High-priced acquisitions, low-cost sales, Nike in the five years or so to make Umbro from a celebrity brand became a loss of the brand was suffocated. In this process, Nike acquired Wynn's sponsorship of the elite resources of the England and Manchester United football teams. However, for Wynn's dealers, it incurred irreparable losses due to continued investment in channel construction.
High-priced acquisitions, low-cost sales, Nike in the five years or so to make Umbro from a celebrity brand became a loss of the brand was suffocated. In this process, Nike acquired Wynn's sponsorship of the elite resources of the England and Manchester United football teams. However, for Wynn's dealers, it incurred irreparable losses due to continued investment in channel construction.
It has been six months since Nike sold Umbro, but the dispute between Umbro agents and Nike has not been resolved. Recently, a number of Umbro dealers told the China Business News that they had no knowledge of Nike’s sale of Umbro. At the time when the brand license is about to expire, they have accumulated a huge inventory of goods. In the case that Yup Bao's new owner may no longer produce Yinbao products, dealers will not be able to properly digest the inventory due to the lack of new products. Currently, only large-scale losses can be avoided. The most unacceptable to dealers is that: so far, the new owner of Umbro's new American Icahnis brand group has not appeared from beginning to end and has not approached the dealers of Umbro brand. This makes distributors at a loss, not knowing that when their mandate expires, their fate will go from here.
The product backlog is serious. The dealer is "overhead"
Qingdao Shengda Sporting Goods Co., Ltd. (hereinafter referred to as “Grand Sportsâ€) has been the agent of the Yonbao brand since 1999. With more than 10 years of collaborative development, the person in charge of the company never imagined that one day the brand would “stuck itâ€.
Hao Xiang, sales manager of Shanda Sports, told reporters: “At the beginning of the acquisition of Umbro by Nike, everyone’s confidence was still quite full. After all, the operation of Umbro by such a big company as Nike is not bad.â€
Moreover, Nike also gave distributors some oral promises, coupled with Nike's official website's publicity and Nike CEO's speech, etc., all conveyed Nike's determination to make the Yupbao brand better, which gave dealers full confidence. At the time, the sales of Umbro in the domestic market had also been very good. Under the guidance of bigger and stronger ideas, many dealers also increased their investment on the basis of the original and expanded their operations.
According to Ms. Ding, head of Shaanxi Extreme Longyue Sporting Goods Co., Ltd., who has represented the brand Yinbao for 18 years, Nike took the team and went to Xi’an to introduce her to her development ideas. Big investment, open more stores. Inspired by Nike's ambition, Ms. Ding has opened nearly 20 Yupbao stores. Each shop has added goods, decoration, rent, etc., and the minimum investment has reached 70,800,000 yuan.
It is understood that the distribution contract signed by Nike and Yubao dealers stipulates that Nike requires dealers to redecorate for three years, and that Nike's props and decoration support for dealers to open stores is also based on the basis of the store's opening for three years. on. These regulations make many dealers believe that Nike will run the Umbro brand in the long run.
Wang Jun, general manager of Zhengzhou Likang Culture & Sports Development Co., Ltd. (hereinafter referred to as “Zhengzhou Likangâ€) disclosed to the media earlier that when he invested heavily in the Yinbao brand in June 2011, he only opened and reloaded it in the second half of 2011. Six stores were re-installed in 2012. As of the end of last year, there were 16 stores under Zhengzhou Likang. Two years later, he continued to invest more than 4 million yuan in the Umbro brand.
However, the Nike tree, coupled with strong market input from distributors, did not sustain the market growth of the Yinbao brand. An Umbro brand dealer, who did not wish to be named, recalled to reporters: “Yinbao’s sales have changed significantly in the first quarter of 2012. At that time, the goods were very bad. Nike changed the entire style of Yinbo clothing. Now. "Yinbao used to be sport-oriented, and its clothes are relatively large. People with taller figures in the country can wear it. After the style is changed, clothes become slim and casual styles. Because the money has not been approved by the consumer groups in the past, the results The season's sales were very poor and the rate of sale was less than 20%. In the end, Nike accepted our return and found a clearing company to dispose of the goods at a very low discount."
