After experiencing the brief victory of the Beijing Olympic Games, Adidas was plunged into high stocks. More than a year of painful struggle, Adidas eventually decided to change the coaching form to escape the predicament. As Herbert Heiner, the global CEO of Adidas, put it: "Being a veteran with over 20 years of experience in distribution management in the Asia-Pacific region, Du Borei, is a considerable investment in itself." Du Bo Rui decided to get up in the fall, his top priority Is to rebuild the channel - to establish a new partnership to achieve win-win situation. After all, the negotiation power with channels is now out of the past, in Li Ning, Anta and other "coyotes", Adidas is no longer strong. June inventory problem completely solved before Reporter: Optimistic about the market capacity of sporting goods after the Beijing Olympic Games, Adidas has been in an awkward position in 2009 to digest inventory, there is a saying in adidas third quarter 2009 earnings, called "stock bubble", the "stock bubble "Can it be seen as a mistake in market judgment? Dubuirui: I think it is not entirely a miscarriage of justice, because competitors also encountered this challenge, and some competitors deeper than us. First, high inventory levels are actually industry-wide issues. For example, our channel operators may be too optimistic about the market after the Olympic Games. In addition, we have some problems with the channel partners' supply methods. We should shorten the lead times and speed up replenishment. We should also make breakthroughs in cross-sectoral forecasts. We have already begun to take action and we have achieved great results. Inventory has been declining. We're still a bit away from getting back to normal, but I believe I can solve the problem by June 2010. 2009 is a tough year, but also make us think from, learn a lot of lessons, 2010 Adidas will return to growth track. In our opinion, 2010 will be an important turning point for Adidas. Reporter: Before June to solve the inventory problem, what is your solution? Dubuai Rui: There are three main ways: from the dealer at the selective recovery of some goods; with the dealer for the exchange of goods; carry out more sales to reduce the inventory to solve the problem. Reporter: As far as I know, some big distributors ended their partnership with Adidas last year. Adidas competitors started to establish more and more self-owned stores in the Chinese market. Adidas is not the channel construction will take such a strategy? Dubuai Rui: We with a few distributors to lift cooperation, is part of the business strategy. First, we will consider the qualifications and skills of the dealer, as well as his financial performance. If the store that we are operating is really unsatisfactory, we will end the cooperation. This is a process of survival of the fittest, but the number of our closed stores is very small. Even if we disassociate with some underperforming distributors or stores, that does not mean we have to replace these businesses with our own stores. We have a multi-channel strategy, first of all, close to channel partners, more effective support for their development; The second is that we will make a breakthrough in digital marketing; Finally, is to open up our own stores. Reporter: Regarding the number of stores, what are your expectations? Now how many stores Adidas has? Dubuai Rui: We currently have about 5400 stores around the next one or two years, roughly an increase of about 10%. Instead of paying particular attention to the number of stores, we want to increase productivity and then increase the number of stores. Reporter: Herbert Heiner, Chairman and CEO of Adidas Group, once said he hoped that after the Olympics, Adidas sportswear stores will be opened to more counties in China. Now, to open up the fifty-six line market has a specific agenda yet? Dubuai: on the promotion of the five or six line market schedule, there is no written. We are discussing, hoping to launch feasible plan for fifty-six line market as soon as possible, and now we are doing a thorough study. We must make sure everything is ready. Today's rural areas are tomorrow's modern cities, so we will attach great importance to the development in rural areas. However, to increase the sales efficiency of dealership stores is a pressing matter of the moment and only then can it be expanded to rural markets. In the future, we must abandon some old-fashioned practices Reporter: Recently, a big move by Adidas is that its Reebok signed a cooperation agreement with its partner in China, Pou Sheng International, to design and produce Reebok apparel products locally, in a "China-centric" approach. This is the first time that Reebok has been designing and manufacturing locally. This is done for what consideration? Dubuai Rui: This new mode of operation is indeed a bold attempt, the original intention is to achieve "short, flat, fast" development. China's sporting goods market, has always been based on Adidas and Nike as the leader, Anta, Li Ning and other local brands followed, plus the middle layer, is a number of international small and medium sporting goods company. This market structure requires us to have a faster response capability and remain invincible. Therefore, we work with Reebok, hoping to tailor-made products for Chinese consumers, manufacturing in China, distribution in China. This "made in China, at the same time for Chinese consumers," the model can bring three advantages: faster, more refined, more efficient. For example, the speed of loading may increase from 6 to 9 weeks from the previous 12 months. Reporter: In 2010, in addition to reducing inventory, what are the specific plans? For example, the investment in the Chinese market. Dubuai Rui: We will continue to increase investment in the Chinese market, because the Chinese market has become a major growth engine in the world Adidas. In addition to helping channel operators liquidate their inventories, we also need to step up our cooperation with the channel to maximize the flow of stores, such as through product displays and in-store promotions. We will also understand the profitability, to ensure that dealers profit, cut inefficiencies. Very important point is the need for new products on the shelves, which also need to strengthen cooperation with the dealer. We have retail training colleges for our dealer partners to train our clerks for better sales. However, there is a problem with the Chinese distributors, that is, the high staff turnover rate. Training staff sometimes lost in vain, we need to start all over again, this is a bigger challenge we face. In addition, we also hope that the sporting goods industry can keep pace with the times. For example, consumers in China have undergone great changes and are becoming more and more inclined toward the consumption of fashion products. Therefore, we should also abandon some old-fashioned practices in our industry. Adapt to the market trend. Reporter: How to abandon the "conservative approach", what will you try in the Chinese market? Dubuai Rui: the strategy of the future will be a very strong strategy. The company is going to discuss its business priorities in the future and hopes to reach a consensus as soon as possible. We hope to modernize the sporting goods industry. This means that cooperation with channel partners can bring new tools to shorten the supply chain and speed up product arrival. For example, regarding the inventory data, we should abandon the manual inventory of goods in the past, using digital management to ensure that we and dealers have first-hand information to speed up replenishment and meet consumer demand more quickly. We also hope to see an increase in the differentiation of stores, market differentiation and product display. On the other hand, we also consider the development of cyberspace and digital use, so that our products can be glanced over the network. Will certainly promote e-commerce technology in China in the future in the Chinese market, it is possible from the Internet can be directly purchased, trading our products. In conclusion, we expect the Chinese market to set an example for the rest of the world and become a benchmark.