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The impact of the financial crisis and the decline of the US and European market is different from other problems in the Chinese market is more difficult. In early August, in 51job and China recruitment hotline and other sites, have appeared in a then Adidas advertisement, jobs for Inventory Sales Specialist (stock sales), place of work for the Shanghai - Adidas in China headquarters. The first condition of the job description is: able to follow different channels, according to the actual inventory, develop an annual inventory reduction plan. Such recruitment information usually does not cause people's attention, and in many channels have a large area to clean up low-cost inventory on hand, some people quit, it was closed down, and even dealers simply do not Adidas at the delivery of the case, its meaning becomes unusual. More and more facts indicate that the inventory problem has been Adidas into being a crisis level and even let difficult to control, and the impact of its development after two quarters of this year or even next year. Adidas earlier this should enable a similar professional stock management talent to accurately anticipated production changes. September orders at autumn, together with Adidas optimistic expectations of market growth channels have found their current misery index is proportional to the amount of the original agreement signed in getting goods - from the fourth quarter of last year, due to the market and does not meet expectations, many dealers take the goods into its own body burden. forced operating pressure, and even some dealers in violation of the agreement due to lack of cash rather refused delivery. Since Adidas and dealers scheduled to take six months, cash on delivery, which did not put away according to the agreement, the backlog at the Adidas warehouse goods section or even up to a total one hundred million yuan. "stuck in a warehouse distributor of goods will have a quarter of millions of money, if it sticks to pick up, there will be danger of collapse." an unnamed dealer told " First Financial Weekly. " Some small dealers and even decided to withdraw from the market altogether. "(Adidas) brand last year, market growth is expected to exceed 30%, dealers are not so optimistic, the last two compromise to 20-25 percent, according to the growth of getting goods." Sheng Road Hebei region a Deputy General Manager of "First Financial Weekly" said. Sheng Road and Belle Adidas largest two dealers. a lot of inventory on the dealer cash flow has been a threat. Belle International (01880.HK) 2008 fiscal year report shows that in fiscal 2008 compared with fiscal 2007. Inventories increased by nearly 100 percent, inventories total current assets increased from approximately 25% to nearly 44%, but decreased from 5.21 billion yuan in cash to 23.3 billion. In the company's business structure, 45.9% of the revenue from sports brand agency, of which 80% came from Nike and Adidas. July 30, Belle in Shanghai launched a massive clearance activities, before that, to ease the pressure on operators, the group has closed the 176 sports stores in the first quarter. Another major distributors believe Belle Road wins in this area is unlikely to completely withdraw, Belle Group has more than a thousand Adidas store in the mainland, exit costs too much. situation of small and medium sized distributors Adidas Daphne (00210.HK) is similar to Belle Group, it has its own brand shoes, but also agents sports brand business, to supplement profits. Daphne Group's main business is Daphne and Shoebox two popular brands, respectively, for 200 yuan and 100 yuan women's shoe market. Meanwhile, Daphne has 138 Adidas stores in China, 28 Nike stores. Daphne began in the second half of 2008 will be on hand some resistance adidas stores transferable. The group told the "Business Weekly", relative to its own brand, which sports brand distribution business profit is not high, the former contributed about 81% of group sales, but profit contribution has reached 97%; sports brand only contributed a small profit, operating margin than its own brand. He said Adidas agents operating margins generally can be maintained at 8% to 11%, but the second half of 2008, operating profit margin of less than 5% already. So, Daphne must consider a range of strategic issues: whether sports market will growth? If so, it will resume growth in long after? Are Daphne can support at that time? Otherwise, the agent Nike and Adidas profits in a very long time is difficult to exceed its own brand. Finally, Daphne decided to withdraw from this market. For Daphne itself, this may be a correct decision. Because sports brand market has entered a rapid expansion, and even excessive expansion, while small dealers are unlikely to take advantage of. large distributors and interests Adidas agree on the general direction. Despite Once signed, the dealer's results of operations and Adidas actually does not matter, but there is a general dealer inventory problems, which Adidas China market performance is also no small matter. After the continuous communication and consultation, Adidas and dealers to decide, through this crisis. Adidas allow dealers to open discount stores, and even open around-price stores. Road wins in the last few months to open seven or eight discount stores. At the same time, when your dealer inventories to a certain amount, Adidas will be given a certain amount of compensation. Because the process of inventory can only withdraw cash, when low to a certain discount, often it is not profitable, which means that Adidas and distributors to jointly bear the loss. For those who want to quit dealers, Adidas also