nike vs adidas case study

Nike vs Adidas Case Study: Who Is Winning? All You Need To Know

• Written by 440 Industries
• Fashion Business , Fashion Management
• December 19, 2022

An in-depth comparison between the two sneaker giants: Adidas and Nike on performance, popularity, and athletic ability.

Introduction .

There’s been a long debate about which is better, Nike or Adidas when it comes to sneakers. If you like to travel, then the importance of footwear is not lost on you. Two brands come to mind when you think of sneakers. There has been a long history between these two businesses, and everyone is curious to know who is better in terms of performance and revenues. Both brands have earned a reputation for excellence in their respective fields. Discover who is the king of the Nike vs Adidas battle by diving into the world of sneakers. 

Adidas vs Nike: A Trip Down Memory Lane

The sportswear manufacturer Adidas remains the largest in Europe and the second largest globally following Nike. The company was founded by Adolf Dassler and his brother Rudolph Dassler. Together, they established the Dassler Brothers Shoe Factory. Adolf enjoys sports such as soccer, boxing, skiing, and football. He understood that each sport is different, and the success of each activity is generally determined by the footwear used during the activity. He recognized a market for sport-oriented shoes and began creating them with the goal of improving the performance of athletes. 

After the brothers separated in 1949, Rudolph founded PUMA, while Adidas founded Adidas. At the time, PUMA was Adidas’ greatest competitor. Adidas was named after the first two letters of Adolf’s name and the last three letters of his second name. Choosing the logo was based on the unique features of Adidas’ shoes, and the three stripes symbolized comfort as well as a shoe design.

As the world’s largest athletic footwear company, the American giant, Nike was founded on January 25, 1964. By 2014, Nike had a market capitalization of 19 million US Dollars and had become the most recognized brand within the sports industry. In the beginning, Nike was known as Blue Ribbon Sports (BRS). The founders of Nike are Bill Bowerman and Phil Knight. Phil Knight was an Oregon track athlete in 1964. The name BRS was changed to Nike in 1971 and was derived from the Greek goddess of victory. Initially, the company was a distributor for a Japanese shoemaker, Onitsuka Tiger. 

By 1917, the relationship between Nike and the Japanese shoemaker was gradually coming to an end. Nike was already walking on their first line of shoes at the time, and it was introducing the SWOOSH. Carolyn Davidson designed this masterpiece. In 1977 , Nike released its first advertising campaign known as there is no finish line. After 1988, Nike adopted the slogan just do it. This has enabled Nike to effectively expand its product line to a wide range of countries.

Adidas vs Nike: Performance and Revenues

This shoe company employed over 61 thousand people worldwide in 2021 , and generated revenue of 21 billion US dollars in the same year . After realizing that North America accounted for 40% of the global sports market in 2017 , the brand made it a point to dominate this market. Because of this, Adidas has always focused on this market. Despite Adidas’ smaller size when compared to Nike, this shoe brand stands out because it understands what consumers are looking for and focuses its efforts accordingly.

This shoe company employed over 73 billion people worldwide in 2021 , and generated revenue of 21 billion US dollars in the same year . Since Nike’s global revenue in 2017 was the biggest in the world, it chose North America as its target market. Nike has a strong marketing and sponsorship agreement to back up its actions. The vast revenue Nike generated in 2017 has partly been attributed to a contract signed in 2015. Adidas and Nike competed to provide the NBA with uniforms, and Nike won the bid.

Nike vs. Adidas: Production and Suppliers

The majority of Nike’s production is carried out in Asia, but Nike also manufactures in America, while Adidas manufactures in Europe. In addition, Nike has a small part of its production in Africa, and Nike owns over 500 factories in four separate companies , which manufacture footwear, equipment, and apparel. The leading manufacturer of Nike shoes is China and Vietnam each accounting for 36% of the total manufactured worldwide.  

Meanwhile, Adidas operates over 800 factories throughout 55 countries . Vietnam produces approximately 40% of its footwear, while Indonesia controls 25% of the production process. China only produces 19% of Adidas’ footwear.

Nike vs. Adidas: Perception

Adidas appears to be winning the Nike vs Adidas argument in this category due to its collaboration with influencers, celebrities, and musicians. Adidas adopted an approach that focuses on streetwear sneakers. It collaborates with top celebrities, including Kanye West and Beyonce. Nike, on the other hand, emphasizes sports rather than celebrity collaborations. With the present athleisure trend moving sportswear to the office, Adidas stands a better chance in the market with this approach. 

In addition to his billion-dollar fashion empire derived largely from his Yeezy sneakers, Kanye West is one of the most familiar names in the Nike vs Adidas rivalry. Originally, Kanye West partnered with Nike and released three styles within five years. Kanye West announced in 2014 that he was moving the partnership to Adidas. In 2015, Adidas launched Yeezy , and the partnership has been quite successful. 

In contrast, Nike collaborates with celebrities of a different type. The Air Jordan trainer is regarded as one of the most popular celebrity sneaker brands due to its collaboration with Michael Jordan. These sneakers were introduced in 1985 and remain popular today. However, some individuals claim that they no longer have a cool factor to them. It is also worth noting that Nike partnered with Paris Saint Germain Football Club in 2018 and the team became the first to wear Jordan merchandise. The advertisements were centered around top footballers, Neyman and Mbappe. In a way, it is the foundation of both companies’ success as it forces them to grow their direct-to-customer relationships. Although Nike holds the majority of the market share, Adidas is rapidly closing the gap with its cool factor. Nike is the owner of the most prominent company, but Adidas is quickly closing the gap.

