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  • Essay / A Trade Review of Adidas Running Shoes

    Adidas Running ShoesAdidas is an international company based in Germany. It is responsible for the design and manufacturing of sportswear, for example, shoes, accessories and clothing (adidas-group.com, 2014). In Europe, Adidas is the largest sportswear manufacturer while globally, the company is the second largest sportswear manufacturer. Sports shoes produced by Adidas include running shoes, golf shoes, and soccer shoes, to name a few. This review will, however, focus on Adidas running shoes. Say no to plagiarism. Get a tailor-made essay on “Why Violent Video Games Should Not Be Banned”? Get an original essay Adidas running shoes are solid, multi-colored shoes manufactured in bulk and distributed worldwide in specific chain stores. These shoes are made of different materials, from synthetic to fine leather. Engineered stretch mesh is used to make the shoe's mesh technology, allowing the shoes to become more breathable and durable. The shoe is also more comfortable (runningshoesguru.com, 2015). The sole of the shoe is traditionally foam, but lately Adidas has added the Springblade design. This new design integrates micro-foam beads into the sole of the shoe. Micro-foam beads ensure the shoe feels more responsive than its predecessors. This new development guarantees the comfort of the shoe over a wide range of seasons and temperatures. Runners or joggers who travel to different parts of the world or train on different terrains will benefit from the comfort of this shoe (runningshoesguru.com, 2015). Although Adidas is the second largest sportswear producer in the world, its market share has relatively declined. since 2011, where it had a 9% footwear market share in the United States. The company's sales have increased significantly over the years. In 2015 alone, the company achieved a net turnover of 16.915 million euros. The company is overlapped by Nike, which has a 48% footwear market share in the United States (highsnobiety.com). On the positive side, sales of Adidas shoes have gradually increased over the years. More and more people became aware of the brand, and with intense advertising and support from superstars, more people wanted to purchase the shoe brand. In 2000, Adidas sold running shoes worth 5.835 million euros. In 2001, the turnover amounted to 6.112 million euros. In 2002, the amount increased to 6.523 million euros. In 2003, the decline began. They amounted to 6.267 million euros. The year 2004 saw a further drop in turnover to 5,860 million euros. Turnover increased slightly in 2005 to reach 6,636 million euros. The year 2006 saw a notable increase in turnover to 10,084 million euros. In 2007, sales increased slightly to 10.299 million euros (statista.com). In 2008 there was another slight increase in sales to €10.799 million. In 2009, sales decreased slightly to 10,381 million euros. Sales resumed in 2010 with 11,990 million euros. In 2011, sales continued to increase and reached 13.322 million euros. In 2012, sales of Adidas running shoes reached 14.883 million euros. In 2013, sales decreased and were recorded at 14,203 million euros. 2014 saw a slight increase in turnover to 14,534million euros. The year 2015 saw the highest sales recorded so far for Adidas running shoes, which reached 16.915 million euros (statista.com). Different age groups buy Adidas running shoes. However, those aged 45-64 hold the highest percentage of the consumer group, with 23.6% market share (www.adidas.com). These are middle-aged people. At this age, the body's metabolism slows down and so individuals resort to intensive exercise to keep it under control. They will therefore look for the best sports clothing for their daily run or jog. Adidas allows famous sports teams to promote their products. Some people in this age group are also fans of these teams and will purchase the running shoes after seeing their favorite players wearing these shoes. The largest groups of people who buy Adidas running shoes are men, who account for 83% of the total consumer market. This is mainly because more men than women participate in sports in today's world. There are also more men's than women's sports teams that are famous and popular, so more men than women support Adidas running shoes. Another reason why men consume Adidas running shoes the most is that for every event, women find it necessary to have different types of shoes. Women can have different types of shoes for casual wear, travel, office, events or just going out. However, men may not feel the need to change shoes for every occasion. Men can have the same type of shoes which covers many occasions. According to Oxfam Australia, Adidas' main goal is to become the leader in sports footwear in the industry. To achieve this, they employ marketing strategies to fuel business development in established and emerging markets. Adidas realized