Nike PK Adidas: Which Sports Brand Has More Advantages?

According to reports, in the past few years, Adidas Always trying to destroy Nike This invincible competitor, lawsuits, poaching of endorsement superstars and designers, no need.

In the fashion world, thanks to the concerted efforts of designers, Adidas has created a healthy recovery. Adidas's fans are cheering by the eternal reappearance of classics and Yeezy's new products. However, in fact, Adidas is dwarfed by Nike. In the US footwear market, Nike has a market share of 48%, while Adidas's market share in the United States has declined at an annual rate of 9% since 2011.

In terms of economics, market value refers to the stock price of a brand multiplied by the number of shares sold by the brand. Market capitalization is usually regarded as the "agent" of the public's view of the net value of an enterprise. Investors can measure the size of a company by market value.

　　 2001-2005: evenly matched

In the first ten years of this century, the strength of these two sports costumes is basically the same. Yamamoto Teruji, the world's top designer of Adidas creative director (Yohji Yamamoto), has integrated the Y-3's logo with the simplicity and design style of her personal brand to enhance Adidas's popularity. In addition, Adidas spent $160 million to sign a lifelong endorsement with David Beckham. What needs to be added is that Yamamoto Teruji initially wanted to cooperate with Nike.

Just as Adidas grew stronger, Nike did not idle, and reached several major acquisitions - snapping up Hurley, CONVERSE and Starter. The total purchase price was estimated at $450 million.

Then, Adidas CEO Herbert Hainer took over the brand in 2001, and Nike co-founder Phil Knight resigned as CEO in 2004.

　　 2006-2010: the situation becomes more complicated.

According to you, from a financial point of view, 2010 was the most spectacular year for Nike, with revenues of $19 billion. This means that the money Nike earns is equivalent to the income of Honduras as a whole. Moreover, the market value of the brand surged to $63 billion 450 million. At that time, Mark Parker said, "we achieved strong growth in an excellent quarter and accelerated the growth of the whole business. When we focus on our two core values - innovation and inspiration, Nike is the best.

The president and chief executive of Nike has elaborated on the brand's "Crazy" growth in the next five years. He said, "in the future, you can expect to see more products that change the rules of the game, an even more irresistible sense of after use, and a focus on excellence in operations and finance. These will be the reason why we can develop faster than any other brand. "

At the same time, from the perspective of financial income, Adidas has been ten years behind Nike.

In the past five years, Nike's revenue and reputation have been rising. In 2012, stock split (a strategy designed to make stocks easier to get) caused Nike's market value to drop briefly. However, this did not prevent Nike from hitting the current peak. At present, Nike is four times the size of Adidas. Adidas's recent signing of celebrities -- James Harden, Kanye West, NIGO and Pharrell Williams -- does not have much impact on the brand's profit growth. It is undeniable that the German brand is trying hard to change this situation in the future.

"Nike's growth comes from excellent products, careful and thoughtful delivery, and excellent marketing," said Matt Powell, an industry analyst NPD footwear expert. "In sports shoes, products will always be the first." Good marketing can't sell a bad product successfully. " Nike's marketing ability is very famous in the industry.

You know, Nike spends $8 million on so-called "demand creation" every day. The truth is that their products can instantly reach the rest of the world.

In the United States, which accounts for 40% of the total sales of sportswear in the world, Nike occupies a huge share of the market. Whether it is running equipment (Nike has about 60% market share), essential basketball shoes (up to 90%), or high-performance skateboard shoes (about 20%), Nike is the preferred brand of many consumers.

"Adidas has made a lot of efforts. If we wait patiently, the brand will be able to regain some of its lost market share. " Powell said. He added, "however, no brand can pose a threat to Nike". In recent years, Skechers and Under Armour have gained huge profits.

At present, Adidas is the third largest footwear brand in the United States after UA. However, it seems that no brand can shake Nike's "first" position in sportswear games.