Max Barnett, Head of Digital, Repucom, said: “As we saw during the 2015 Rugby World Cup, using this strategy allowed Beats By Dre to generate almost eight times the social media value than a more well established rugby sponsor like Guinness. Whether on the field of play, on social media or emblazoned on replica kit, it is clear that Nike and Adidas crush the competition when it comes to sports branding . A logo hangs on display outside a Nike Inc. store in Chicago, Illinois, U.S. The sports shoe industry has grown highly competitive with Nike, Adidas and Under Armour leading the game. Nike vs Adidas: The Merchandise Adidas has 2625 products with prices ranging from 899 to 29999, and Nike has 643 products with prices ranging from 1596 to 36500. Nike and Adidas are two of the most popular sports equipment companies in the world. This growth has been led by the apparel and footwear segment which have continued to achieve robust growth in the last couple of years driven by continued global trends such as increasing penetration of sportswear, rising sports participation rate, and increasing health awareness. Financial Comparison TEAM 7 Josh Militante, Clint Seader, Michelle Lugo, Shamim Imani 2. However, the table below shows that Adidas has 3-6x more reviews on average even though it has one third less inventory. Their inventory and assets/market cap is valued at $86 billion USD. Nike is the relative newcomer, having been set up by Philip Knight and Bill Bowerman in 1971, while German company Adidas is celebrating 70 years in existence in 2019. Nike’s total revenue in 2018 stood at $39 billion – almost 50% more than Adidas’ $26 billion. MetLife, Prudential Should Buy Soaring Startups In Shrinking $723B Life Insurance Market, Climate Change Poses A Clear And Present ‘Systemic Risk’ To The Economy, Stocks This Week: Buy Qualcomm And Paychex, From “Impossible” To “I’m Possible”: A Program For Holistic Development, How To Develop A Vaccine...For Your Portfolio, Policy Rx For Recession Aggravates Income Inequality, Trefis Textiles, Apparel and Luxury Good Industry Data. Nike’s market capitalization as of July 2019 stood at $140 billion – more than double to that of Adidas’ $65 billion. This year, nine of the 24 teams (37%) playing will have kits manufactured by the German sports giant, compared to Nike’s six (25%), Puma’s five (21%) and four (17%) being shared among other suppliers. As of 2017, the Nike brand held a 21.1 percent share of the U.S. footwear market. © 2020 Forbes Media LLC. Click here and subscribe to get insights like this from the world of sports and entertainment, straight in your inbox. Both of their popularity has become so immense that they are literally household names. The company has seen its financial performance and global presence growing in the recent years. A Project Report on A COMPARATIVE MARKET STUDY: NIKE VS ADIDAS. This surged the interest and demand despite the high price tag. This shows that Adidas might be the more popular brand. Athletic footwear has continued to a be a strong driver for these companies, led by higher demand for various casual and running style. Adidas footwear has added $5.8 billion to total revenues since 2015, growing at an average annual rate of 17.6%. Interested to know more? (Nike’s Q3 comprises the 13-week period ended Feb. Adidas runs bigger than Nike by up to 5 millimeters. This EPS figure coupled with a P/E multiple of 30x, works out to a price estimate of $89 for Nike’s stock (shows cash and valuation analysis), which is roughly 10% ahead of the current market price. The estimated value of the brand’s top player endorsements at the Championships this year will include France’s Paul Pogba (+€4m), Wales’ Gareth Bale (+€4m) and Germany’s Mesut Özil (+€3m), while Nike’s catalogue of superstars includes the likes of Portugal’s three time Ballon d’Or winner, Cristiano Ronaldo (+€19m), England’s Wayne Rooney (+€3m) and Sweden’s Zlatan Ibrahimović (+€1.5m). Trefis is currently used by hundreds of thousands of investors, company employees, and business professionals. The two sportswear giants are at the centre of the battle as the two gear-up to maximise the advertising and sponsorship potential of the Euros this summer. They have also launched effective buzz marketing campaigns with both innovative products and celebrity endorsements and collaborations. In last quarter of the 2009 its sales percentage was declined by 5 % which was because of their increase in marketing costs. The brand value of Nike has increased year-on-year since 2010 and reached around 34.4 billion U.S. dollars in 2020. Nike has added roughly $6.7 billion to total revenue since 2015, increasing at an average annual rate of 6.5%. Adidas appears to have room … This has only helped to cement Adidas’ position as football’s top brand. Nike On Twitter, Adidas’ 2.9m football and soccer followers are outnumbered by Nike’s 4.6m whilst on Facebook, the gulf is even larger with Nike Football’s page enjoying over 42.2m followers, compared to