that a deep customer experience is necessary to succeed. With this in mind, Adidas has placed more emphasis on marketing in geographies with the greatest consumer experience. It has decided to invest more in its running shoes, particularly in the United States, Russia and China, as these are the regions with the highest profitability and medium-to-long-term growth. Therefore, these are also the main places offering the best and largest consumption experience geographically. In relation to all this, it is also to be expected that these markets will also offer the highest level of “attack” or competition (Oxfam Australia, 2011). However, the major question is: how did Adidas manage to create such a massive consumer experience in the industry? geographical areas mentioned above? (Bloomberg.com) First of all, it's worth noting that Adidas sells its products all over the world. For example, major promotional actions such as partnerships with internationally renowned sportswear (e.g. NHL, UEFA, NBA, FIFA and NFL). In our case, the most important partnership was with the 2011 Berlin Marathon, where Adidas partnered with athletes to offer running services. shoes for all track events. China, Russia and the United States have made Adidas running shoes popular due to the increased level of participation in track events and poor eating habits which lead to an obese nation which requires regular exercise in our case, running and/or jogging. make itpart (Popular Mechanics, 2004). Enough about the geographic consumer experience: it’s important to explore the success of Adidas running shoes from a home experience perspective. According to the annual report, it has been statistically proven that the most important consumer experience in terms of household income is in Western Europe, generating 25 percent of the company's retail business. It was closely followed by North America, with 21 percent of the average household income of fifty thousand dollars, making it largely manageable. China, Russia and Latina make up the rest of the percentage, with other companies making significant contributions (Annual Report, 2012). Currently, Adidas has one hundred and thirty franchised outlets in Beijing and many others around the world (Dubai). Chronic). Among these global companies, none offers the highest percentage of consumer experience like Beijing's Santilun. This is not only because it is the largest Adidas outlet, but also because it has exceptional facilities and services. The technology is up to date, coupled with the latest consumer products and divine customer service. These include the large floor space that allows for customer adventure and the presentation of the luxury brands that Adidas has to offer. Customer satisfaction and experience stands at ninety-two percent according to the latest statistics, with management aiming to achieve a record high of over ninety percent. It is correct to assume that the large Chinese population, its significant economic power and a population that enjoys a good average per capita income per household each year are the main factors that explain the good reception of Adidas customers, especially in the Santilun store (Adidas Giants.com). The large and leading demand in Europe for Adidas shoes also contributes to improving the extensive customer experience. Adidas is based in one hundred and sixty countries with an annual production of six hundred and sixty million product units which generate fifteen billion euros (all figures according to 2014/2015). statistics).Therefore, Western Europe, especially Germany, has or rather controls the largest percentage of consumption units by type of outlet. It is important to note and remember that Santilun in China recorded the highest customer experience, but when it comes to consumer units, Western Europe can be called the kingpin. The question then is how does Western Europe achieve this? First of all, it is worth considering that Western Europe is made up of many countries (e.g. Germany and Russia), making it a large and important market on its own. According to Marxe Wolfe, most Western European countries are major economic powers. Of the six hundred and sixty billion units produced, Western Europe controls twenty-five percent of the production units (Marxe Wolfe Contemporary Art, 2010). This represents approximately one hundred and seventy billion units of production per year. Adidas' main marketing strategy is based on its unique brand characterized by three parallel bars. This allowed it to have a significant percentage of consumption units per brand, categorically in the largest regions of Europe. Although it is difficult to give brand statistics per unit figure, it is much easier to do so based on monetary value. Take for example its partnership agreement with the NBA, NBDL AND WNBA, estimated at over four hundred million US dollars for an apparel contract. However, its consumer brand, as previously noted, comes - 140$•!