Nike vs. Adidas: Construction

The most important thing when choosing running shoes is to ensure that they fit comfortably. While there are occasions when you need narrow shoes, you may also prefer wider ones because of their comfort. When comparing Nike and Adidas, it is imperative to understand how both brands fit. Despite the fact that both brands offer a variety of features in their running shoes, there are certain distinctions to be made.

Uppers refer to the entire part of a shoe that covers the foot. Uppers are created by stitching or molding all parts of the shoe above the soles to form a single unit to attach the insole and outsole. 

Those searching for comfortable, lightweight, and breathable uppers will be pleased to note that Nike provides precisely those qualities. The Nike Flyknit offers high-strength fibers without adding heavy weight. The fibers are woven into the upper so that it fits like a sock. Nike’s knit pattern varies slightly with each sneaker. Some of these shoes have tighter weaves to provide greater support, while others have loose weaves to provide greater flexibility. 

On the other hand, Adidas uses lightweight ventilated uppers that ensure your feet remain comfortable regardless of how many miles you run. Adidas’ knitted uppers are well known for their comfort.

In spite of the fact that Nike offers a variety of midsoles including carbon plates, carbon plates are not a regular part of its footwear. Nike’s top midsole technology is Nike React. Essentially, this technology utilizes a midsole that offers plenty of cushioning without sacrificing energy return. Additionally, it does not add a significant amount of weight to the shoe. You will feel nice and pillowy when you squeeze a Nike React shoe before it returns to its original form. As a result, the midsole of the Nike shoe provides a high level of cushioning and energy return.

Alternatively, Adidas is best known for its Boost technology, which was introduced in 2013. It is a groundbreaking cushioning technique that combines Thermoplastic Polyurethane with pressure-responsive properties. As a result of the compression feature, shock absorption is greatly enhanced and the show bounces back to its original state. This technology contributes to consistent performance because it provides excellent energy returns. As well as delivering outstanding energy returns, the Boost technology offers durability, temperature regulation, comfort, and flexibility, regardless of the weather conditions.

It is also important to consider the outsole in the Nike vs Adidas brand battle. Nike sneakers are guaranteed durability regardless of where they are purchased. The rubber outsoles of the shoes are thick and have deep grooves that channel water efficiently. Adidas, on the other hand, utilizes Continental Rubber outsoles that provide excellent traction. Thus, the sneakers are safe and easy to use when wet. A famous description of this rubber outsole is that it is durable and grippy, which makes it an excellent choice for running in inclement weather.

Nike vs. Adidas: The Future

With a whopping worth of $85.54 billion US dollars in 2022, the sneaker industry continues to grow every day , and investing in marketing is crucial to a brand’s success. With such a lucrative size, it’s no wonder top sports brands compete for market share. It is evident that Nike and Adidas are doing exceptionally well and setting new financial records in the Nike vs Adidas argument. Nike has focused on expanding into China, while Adidas is looking to grow in North America. While Nike seeks new materials, Adidas focuses on design. Although Nike is the most popular of the Nike vs Adidas brands, Adidas is the winner regarding the cool factor. At the end of the day, it all depends on the individual’s preference as both brands have great features.

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The World Cup Brand Winner: Adidas or Nike?

With approximately 2.6 billion people worldwide following the 2010 World Cup, the spectacle has been a field day for marketers, each trying to connect their brand with the strong emotions fans have for their favorite teams. But the stakes are particularly high for those brands that actually sell football gear. Two contenders, Adidas and Nike, […]

With approximately 2.6 billion people worldwide following the 2010 World Cup , the spectacle has been a field day for marketers, each trying to connect their brand with the strong emotions fans have for their favorite teams. But the stakes are particularly high for those brands that actually sell football gear. Two contenders, Adidas and Nike , each have a shot at becoming undisputed market leader when the whistle blows on July 11 and the final game concludes. Coming into 2010, their records show them evenly matched: each is estimated to have earned $1.5-1.7 billion in football merchandise sales in 2008 and 2009, and each controls about a third of the total market.

• EO Elie Ofek is the T.J. Dermot Dunphy Professor of Business Administration at Harvard Business School.

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Nike v Adidas: Who’s More Ethical and Sustainable?

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Nike and Adidas are two of the largest sportswear brands in the world, and they have both come up against criticism over the years for their ethicality. It’s a close call, but let’s take a closer look and answer that burning question: is Adidas better than Nike?

The battle of the sportswear giants

Nike and Adidas are two of the biggest brands in the world, so chances are you’ve considered investing in some kit from each of them at some point. New running trainers, perhaps? Some stylish yoga leggings, or a decent sports bra? These brands offer it all. Because when it comes to sportswear, most people see Nike and Adidas as their first port of call. So, we crunched the ethics and sustainability numbers to find out which company treats people, the planet, and animals better than the other.

Let’s answer once and for all: is Adidas better than Nike? Long story short: Adidas falls just behind Nike, but neither brand is a shining star. Read on for a deeper dive into both brands’ track records on the issues that matter most.

Nike—on again, off again

In the 90s, Nike became notorious for its terrible human rights record. The brand says it has changed, but can it outrun the past?

