Can Andemar Borrow The Chinese Market Over The Years?

Andemar has been encountering iron skating in recent years, and the international market is the new growth point of the future Andrea, especially the Chinese market.

Andmar, once ranked the second largest sports brand in the market value, has been suffering from Waterloo in recent years.

According to a quarterly report released in 2018 by Andrew Ma, the company's revenue grew by 5.9% to $1 billion 190 million during the reporting period, while net loss expanded to $30 million 200 thousand from $2 million 300 thousand a year earlier.

According to the insiders, the international market is the new growth point of the future Andrea, especially the Chinese market.

However, some analysts also suggested that Andrea would have missed the best development period because of its late entry into the Chinese market. In the future, Andrea needs to accelerate the layout of offline stores and expand the business of e-commerce, so that it will be able to gain a foothold in China.

Performance declined year after year

It is understood that the expansion of Andrew net loss is due to the restructuring cost of the company to spend $37 million 500 thousand.

From the market point of view, sales in North America have fallen by 0.4% to 868 million dollars.

But sales in the international market increased by 27%, mainly driven by revenue growth in the Asia Pacific region. At present, the international market accounts for 24% of the total sales of Andrew ma.

This is not Andemar's first loss in the first quarter.

According to previous earnings reports, in 2017, Andrew's first quarter revenue growth fell to a single digit, and the first net loss.

And not only in the first quarter of the loss performance, Andrew's performance last year is also in a doldrums.

Data show that in 2017, Andrew's total revenue was $4 billion 977 million, an increase of 3.13% over the previous year, a loss of $48 million 260 thousand, and net profit fell 75.6% over the same period last year.

Compared with the rapid growth of the 2013-2016 years' performance, 2017 can be described as a more turbulent period.

The main reason for the sharp decline of Andemar's performance is the narrowing of the market performance in North America. The North American market is the core market of Andrea development. In the best performance period, it once surpassed Adidas to become the second largest sports brand in the United States, but Andemar did not catch the consumer's preferences in time to update the products.

In the 2017 annual performance report, Andemar said, "because of the changes in consumer demand for sports products of different types and brands, we may not be able to accept our new products. Our future success depends partly on the certainty of these changes."

In Hua men shop Limited

The failure of the North American market will give Andrew more attention to the Chinese market.

Andemar, founder and CEO Kevin Plank, proposed in 2015 that China will become a key market in the next 5-10 years, and will strive to develop China into the second largest self market of Andemar.

But according to Andrew official website "UA line shop" plate, as of May 2, 2018, Andemar in China's market only 223 stores.

In stark contrast, Adidas's official website shows more than 1 stores in China, and domestic brands Anta has more than 1 outlets.

In fact, in the Chinese market track, Andemar has been lagging behind.

Nike and Adidas are long-standing competitors for Andrew, but the first two are in China.

They all performed well.

Among them, Nike, the biggest competitor, entered the Chinese market as early as 1980, and Adidas entered the Chinese market in 1997.

In addition, Adidas set up a 29% sales growth record in China in 2017. China has become the fastest growing market in the world, and has set Shanghai as Asia Pacific headquarters in 2018.

Not only that, the domestic sports brand has developed rapidly in recent two years, but the market value of Anta has exceeded HK $120 billion, about 96 billion 820 million yuan, far exceeding the market value of Andrew 6 billion 800 million, becoming the third largest sport brand in the world.

This also means that under the dual factors of international brand attack and the rise of domestic brands, Andrew will not be easy to fight in China.

Need to strengthen Chinese design

Andemar needs to do more homework in the Chinese market.

"In the face of declining annual performance, enterprises also need to make constant adjustments."

Clothing industry experts, independent

Division Ma Gang said that not only Andemar, but in recent two years sports brand performance has declined, for example, in the three quarter of the 2018 quarter of, North American revenue fell by 5.6% to 3 billion 571 million dollars.

But by contrast, Nike and Adidas have already expanded the Chinese market and made up for some of their losses.

Ma Gang believes that Andemar has missed the best development period in the Chinese market, but now it can be saved.

For sports brand, the Chinese market has great potential. Andrew pays more attention to the professional sports group, but the market share of the brand is relatively small. Compared with the old sports enterprise that has been developed for more than 20 years, it has a weak reputation and needs to be adjusted in terms of the number of stores and the awareness of marketing.

Ma Gang said that if Andrew wants to force China in the future

In addition to the shape design, it is necessary to adjust the comfort and even the size to fine.

The width of the instep, the height and elasticity of the back of the bow make the professional label more popular among the people, so that more non professional consumers can understand this brand.