Adidas played "It's not cheap to kill me" worth learning!

Recently, Adidas insisted that the Olympic Games did not cut prices for sales of goods caused concern from all walks of life, compared to the domestic clothing brands in order to promote sales, the phenomenon of new goods on the shelves of the phenomenon has occurred, our clothing brand should not learn about Adidas this is not What is the strategy of adopting the brand's long-term development as the strategy of coveting small profits and taking care of the overall situation?

Recently, the “Olympic Marketing Report” of the China Brand Academy disclosed that the Olympics that Adidas had backloged had reached an astonishing RMB 1 billion. Even though Adidas later stated that it did not reach RMB 1 billion, it also admitted that there was indeed an inventory backlog. Another media report on the issue of whether to reduce the price of inventories should be sold. Adidas's insistence on price reduction strategy has created a huge contradiction with some sellers. The reasons for dealers asking for price reductions seem to be sufficient: they can clear inventory and backlogs. Accelerate the flow of funds; Adidas said that excessive discounting will damage the brand, and consumers will no longer be willing to buy regular prices. What's wrong with you?

What dealers value is the positive effect of price reduction promotion:

Undoubtedly, it is undeniable that price cuts are the most effective promotional weapon. By conceding a profit for a certain period or period of time, future or potential sales are converted into sales. This at-a-glance interest is sufficient to create a significant advantage for the brand at that time, allowing consumers to weigh the same factors of quality, functionality, appearance, and spiritual satisfaction as a clear differential benefit compared to other competing brands. And drive consumers to pay for it. The reason is very clear, if a product worth 10 yuan now has a discount of 20% on the basis of the same quality, there will surely be more loyal consumers and the use of a competing brand is willing to pay for it.

If only from a marketing point of view, the price reduction strategy is to reduce profit margins, improve the market competitiveness of products, in order to occupy a larger market, to achieve the goal of small profits but quick turnover. Companies that implement price reduction strategies are either active or passive, but the goal is to increase sales, and the bottom line must not be at a loss. Promotions directly induce consumers to engage in certain purchases. Its key point is that "products can be sold today, they can not wait until tomorrow", price promotions are the most direct benefits of benefits and benefits, the consumer's purchasing power has a direct pull. Numerous facts have also proved that the price reduction promotion has indeed played a major role in expanding the market share of products.

Adidas valued the negative effect of price reduction on the brand:

Regarding the overstocked Olympic products, Adidas rather contradicts its distributors and adopts a strategy of insisting on not reducing prices and not discounting sales. Applying the classic line of Li Qi in the movie "Party B", "I will not kill me," Adidas It is revealed that "I will not cut down the price to kill!" Why not cut prices? Adidas recognizes that the method of price reduction will damage the brand's interests in the long run.

Appropriate price reduction promotion is a good move for promoting products, but from the perspective of maintaining brand loyalty, a constant product needs to be reflected at a relatively constant price, and the value of a good brand is not only reflected in money. Many consumers feel that certain brands of domestic clothing are cutting prices too quickly. Brand-name clothing that has been bought for hundreds of thousands of dollars will definitely be sold at a discount price within two months. Most people will feel uncomfortable in this situation. This feeling is contrary to the maintenance of brand loyalty. In fact, when making a purchase, each consumer makes a price measurement based on his own knowledge of the target product. When this standard is quickly broken by price, consumers are irrationally Brand loyalty is suspected.

We should understand that every enterprise has different positioning for consumers. Luxury brands such as CHANEL and GUCCI, and well-known sports brands such as Nike and Adidas are always adhering to their own high-end brand positioning. Blind price cuts; and those who target low-end consumers, once the price cuts, brand upgrading is difficult, in the long run it is totally unworthy; enterprises located in high-end markets, through price cuts to snatch low-end products Market, in fact, can not grab a lot of share, because you lower the price at the same time, the brand's image will also be reduced, which would instead lose the high-end brand market.

In the domestic apparel market, the price cuts of many companies are blind and do not consider the issue of consumer loyalty. Some domestic brands, once sold, and consumers have not reached a certain level of emotional accumulation of their brands, companies think, "Forget what brand, I will directly meet the needs of", so the price; Some intermediate companies originally wanted to upgrade their brands to high-end products. However, due to the impact, they were forced to cut prices. Finally, for high-end brand companies, they would also attach importance to the competition in the underlying market and would also lower the price of a sub-brand. Join this competition in the market. In the process of product price reduction, consumers' emotional identity with the brand will certainly be reduced.

Our apparel company has indeed made great efforts in branding, including learning from big names abroad, and learning from brand planning, brand culture and brand marketing strategies. But when faced with such thorny problems as whether the backlog is to reduce prices, should it be as strong as Adidas for long-term brand considerations?