However, “the garments that were disposed of were quickly sold by the e-commerce company Vipshop at a discounted price of one or two percent, which had a great impact on the sales of the entire Umbro.†The above dealers said that afterwards, Umbro The market situation is getting worse.
The most unacceptable to dealers is that in October last year, Nike suddenly sold the Umbro brand and did not make any arrangements with dealers. So far, Umbro's new owner, the American Ikonesi Brand Group (hereinafter referred to as "Ikonis") has not shown up from the beginning to the end, and has not approached the dealers of the Umbro brand. This makes distributors at a loss, not knowing that when their mandate expires, their fate will go from here.
Ms. Ding told reporters that in May of this year, she suddenly received a notice from Nike to end the cooperation business and asked her to pay off her 300,000 yuan in company debt. "I'm puzzled. At least you have to explain, who is your next family? What kind of goods do we still need? What about my 2.5 million yuan inventory?" said Ms. Ding. "Nike just let me in. As soon as the goods were processed, we tentatively remitted 60,000 yuan to import new goods, but the money was deducted and there was no shipment. Nike then informed that the amount of 300,000 yuan owed on our account could be reversed. It only needs 150,000 yuan to end the business, and for the 2.5 million yuan stock, Nike does not have any."
Like Ms. Ding, at the time when the mandate is about to expire, there are not a few dealers that have accumulated a large inventory. In an interview, the reporter learned that compared to the $2.5 million inventory of Ms. Ding, the inventory of Zhengzhou Likang's 15.27 million yuan tag is even more troublesome. In addition, Shanda Sports has also piled up nearly 10 million yuan in inventory, while Sichuan Jinlang Sporting Goods Co., Ltd. (hereinafter referred to as “Jinlang Sportsâ€) also has a backlog of several million yuan of goods.
According to Hao Xiang, the cooperation between Nike and distributors takes the form of futures, which are all orders for half a year in advance. "That is to say, starting in August this year to specify the next spring's goods, starting in October to set next year's summer, the general pre-order cycle is more than six months. Therefore, if information is delayed, it will lead to a large number of inventory."
According to the above-mentioned distributors, after Nike sold the Umbro brand in October 2012, it did not promptly inform the dealers to adjust the order plan, resulting in the dealers continuing to make large orders.
For the distributor's above statement, the reporter confirmed to Nike China. Nike China responded by saying: "Nike Sports (China) Co., Ltd.'s Umbro China notified Distributors in writing on June 6, 2012. In a written communication, Umbro China's distributors during the brand handover. How to successfully manage the Yonbao brand and make plans accordingly.In order to help the relevant distributors improve the business condition of the Yinbao brand and promote business development, Umbro China started to assist dealers in handling subsequent business matters in July 2012. ."
However, for Nike China's response, a number of dealers interviewed by this reporter denied having received a "sale notice in writing from Nike China."
Prior to the press release, Ikones China did not reply to the reporter.
Umbro was sold out and dealers were forced to leave
"If we can't get into new products, then we can only sell the inventory products, but also throw it out at a very low discount." Ms. Ding told reporters that if there is some new goods, discounts do not have to be so low, The loss will not be too great. However, now it seems that the supply of new products is still unknown, so they demand a return first.
The manager of the Yinbao brand, Sichuan's largest distributor and Jinglang Sports, who was responsible for cleaning up the Yubao products, refused to accept interviews with reporters. However, the reporter learned from people close to the company that Jinlang Sports is currently busy dumping goods. If there are no accidents, the company will withdraw all the remaining Umbro counters by the end of this year, and will no longer represent the brand later.
Shanda Sports is also currently clearing inventory through discounts and promotions. Hao Xiang said, "Nike's supply to the end of the second quarter of this year, but at the Nike ordering meeting, has been the third quarter of this year's list. Nike side said at the time that the third quarter of the goods can be set, but Yin Bao's new owner is not necessarily produced. Later, they told us that the goods were not. Ikonnis didn't do it." Hao Xiang discovered after consulting the data that Ikonis is just a brand operation company and will not make great efforts to operate. A brand. "I think that the new owner should at least communicate with the dealers. They are planning to continue operating Umbro, or continue to sell them."
The attitude of Nike and Ikonnis made dealers angry. Talking about the future attitude towards the Yinbao brand, they have expressed that they will choose to leave. And the reason they chose to leave is not simply due to being deceived.