Adidas’s 21.8m. Two years later, adidas saw a resurgence – some even called it a revival. Photographer:... [+] Christopher Dilts/Bloomberg. This compares to Nike’s three posts per week in the same period where 93% are photos. Its main rival is Nike. Nike's motto is 'Just do it'. While Adidas’s current collection features sneakers for nearly every sports, the first pair of Adidas … Opinions expressed by Forbes Contributors are their own. Nike vs Adidas: a league of their own. Comparing Nike’s Market Capitalization to that of Adidas, Market Capitalization: Price per share x Shares outstanding as per latest annual filings, Conclusion: Nike has a larger scale and generates more profits, but Adidas is closing the Gap. Nike's revenues and prestige have rocketed in the past five years. Not only have Adidas been the number one kit supplier since Euro 96, but they have also been the kit supplier to every winning team (five) since that tournament. Nike is the larger business overall and the market leader in the global sports footwear industry with revenues from their footwear of over $24.2 billion in 2018, compared to Adidas footwear … Nike vs Adidas. Brand Value: Adidas is one of the most valuable brands in sports.According to Forbes, it is ranked at #3 position (Nike at # 1 and ESPN at # 2) with a brand value of $6.8 Billion. Nike produces its Jordan shoes in a very limited number only. Per Trefis, Nike is likely to report an EPS of $2.98 for the year. On Twitter, Adidas’ 2.9m football and soccer followers are outnumbered by Nike’s 4.6m whilst on Facebook, the gulf is even larger with Nike Football’s page enjoying over 42.2m followers, compared to Adidas’s 21.8m. Adidas and Nike are the most significant brand names in the minds of customers. In comparison, the adidas brand was valued at … This might include you though you may have invested money in these companies, or may have been working with one of them for years as an employee, or have consulted with them as an expert for a long time. However, there is still a huge gap between Nike’s and Adidas’ footwear revenues. 08.06.16, London – With the 2016 UEFA European Championships kicking off this week, the battle between two of sport’s biggest brands, Nike and Adidas is starting to take shape, data Repucom’s new European Football Report shows. Moreover, global e-commerce growth has boosted the top line for both companies, with both of them achieving more than 35% growth in their digital business in 2018. Adidas is a leading brand of sports shoes and apparel. The disparity is more evident with half sizes. With almost double the followership of Adidas, Nike reigns supreme in terms of the numbers. Effective marketing strategies and innovative products have helped these companies outperform the broader apparel industry over the last couple of years. Despite the market dominating presence of Nike, Adidas has been able to … Adidas has almost four times the number of products than Nike has in its portfolio. Within the sports industry, Adidas and Nike are two prominent names across the world countries. Nike is the giant of the industry. Traditionally the battleground has been the supplying of kits and the endorsement of the world’s best and most recognised players. As of 2018, Adidas’ marketing expenditure stood at $3.5 billion- representing roughly 14% of total revenues. What’s behind Trefis? Adidas’ Facebook followership has grown twice as fast as that of Nike in 2016 with much higher engagement rates driven largely by its content. Both of their popularity has become so immense that they are literally household names. The two companies discussed in this case study are Nike and Adidas. Football is the main battleground between Nike and Adidas. Submitted By This logo represents a tick, which (without going to deep into human phycology) points to positivity and success. Nike in 2015 won the bid against Adidas and officially became the next exclusive provider of uniforms to the NBA. In 2009 the sales percentage of Adidas reported decline in profits. Adidas is one of the world’s most famous companies in manufacturing sportswear and other accessories founded in 1948. With almost double the followership of Adidas, Nike reigns supreme in terms of the numbers. As of 2018, Nike’s net income of $4 billion was almost double Adidas’ $2 billion. The platform uses extensive data to show in a single snapshot what drives the value of a company's business. Difference between Nike and Adidas Nike and Adidas are two of the most popular sports equipment companies in the world. How does Nike’s Profitability compare to that of Adidas? There is an intense competition that business in Sports industry is facing. For over 20 years, Adidas have led the way in terms of the number of competing teams to be kitted out at the tournament. Explore example interactive dashboards and create your own, Led by MIT engineers and Wall Street analysts, Trefis (through its dashboards platform dashboards.trefis.com) helps you understand how a company's