301 certified writers online. You may opt-out by. Moreover, Adidas has been able to adapt itself better to changing customer tastes and preferences. Adidas has been more aggressive in marketing its products. Right now, Adidas owns about 60 percent of the market due to the popularity of Yeezys and Ultra Boost and NMDs as well. 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. See How Itâs Powering New Collaboration and What-Ifs, For CFOs and Finance Teams| Product, R&D, and Marketing Teams, Like our charts? Nike vs Adidas sales: where do they make their sales and revenue? Nikeâs market capitalization as of July 2019 stood at $140 billion â more than double to that of Adidasâ $65 billion. 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. In last quarter of the 2009 its sales percentage was declined by 5 % which was because of their increase in marketing costs. 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. How does Nikeâs Profitability compare to that of Adidas? All Rights Reserved, This is a BETA experience. 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. Nike Repucom's Max Barnett on Nike, Adidas and the battle of the brands in European footba, Nike vs. adidas - battle of the brands infographic, Perspectives: The Big Bet on English Football, The Rising Importance of Social Media for Football Clubs, Rugby Union âYet to Fully Capitiliseâ on Commercial Potential. Sportswear SUPERSTARS Footwear Adidas Divestitures: Rockport TaylorMade Adams Golf Ashworth CCM Hockey 5. Financial Comparison TEAM 7 Josh Militante, Clint Seader, Michelle Lugo, Shamim Imani 2. There are two arguments people make when it comes to eCommerce consumer behavior. Whatâs behind Trefis? Adidas and Nike are the most significant brand names in the minds of customers. Adidasâ Facebook followership has grown twice as fast as that of Nike in 2016 with much higher engagement rates driven largely by its content. Adidas vs. Nike. Effective marketing strategies and innovative products have helped these companies outperform the broader apparel industry over the last couple of years. 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. The brand value of Nike has increased year-on-year since 2010 and reached around 34.4 billion U.S. dollars in 2020. In comparison, adidas, one of Nikeâs largest competitors, held less than five percent of ⦠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 . Although, Nike and Adidas have added roughly $7 billion to total since 2015, Adidasâs growth has come at a 70% faster rate than Nike. The estimated value of the brandâs top player endorsements at the Championships this year will include Franceâs Paul Pogba (+â¬4m), Walesâ Gareth Bale (+â¬4m) and Germanyâs Mesut Ãzil (+â¬3m), while Nikeâs catalogue of superstars includes the likes of Portugalâs three time Ballon dâOr winner, Cristiano Ronaldo (+â¬19m), Englandâs Wayne Rooney (+â¬3m) and Swedenâs Zlatan IbrahimoviÄ (+â¬1.5m). ⢠List of NKE Competitors With net margin of 14.33 % company achieved higher profitability than its competitors. MetLife, Prudential Should Buy Soaring Startups In Shrinking $723B Life Insurance Market, Climate Change Poses A Clear And Present âSystemic Riskâ To The Economy, Stocks This Week: Buy Qualcomm And Paychex, From âImpossibleâ To âIâm Possibleâ: 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. For example, if youâre a womenâs size 8 for Adidas, your foot is 9.7-inches long. However, both these apparel companies have continued to outperform the industry. Will Investors Be Satisfied With 10% In 2021? Nikeâs revenues exceed Adidasâ by 50%, but Adidas has reported strong revenue growth over recent years Nike has added roughly $6.7 billion to ⦠Nike and Adidas are two of the largest footwear companies in the world. On Twitter, Adidasâ 2.9m football and soccer followers are outnumbered by Nikeâs 4.6m whilst on Facebook, the gulf is even larger with Nike Footballâs page enjoying over 42.2m followers, compared to Adidasâs 21.8m. This EPS figure coupled with a P/E multiple of 30x, works out to a price estimate of $89 for Nikeâs stock (shows cash and valuation analysis), which is roughly 10% ahead of the current market price. That said, both Adidas and Nike have expanded the scale and scope of their operations over time by adding new brands. As of 2018, Nikeâs net income of $4 billion was almost double Adidasâ $2 billion. One caters for swoosh addicts, while the other caters to stripe ⦠However, there is still a huge gap between Nikeâs and Adidasâ footwear revenues. As of 2018, Nikeâs footwear revenue of $24.2 billion was roughly 60% more than that of Adidasâ $15 billion. Adidas (ADDDF) brand sales in North America were up 25% in ⦠08.06.16, London – With the 2016 UEFA European Championships kicking off this week, the battle between two of sportâs biggest brands, Nike and Adidas is starting to take shape, data Repucomâs new European Football Report shows. Thatâs a staggering number, and itâs hard to believe that Adidas could even come close to touching it. 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. Nike is the giant of the industry. Nike has added roughly $6.7 billion to total revenue since 2015, increasing at an average annual rate of 6.5%. As of 2018, Adidasâ marketing expenditure stood at $3.5 billion- representing roughly 14% of total revenues. Adidas Strengths. In 2009 the sales percentage of Adidas reported decline in profits. Nike in 2015 won the bid against Adidas and officially became the next exclusive provider of uniforms to the NBA. Interested to know more? © 2020 Forbes Media LLC. 