Strategic focus, the second is living in Japan, a wholly owned subsidiary to take over the region's apparel and footwear distribution business. ADIDAS original commitment to the Japanese market the company commissioned DESCENCE clothing and footwear sales and distribution, because the commission agreement with the company expires at the end of 1998, ADIDAS so vigorously to build its distribution subsidiaries, to ensure that this important Asian market, Japan. This work began in 1997, April 19, 1998, the company was formally established, with 113 employees. ADIDAS trying to make the company become a base for the Asian market penetration. It will take over the first quarter of 1999 the company had to ADIDAS commitment DESCENCE sales and distribution business.
ADIDAS cost growth in 1999 was 16%, slightly higher than its net sales growth, despite an increase in gross margin, but the cost of increasing the long term situation is not conducive to the development of the Group. Therefore, ADIDAS adopted a series of strategies to reduce costs, improve efficiency, to meet the needs of efficient organization. These strategies include improving supply chain efficiency; restructuring of Europe's logistics system; re-construction and optimization of the organizational structure of ADIDAS, especially in marketing; continuing to use the Internet to strengthen ties suppliers and customers, not just for sales and open up market. Through these measures, ADIDAS its operating costs, a percentage of sales decreased by 2 percentage points.
Fixed assets in 1999 increased by 16%, mainly to increase investment in IT technology, some of these inputs used to save logistics costs.
TAYLOY MADE by increasing the logistics, product development, manufacturing inputs, 99 years later than the third quarter 1998 sales levels improved significantly.
In 1999, ADIDAS in North America is facing a difficult retail environment. The sporting goods company, as retailers need to sell their excess inventory, and ordering new products have the tendency to reduce, ADIDAS contract sales channels there short-term difficulties, resulting in decreased sales in North America ADIDAS. However, the long term, the current difficulties will be much more healthy retail environment, it is highly likely to stimulate the sporting goods company's new round of development.
ADIDAS in 1999, sales in Europe increased 13%, mainly due to TAYLOR MADE way to its sales through independent distributors from selling, TAYLOR MADE into a complete control by the body to carry out. Overall open look, Adidas in 1999, after adjusting market strategy, a substantial increase in global income, compared with 9.91 billion marks in 1998, an increase of nearly 500 million marks, even more amazing is that it achieved in the Asian region, 1999 sales of 1.28 billion marks, compared with 1997 increased by nearly 80%.
From another set of data can be seen, Adi logistics strategy adjustments. In 1996, ADIDAS held in Lansing, Michigan, United States ADIDAS Distribution Center Co., Ltd. 43% stake in 97 years, the proportion of shares held by 46%, 98 years rose to 63%, 61% for 99 years.
2000, ADIDAS company to meet and adapt to the Internet era, in the implementation of electronic transactions, "the three pillars of strategy." First, the world's leading Internet sports media company Sportsline.com, and its European subsidiary, Sports.com in a global market integration, that is, with these two companies have extensive cooperation in the field of electronic transactions and, through them URL cbs.sportsline.com and sports.com ADIDAS brand and product marketing. The global benefits of cooperation with the U.S. and Europe have penetrated into Asia. This cooperation will enable ADIDAS thanks to its two partners in the field of electronic trading experience, so that the three companies each to use the other brands as possible, as ADIDAS products offers great potential for online sales. Secondly, some important retail joint venture in electronic transactions, as the major complement of electronic trading strategies. Finally, in his own website to sell your product. In order to protect the pillars of effective implementation of the strategy, ADIDAS company's transformation of the original warehouse, in Germany the establishment of a modern large-scale distribution centers for companies selling in Europe and the Middle East to provide distribution services to enhance the efficiency of logistics and distribution.
Expand the network of protection and integration of OEM supply chain strategy
In the new century, sports goods companies increasingly sensitive to cost. As the supply is very large, small changes in unit costs will lead to significant changes in total costs; In addition, a style of athletic footwear sales decreased to 8-9 months, less than before, more than half. Previous generation of plants is the next order every two weeks, is now becoming the next week orders; shoe life cycle from the past 5-6 months reduced to 3 months.
To cope with this adjustment, supply chain security feature is still important. On the one hand to increase production in various locations. Companies like Nike stepped up in Asia, also in South America, Australia, Canada, Italy, Mexico, Turkey and the United States manufacturing plant layout, announced earlier this year, according to the "social responsibility report", employing 650,000 workers in Nike . Nike released the list of overseas manufacturers, including: China, 124, 73 in Thailand, South Korea's 35, Vietnam 34, in addition to other parts of Asia and South America, Australia, Canada, Italy, Mexico, Turkey and other places in the factory. The ADIDAS, too, in the wild around the layout. The benefits are obvious, like the beginning of this year China-EU dispute over the quota, because diverse origin, can quickly be part of the original order to the Chinese products to Indonesia, Vietnam and other countries. According to Spanish quoted Trade Minister Marie Elka Pangestu of Indonesia's speech, Adidas and several enterprises in Indonesia reached 140 million U.S. dollars of orders expected to convert its production to Indonesia, Vietnam, and the number of products currently account for about 20% of Chinese production. This will directly reduce the pressure on the enterprise.
On the other hand, Adidas, and OEM business R & D to maintain interaction in order to resolve this dilemma. Shoes R & D and production process there is a distance between, the shoe is not liable designers, we can immediately put into production, but must be open mode, the kind of shoe manufacturing, cost, revise and improve such processes. In the process, as the brand companies only design and marketing capabilities, must work closely with manufacturers.
The Adidas foundry with his treasure into unparalleled in this area do. Dongguan Pao Cheng Industrial Park, the high port Adidas R & D Center. The center is Adidas running shoes in the world's largest R & D centers, R & D by the Adidas shoe design and the R & D staff have completed, Adidas was mainly responsible for product design and R & D center for the entire process of production in various technology areas .
First of all product development company established by the company Adidas shoes, shoes, shoe design and materials, and R & D center is responsible for the development die, in accordance with the requirements of raw materials procurement, manufacturing plants in the R & D center and make like shoes. Kind of shoes developed later, first in the Adidas high-level internal audit, feedback after the modification, after evaluation of key customers, and then after the final evaluation products.
In cost accounting, the R & D could make recommendations, such as product designers to specify the quality of good, high prices, long delivery times. In these cases, although the material has already been specified in advance Adidas may also be made under the R & D program to modify the original design.
R & D interaction so that Adidas and Po have a mutually embedded into the interface. With this interface, Adidas can make the design into their products to produce the program; R & D center in the design of high-port success rate has been as high as 90%. Adidas sports goods such guarantees the effective functioning of the Kingdom.