Adidas Suffered Heavy Losses In The Russian Market

Adidas's slogan is very classic: "nothing is impossible". However, this sentence does not apply to Russia. A few days ago, Adidas announced that it would close 200 Russian stores, mainly due to the poor economic conditions of the country.

The Russian economy deteriorated rapidly under the double pressure of oil and the successive sanctions imposed by the West. Ruble has collapsed and has lost 40% in just 6 months. It is estimated that Russia's GDP will shrink by 5% this year. Inflation The rate is rising.

Statistics show that Adidas is in Russia There are about 1000 stores. Russia's economic decline caused Adidas to suffer heavy losses.

Adidas's chief executive, Herbert Hainer, said in a statement, "obviously, Russia's economic contraction has brought a particularly big impact on Adidas, and the consumer sentiment index is still deteriorating."

The German sporting goods manufacturer claims that net income in 2014 is around 650 million euros, lower than the target profit. A few days ago, after announcing the second round of share repurchase, Adidas Share prices rose 3%.

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We are talking about Under Armour, which is famous for its fast dry tights, but it is very expensive to watch it, but even with its technology and content, some people even want to wear it together with the formal dress. After 18 consecutive months of revenue growth of more than 20%, it finally surpassed Adidas in the second half of 2014 and became the second largest sport brand in the US market.

After releasing the brightest 2014 fourth quarter earnings report, Under Armour also gave Adidas a knife: in an interview, the 41 year old company founder and CEO Kevin Planck (Kevin Plank) said she did not want to talk about this "most stupid competitor".

In the sports market of North America, competition for second is much easier than competition. In 2014, the total revenue of Under Armour exceeded $3 billion, but this is still only 1/10 of Nike. However, in the stock market, the price of Under Armour listed in 2005 is almost two times that of Nike.

Under Armour does not seem to be afraid of confrontation with Nike. In the summer of 2014, Kevin Durant, who jumped out of the Nike sponsorship contract, was faced with a very sincere sponsorship contract of Under Armour - the total price of $285 million in 10 years, Kevin Durant (NBA). Finally, Nike had to match the offer before winning the NBA leader.

In the field of sports and social interaction outside clothes and shoes, Under Armour wants to become another Nike. In the past two years, it has bought three App related to fitness and health. At the beginning of CES 2015, Under Armour also announced cooperation with HTC to enter the more wearable device field in the past two years.

If you look back now to see the history of the development of Under Armour brand (only 20 years), you will find that this is a company that is quite focused on subdivision. In the first 10 years, they only sell tight fitting sportswear which is fast and dry, and they don't even do sports shoes. Until now, Under Armour still occupies 79% of the United States sports apparel market.