It’s generally agreed Nike has improved, but there is still a way to go . The activewear giant has been criticised for allowing its suppliers to exploit workers by paying below the minimum wage, enforcing excessive working hours, and failing to provide safe working conditions. Nike also hasn’t signed the Bangladesh Fire & Safety Accord , an important initiative to improve factory safety that came into play after the death of over 1,000 garment workers in the Rana Plaza factory collapse . On the plus side, Nike has committed to not knowingly using Uzbek cotton —where forced labour and child labour have been rife—after being called out for it in early 2020. The brand also now ensures payment of a living wage in a small proportion of its supply chain.

Nike hasn't signed the Bangladesh Fire & Safety Accord, an important initiative to improve factory safety that came into play after the death of over 1,000 garment workers in the Rana Plaza factory collapse.

In March 2017, Nike took a big step backward when it ceased allowing the NGO Workers Rights Consortium access to factories to check on labour standards. In 2021 and 2022, Nike received a score of 51-60% in the Fashion Transparency Index , showing it had started going in the right direction again, then its score dropped back down to 41-50% in the 2023 report. It’s like Nike is in an on-again-off-again relationship with doing the right thing.

But in May 2023, Nike was hit with a class action lawsuit over “greenwashed” sustainability claims. ClassAction.org reports that : “The 47-page ‘greenwashing’ lawsuit charges broadly that Nike has illegally attempted to capitalise on consumers’ preference for ‘green’ products by falsely claiming that certain apparel tagged with ‘sustainable’ claims and marketed as supporting the retailer’s waste- and carbon-reducing ‘Move to Zero’ initiative are, unbeknownst to the public, made from non-biodegradable plastic-based materials.”

All things considered, Nike scores a middling “It’s a Start” for people. Thanks to its use of some lower-impact materials and setting of science-based targets, it also rated “It’s a Start” for the planet. But for animals, Nike’s use of various cruel animal-based fabrics like down and exotic animal skin, as well as its lack of traceability here, means it is rated “Not Good Enough”.

Nike prides itself on making comfortable footwear, but we think some of the brand’s big-time execs should try walking in their workers’ shoes for a while and see how comfy things feel then.

We hope to see continual improvements from a big brand that can certainly afford to make them.

Nike gets an “It’s a Start” rating overall .

Adidas—losing its lead

Adidas has been subject to many of the same criticisms as Nike concerning worker exploitation, including in a report by War on Want on conditions in Bangladesh in 2012.

More recently, both brands have been strongly criticised for failing to take concrete steps towards paying a living wage to workers across their supply chain despite increasing profits and sponsorship payments to sports stars and teams. The 2018 Foul Play report by the Clean Clothes Campaign and Collectif Ethique sur l’Etiquette highlights the difference between the ever-increasing amount of money paid on sponsorships to sports stars and other marketing expenses, compared with the reduced share of the final price tag of sports gear that’s paid to workers in the supply chain.

The report calls on the brands to commit to paying living wages across their supply chain by a specific date, and other supporting actions. Adidas now has a project to improve wages in part of its supply chain and has made a public commitment to improve wages overall, which is a good step, and following up the promise with tangible results would be a big tick for the brand. But right now, it still doesn’t pay a living wage. Commitments are good, but we’re more concerned with actions the brand is taking right now.

Adidas received a score of 51-60% in the 2021, 2022, and 2023 Fashion Transparency Index, down from 61-70% a few years ago but higher than Nike’s most recent result. This score reflects the brand disclosing its suppliers and subcontractors (a win for transparency), supporting freedom of association, and signing the Bangladesh Fire & Safety Accord. Moreover, in June 2017, Adidas was singled out for praise in a report on forced labour by Know the Chain . It noted that Adidas has strong disclosure throughout its supply chain. In particular, it was the only one of five major footwear brands to disclose activities to address forced labour in specific countries.

What sets Adidas apart on the labour front is its leadership with crucial inclusivity and culture strategies and policies . Its approach includes auditing suppliers on a Diversity, Equity, and Inclusion (DEI) level. Adidas is responsive and happy to be held accountable in this area, which is essential for global brands to set the stage for a more transparent, ethical, and sustainable fashion industry going forward.

In February 2022, Adidas’ rating dropped from “Good” to “It’s a Start”, then down to “Not Good Enough” in November 2023 owing in part to recent human rights violations in its supply chain, including ongoing cases of wage theft in Cambodia. Our mission at Good On You is to provide consumers with the most reliable, accurate, and up-to-date information and recommendations across fashion, which means our comprehensive ratings methodology evolves to accommodate crucial movements in issues across ethics and sustainability in the industry. What we see reflected in Adidas’ rating drop is a brand not making good on its existing promises and not keeping pace with industry-wide actions for people, the planet, and animals.

Adidas still has plenty of work to do in crucial areas like biodiversity and transparency, too. It was also caught up in a greenwashing scandal in late 2021 when it was found to be misleading consumers with its wording around recycled content in a new pair of Stan Smith sneakers . This is a prime example of a slew of recent greenwashing fast fashion claims and campaigns , for which brands must be held accountable.

Take a closer look at the reasons behind the change in our deep dive into Adidas’ rating , noting that Adidas scores “It’s a Start” for the planet, and “Not Good Enough” for both people and animals.

Adidas gets a “Not Good Enough” rating overall .

The verdict

So, it seems that both companies have a trek in front of them—we hope they don’t get too many blisters along the way. Is Adidas better than Nike? Overall, Nike comes out slightly ahead of Adidas with a better score for workers, but it’s certainly not perfect.