products, that you. The Nike vs. adidas War Up until 2015, Nike led with a 86.2 billion market share, a far cry from adidas’ 17.1 billion. Adidas is among the leading sports shoe and apparel brands. We will write a custom Case Study on Nike vs. Adidas specifically for you for only $16.05 $11/page. Nike vs. Adidas: The three stripes is making gains on the swoosh — but that doesn't tell the whole story Back to video Adidas More importantly, the success of Superstar is part of a broader resurgence for Adidas AG that has a growing number of consumers and investors switching from “Team Nike.” Will Investors Be Satisfied With 10% In 2021? However, Nike is notably bigger than second-placed Adidas. They pretty much have the same target: people who love sports. Adidas has comfortably outpaced Nike’s growth in the last couple of years, with Adidas’ offerings such as Adidas Neo and Originals receiving positive customer response. Sportswear GROWTH FootwearApparel 4. Nike vs adidas 1. They operate mainly in the sports footwear industry, with Nike having the upper edge in competition. Jumping right into it, Nike by default beats Adidas in the aesthetics department by fundamental design. Led by MIT engineers and Wall Street analysts, Trefis (through its dashboards platform dashboards.trefis.com) helps you understand how a company's products, that you touch, read, or hear about everyday, impact its stock price. while Nike could only add $4.3 billion at an average rate of 6.8%. Nike vs. Adidas Sportswear companies like Nike and Adidas, have made many products throughout the world that are very popular and continue to grow in their reputations of being the top two leading companies in the sports industry. You may opt-out by. The same size on Nike tallies up to 9.62 inches, about a millimeter smaller. Sportswear INDUSTRY Footwear Apparel Hardware 3. Think about it: typically on a Nike shoe a clean 'Swoosh' logo can be found. Adidas’ growth has been led by its footwear segment which has continued to achieve double-digit growth driven by sales increases in sports-inspired and sport-performance products. ; An Iconic Brand with a Prestigious Legacy: Adidas has nurtured a strong and prestigious legacy and heritage over its long, illustrious history by influencing and shaping numerous aspects of … As of 2018, Nike’s footwear revenue of $24.2 billion was roughly 60% more than that of Adidas’ $15 billion. In order to understand the reputation of how brands work, we shall be covering two sports brands and discuss how their marketing strategies and the brand itself have made their name in the market. Right now, Adidas owns about 60 percent of the market due to the popularity of Yeezys and Ultra Boost and NMDs as well. After a nearly two-year period of blockbuster gains, Adidas appears to be having its own “what goes up must come down” moment. That’s a staggering number, and it’s hard to believe that Adidas could even come close to touching it. Things are getting pretty heated between Nike and Adidas right now. Moreover, Nike’s net income margin of 10.3% was roughly 30% more than Adidas margin of 7.8%, However, since 2015, Nike’s net income margin has declined while Adidas, led by strong revenue growth has been able to steadily increase margins. Nike’s revenues exceed Adidas’ by 50%, but Adidas has reported strong revenue growth over recent years, Nike’s revenue growth since 2015 has averaged 6.5%, as opposed to growth in excess of 11% for Adidas, Adidas did particularly well to grow its Footwear revenues over 2015-17, although Nike’s efforts to regain lost ground yielded results in 2018, Adidas’s strong growth over recent years can be attributed to its increased marketing spend. Adidas vs. Nike. Although, Nike and Adidas have added roughly $7 billion to total since 2015, Adidas’s growth has come at a 70% faster rate than Nike. Nike has tried to replace adidas as the world’s leading brand for soccer gear worldwide. Adidas has on average posted four page posts per week in 2016 with 67% of which being videos and 33% photos. If you were to look at the books, it would seem that Nike is absolutely crushing Adidas. Beats’ activation around the opening game led to 50m views, compared to Guinness’ 13m; something both Nike and Adidas will be looking to and waiting for as the opening game draws closer.”. The history of NIKE is a true American success story. There are two arguments people make when it comes to eCommerce consumer behavior. In comparison, adidas, one of Nike’s largest competitors, held less than five percent of … 301 certified writers online. Learn More. Thanks to the iconic Superstar and NMD line, paired with buzzworthy endorsements with the likes of Kanye West, the three-stripes were back in the game. They pretty much have the same target: people who love sports. Nike sold $22.3 billion worth of footwear in 2018 while Adidas brought in $14.6 billion. That said, both Adidas and Nike have expanded the scale and scope of their operations over time by adding new brands. Surprisingly, the founders of Trefis discovered that along with most other people they just did not understand even the seemingly familiar companies around them: Apple, Google, Coca Cola, Walmart, GE, Ford, Gap, and others. 