In the eyes of Ms. Ding, Nike has taken away the essence of Umbrella in these years of operating the Umbro brand. "Yinbao never does anything to anyone," she said. "The essence of Umbro is the products of England and Manchester United. It mainly sells these two series of products. Now these two series of teams Standards have been taken away by Nike, and we have no good selling points for selling Umbro products."
Hao Xiang also believes that the core resource of Umbrella is its right to sponsor the England national team. "The promise of Umbro's first domestic exclusive manufacturer, Tianyun, is that Umbro signed with the English national team until 2014. Until then, the English national team will always be sponsored by Umbro. Players will wear Umbro. After Nike took over Umbro, Nike had said at the beginning that there would be no change to the series of Umbro-sponsored teams and would still be sponsored by Umbro.But now, the England national team has put on Nike. Clothes."
Some industry observers have analyzed that Nike’s initial purchase of Umbrella was valued by its football sponsorship. Because half of the sponsorship of English football at that time was half of Adidas is Umbro, Nike could not insert it. Nike then thought of passing the value of the purchase of Umbro to pass on, and gradually take away all of the team sponsored by Umbro, including Manchester United and England. Due to the loss of the core value, the sold Umbro has actually been eclipsed.
Zhu Qingyi, a light industry researcher at China Investment Advisors, also believes that the lack of development in the football field has been a shortcoming of Nike and the acquisition of Umbrella has effectively boosted its strength in the football field. However, after owning Umbrella, Nike began to graft Umbrella's advantage in the football field into its own core brand, while Umbro did not make much progress in brand promotion and business development. From this point of view, Nike's purchase of Umbrella has long been known as "wishful thinking."
An informed source close to Nike revealed to reporters that Nike’s headquarters had only lost 1 million yuan in the Chinese market and “was very happyâ€. Their original expectation was that after the purchase of Umbro, it would take tens of millions or even hundreds of millions of dollars to take out the core value. Due to the resource scarcity of the sponsoring team, this price is acceptable. However, after a few years of operation, they eventually lost only 1 million yuan. "They think this is very successful."
As everyone knows, behind this 1 million yuan, has already condensed how many distributors' sweat and sweat input. Nike took away, it is also dealers most fancy publicity "selling point." Industry analysts believe that the final impact of Nike's value transfer and resale of the Yinbao brand will bring about a rapid shrinkage of channels. This continues, the Yinbao brand is likely to disappear in the Chinese market.
It has been six months since Nike sold Umbro, but the dispute between Umbro agents and Nike has not been resolved. Recently, a number of Umbro dealers told the China Business News that they had no knowledge of Nike’s sale of Umbro. At the time when the brand license is about to expire, they have accumulated a huge inventory of goods. In the case that Yup Bao's new owner may no longer produce Yinbao products, dealers will not be able to properly digest the inventory due to the lack of new products. Currently, only large-scale losses can be avoided. The most unacceptable to dealers is that: so far, the new owner of Umbro's new American Icahnis brand group has not appeared from beginning to end and has not approached the dealers of Umbro brand. This makes distributors at a loss, not knowing that when their mandate expires, their fate will go from here.
The product backlog is serious. The dealer is "overhead"
Qingdao Shengda Sporting Goods Co., Ltd. (hereinafter referred to as “Grand Sportsâ€) has been the agent of the Yonbao brand since 1999. With more than 10 years of collaborative development, the person in charge of the company never imagined that one day the brand would “stuck itâ€.
Hao Xiang, sales manager of Shanda Sports, told reporters: “At the beginning of the acquisition of Umbro by Nike, everyone’s confidence was still quite full. After all, the operation of Umbro by such a big company as Nike is not bad.â€
Moreover, Nike also gave distributors some oral promises, coupled with Nike's official website's publicity and Nike CEO's speech, etc., all conveyed Nike's determination to make the Yupbao brand better, which gave dealers full confidence. At the time, the sales of Umbro in the domestic market had also been very good. Under the guidance of bigger and stronger ideas, many dealers also increased their investment on the basis of the original and expanded their operations.
