More and more foreign sport brands have aimed their target to assertion and third tier markets. In fact, Adidas after battling with the inventory crisis of Beijing Olympic, has taken a more concrete action to your second and third tier markets. In the past, mostly dealers will be granted the right to manage in these municipalities. But now, Christophe Bezu who the leader of Adidas in China makes a conclusion Adidas will directly control those sectors. Meanwhile, management also needs to be become 'a bit more of China', in his understanding, the Adidas localization not merely have more rapid plus more depth, but also more dimensions, such as recruit more local employees, and closer interaction with the Government, to send more managers to actively communicate with local dealers.
When the local brands LiNing, Anta are having a consolidation in or even and third tier markets, preparing for entering the positions that originally belong to the foreign markets. This is one of motivations which Christophe Bezu advocates create the counter ultimately second and third tier markets of China, first-line urban edge is diluted, if not expansion, Adidas will lose access to the timing of second and third tier markets.
Applied to the price leverage by international brands, is preparing to give active local sports brands with pressure by lowering the threshold price and occupy a part of their 'sphere of influence.' No matter Anta with chinese people Olympic Committee, Pick hands NBA, and LiNing sponsors the foreign sports teams and sports stars, currently their brand image is not compared to the international brands. Prices to international brands, is bound to improve a lot of difficulties to chinese people sports brands with premium products through a variety of means, because of the psychological aspects of shoppers will be 'stubborn' to be assumed that the domestic brands and international brands to keep a certain price reduced.
Thus, the international brand is prone to bring such a situation with lowing price, a part of customers consume domestic brands had turned to international brands, along with the original international brands consumers because there's really no better choice and have to choose international brand.
For the brands, price reduction is a term risk, no talking about the profit has become small, if there is something without dealing correctly, is likely to damage the image of international brands. In order to this, conflicts between Adidas and dealers stems from the price reduction: Olympic inventory backlog, dealer in order to clear inventory, at greatly reduced, but afraid of damaging the Adidas brand, Adidas only compelled to interfere. However, won't be done in the new president of Adidas China, Christophe Bezu concerned, Adidas must first solve rooted problems in the second and third line city. In this sort, he proceeded to risk to reduce prices, sacrifice the interests of the company, undertook pressure to succeed that it was difficult to take short-term earnings. 'This sacrifice is temporary.' Christophe Bezu said, 'We do not mind changing a little image in China, about Adidas .'
International brands go green to low price, must be bound of bringing rest.
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