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Additionally, you can find more Trefis Textiles, Apparel and Luxury Good Industry Data here. On the other hand, Nike’s marketing expenditure of $3.8 billion was higher than of Adidas but represented less than 10% of Nike’s total revenues. Ahead of the tournament, Nike’s social media numbers dwarf those of Adidas. Adidas's motto is 'Impossible is Nothing'. Across the board, Nike has 2-3x more merchandise on Finish Line as compared to Adidas. One caters for swoosh addicts, while the other caters to stripe … North America and Western Europe are the pair’s two top regions for sales. Nike’s revenues exceed Adidas’ by 50%, but Adidas has reported strong revenue growth over recent years Nike has added roughly $6.7 billion to … Adidas Strengths. But in terms of engaging with fans, size may not be everything. Moreover, Adidas has been able to adapt itself better to changing customer tastes and preferences. Nike vs Adidas - Financial Analysis 1. Nike and Adidas have outperformed the other apparel, particularly, footwear companies in the past few years and we expect this trend to continue over the foreseeable future. On the other hand, Adidas has been able to add roughly $7 billion to total revenues, growing at an average annual rate of 11.3%. Sportswear SUPERSTARS Footwear Adidas Divestitures: Rockport TaylorMade Adams Golf Ashworth CCM Hockey 5. Adidas (ADDDF) brand sales in North America were up 25% in … Nike is not used to playing catchup, but Adidas is beating it in technology, innovation and style. Now, every World Cup, billions of people tune in as adidas and Nike sponsor national teams, sponsor world-class players, and execute their elaborate marketing plans…all in order to establish themselves as the best soccer-apparel company in the world. See How It’s Powering New Collaboration and What-Ifs, For CFOs and Finance Teams| Product, R&D, and Marketing Teams, Like our charts? 28.) In 2009, the Market shares of Adidas was 22% of the worldwide athletic footwear while on the other end the market shares of Nike was about 33 %. Started as a small re-seller of an obscure Japanese running shoe (which later became Asics) line in a small shop in Santa Monica, NIKE has grown exponentially over the years into one of the world's most recognizable (and profitable) brands. You can play with assumptions, or try scenarios, as-well-as ask questions to other users and experts. Nike vs Adidas sales: where do they make their sales and revenue? Consequently, one would expect Nike to have more reviews and ratings. For example, if you’re a women’s size 8 for Adidas, your foot is 9.7-inches long. Comparing the results to its competitors, Nike Inc reported Total Revenue decrease in the 3 quarter 2020 year on year by -0.62 %, faster than overall decrease of Nike Inc 's competitors by -7.43 %, recorded in the same quarter. However, if we compare the performance of the largest two brands in recent years, Adidas is in an aggressive mood and all set to outperform Nike. The companies and marketers nowadays have to be stylish and functional at the same time to survive in the competition. Today, during major sporting events, social media and digital activation are as relevant to Nike and Adidas as the number of national kits both brands manufacture for teams and the exposure the top endorsements provide in the fight for supremacy. Nike is another world’s renowned manufacturer of sports equipment, and accessories founded in 1964. Though Nike was still leading with 13.44 billion euros while Adidas made 10.08 billion euros. Trefis captures trends in key operating metrics for Nike vs. Adidas in an interactive dashboard, highlighting how Adidas has been able to close the gap on the market leader over recent years through an increased marketing spend. Nike has a larger scale and better profitability than Adidas, but the latter seems to be closing the gap over the last few years – as evident from Adidas’ strong revenue growth and aggressive marketing expenditure. Nike brand notifies to “just do it”, while Adidas tells you “impossible is nothing”. Nike and Adidas are two of the largest footwear companies in the world. All Rights Reserved, This is a BETA experience. For this paper, we will be covering and narrating about 'Nike' and 'Adidas'. • List of NKE Competitors With net margin of 14.33 % company achieved higher profitability than its competitors. Adidas and Nike both have powerful brands that are sold around the w orld. And Adidas’ footwear revenues five years broader apparel industry over the last couple of years 8 Adidas..., growing at an average annual rate of 6.5 % footwear has continued to a be a driver! A Nike shoe a clean 'Swoosh ' logo can be found in inbox... 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