Research Blog: Adidas
BLOG ONE
The PESTEL model is a business tool which used and help in the examination of the macro environment of an organization. which is include the factors in the whole economy, rather than specific regions or sectors. By using this PESTEL framework in the examination of the Adidas company, the focus will be on the factors, these factors are always beyond the control of the business, but still have the ability to affect its performance.
Green (2019) presents such a factor-resale of sports shoes- which presents a significant dilemma for Adidas and other companies in the shoes market. In this article, it is argued that the value of resale sports shoes is expected to reach 6 billion US dollars business. This trend gives a significant dilemma for Adidas or its competitors such as Nike because these firms do not make any money from these third-party trades. but it is helpful to them in a more direct way. The article thinks that through these resales, the company’s brand is become more famous, creating more awareness through potential customers.
On this basis, it is recommended that the big famous sports shoes resellers make a partnership with Adidas to make sure that the company can take advantage of this shoes market. This trend is an economic factor within the PESTEL framework since it impacts on the way Adidas will have to approach its future business. Failing to enter into the market share captured by the sneaker reselling alternative may affect its competitive position, may hinder its growth and expansion into the international fashion and shoe market.
Analyse the P,E or S factors （socials）
The booming trend of sports and leisure in China and around the world continues to create opportunities for Adidas in the sportswear sectors. It involves consumers attaching a casual and leisure aspect to regular sports fashion, resulting in a new way of using these products. This trend is a factor in Adidas’s external social environment since it involves the company’s consumers. the consumers’ response to this trend determines the company’s response. Nike, for example, putting this trend into its sportswear to attract customers and increase its customer base. In China, the sports leisure style is gradually but definitely affecting the purchase behaviour of consumers in the Chinese sports clothing market, requiring enterprises to either adapt to this trend or take the risk of losing its market share in the competition.
According to Achim (2019), more than 104 million Chinese have a fitness app on their smartphones, while 15 million consumers in China are gym members. This statistic highlights the growing health awareness of Chinese people, which leads to more people changing their lifestyle, including healthy lifestyle. As a result, China’s demand for fitness clothing and footwear is on the rise. However, as an emerging trend, adidas has to make sure it invests correctly. Joshi (2020) believes that the style of fashion industry is short-term, forcing the manufacturers and retailers to launch new products offerings each season to maintain their customers. Failure will only mean that those companies that can develop customer interest by provide a variety of purchase options will benefit more.
BLOG THREE
Analyse the T,E or L factors （environmental）
Due to high levels of industrialization and other disadvantages, China’s environment is seriously deteriorating. Harrop (2020) believes that China is the world’s largest consumer of coal, a trend that has been undermining international efforts directed at stopping the use of fossil fuels. China’s climate change is very serious, causing nearly 1.6 million deaths every year. It is for this reason that Chinese people tend to wear masks when they go out in the haze day. However, with the improvement of environmental awareness, pressure from other countries seems to be changing the trend of this country. If people in the outside and breath a lot of bad air，they might get respiratory tract infection. The recent green bond initiative, in which most countries, including China, is an example.
According to Brandywine Global Investment Management (2020), these bonds are a financing tool designed to promote climate change mitigation policies, promote investment in alternative energy, and reduce a country’s overall carbon footprint. China and the United States are the largest green bond issuers, highlighting changes in Chinese attitudes that seem to recognize the need to turn things around. Consumers are also adopting a green consumption attitude to adapt to brands that comply with new expectations, while those that do not comply with new expectations are easy to give up customers to competitors. This trend in the Chinese environment requires Adidas to comply with this regulation in order to maintain its position in the market. Failure will mean that the company will no longer be able to attract customers, who will instead buy other brands that meet their needs.
Reference list
BLOG ONE
Green, D. (2019). Nike and Adidas could have a role in sneaker resale market – Business Insider. [online] Business Insider. Available at: https://www.businessinsider.com/nike-adidas-role-sneaker-resale-market-2019-8?r=US&IR=T. [Accessed 20 Feb. 2020].
BLOG TWO
Jing Daily. (2019). Athleisure Can’t Stop Winning in China | Jing Daily. [online] Available at: https://jingdaily.com/athleisure-winning-china/.[Accessed 22 Feb. 2020].
Joshi, S. (n.d.). Product Lifecycle Management in Apparel Market Growing Rapidly with Share, Types, Applications Forecast to 2027 – Instant Tech Market News. [online] Available at: https://www.instanttechnews.com/news/2020/02/19/product-lifecycle-management-in-apparel-market-growing-rapidly-with-share-types-applications-forecast-to-2027/ [Accessed 22 Feb. 2020].
BLOG THREE
Brandywine Global Investment Management (2020). The Ascent of Green Bonds. [online] Seeking Alpha. Available at: https://seekingalpha.com/article/4326004-ascent-of-green-bonds [Accessed 25 Feb. 2020].
Harrop, F. (2020). China’s environmental malpractice hurts all. [online] Martinsville Bulletin. Available at: https://www.martinsvillebulletin.com/opinion/columnists/froma-harrop-china-s-environmental-malpractice-hurts-all/article_3e143ca4-8bd1-591a-a67c-babea4a1235a.html [Accessed 25 Feb. 2020].
carina的博客 