Step up your ethics

As ever, the most sustainable item is the one in your closet. If you own a pair of Nike or Adidas sneakers but would rather not support the brands in the future, the best option is to use them until they’re worn out and then thoughtfully dispose of them. If you’re in the US or Europe, you can drop off old sneakers from any brand to a participating Nike store for recycling.

In need of new sneakers or activewear that better match your values? Check out these more ethical alternatives below, beating both Adidas and Nike at their own game, with more solid results for people, the planet, and animals. Or simply opt for second-hand Adidas or Nike products, prolonging the life of items already in circulation.

Nike (Pre-Owned)

Nike is an American sportswear and activewear manufacturer. The brand has good policies to audit suppliers in its supply chain, but it is not taking adequate steps to ensure payment of a living wage for its workers. By buying Nike second hand you're helping keep clothes out of landfills and helping protect workers by slowing down the fast fashion cycle and the relentless demands on low-paid workers in the supply chain.

See the rating .

Shop Nike Pre-Owned @ Vestiaire Collective .

Cariuma – Site-wide

Step into more sustainable style with Cariuma sneakers, crafted for comfort from premium organic canvas, leather, and suede. Buy a pair of sneakers, and support tree planting initiatives in the Brazilian Rainforest. (Ends: 30 APR)

CARIUMA is a more sustainable Brazilian sneaker brand that wants you to feel super comfortable while providing effortless style in organic canvas, leather, and suede styles.

Find CARIUMA's shoes in US sizes 5-13.

Shop CARIUMA .

MATE the Label

MATE the Label creates clean essentials made with GOTS certified organic fabrics and lower-impact dyes. Its goal is to offer women everywhere a clean product that is just as beautiful as it is responsible. It is proudly female-founded and is predominately operated by women. This US brand also manufactures locally to reduce its carbon footprint.

Find the range in inclusive sizes XS-3XL.

Shop MATE the Label .

COG – Site-wide

Discover vegan sneakers and dress shoes made with love in Portugal from recycled materials. Exclusive 15% off with code COGSPRING-15. (Ends: 1 MAY)

Based in France, COG is a footwear label that creates more sustainable, vegan shoes from 100% recycled materials, including natural corks, used cotton scraps, end-of-life rubber, and plastic bottles fished out of the sea.

Offered in sizes EU 35-46.

Shop COG @ Immaculate Vegan .

Founded by surf champion Kelly Slater, Outerknown is a more responsible brand that aims to blend style and function with the protection of natural resources. The brand is Bluesign certified and has partnered with the Fair Labour Association.

Find the range in sizes XS-2XL.

Shop Outerknown .

Shop Outerknown @ Wearwell .

dk active is an Australian high-performance brand. It uses renewable energy in its supply chain to reduce its climate impact, and reuses all of its offcuts to minimise textile waste. It is also a PETA approved 100% vegan brand.

Find the products in sizes XS-2XL.

Shop dk active .

Veja is a French brand designing ecological and fair trade footwear, and is also a sustainable fashion pioneer. The brand uses eco-friendly materials, like GOTS certified cotton and vegetable-tanned leather! Veja pays their co-operative cotton growers and rubber tappers between 30% and 100% above the world market price . By not advertising, they are able to invest more money into strengthening their ethical practices.

Shop Veja .

Shop Veja @ LVRSustainable .

Shop Veja @ Outerknown.

Shop Veja @ Threads 4 Thought.

Fashion and responsible production can go together and Womsh is the brand that proves it. Its shoes are entirely designed and manufactured in Italy, and its clothing range is made from lower-impact fabrics like organic cotton.

Find most shoes in EU sizes 35-42, and clothes in XS-2XL.

Shop Womsh .

We love these more sustainable options listed above, but they may not meet your specific needs right now. Maybe they’re out of your price range or don’t stock your size. If you really need something and a product from Nike is the best option, you shouldn’t feel guilty about buying it . “It’s a Start” means just that—the brand is making a start. Nike is already ahead of comparable brands by working towards science-based targets and providing lower-impact ranges. And if your options are one of these brands or a fast fashion brand we avoid that is making little to no effort for people, the planet, and animals, Nike is a clear winner. Progress over perfection.

You can also reach out to brands who you think need a little nudge in the right direction. If enough customers demand change, brands that genuinely care about their impact will have no choice but to respond in kind. Check out the “Your Voice” function on the app or slide into their DMs on social media to let them know what you think.

Keen for more? Check out our ultimate guides to more sustainable sneakers and responsibly-made activewear

Editor's note.

Feature image via Nike and Adidas, all other images via brands mentioned. Good On You publishes the world’s most comprehensive ratings of fashion brands’ impact on people, the planet, and animals. We love to recommend some of the best sustainable brands, rated “Good” or “Great”. We also encourage shopping pre-owned as another great way to reduce the impact of our fashion choices. Use our directory to search thousands of rated brands.

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• Apr 22, 2020

Nike vs Adidas: Competitive Analysis with Data Visualizations

Updated: Nov 6, 2023

When it comes to footwear, Nike and Adidas are two of the biggest names in the industry. Both companies are well-established, have a large and loyal following of consumers, and have a wide range of products known for their quality, performance, and style.

We scraped the product data of Nike and Adidas in the footwear category for men and women. In this blog, we do a competitive analysis of this data. With this, we try to gain an understanding of the product range, pricing strategies, customer rating, and satisfaction of both companies.

