There are two leading sports brands in the world – Nike and Adidas AG. Nike and Adidas are competing to increase the share of such a profitable and voluminous market as the sports shoe market. The increasing demand encouraged both entrepreneurs to make their marketing programs as effective as possible. Although new players have appeared on the market in recent years, a small number of heavyweights still dominate. Nike and Adidas AG have been fighting for the title of the leader in sport’s shoes for a very long time. Competition between brands is the driving force for both companies.
Nike is the world’s largest brand of sports shoes and clothing by capitalization. Nike owns 95% of the basketball shoe market in the United States. Shoes account for 2/3 of sales (Pandey, 2017). In recent years, the company has made great efforts to correct its negative reputation as an exploiter of child labor in its factories, which are located in emerging markets. Adidas AG has a dominant market share in European countries. The company has a lifetime advertising sponsorship of Lionel Messi, one of the highest-paid footballers in the world. Initially, Adidas AG was known as a football brand, but now it is a diversified player in the market of sportswear, goods and accessories.
Recently, Nike has been betting on Asian markets and on a line of products aimed at women, which is a good way to attract attention within the framework of the modern popularity of feminism (Khan, 2020). Adidas AG is implementing a strategy to increase its brand attractiveness among young people and millennials aged 15 to 30 years. The marketing hype is fueled by innovative ways of producing Adidas AG products: The Yoga collection, made of recycled ocean plastic, Alphaedge 4D sneakers, produced using light and oxygen in a complex technological process of digital light synthesis.
In conclusion, Adidas AG boasts a higher gross margin, but Nike has a more efficient business – this translates into a higher net and operating profitability. Adidas, in its advertising, focuses on creating a parallel, often fantastic reality. Nike prefers personalized beauty and spirit. Of course, no one will say in advance what trends will be fashionable in 5 years. But in any case, the” battle” between Nike and Adidas will remain one of the most beautiful in history.
Khan, S. (2020). Nike and Adidas: A Rivalry Made in Heaven. SAGE Publications: SAGE Business Cases Originals.
Pandey, B. C. (2017). Nike Inc-Complete Analysis: SWOT, PESTLE and Marketing strategy. BookRix.