Nike And Adi Can'T Afford It? Live And Win!

2020, this should be a "sports year".

In addition to the two important events of the Tokyo Olympic Games and the European Cup, there are all kinds of competitive sports that are fully arranged throughout the year. In the first half of the year, the Australian Open, the skating four championships, the Chinese Super League, the CBA playoffs, the table tennis world championships, the F1 China Grand Prix, the world women's volleyball tournament, the second half of the year, the Wimbledon open, the WTA finals and the table tennis world. The cup and S10 League finals will be held in Shanghai.

However, many games have been temporarily postponed or postponed due to the outbreak, and the remaining events are still waiting because the global epidemic situation is uncertain.

A sports year of becoming a bubble

It is not just athletes' training plans that affect the suspension of events, but all industry related upstream and downstream manufacturers will be affected.

Take the most important event of the year, the Tokyo Olympic Games postponed as an example. As of last year, the Tokyo Olympic Games had broken the record and became the most popular event in sports history. It was not the support fee of hundreds of millions of dollars from the three Japanese giants of Matsushita, TOYOTA and Bridgestone. The Tokyo Olympic Games has raised more than 3 billion 300 million US dollars sponsorship, almost Beijing Olympic Games. Three times. After confirming the postponement, economists estimate that the economic loss to Japan will be 3 trillion and 200 billion yen, or about 206 billion 300 million yuan.

As the most watched sports event, the Olympic Games are also a rare opportunity for the brand to be held once every four years. The postponing of the Tokyo Olympics is not limited to Japan. In China, more than 100 sports brands, including Internet factories, hundreds of brands such as food brands, are actively seeking cooperation. Hundreds of brands have sponsored popular athletes or teams. Now, the rhythm of brand marketing has been disrupted, and the cost of sponsorship will lose more than half.

In addition to these, the TV stations and Internet platforms that are heavily paid for the relay rights of the games are affected by the variety and film and television works related to the Olympic theme.

Fortunately, the delay is not abolished, the sponsors are still promising, but for the sports brand, the blow is all-around - apart from the loss from Schrodinger's events, there is also a blow to the retail industry by the epidemic.

Even Adidas can't afford it?

As the world's second largest sports brand, Adidas's first quarter earnings report was so bad that many people didn't expect it.

Photo source: Zhongfu net

In April 27th, Adidas released its first quarter results in fiscal year 2020, and handed out a stunning report card: net profit fell by 96% compared to the same period last year, and over 70% of the world's stores were closed.

According to the financial report, in early 2020, Adidas's business performed well, but the epidemic had a huge blow to the physical retail industry, leading to a major stagnation of business. Data showed that Adidas's global sales fell 19% to 4 billion 753 million euros in the first quarter compared with the previous year, operating profit plummeted 93% to 65 million euros year-on-year, and net profit fell 96% to 26 million euros compared with the same period last year.

With 70% of the world's stores closed, online sales growth of 35% over the same period could not fill the losses. Adidas's current CEO said in an interview, "Asia's 80% to 90% business has stopped almost overnight," and "weekly revenue is losing about $100 million."

This is not even the most difficult. Due to the uncertainty of the global epidemic, Adidas has also issued a warning that the second quarter sales will suffer a further decline, which is expected to drop more than 40% over the same period, and the operating profit will be negative.

At the same time, there are more than 1 billion 600 million euro's backlog on Adidas, which may take a year to clean up. So, recently, discount sales have become the main means of clearing stock in various Adidas stores and online sales channels.

A promotional card for a Adidas store in Shanghai on May 1 holiday.

Old rival Nike has had a hard time. After all, the factors leading to Adidas's poor performance are also afflicting Nike. According to foreign media reports, the sales volume of Nike group will drop by about 34% in the fourth quarter of May, and the damage will be about 3 billion 500 million dollars.

According to research firm Woozle research, Nike may lose more than $5 billion 500 million in revenue in the next three to six months.

Nike also moved the focus of its work to the Internet early. Shortly after the European and American market stagnated, Nike released some scenes of sports stars and ordinary people exercising at home. C Luo Ze launched Nike's training challenge for abdominal muscles. For sports brands, this is also an opportunity for core consumer groups to contact sports stars in another way.

Of course, the darkness is only temporary. For the leading enterprises like Nike and Adidas, the solid foundation is enough to support the attack of black swans. "Consumers' desire for healthy living is increasing day by day. They hope to shape better physique and keep healthy through sports. By accelerating the growth of retail and e-commerce business, we (Adidas) will achieve better long-term development.

Domestic sports brand "late spring cold"

In contrast, the performance of domestic sports brands in the first quarter exceeded expectations, although the performance was declining, but basically maintained at around 20%.

Of course, the 20% was in the first quarter of last year. If combined with the rapid growth of last year, the result is probably just unsatisfactory. That is to say, for domestic sports brands, such achievements can be reversed two years ago.

It is worth affirming that most of the domestic sports brand performance in the first quarter has maintained a good growth momentum: Anta's electricity sales growth in the first quarter exceeded 40%, and Lining increased 10%-20%, which is related to the domestic brand's business strategy, and its timely response, and also related to the environment of China's electricity supplier.

Traffic endorsement, electronic commerce promotion, live broadcast and goods are all domestic sports brand online efforts, at the same time, they also spend more energy in the joint name. For example, Anta joint Coca-Cola and Wei long hot strip, Lining and Dunhuang Museum launched a joint name in line with traditional aesthetics.

In February, the most serious impact of the epidemic, the sports brand also passed the way of selling the whole staff, and did business in social software. Now, production capacity and normal operation of stores have basically recovered. The second quarter's challenge of "clear inventory" has arrived. The discount sale of major sports brands may last for a long time, and may also affect the new speed of major brands.

During the epidemic period, yoga mat is a single product that surges in sales volume. In addition to the fact that many people are getting fat during their homes, they can also prove that people's pursuit of health has reached a new height.

For sports brand, brand positioning and business strategy are correct. The epidemic can reverse the precipitation and transformation of enterprises. Silence is only temporary. It is only a matter of time before re entering the "midsummer".

It doesn't matter if you lose the "sports year".