The download links to the data are at the bottom of the page.

Nike vs. Adidas: The Merchandise

Nike and Adidas both offer a wide range of products. Some of the conclusions we can draw from the visualizations provided are:

We can see that Adidas offers 1847 products with prices ranging from 400-29999 whereas Nike offers 773 products with prices ranging from 1695-27995 i.e, Adidas offers a much larger range of products than Nike.

Out of the 1847 products of Adidas, 62.6% are for men, 25.1% for women and the rest are unisex products.

Out of the 773 products of Nike, 44.2% are for men, 38.1% for women and the rest are unisex products.

Both companies offer more products for men. But, comparatively, Adidas offers the majority of shoes under the men's category than Nike does.

Nike vs. Adidas: The Pricing

Pricing strategy plays an important role in the sale of a product and brand building. We will consider four segments when it comes to pricing. The segments are designed based on the MRP (not the sale price). The visualization of the analysis is given below:

Also Read: COVID-19 And Predatory Pricing Online

Products priced under Rs 5000 or roughly $65

Adidas has 826 products in this price range and the lowest-priced product is priced at Rs 799. Nike has 64 products in this price range and the lowest-priced product is priced at Rs 1695.

Products priced in the range of Rs 5000 – 12000 Roughly ( $65 – $150)

Adidas has 648 products in this price range and the lowest priced product is priced at Rs 5299. Nike has 400 products in this price range and the lowest priced product is priced at Rs 5495.

Products priced in the range of Rs 12000 – 25000 Roughly ( $150 – $325)

Adidas has 365 products in this price range and the lowest priced product is priced at Rs 12999. Nike has 304 products in this price range and the lowest priced product is priced at Rs 12157.

Products priced above Rs 25000, ie $325 +

Adidas has 7 products in this price range and the lowest priced product is priced at Rs 27999. Nike has 5 products in this price range and the lowest priced product is priced at Rs 25095.

The Discount Statistics

One of the most effective marketing strategies is providing discounts. Discounts attract customers as customers see them as an opportunity to save money. Therefore, discounts not only help in increasing sales but also increases the company's reputation.

Offering too less or too much of a discount can kill the customers’ interest and, at the same time, deteriorate the company’s reputation. Therefore, maintaining an average discount percentage is a crucial task faced by companies.

We analyzed the discounts provided by Nike and Adidas and derived the following inferences from them. The visualization of the same is shown above.

Out of the total 773 products of Nike, only 7.5% of the products are on discount.

Out of the total 1847 products of Adidas, 36.9% of the products are on discount.

Nike provides an average discount of 0.45%, and the maximum discount offered is 15%

Adidas provides an average discount of 13.89%, and the maximum discount offered is 65%

From the graph, we can see that Nike provides discounts only in the range 10-20, whereas Adidas provides discounts in almost all the range.

Nike vs Adidas: The Sales Price statistics

Similar to this, another important factor in the pricing strategy is the average sales price. Average sales price refers to the price at which a particular group of goods or service is typically sold. It is the most common metric used for comparing the effectiveness of a company’s sales and it is visible to customers. Hence, brands need to maintain a good average sales price in order to attract customers. The pricing variations are visualized below:

Products sold under Rs 5000 or Roughly $65

Adidas has 945 products in this price range and the lowest-priced product is priced at Rs 400. Nike has 64 products in this price range and the lowest-priced product is priced at Rs 1695.

Products sold in the range of Rs 5000 – 12000 Roughly ( $65 – $150)

Adidas has 602 products in this price range and the lowest priced product is priced at Rs 5200. Nike has 411 products in this price range and the lowest priced product is priced at Rs 5097.

Products sold in the range of Rs 12000 – 25000 Roughly ( $150 – $325)

Adidas has 292 products in this price range and the lowest priced product is priced at Rs 12499. Nike has 293 products in this price range and the lowest priced product is priced at Rs 12157.

Products sold above Rs 25000, ie $325 +

Also Read: Use Data Analytics to Sustain Your Business During COVID-19

From our analysis, we also figured out that the average sales price of Nike is Rs11330.22 and that of Adidas is Rs 7000.7

Nike vs. Adidas: Market Share

Market share is the percentage of an industry's sales that a particular company owns. Businesses with larger market shares are industry leaders and competition for smaller companies. It is also an important factor in deciding who is leading in the market.

Both Nike and Adidas are major companies in the shoe market and have a prominent market share. In March 2023, Nike’s market capitalization stood at 190.843 billion and that of Adidas’s at 26.973 billion.

Nike vs Adidas: Social media following

Nike and Adidas both run a lot of social media networks and have a large number of followers. In today’s digital era, social media marketing plays an important role as it increases the brand’s recognition and trustworthiness.

Followers of Nike and Adidas on some of the major social media platforms as of March 2023 are shown below:

Although Adidas leads in the number of followers on Facebook, Nike leads Adidas by a much greater number on Instagram and Twitter. Therefore, Nike has a greater social media presence and better strategy than Adidas.

Nike vs Adidas: Brand value

Brand value of a company or a brand speaks of what they stand for and how they are perceived. It is the worth of a brand in the eyes of its customers. A company with a good brand value will be able to introduce and sell new products more easily as customers will be more willing to try out the new products. Therefore, building a strong brand value and maintaining it is of great importance.

