The companies and marketers nowadays have to be stylish and functional at the same time to survive in the competition. As of 2018, Nike’s net income of $4 billion was almost double Adidas’ $2 billion. 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 ‘Yet to Fully Capitilise’ on Commercial Potential. Nike is another world’s renowned manufacturer of sports equipment, and accessories founded in 1964. Nike in 2015 won the bid against Adidas and officially became the next exclusive provider of uniforms to the NBA. 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. You may opt-out by. Trefis is currently used by hundreds of thousands of investors, company employees, and business professionals. Think about it: typically on a Nike shoe a clean 'Swoosh' logo can be found. This has only helped to cement Adidas’ position as football’s top brand. 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. Both of their popularity has become so immense that they are literally household names. 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. In last quarter of the 2009 its sales percentage was declined by 5 % which was because of their increase in marketing costs. Adidas Strengths. This compares to Nike’s three posts per week in the same period where 93% are photos. Adidas and Nike are the most significant brand names in the minds of customers. However, the table below shows that Adidas has 3-6x more reviews on average even though it has one third less inventory. You can play with assumptions, or try scenarios, as-well-as ask questions to other users and experts. Nike and Adidas are two of the largest footwear companies in the world. The brand value of Nike has increased year-on-year since 2010 and reached around 34.4 billion U.S. dollars in 2020. 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. Traditionally the battleground has been the supplying of kits and the endorsement of the world’s best and most recognised players. With almost double the followership of Adidas, Nike reigns supreme in terms of the numbers. They pretty much have the same target: people who love sports. However, Nike is notably bigger than second-placed Adidas. The history of NIKE is a true American success story. 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. 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. 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 … Within the sports industry, Adidas and Nike are two prominent names across the world countries. Its main rival is Nike. Adidas and Nike both have powerful brands that are sold around the w orld. Nike's revenues and prestige have rocketed in the past five years. 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 same size on Nike tallies up to 9.62 inches, about a millimeter smaller. See How It’s Powering New Collaboration and What-Ifs, For CFOs and Finance Teams| Product, R&D, and Marketing Teams, Like our charts? 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. 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. 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. We will write a custom Case Study on Nike vs. Adidas specifically for you for only $16.05 $11/page. 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. All Rights Reserved, This is a BETA experience. After a nearly two-year period of blockbuster gains, Adidas appears to be having its own “what goes up must come down” moment. Difference between Nike and Adidas Nike and Adidas are two of the most popular sports equipment companies in the world. Nike and Adidas are two of the most popular sports equipment companies in the world. © 2020 Forbes Media LLC. 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 has on average posted four page posts per week in 2016 with 67% of which being videos and 33% photos. 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%. As of 2018, Nike’s footwear revenue of $24.2 billion was roughly 60% more than that of Adidas’ $15 billion. They pretty much have the same target: people who love sports. Additionally, you can find more Trefis Textiles, Apparel and Luxury Good Industry Data here. That’s a staggering number, and it’s hard to believe that Adidas could even come close to touching it. Athletic footwear has continued to a be a strong driver for these companies, led by higher demand for various casual and running style. Things are getting pretty heated between Nike and Adidas right now. There are two arguments people make when it comes to eCommerce consumer behavior. The disparity is more evident with half sizes. 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. Click here and subscribe to get insights like this from the world of sports and entertainment, straight in your inbox. 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. Though Nike was still leading with 13.44 billion euros while Adidas made 10.08 billion euros. Effective marketing strategies and innovative products have helped these companies outperform the broader apparel industry over the last couple of years. Nike produces its Jordan shoes in a very limited number only. Adidas is a leading brand of sports shoes and apparel. Adidas, Nike, and Under Armour are competitors in the lucrative market for athletic wear. Adidas footwear has added $5.8 billion to total revenues since 2015, growing at an average annual rate of 17.6%. For over 20 years, Adidas have led the way in terms of the number of competing teams to be kitted out at the tournament. Nike’s total revenue in 2018 stood at $39 billion – almost 50% more than Adidas’ $26 billion. Nike is the giant of the industry. Adidas is among the leading sports shoe and apparel brands. 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. 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. The company has seen its financial performance and global presence growing in the recent years. 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. 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. If you were to look at the books, it would seem that Nike is absolutely crushing Adidas. 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. Nike's motto is 'Just do it'. The two companies discussed in this case study are Nike and Adidas. What’s behind Trefis? Adidas has been more aggressive in marketing its products. 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