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 not used to playing catchup, but Adidas is beating it in technology, innovation and style. Things are getting pretty heated between Nike and Adidas right now. This surged the interest and demand despite the high price tag. 28.) A logo hangs on display outside a Nike Inc. store in Chicago, Illinois, U.S. Both of their popularity has become so immense that they are literally household names. However, Nike is notably bigger than second-placed Adidas. As of 2017, the Nike brand held a 21.1 percent share of the U.S. footwear market. The Nike vs. adidas War Up until 2015, Nike led with a 86.2 billion market share, a far cry from adidasâ 17.1 billion. Submitted By Adidas is one of the worldâs most famous companies in manufacturing sportswear and other accessories founded in 1948. Think about it: typically on a Nike shoe a clean 'Swoosh' logo can be found. This shows that Adidas might be the more popular brand. 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. Adidas has almost four times the number of products than Nike has in its portfolio. Beatsâ activation around the opening game led to 50m views, compared to Guinnessâ 13m; something both Nike and Adidas will be looking to and waiting for as the opening game draws closer.â. Adidasâ 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. Adidas and Nike both have powerful brands that are sold around the w orld. After a nearly two-year period of blockbuster gains, Adidas appears to be having its own âwhat goes up must come downâ moment. For over 20 years, Adidas have led the way in terms of the number of competing teams to be kitted out at the tournament. Their inventory and assets/market cap is valued at $86 billion USD. Click here and subscribe to get insights like this from the world of sports and entertainment, straight in your inbox. while Nike could only add $4.3 billion at an average rate of 6.8%. North America and Western Europe are the pairâs two top regions for sales. But in terms of engaging with fans, size may not be everything. Consequently, one would expect Nike to have more reviews and ratings. Nike vs. Adidas: The three stripes is making gains on the swoosh â 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 âTeam Nike.â You can play with assumptions, or try scenarios, as-well-as ask questions to other users and experts. They operate mainly in the sports footwear industry, with Nike having the upper edge in competition. Adidas appears to have room ⦠Nike has tried to replace adidas as the worldâs leading brand for soccer gear worldwide. Within the sports industry, Adidas and Nike are two prominent names across the world countries. However, the table below shows that Adidas has 3-6x more reviews on average even though it has one third less inventory. The platform uses extensive data to show in a single snapshot what drives the value of a company's business. Two years later, adidas saw a resurgence â some even called it a revival. There is an intense competition that business in Sports industry is facing. The companies and marketers nowadays have to be stylish and functional at the same time to survive in the competition. Football is the main battleground between Nike and Adidas. Nike's revenues and prestige have rocketed in the past five years. Nikeâs total revenue in 2018 stood at $39 billion â almost 50% more than Adidasâ $26 billion. This logo represents a tick, which (without going to deep into human phycology) points to positivity and success. They pretty much have the same target: people who love sports. Max Barnett, Head of Digital, Repucom, said: âAs 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. This compares to Nikeâs three posts per week in the same period where 93% are photos. ; 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 ⦠While Adidasâs current collection features sneakers for nearly every sports, the first pair of Adidas ⦠Nike vs Adidas - Financial Analysis 1. 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. Photographer:... [+] Christopher Dilts/Bloomberg. We will write a custom Case Study on Nike vs. Adidas specifically for you for only $16.05 $11/page. Across the board, Nike has 2-3x more merchandise on Finish Line as compared to Adidas. The history of NIKE is a true American success story. With almost double the followership of Adidas, Nike reigns supreme in terms of the numbers. Nike is another worldâs renowned manufacturer of sports equipment, and accessories founded in 1964. Comparing Nikeâs 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. 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. Nike vs adidas 1. 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. Adidas runs bigger than Nike by up to 5 millimeters. They pretty much have the same target: people who love sports. Nike has a larger scale and better profitability than Adidas, but the latter seems to be closing the gap over the last few years â as evident from Adidasâ strong revenue growth and aggressive marketing expenditure. On the other hand, Nikeâs marketing expenditure of $3.8 billion was higher than of Adidas but represented less than 10% of Nikeâs total revenues. If you were to look at the books, it would seem that Nike is absolutely crushing Adidas. On Twitter, Adidasâ 2.9m football and soccer followers are outnumbered by Nikeâs 4.6m whilst on Facebook, the gulf is even larger with Nike Footballâs page enjoying over 42.2m followers, compared to Adidasâs 21.8m. This year, nine of the 24 teams (37%) playing will have kits manufactured by the German sports giant, compared to Nikeâs six (25%), Pumaâs five (21%) and four (17%) being shared among other suppliers. Moreover, Nikeâs net income margin of 10.3% was roughly 30% more than Adidas margin of 7.8%, However, since 2015, Nikeâs net income margin has declined while Adidas, led by strong revenue growth has been able to steadily increase margins. In comparison, the adidas brand was valued at ⦠Nike and Adidas are two of the most popular sports equipment companies in the world. A Project Report on A COMPARATIVE MARKET STUDY: NIKE VS ADIDAS. 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 %. Both of their popularity has become so immense that they are literally household names. The disparity is more evident with half sizes. Nike brand notifies to âjust do itâ, while Adidas tells you âimpossible is nothingâ. 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