Nike and Adidas both have built a strong brand value over the years and maintained the image of the brand. In 2022, Nike is valued at approximately 33.1 billion U.S. dollars and Adidas is valued at approximately 14.3 billion U.S. dollars.

Global brand value of Nike from 2016 to 2022 Source: Statista.com

Global brand value of Adidas from 2016 to 2021 Source: Statista.com

Also Read: Cost control for web scraping projects

The competitive analysis of the brand value gives positive signals for both companies.

Nike and Adidas are both well-established companies in the footwear industry. Both companies are well known for their unique design, comfort, performance, and price points. It might often become difficult to decide which brand to buy from. For any type of customer, whether a sports freak or a casual one, there are many options available from both brands. However, there is always a nike vs adidas comparison.

To clear this cloud of confusion, we conducted an analysis of the product range, pricing strategies, discount strategy, market share, social media followers, and brand value of both Nike and Adidas. Based on our analysis, we conclude that Adidas has a wider range of products, a lesser average sales price, more products on discount, and a greater average discount percentage. When we look at the market share, social media followers, and brand value, Nike has the upper hand over Adidas. Overall, based on our analysis, Adidas and Nike both have their own unique strategies, which help them rule the footwear industry. Therefore, the customer's choice will be the main factor in deciding which brand’s shoes to buy.

What do you think about the Nike vs. Adidas war and our competitive analysis? Comment below and let us know.

Download the datasets used in the above visualizations here:

Adidas product dataset

Nike product dataset

• Data Analytics

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Here’s What Brands can Learn from Nike & Adidas’ Digital Disruption Amidst COVID-19

Examining the increasingly digital, personalized sportswear market .

As with many retail sectors, the 2020-21 sportswear faced some unprecedented changes due to COVID-19 — both from customers and the market at large.

For starters, COVID’s impact can be seen in changing consumer values. On a surface level, demand for athleisure increased. The pandemic forced stay-at-home orders and work-from-home set-ups that naturally led people to ditch the buttons and collars in favor of comfort. And this comfort frequently manifested in athleisure — what with its multi-purpose functionality and often sleek vibe.

Another value that the pandemic shone a bright light on has been health consciousness. Sensitivity to health matters has, of course, been heightened to unprecedented degrees. As such, consumer interest in at-home workout options has grown — as has the desire for sustainably produced materials.

Beyond the customer, sportswear companies have seen firsthand the benefits of relying on flexible supply channels. COVID can thus be seen as a sort of wake-up call: In an uncertain world, the ability to adapt to market uncertainties is invaluable.

And perhaps no market adjustment is quite as stark as the adoption of digital channels. As we’ll discuss below, sportswear companies like Nike, Adidas, and Lululemon have all pivoted their operations (at times, quite dramatically) to build up their eCommerce and digital marketing avenues. They were undoubtedly headed in this direction prior to 2020, but COVID has expedited the process out of necessity.

So these, in a nutshell, are the biggest transformations seen in the 2021 sportswear market. But now we face the question: what will the sportswear market look like through 2022 and beyond? And what exactly are those big-name brands doing to stay ahead?

The future will be defined by the success of DTC eCommerce

Perhaps most prominent to the individual buyer, direct-to-consumer (DTC) channels are unquestionably becoming the new normal.

More and more of the sportswear market is “cutting out the middleman,” so to speak, relying on their eCommerce capabilities instead of physical stores and third-party vendors. In fact, Nike, Adidas, Puma, and Under Armor all saw DTC account for a greater share of their 2021 sales than in 2019. (Adidas, at the front of the pack, now attributes over 40 percent of sales to DTC; that number is expected to surpass 50 percent by 2025).

Apart from the convenience of shortening the supply chain, DTC channels benefit these retailers by embracing new-age technological capabilities. Specifically, access to user data — both on individuals and demographic groups — enables smarter recommendations and product assortments. In other words, DTC opens the door to a newfound level of personalization.

What this means, from a big picture lens, is a vastly improved user experience from a number of angles. One of these angles is customer relationship building — DTC eCommerce literally gives you direct access to communicate with consumers (and, in turn, fulfill their desires/assuage their pain points). Another angle: Strategically targeted product deals, rewards and promotions, and loyalty programs.

Now when we pair this tech-minded DTC movement with the current commitment to sustainable production, we get something that every company craves: A brand image that breeds customer loyalty.

The cutting-edge user experience that DTC channels enable is essentially a long-term marketing technique. Greater experience cultivates brand loyalty which, in turn, spawns a greater ROI per customer in the long term.

Success stories: How Nike, Adidas, & Co. are thriving in unprecedented times

Let’s ask: What do these tectonic shifts in the sportswear market mean for the big name brands out there?

Well, for Nike, they meant a quick resurgence after the initial early-Covid-induced dip in sales. With a newfound commitment to online channels, Nike’s sales through those channels ballooned by over 80 percent over the summer of 2020! To be fair, Nike was already trending in this digital direction; pre-Covid projections were that 30 percent of revenue would be digital by 2023.

That number, though, has already been eclipsed. With such substantial returns, we can only expect Nike to dig deeper into this gold mine. Specifically, Nike has used (and will likely continue to use) digital channels to offer exclusive, custom products (namely, shoes). One particularly notable pricing strategy Nike employed was making their at-home workout platform entirely free. The result was increased accessibility, bringing in over 50 million new users who became loyal, paying customers of Nike retail products. But more importantly, this gave Nike access to these new users’ data; with this data, the sportswear giant could then optimize prices to be as competitive and lucrative as possible .

