Since August, websites such as 51job and Zhaopin have started to post a job advertisement for InventorySalesSpecialist (Inventory Sales Specialist) of Adidas, based in Shanghai's Adidas headquarters in China. Job description is: According to different channels, according to the actual stock situation, to develop an annual stock reduction plan.
Another media report, 5 months, Adidas substantial increase in the number of discount stores in China. These discount stores were formerly located outside the city and are now open to department stores in the bustling downtown area, only a few steps away from the regular stores.
Wanda Plaza, Chaoyang District, Beijing New World Choi Hyun Department Store there is such a discount shop.
The mall is adidas 6th Floor counters, 7th floor is adidas discount. 3 fold the audience goods, shoes, bags and apparel 3 fold to 7 fold range.
On the one hand, recruitment of personnel to handle inventory, on the one hand, a large area to open discount stores, the reason behind the common reason is that since the 2008 Beijing Olympic Games, Adidas has been plagued by large inventories.
Adidas announced on the 5th the results show that in the first half of this year, Adidas inventory value of 2.041 billion euros, an increase of 13%, net of exchange rate factors, an increase of 8%; group net profit of 13 million euros, down 95%; sales revenue of 50.3 billion euros, down 2%.
This situation not only in the adidas one, the traditional industry giants Nike, Mizuno and other enterprises also suffered similar levels of similar difficulties.
Multinational giants are facing inventory difficulties
Sporting goods market researcher Magang told reporters that Adidas has a lot of inventory in the Chinese market, "the root cause is the implementation of order management futures system." Adidas dealer for six months in advance or a quarter of pre-order, due in accordance with the order and then shipped, which is similar to the futures. In order to encourage distributors to place more orders, the amount of orders for how much, Adidas to give different discount encouragement.
He cited an example, dealers set 20 million yuan of goods, can get 50% off the goods; if set 50 million yuan of goods, you can get 4.8 fold of the goods. Dealers in order to dilute the overall cost, even if not sell so many products, but also more orders. From the fourth quarter of last year, due to the market did not meet the expected number of sales, dealers take more of the goods into stock.
Forced by operating pressure, some dealers refused to take delivery of goods because they lacked cash and preferred to violate the agreement. These unsaved goods backlog in the Adidas warehouse, a dealer stranded in the warehouse a quarter of the goods there will be billions of dollars in goods.
Adidas plagued there are increasing liabilities. Adidas insiders told reporters on July 6, Adidas issued 500 million euros in European markets bonds, behind this move is adidas rising debt and debt ratio. In the first quarter of this year, Adidas's total liabilities reached 2.883 billion euros, an increase of 39%.
After continuous consultation and communication, Adidas decided to work through the crisis with the dealer. Adidas allows dealers to open discount stores, when the dealer to handle a certain amount of inventory, adidas give a certain amount of compensation. Deal with the inventory discount are generally played very low, often not profitable, which means that Adidas and dealers to share the loss.
For those who want to withdraw from the dealer, Adidas is also changing the contract and to negotiate the exit mechanism to give support.
Other multinational sporting goods companies also encountered a similar inventory crisis, Nike closed its only own factory in China, and external said that from June to November 2009, the amount of orders decreased by 12%. At the same time, Nike dealt with the inventory of discounted stores is rapidly increasing the number of stores.
Mizuno, Japan's biggest sports brand with nearly 1,000 stores in China, announced in July 2009 the closure of 200 stores lopsided in China. Industry sources, one of the main reasons for the loss of these stores is too much stock can not be digested.