According to Ms. Ding, head of Shaanxi Extreme Longyue Sporting Goods Co., Ltd., who has represented the brand Yinbao for 18 years, Nike took the team and went to Xi’an to introduce her to her development ideas. Big investment, open more stores. Inspired by Nike's ambition, Ms. Ding has opened nearly 20 Yupbao stores. Each shop has added goods, decoration, rent, etc., and the minimum investment has reached 70,800,000 yuan.
It is understood that the distribution contract signed by Nike and Yubao dealers stipulates that Nike requires dealers to redecorate for three years, and that Nike's props and decoration support for dealers to open stores is also based on the basis of the store's opening for three years. on. These regulations make many dealers believe that Nike will run the Umbro brand in the long run.
Wang Jun, general manager of Zhengzhou Likang Culture & Sports Development Co., Ltd. (hereinafter referred to as “Zhengzhou Likangâ€) disclosed to the media earlier that when he invested heavily in the Yinbao brand in June 2011, he only opened and reloaded it in the second half of 2011. Six stores were re-installed in 2012. As of the end of last year, there were 16 stores under Zhengzhou Likang. Two years later, he continued to invest more than 4 million yuan in the Umbro brand.
However, the Nike tree, coupled with strong market input from distributors, did not sustain the market growth of the Yinbao brand. An Umbro brand dealer, who did not wish to be named, recalled to reporters: “Yinbao’s sales have changed significantly in the first quarter of 2012. At that time, the goods were very bad. Nike changed the entire style of Yinbo clothing. Now. "Yinbao used to be sport-oriented, and its clothes are relatively large. People with taller figures in the country can wear it. After the style is changed, clothes become slim and casual styles. Because the money has not been approved by the consumer groups in the past, the results The season's sales were very poor and the rate of sale was less than 20%. In the end, Nike accepted our return and found a clearing company to dispose of the goods at a very low discount."
However, “the garments that were disposed of were quickly sold by the e-commerce company Vipshop at a discounted price of one or two percent, which had a great impact on the sales of the entire Umbro.†The above dealers said that afterwards, Umbro The market situation is getting worse.
The most unacceptable to dealers is that in October last year, Nike suddenly sold the Umbro brand and did not make any arrangements with dealers. So far, Umbro's new owner, the American Ikonesi Brand Group (hereinafter referred to as "Ikonis") has not shown up from the beginning to the end, and has not approached the dealers of the Umbro brand. This makes distributors at a loss, not knowing that when their mandate expires, their fate will go from here.
Ms. Ding told reporters that in May of this year, she suddenly received a notice from Nike to end the cooperation business and asked her to pay off her 300,000 yuan in company debt. "I'm puzzled. At least you have to explain, who is your next family? What kind of goods do we still need? What about my 2.5 million yuan inventory?" said Ms. Ding. "Nike just let me in. As soon as the goods were processed, we tentatively remitted 60,000 yuan to import new goods, but the money was deducted and there was no shipment. Nike then informed that the amount of 300,000 yuan owed on our account could be reversed. It only needs 150,000 yuan to end the business, and for the 2.5 million yuan stock, Nike does not have any."
Like Ms. Ding, at the time when the mandate is about to expire, there are not a few dealers that have accumulated a large inventory. In an interview, the reporter learned that compared to the $2.5 million inventory of Ms. Ding, the inventory of Zhengzhou Likang's 15.27 million yuan tag is even more troublesome. In addition, Shanda Sports has also piled up nearly 10 million yuan in inventory, while Sichuan Jinlang Sporting Goods Co., Ltd. (hereinafter referred to as “Jinlang Sportsâ€) also has a backlog of several million yuan of goods.
According to Hao Xiang, the cooperation between Nike and distributors takes the form of futures, which are all orders for half a year in advance. "That is to say, starting in August this year to specify the next spring's goods, starting in October to set next year's summer, the general pre-order cycle is more than six months. Therefore, if information is delayed, it will lead to a large number of inventory."
According to the above-mentioned distributors, after Nike sold the Umbro brand in October 2012, it did not promptly inform the dealers to adjust the order plan, resulting in the dealers continuing to make large orders.
For the distributor's above statement, the reporter confirmed to Nike China. Nike China responded by saying: "Nike Sports (China) Co., Ltd.'s Umbro China notified Distributors in writing on June 6, 2012. In a written communication, Umbro China's distributors during the brand handover. How to successfully manage the Yonbao brand and make plans accordingly.In order to help the relevant distributors improve the business condition of the Yinbao brand and promote business development, Umbro China started to assist dealers in handling subsequent business matters in July 2012. ."