As mentioned above, Adidas has put an industry-leading premium on eCommerce sales. But they’ve also done the extra leg by investing more in digital marketing. One striking development is their newfound interest in hosting ads on Snapchat . Over the past few years, Adidas has committed more and more ad spending to this social media channel — thanks to an ROI boost of over 50 percent in European markets. Whether or not Snapchat marketing continues to be so effective long-term may be uncertain, but it’s safe to expect sportswear giants to keep expanding their creative digital advertising.

Otherwise, Adidas’ 2020 financial review cites pricing flexibility as a major factor in weathering the Covid-induced storm. In their own words, they “exploit growth opportunities… according to market realities.” Thus: By committing to dynamic pricing and extensive market analysis, Adidas puts itself in a position to optimize its profitability with respect to its competitors.

Another big winner in athleisure has been Lululemon, whose revenue from DTC channels now accounts for 49% of the total sales . This despite years of downswing with their in-store sales. CEO Calvin MacDonald credits this recent growth to their timely adaptation of DTC eCommerce avenues… As well as their acquisition of Mirror. The on-demand personal fitness app adds a new dimension to Lululemon, providing a timely offering that’s engaged a whole new user base — much like Nike did. And much like Nike, this new app channel has equipped Lululemon with deeper customer data with which to optimize prices.

Looking ahead: Sportswear and retail at large depend on strong market intelligence

Whether it’s DTC channels, digital commerce, or sustainable production, embracing the new isn’t just about following trends.

These strategies have allowed companies like Nike to strategically grab a hold of rising markets, even through a pandemic. With at-home life gaining prominence, Nike and Co. quickly seized the newfound athleisure demand. As running, biking, and virtual fitness gain steam, so too do Nike and Co. fill the gap. And as target demographics — most notably, female buyers and the Chinese market — contribute to more and more sportswear sales, Nike and Co. are adapting to offer them exactly what they want.

The takeaway here is that these brands have not only adapted to market changes, but they’ve taken advantage of these changes to win over new segments of opportunity. They’ve adjusted to fluctuations in real-time with everything from their marketing priorities to pricing models.

Their success through a global recession is as powerful evidence as any of the merit of real-time, across-the-board market intelligence. So if you want to know how your brand can use such data-driven insights to inch ahead of the competition, book a free demo to chat it over!

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Nike vs. Adidas Case Study

Introduction, market segmentation, conclusion and recommendations, reference list.

Market segmentation is an important marketing strategy that many organizations have tried to implement. Organizations have grouped their markets based on a number of variables such as demographics, operating variables, purchasing approaches, personal characteristics, and situational factors among others.

The two companies discussed in this case study are Nike and Adidas. They operate mainly in the sports footwear industry, with Nike having the upper edge in competition. They both utilize the market segmentation concept to delineate their markets. Some of their ways of applying this concept are discussed in this case study.

Nike and Adidas are organizations in the sports footwear industry. They have engaged in fierce competition. An important concept in marketing is market segmentation, which refers to the grouping of markets into unique segments that organizations can devise a specific marketing strategy that targets the segments (Choi, Jungwoo, & Jongsu, 2013).

Companies are able to segment the market based on demographics, operating variables, purchasing approaches, personal characteristics, and situational factors among others (Quinn, & Dibb, 2010; Quinn, 2009, p. 254). One of the marketing concepts that the two organizations have used is market segmentation. This case study looks at the historical background and marketing environment in the two organizations. The case compares the use of market segmentation in the companies’ marketing strategies.

Brief background and History

Phil Knight and Bill Bowerman founded Nike, Inc. in 1962 with the aim of importing Japanese-made shoes to America, with the two partners working under the name Blue Ribbon Sports (Carbasho, 2010). The company has grown to a global market share of over 30%, which is the biggest market share for any company in the footwear industry, with over 22,000 retail outlets in the US alone. Its products are sold in over 165 countries in the world (Larson, 2011).

It also ranks the top shoemaker in the world, with the main market products being the athletic footwear, equipment, and other wears (Carbasho, 2010). In 2008, the distribution of revenue in the segments above was 52% for footwear, 28% for apparel, 6% for equipment, and 14% for the other products (Carbasho, 2010).

The company uses its name as the main brand name, with some of the other names used being Nike Pro, Nike+, Nike Golf, Air Jordan, and Nike Skateboarding (Nunez, 2012). The company has a trademark titled “Just do it” that has been a favorite element for many people. This trademark is one of the marketing strategies that it applies. It also uses a recognized logo that has evolved over the last few years to the level of being recognized by many people (Levin, & Behrens, 2003).

Demographics

The aspect of demographics refers to the segmentation of the market based on the industry, company size, and location. Nike serves small and medium-sized companies as a strategy in its demographic market segmentation. For example, the company serves small outlet shops with its products.

It has a series of stores that it owns such as the ‘NIKE Sydney City’ that is located in Westfield Sydney along Pitt Street. In the location aspect of the demographic segmentation, Nike serves markets mainly in the US since most of the industries are in this region, with other markets around the world only taking secondary priority such as in Dubai.

It also collaborates with many companies in the United States and around the world as a means of ensuring a strong presence in this economically important area. Examples of these companies include FC Barcelona and Chelsea Football Club. The company’s contract with these organizations is renewed yearly, with the football companies making billions of dollars out of the sponsorship.

