As of 2018, Adidas’ marketing expenditure stood at $3.5 billion- representing roughly 14% of total revenues. 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. Moreover, Adidas has been able to adapt itself better to changing customer tastes and preferences. 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. 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. Effective marketing strategies and innovative products have helped these companies outperform the broader apparel industry over the last couple of years. 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. Within the sports industry, Adidas and Nike are two prominent names across the world countries. 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. Sportswear SUPERSTARS Footwear Adidas Divestitures: Rockport TaylorMade Adams Golf Ashworth CCM Hockey 5. However, the table below shows that Adidas has 3-6x more reviews on average even though it has one third less inventory. Nike is the giant of the industry. 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. Trefis is currently used by hundreds of thousands of investors, company employees, and business professionals. Click here and subscribe to get insights like this from the world of sports and entertainment, straight in your inbox. They pretty much have the same target: people who love sports. 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. 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. The companies and marketers nowadays have to be stylish and functional at the same time to survive in the competition. 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 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). 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. 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.” However, there is still a huge gap between Nike’s and Adidas’ footwear revenues. 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. Nike’s market capitalization as of July 2019 stood at $140 billion – more than double to that of Adidas’ $65 billion. 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. Right now, Adidas owns about 60 percent of the market due to the popularity of Yeezys and Ultra Boost and NMDs as well. 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.”. Nike's motto is 'Just do it'. In 2009 the sales percentage of Adidas reported decline in profits. One caters for swoosh addicts, while the other caters to stripe … © 2020 Forbes Media LLC. Interested to know more? For over 20 years, Adidas have led the way in terms of the number of competing teams to be kitted out at the tournament. Adidas has almost four times the number of products than Nike has in its portfolio. There is an intense competition that business in Sports industry is facing. Nike is another world’s renowned manufacturer of sports equipment, and accessories founded in 1964. Photographer:... [+] Christopher Dilts/Bloomberg. 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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. However, both these apparel companies have continued to outperform the industry. Their inventory and assets/market cap is valued at $86 billion USD. The sports shoe industry has grown highly competitive with Nike, Adidas and Under Armour leading the game. Nike vs adidas 1. The history of NIKE is a true American success story. They operate mainly in the sports footwear industry, with Nike having the upper edge in competition. Additionally, you can find more Trefis Textiles, Apparel and Luxury Good Industry Data here. In last quarter of the 2009 its sales percentage was declined by 5 % which was because of their increase in marketing costs. Adidas and Nike are the most significant brand names in the minds of customers. 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. Consequently, one would expect Nike to have more reviews and ratings. The company has seen its financial performance and global presence growing in the recent years. Things are getting pretty heated between Nike and Adidas right now. Adidas has been more aggressive in marketing its products. 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 . Submitted By Football is the main battleground between Nike and Adidas. Will Investors Be Satisfied With 10% In 2021? 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. 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 vs Adidas. Difference between Nike and Adidas Nike and Adidas are two of the most popular sports equipment companies in the world. Financial Comparison TEAM 7 Josh Militante, Clint Seader, Michelle Lugo, Shamim Imani 2. 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’ Facebook followership has grown twice as fast as that of Nike in 2016 with much higher engagement rates driven largely by its content. 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. 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