change contracts and negotiation mechanisms withdraw support, even though it meant tedious formalities. At present, the ongoing large-scale clean-up of inventory of the company not only packet & gt; & gt; such major distributors include Tao Bo sports and Sheng Road, also includes many small and medium dealers, such as Shenzhen leader, Sichuan Jin Long, Shanghai RLT like. 5 months, Adidas significant increase in Chinese market discount. The industry sources said that the most serious damage in North China and East China, Hangzhou second. Hangzhou main commercial street of stores open more sad, often sales only worth a rent. And in Nanjing, Adidas audience offer new hit 7 fold, dealers usually purchase cost is 5.1 to 5.2 fold, plus business operating costs, the price would mean a loss. But the second half of last year to this year, the emergence of a growing number of discount stores in the mainland market, especially in the north market. Previously these factory shop just opened in the outskirts of the city, but now it began to open in the downtown business district and the department stores. These new open-price stores and discount stores are often a few steps away. Beijing Chaoyang District, Wanda Plaza, 6th Floor, New World Department Store Choi Hyun Adidas counters three months before the start of the normal discount brand, non-seasonal goods hit 7 fold. again on the floor, Adidas Adidas is one of the mainland's largest discount store two dealers Sheng Road. Here's goods 3 fold, Adidas shoes, bags and clothing are 3 fold to 7 fold range. This discount stores already opened five months, almost equal to an average daily sales shop downstairs-price stores, Monday to Thursday is about 8,000 yuan, Friday Saturday Sunday average daily sales of about 12,000 yuan, a good time can even reach 15,000 yuan. The clerk said, This is usually about the same price stores sales. immediately Adidas discount is offered Tao Bo sports Nike discount stores, it is Belle Group's sports brand dealers. According to the clerk said, discount sales and Adidas comparable. Tao Bo sports had 1.5 fold deal with Adidas, Nike, Reebok and other sports apparel in Shanghai Caobao Everbright Hotel July 30 to August 2. The new discount stores opened in major mid-range department stores throughout the city and shopping sites, such as the Olympic Sports City, Qiao Qiao was language network. Some small dealers to open discount stores in sharply, while some other home resale shops Adidas, sports brand market gradually withdraw. In fact, Adidas rival who also suffered a similar inventory crisis, but the problem is not serious like the former. Nike closed the only of its own factories in China, and announced that, in June 2009 to November, a series of Nike apparel amount of orders fell by 12%, while its fiscal fourth quarter (as of 2009 On May 1) to display its inventory turnover rate has returned to normal. Adidas second-quarter earnings report showed that the growth rate had slowed down in inventories, down from 18% last quarter to 8%. Adidas CEO Hainer in the semi-annual report on the Chinese market problems bluntly: "The Chinese market is still suffering from the Olympics after suffering too much inventory, but we have had the worst the end of 2009 we will deal with this issue, ready to go, to restore growth momentum in FY10. " It was announced last year that he planned before the end of 2008 the number of Chinese stores open until 5000. Some local Chinese sports apparel brand also used the shop to join and expeditious manner, seize the low-end market share. For example, Li Ning in 2008 to increase the 1684 stores; Anta in 2008 increased by 951 stores, KAPPA increase of 863 stores. However, according to CBN reporter, the domestic sports brands such as Adidas also did not beating, their current sales margin from 45% to about 30%, in the second and third tier cities, its the price advantage of eager to improve same-store sales Adidas Clearance also caused some threat. And with nearly 1,000 stores in China, Japan's largest sports brand Mizuno, in July 2009 announced the closure of 200 loss-making in China shop. These are mainly Beijing, Shanghai income poor stores. In other cities, Mizuno will have a new store opening program, these mostly outlets. and Adidas, Nike, like Mizuno also bet before and after the Olympic Games will stimulate market demand. It had planned before the Olympic Games in March 2009 will increase to 1,200 stores in China, but now plans to begin the closed stores. Adidas is currently in more than regional markets into a quagmire, excluding foreign exchange factors, Adidas decreased by 8% year on year sales in the European market, the North American market, sales fell 10%, mainly to China and Japan Asian markets sales fell 9 percent, the Latin American market sales increased by only 24%, but only 443 million euros but can not reverse the overall situation. The inventory of future performance crisis also caused Adidas certain extent. Olympic high expectations after the market growth it ignored some of the basic data - usually large companies have a strict control methods in terms of inventory management and expected, for example, calculated by the software, historical data Reference. Adidas problems in recent months to appear in the inventory management is likely to lower its confidence weakened to some extent on. At the same time, a failure to digest inventory ordering season will be allocated to the subsequent few quarters complete, for example, Sheng Road and other dealers currently in substantial additional discount at the same time, it has been gradually reduced orders; update the original Adidas goods once a week, but now only updated every two weeks.