Adidas Is Going To Make A Franchise Chain

October 14th, August of this year.

The more inventory Adidas handles, the more it can handle.

Selling stocks is more profitable than selling new ones.

Dazzle the processing of inventory into a business began in 2008.

This year, many sports brands, including Adidas, are not benign. Due to the high expectations of the sporting goods market after the Olympic Games, a large backlog of goods such as Adidas has not been sold to consumers at all distributors.

Adidas's annual report shows that in 2008, its global market stock value was 1 billion 995 million euros, a significant increase of 22.5% over the same period last year. In the Chinese market, a widely spread figure is that Adidas's inventory value is around 1 billion yuan.

As of June 30th this year, inventories are still bothering Adidas. In the first half of this year, Adidas's Greater China sales amounted to 403 million euros, down 16% from the same period last year, which is the only performance decline in Adidas's six largest market.

In 2009, a group of Adidas that was shown to be treated as a "garbage bag" was worth 60 million yuan.

Bao Qinghua said that Adidas, Nike and so on the strong sporting goods enterprise generally does not return goods, but because the stock is too many, the dealer is unable to bear heavy burden, in 2008 Nike and so on gave the dealer certain return quota.

The predecessor of the show was a company that made clothing and shoes and hat distribution management software. Nike dealers, Anta, XTEP, seven wolves and so on were all customers of their software, and the information of the dealer's shipments had not been deceived.

In the second half of 2008, the company was set up to clean up inventory for dealers like Nike, Adidas and other big sports companies.

Nike, Adidas's big stock in the domestic three or four, five line cities are actually very common. The price of the single product of Nike and Adidas is generally over 500 yuan, the average price of the show is 3~7 fold, so that the average price of a pair of shoes of Nike and Adidas will be as low as 300 yuan. Now the average price of Lining products is 200~300 multivariate. For three or four or five cities, consumers who are more concerned with brands but have limited purchasing power, the products that are not quite different from the price of domestic sports brands after the discount are no longer "impossible".

Selling inventory is not only a market, but also a room for making money.

Take Nike as an example, dealers take the price of goods from Nike at 6.1~6.4, and if they sell at a full price in Shanghai, the gross profit of dealers will be 30~40 percentage points. But if these goods enter shopping malls, commercial wing points will be charged, the cost of shopping in shopping malls will be charged by 28~35 percentage points. A good shopping mall will have to deduct 35 points' fees. For Nike, such a big brand may be deducted a little less, about 28 percentage points, plus manpower, water and electricity charges, and capital costs, so it is not easy for dealers to earn money.

By contrast, a large number of stocks are on hand like ants in hot pots, and the price of inventory to the hype is surprisingly low. The Adidas stock that has been sent from dealers can reach 70 percent off or even lower. If the operation is right, selling the stock is no less profitable than selling new goods.

In Xuzhou, Jiangsu, a daily sale in a local store is 5000~6000 yuan, with sales of around 150 thousand yuan a month, compared with the stores selling new products.

In 2009, inventories of Adidas and Nike sold more than 100 million yuan, earning more than 10 million yuan, about 60% of which came from Nike and Adidas's inventory.

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Franchise chain mode

At the beginning of the inventory business, because the trust between Nike and Adidas dealers was not strong enough, the dazzle was to buy goods from the dealers in a form of one-time buyout, buy up a lot of cash, and the pressure on the capital quickly turned the dazzle to a way such as the development union store.

The benefits of affiliate mode are obvious. Joining stores to get goods to show off cash, dazzle the money and find Nike and Adidas dealers to buy goods, show off their own money; on the other hand, to become a flashy franchised store, they also need to show up to pay the franchise fee. The dynamic joining system is divided into three levels. The provincial level partners pay 80 thousand yuan to show off, 50 thousand yuan to the prefecture level, and 10 thousand yuan to the county level.

Bao Qinghua said that after a period of time, he found that the provincial franchisee, because of its strong strength and familiarity with the business model of showing off, has made some efforts to become a competitive rival.

In 2009, the number of franchised stores signed with the show was more than 300, actually more than 200.

The sales area is 80 square meters to 200 square meters.

The franchised store is not the same as the sports brand stores at home and abroad. The sports brand stores at home and abroad can only sell products of one enterprise, and the showing shops in addition to Nike and Adidas, as well as PUMA, new brun and other brands, this mode is quite attractive.

Bao Qinghua said stores only make one brand, with great investment and risks. For example, you make a store of Nike and Adidas, a store needs 1 million yuan investment, but it becomes a brand name discount shop. As long as 300 thousand ~40 yuan, you can sell 6~7 brand products, one brand product is not good enough to sell, and the other brands are still selling well, so the brisk franchisees develop very fast.

Should big cards be opened or closed?

Adidas's official flagship store on Taobao has an impact on dazzle, but the most important thing is Adidas and Nike executives' views on the show mode.

On the surface, it is a good thing for Nike and Adidas to let the dealers liberate the stock from the tight predicament of the capital chain. It is also beneficial to Nike and Adidas. Besides, the discount chain stores are mainly distributed in the domestic three or four and five line markets. Nike and Adidas's main markets have filled the gap between Nike and Adidas in the domestic first and second tier cities, so that the products of the three or four and the five line market are also something that has not been done yet.

Bao Qinghua said, "Nike and Adidas can handle their inventory on their own, but from the point of view of price and cost, they can sell them directly to me.

Now that logistics has been outsourced, why can't it be outsourced? Nike and Adidas have different voices for us, but PUMA and other brands are recognized by us. We enjoy the treatment of first class dealers. I hope Nike and Adidas executives can recognize our model.