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Recently, the news that "Adidas' revenue in China has fallen by 16%" has attracted attention. In the second quarter of this year, the Greater China region became the only region with negative revenue growth for Adidas, with revenue of only 1 billion euros. In contrast, domestic sports brands such as Anta and Li Ning frequently report good news. Is there an opportunity for domestic sports brands to counterattack?

The financial report for the second quarter of this year showed that Adidas' revenue reached 5.077 billion euros, an increase of 52% year-on-year, and its operating profit reached 543 million euros. Although it has turned losses into profits, the development of Adidas’ regional markets is very uneven. North America’s revenue increased by 87% year-on-year, EMEA (Europe, Middle East, and Africa) increased by 99% year-on-year, and Latin America increased by 230% year-on-year. The regional growth rate is only 66%. Among them, the revenue of Greater China was only 1 billion euros, down 16% year-on-year. This was also the only region where Adidas had negative revenue growth in the quarter.

Adidas explained that the group does see that the market demand in Greater China has now been biased towards local Chinese brands rather than global brands. However, the group is also confident that the market will return to balance again. Its CEO Casper Rosted said to the outside world: "We have seen the instability of our business in China, but I am sure that our business in China will achieve good results this year."

In fact, in addition to Adidas, the international sports brand giant Nike's business in China also suffered setbacks. The financial report shows that in the three months ending May 31, Nike’s sales in Greater China were US$1.9 billion, which did not reach the expected level of US$2.2 billion. US investment research agency Morningstar reported that in April this year, the sales of Adidas and Nike’s Tmall flagship stores fell 78% and 59% year-on-year, respectively, while the sales of domestic sports brands Li Ning and Anta's Tmall flagship stores increased significantly.

In contrast, sales of domestic sports brands are booming. According to a report released by JD.com on July 24 this year, the overall sales of Guochao sports brands on July 22 and 23 increased by more than 280% year-on-year. The sales of national sports brands such as Hongxing Erke, Anta, 361°, Peak, etc. soared, ranking the top in sales scale. It is worth noting that Hongxing Erke's sales on July 23 increased by more than 52 times year-on-year.

"Although domestic sports brands are'popular' this time, we still have to face up to the gap between domestic sports brands and foreign sports brands, including the gap in brand communication, market operations, product development, etc. This gap is not based on patriotism. It can be equalized. To shorten the gap with foreign sports brands, long-term investment and precipitation of brands are needed." Cheng Weixiong, a brand management expert in the footwear industry and general manager of Shanghai Liangqi Brand Management Co., Ltd., told a reporter from China Business Daily.

Garment industry expert Ma Gang also told the China Business Daily that Adidas' influence in China still exists, and some consumers may also return to Adidas and other foreign sports brands after a period of time. At present, domestic sports brands have a relatively high share of the low-end market. In the future, they need to enter the high-end market and increase their share of the high-end market.