However, for Nike China's response, a number of dealers interviewed by this reporter denied having received a "sale notice in writing from Nike China."
Prior to the press release, Ikones China did not reply to the reporter.
Umbro was sold out and dealers were forced to leave
"If we can't get into new products, then we can only sell the inventory products, but also throw it out at a very low discount." Ms. Ding told reporters that if there is some new goods, discounts do not have to be so low, The loss will not be too great. However, now it seems that the supply of new products is still unknown, so they demand a return first.
The manager of the Yinbao brand, Sichuan's largest distributor and Jinglang Sports, who was responsible for cleaning up the Yubao products, refused to accept interviews with reporters. However, the reporter learned from people close to the company that Jinlang Sports is currently busy dumping goods. If there are no accidents, the company will withdraw all the remaining Umbro counters by the end of this year, and will no longer represent the brand later.
Shanda Sports is also currently clearing inventory through discounts and promotions. Hao Xiang said, "Nike's supply to the end of the second quarter of this year, but at the Nike ordering meeting, has been the third quarter of this year's list. Nike side said at the time that the third quarter of the goods can be set, but Yin Bao's new owner is not necessarily produced. Later, they told us that the goods were not. Ikonnis didn't do it." Hao Xiang discovered after consulting the data that Ikonis is just a brand operation company and will not make great efforts to operate. A brand. "I think that the new owner should at least communicate with the dealers. They are planning to continue operating Umbro, or continue to sell them."
The attitude of Nike and Ikonnis made dealers angry. Talking about the future attitude towards the Yinbao brand, they have expressed that they will choose to leave. And the reason they chose to leave is not simply due to being deceived.
In the eyes of Ms. Ding, Nike has taken away the essence of Umbrella in these years of operating the Umbro brand. "Yinbao never does anything to anyone," she said. "The essence of Umbro is the products of England and Manchester United. It mainly sells these two series of products. Now these two series of teams Standards have been taken away by Nike, and we have no good selling points for selling Umbro products."
Hao Xiang also believes that the core resource of Umbrella is its right to sponsor the England national team. "The promise of Umbro's first domestic exclusive manufacturer, Tianyun, is that Umbro signed with the English national team until 2014. Until then, the English national team will always be sponsored by Umbro. Players will wear Umbro. After Nike took over Umbro, Nike had said at the beginning that there would be no change to the series of Umbro-sponsored teams and would still be sponsored by Umbro.But now, the England national team has put on Nike. Clothes."
Some industry observers have analyzed that Nike’s initial purchase of Umbrella was valued by its football sponsorship. Because half of the sponsorship of English football at that time was half of Adidas is Umbro, Nike could not insert it. Nike then thought of passing the value of the purchase of Umbro to pass on, and gradually take away all of the team sponsored by Umbro, including Manchester United and England. Due to the loss of the core value, the sold Umbro has actually been eclipsed.
Zhu Qingyi, a light industry researcher at China Investment Advisors, also believes that the lack of development in the football field has been a shortcoming of Nike and the acquisition of Umbrella has effectively boosted its strength in the football field. However, after owning Umbrella, Nike began to graft Umbrella's advantage in the football field into its own core brand, while Umbro did not make much progress in brand promotion and business development. From this point of view, Nike's purchase of Umbrella has long been known as "wishful thinking."
An informed source close to Nike revealed to reporters that Nike’s headquarters had only lost 1 million yuan in the Chinese market and “was very happyâ€. Their original expectation was that after the purchase of Umbro, it would take tens of millions or even hundreds of millions of dollars to take out the core value. Due to the resource scarcity of the sponsoring team, this price is acceptable. However, after a few years of operation, they eventually lost only 1 million yuan. "They think this is very successful."
As everyone knows, behind this 1 million yuan, has already condensed how many distributors' sweat and sweat input. Nike took away, it is also dealers most fancy publicity "selling point." Industry analysts believe that the final impact of Nike's value transfer and resale of the Yinbao brand will bring about a rapid shrinkage of channels. This continues, the Yinbao brand is likely to disappear in the Chinese market.
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