Andrma Is Wrong To Follow "Sports Fashion" And Needs To Readjust Its Brand Positioning

Recently, famous sports brands Andmar In an interview with Kevin, the founder of the company, Mr brand In order to help consumers to participate in sports more, andrma will continue to focus on the style innovation in the future, but its focus will be on the production profession Sportswear 。 "We grow so fast that we lose focus." He said. As a once brilliant sports brand, now it mistakenly follows the trend of "sports fashion", which leads to many obstacles in the development of China. Industry insiders believe that andama needs to timely capture the needs of consumers, improve online and offline channels, and readjust its brand positioning.

Compared with Nike and Adidas, endma is very young. However, andrma, founded in 1996, was the best performing company in the industry in the past decade, and its share price rose 25 times from 2009 to 2015.

According to public data, andrma was listed on the New York Stock Exchange in 2005, and since then, its performance has continued to grow. Its sales volume has increased from the initial $87 million to more than $4 billion in the past two years. For 26 consecutive quarters, it has achieved quarterly revenue growth of more than 20% year-on-year.

According to the world clothing, shoes and hats.com, in 2014, the sales volume of andrma in North America surpassed adidas for the first time, becoming the second largest sports brand, with a market value of US $15 billion.

However, the rapid expansion also foreshadows the sharp decline in the future. In 2017, the total revenue of andma reached US $4.977 billion, a year-on-year increase of only 3.13%, and a loss of US $48.26 million. The net profit dropped by 75.6% year-on-year, and the stock price also dropped from about $27 at the peak period at the beginning of the year to $10.

This also led to the departure of Adrienne Lofton, the company's top marketing executive, senior vice president of global brand management, in 2018.

It is reported that Adrienne Lofton has joined Adema twice since 2008, with a cumulative term of more than eight years. It is worth mentioning that she is not the first marketing executive to leave andrma in the near future. Andrew Donkin, chief marketing officer, and Pamela Catlett, senior vice president, left andrma in November 2017. After leaving Amazon for 15 months, he returned to work as the head of global marketing at virgin.

In addition, it is reported that recently, Kevin plank said in an interview with the media in Washington that he would consider selling endma if someone gave a suitable purchase price, because he needed to be responsible to shareholders.

Since 2016, with puma, Adidas and other big sports brands adding "sports fashion" elements to their products, andema has gradually expanded its market and opened up new product lines. The brand, which focuses on the production of professional sportswear and has many fitness fans, has also begun to cooperate with the fashion industry to create products combining sports and fashion.

It is reported that andrma has hired Tim Coppens, a young fashion designer with a small reputation, to develop its high-end fashion product line UAS to attract young consumers, especially to expand the female consumer market. Kevin plank also said in a conference call after the fourth quarter financial report in 2016 that andrma's products needed to become more fashionable.

However, the sales of UAS series products did not achieve the expected effect. Moreover, the company's stock price began to fall sharply in North America. Even with the endorsement of NBA all star players, the company has not improved. Today, the failed UAS product line has been discontinued.

According to market insider, according to Anthony riva, an analyst at global data retail, a consulting firm, as quoted by marketinsider, more and more U.S. customers are abandoning endma because they have no idea what andrma represents and what part of the sports market andrma is good at.

Adheer bahulkar, a partner at consulting firm atkearney, also commented that it was too late when andrma decided to enter the sports fashion market in 2016. "When you realize you've lost the market, you should at least take back the pure sportswear market."

The loss of North American market may make andrma pay more attention to Chinese market. In 2015, Kevin plank proposed that in the next five to 10 years, he would strive to develop China into the second largest self operated market of andrma. However, according to the "UA offline stores" section of andrma's official website, as of December 31, 2018, there were only 229 offline stores in the Chinese market. The number of stores in Huamen shown on Adidas's official website exceeded 10000, and Anta, a domestic brand, also had more than 10000 offline stores.

In fact, on the track of the Chinese market, andema has a lot of resistance. There are Nike and Adidas in the front and Anta in the back. In addition, adidas Group will enter the Asia Pacific market in China with 29% growth rate in the Asia Pacific region in the early 1990s, and will set up a record sales growth rate in China in the early 1990s.

Anta's market value has exceeded 120 billion Hong Kong dollars, about 15.3 billion US dollars, far more than the market value of andama's US $6.8 billion, making it the third largest sports brand in the world. If Anta succeeds in purchasing yamafen sports, its volume will expand again. This also means that under the dual pressure of international brands and domestic brands, it is not easy for andama to make a good turn in China.

An expert from the industry department of China Garment Association, who does not want to be named, believes that there are several reasons for andrma's greater development pressure in China. The first reason is that she is not sensitive to changes in consumer demand. "It is difficult to obtain sustainable profits by relying on a sweaty T-shirt alone." He said.

Secondly, the expert believes that the consumer's offline store consumption experience is not good enough. The reporter of China business daily interviewed some consumers randomly in andema stores in Beijing. They thought that andrma's stores lacked interaction with consumers. Some sports brands would place treadmills and other equipment to enhance the shopping experience of consumers.

In addition, the above-mentioned experts said that andrma needs to provide a better e-commerce shopping experience, carry out personalized customization for consumers, fully display products, enhance communication with consumers, so as to establish its own brand image.

For more wonderful reports, please pay attention to the world clothing, footwear and hat network.