Nike produces its Jordan shoes in a very limited number only. The two companies discussed in this case study are Nike and Adidas. 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 … 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. while Nike could only add $4.3 billion at an average rate of 6.8%. Nike has tried to replace adidas as the world’s leading brand for soccer gear worldwide. One caters for swoosh addicts, while the other caters to stripe … They have also launched effective buzz marketing campaigns with both innovative products and celebrity endorsements and collaborations. Nike 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. Learn More. That’s a staggering number, and it’s hard to believe that Adidas could even come close to touching it. Adidas has on average posted four page posts per week in 2016 with 67% of which being videos and 33% photos. 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. • List of NKE Competitors With net margin of 14.33 % company achieved higher profitability than its competitors. The sports shoe industry has grown highly competitive with Nike, Adidas and Under Armour leading the game. Nike's revenues and prestige have rocketed in the past five years. Adidas’ Facebook followership has grown twice as fast as that of Nike in 2016 with much higher engagement rates driven largely by its content. 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. However, the table below shows that Adidas has 3-6x more reviews on average even though it has one third less inventory. If you were to look at the books, it would seem that Nike is absolutely crushing Adidas. 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This compares to Nike’s three posts per week in the same period where 93% are photos. Athletic footwear has continued to a be a strong driver for these companies, led by higher demand for various casual and running style. Adidas and Nike both have powerful brands that are sold around the w orld. © 2020 Forbes Media LLC. 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. A Project Report on A COMPARATIVE MARKET STUDY: NIKE VS ADIDAS. With almost double the followership of Adidas, Nike reigns supreme in terms of the numbers. Nike sold $22.3 billion worth of footwear in 2018 while Adidas brought in $14.6 billion. As of 2017, the Nike brand held a 21.1 percent share of the U.S. footwear market. 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%. Football is the main battleground between Nike and Adidas. 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. Nike's motto is 'Just do it'. Adidas footwear has added $5.8 billion to total revenues since 2015, growing at an average annual rate of 17.6%. This shows that Adidas might be the more popular brand. 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. 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. Despite the market dominating presence of Nike, Adidas has been able to … Traditionally the battleground has been the supplying of kits and the endorsement of the world’s best and most recognised players. 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. 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. Things are getting pretty heated between Nike and Adidas right now. 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. 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 … Nike is another world’s renowned manufacturer of sports equipment, and accessories founded in 1964. 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. 301 certified writers online. 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. Difference between Nike and Adidas Nike and Adidas are two of the most popular sports equipment companies in the world. 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 companies and marketers nowadays have to be stylish and functional at the same time to survive in the competition. 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.” Nike vs Adidas. 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. Both of their popularity has become so immense that they are literally household names. Submitted By Nike and Adidas are two of the most popular sports equipment companies in the world. 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. Across the board, Nike has 2-3x more merchandise on Finish Line as compared to Adidas. While Adidas’s current collection features sneakers for nearly every sports, the first pair of Adidas … This logo represents a tick, which (without going to deep into human phycology) points to positivity and success. All Rights Reserved, This is a BETA experience. Ahead of the tournament, Nike’s social media numbers dwarf those of Adidas. Right now, Adidas owns about 60 percent of the market due to the popularity of Yeezys and Ultra Boost and NMDs as well. 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. 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 (ADDDF) brand sales in North America were up 25% in … But in terms of engaging with fans, size may not be everything. 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. After a nearly two-year period of blockbuster gains, Adidas appears to be having its own “what goes up must come down” moment. Consequently, one would expect Nike to have more reviews and ratings. Moreover, Adidas has been able to adapt itself better to changing customer tastes and preferences. Financial Comparison TEAM 7 Josh Militante, Clint Seader, Michelle Lugo, Shamim Imani 2. Nike vs Adidas sales: where do they make their sales and revenue? Adidas is one of the world’s most famous companies in manufacturing sportswear and other accessories founded in 1948. Nike’s total revenue in 2018 stood at $39 billion – almost 50% more than Adidas’ $26 billion. Within the sports industry, Adidas and Nike are two prominent names across the world countries. Photographer:... [+] Christopher Dilts/Bloomberg. Their inventory and assets/market cap is valued at $86 billion USD. 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. However, there is still a huge gap between Nike’s and Adidas’ footwear revenues. 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. Think about it: typically on a Nike shoe a clean 'Swoosh' logo can be found. As of 2018, Nike’s net income of $4 billion was almost double Adidas’ $2 billion. Per Trefis, Nike is likely to report an EPS of $2.98 for the year. Nike and Adidas are two of the largest footwear companies in the world. 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. 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. Nike brand notifies to “just do it”, while Adidas tells you “impossible is nothing”. What’s behind Trefis? For this paper, we will be covering and narrating about 'Nike' and 'Adidas'. You may opt-out by. 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. Additionally, you can find more Trefis Textiles, Apparel and Luxury Good Industry Data here. 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 has added roughly $6.7 billion to total revenue since 2015, increasing at an average annual rate of 6.5%. 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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