Reshuffling Adidas Nike's New Battle in China

With the advent of the 2006 World Cup in Germany, Adidas's name has begun to heat up again among fans. As the official designated sponsor of the World Cup, Adidas uses football to give his name. But this is far from enough: 3.1 billion euros join forces with Reebok as a springboard to enter the NBA.

In April, Adidas announced at its headquarters in Frankfurt that it signed a $400 million agreement with the NBA. In the next 11 years, Adidas will become the official sponsor of the NBA league. In the future NBA league, the audience can see more than just Nike and Champions. Other brands, you can also see Adidas basketball supplies. Adidas wants to prove to the world: NBA, I can!

Adidas launches new game with NBA

Although football and track and field are Adidas’ traditional strengths, Nike, the industry leader, will not stand by. Nike's annual sales of football products have reached about 1 billion US dollars. Adidas has an advantage in the team's sponsorship, but Nike’s capital is even more ambiguous and bigger.

Nike's position in the global basketball commodity market is very stable, especially in July 2003, after Nike acquired the athletic shoe manufacturer Converse Co., Ltd. for 305 million US dollars in full, it pulled down the distance with competitors.

Now, Jordan's generation of basketball superstar Jordan Lian is quite old, for Adidas, it is a good opportunity, 3.1 billion euros together with Reebok is also reasonable. Reebok has been providing official apparel and basketball supplies to the NBA since 2001. Reebok's participation may help Adidas achieve breakthroughs in Nike's basketball field. Currently, Reebok and NAO stars such as Yao Ming and Iverson have signed contracts. It can be said that it is a good start.

Asia, especially China, provides Adidas with counter-attack opportunities

The world's first pair of skates, the first pair of multi-nail buckle shoes, and the first pair of plastic-molded soccer spikes are all from Adidas. People even think that it has made a great contribution to the German football team's 1954 World Cup. The “Pyramid” promotion model was the first to visually link brands with athletes, sports teams, large-scale competitions and related sports activities. Before the 1980s, the market share of Adidas' main product categories was as high as 70%. However, after entering the 1980s, Adidas ignored the rise of jogging in the United States, the world’s largest sports product market. The number of consumers who participated in running activities at the bottom of the pyramid surged. Adidas missed the opportunity to let athletic Nike seize the opportunity. Great success.

What is even more embarrassing is that Nike has also grabbed a share in its own strengths. In the European football market, Nike surpassed Adidas by 35% for the first time in 2004...Adidas feels an unprecedented urgency .

As a German brand, in the North American market, it is not easy for Adidas to compete with Nike at the base camp. In contrast, emerging markets such as Asia, especially the Chinese market, will become the new force that will promote the future pattern of both. Adidas will begin to change its position from a defensive position to a counterattack.

Pulling the "Civilian Route" to the Chinese Market

For the Chinese market, which is crucial to the success of the future, the two giants have secretly laid out their own designs. Nike relied on its own ideas of consistently discovering the stars of tomorrow and successfully signed the Olympic 110-meter hurdler champion Liu Xiang who was regarded as a hero by Chinese people, especially young and fashionable Chinese consumers. Adidas owned a company with Nike even after the acquisition of Reebok. All are amazing market tools - Yao Ming.

"The secret of Nike's steady growth in its world is to hire the most talented and respected people in all relevant fields," said Josh Tuckerman, president of Buzztone, a New York marketing company. But now that opponents have attacked their own doorway, it is imperative that they first stabilize their position.

Although Nike does not do many direct marketing activities in the city like its competitors, it uses hero symbol marketing to play an important role in loyal consumers' minds, such as long-term contracts with Michael Jordan and Tiger Woods. Make Nike become the top brand in the eyes of urban consumers and sport-loving young people.

In terms of channel and terminal sales, Adidas and Nike both gave up their high-end posture in the Chinese market, lowered their profile from the channel, increased the construction of sales outlets and promoted the promotion of terminal image.

Adidas has been promoting "street basketball events" in key cities in China since 2000, targeting 18 to 25-year-old youngsters. Nike is not weak. Nowadays, CCTV's Nike ads are ordinary people unknown to the general public. Nike started the civilian route marketing.