Personal Characteristics

As part of the market segmentation, the personal characteristics include the consideration of buyer-seller similarities, attitude towards risk, and the loyalty of companies that the organization engages in. Nike only sells to companies whose values are similar to its principles such as companies whose customers take risks and/or those who exhibit loyalty to their suppliers. In the use of technology, the company has developed smart shoes that are about to be marketed as an example of the commitment that it places on technology.

The company is also developing special gadgets such as training watches to complement the sports shoes (Nunez, 2013). Nike is among the global American companies that are recognized for the use of technology in their supply chains. The company is in the process of developing technologically advanced design methods at its factories and in the delivery and sale of its products online. For this purpose, the company has collaborated with Amazon and Microsoft companies.

Situational Factors

Situational factors refer to the elements that organizations apply when they wish to take advantage of situations to market their products. The use of situational factors as a market segmentation strategy includes consideration of urgency, specific application of the provided products, and the size of orders. Nike mainly does business with organizations that have no urgency in demand. However, in situations where these organizations require services urgently, the company is able to provide at the same rate.

The company has also focused on specific use of its products by engaging mainly in the production of sports shoes and appliances. It also focuses on large orders as opposed to small ones since it has the capacity to provide such orders. Some of the examples of companies that Nike supplies large orders include outlets such as Wal-Mart.

Operating Variable

This form of market segmentation involves the application of technology, customer capabilities, and the use or non-use of the products being provided by the company. The company serves medium and heavy users of its products, with sporting teams such as those in the NBA being large users of its products.

In terms of customer capability, Nike provides services to organizations and individuals who need only the services that it provides. Clients who need many services including different brands of shoes are also served although they are fewer. In the use of technology, the major companies that Nike has collaborated with include the Apple Computer Company and Fuel band.

Purchasing Approaches

This refers to the categorization of markets to be approached by an organization based on the power structure of client organizations, their purchasing policies, and the purchasing function. In the purchasing function organization, Nike serves organizations with a centralized purchasing structure such as Barcelona FC, Liverpool FC, and a number of retail stores such as Wal-Mart. In power structure, Nike serves organizations that are mainly financially dominated as opposed to being engineering dominated.

Examples of the organizations that are financially dominated in the relationship with Nike include Chelsea FC. In the nature of existing relationships, Nike has established relationships with a number of organizations with which it does business including those mentioned above such as Barcelona FC. However, the company also goes for the most desirable organizations to engage with without mostly having to consider the existing relationship.

An example is its engagement in e-marketing in collaboration with Google and Microsoft organizations. These two organizations also prefer working with Nike under service contracts instead of leasing. This link is a good example of the general purchasing policies that Nike applies. In terms of purchasing criteria, Nike markets itself as a company that is dedicated to quality. Hence, it approaches companies seeking quality including basketball teams such as The Lakers of Florida.

Brief Background and History

The German Adolf Dassler founded Adidas after the end of World War I. He used scarce materials at the time to achieve his dream of equipping sportsmen with the right shoes for their respective ports.

The company grew to employ over 100 people by 1930. It was able to withstand the effects of the Second World War with the reputation of making the best sports shoes. Dassler later renamed the company as Adidas after the war. He proceeded to make shoes that made his country win the World Cup in 1954. Currently, the corporation has beyond 30,000 employees throughout the globe, with approximately 2500 of them being stationed at its main offices in Herzogenaurach, Germany.

Just like Nike, Adidas serves customers in the sports footwear industry, with limited services to other industries. It also serves companies in these industries, with the main companies served being the sporting organizations. One of the strategies that Adidas uses in market segmentation is geographic marketing where it is able to market specific products to some prioritized geographical areas. For instance, the company marketed the soccer shoes in Europe because the sports industry is popular there as compared to North America.

Operating Variables

In terms of technology, user-non user status, and customer capability, Adidas has managed to put in place several measures. Some of these measures include the introduction of technology that is related to sportswear. An example on the use of technology is the smart watch that the company is in the process of developing to match the sports footwear it makes. Adidas also serves heavy and medium users of its products.

Unlike Nike, Adidas serves customers who require many services although they are related to the sporting industry. An example of psychographic segmentation as an operating variable is the brand marketed by Adidas under the brand name ‘Rebook Original’ that is meant for enthusiastic Rebook fans.

Adidas has applied a number of personal characteristics of its customers to develop market segments (Adidas Industries, 2011). Adidas only serves organizations that have similar services and products together with customers who have the risk-taker element such that even if they are new to Adidas, they are not afraid of purchasing from it since they are assured of quality products at the end of the day. The companies that Adidas focuses on are those that show loyalty to suppliers.

These companies can be found in the sporting arena, and hence the reason why most of the clients are sports enthusiasts as evidenced in the interests that Adidas shows in sports teams. It also supports several soccer clubs in the various football confederations around the world including “Chelsea FC, FC Bayern Muenchen, and Liverpool FC” (Quinn & Dibb, 2010, p. 1245).

The situational factors in the market segmentation including the manufacture of products for specific applications are practiced in Adidas. For example, the company embarks on the production of technologically advanced products such as the proposed ‘smart shoe’, which is developed based on the response that the development of similar products by Nike has had on its markets.

The organizations that Adidas serves are highly centralized and financially dominated. The organizations include outlets and large holding companies. The companies served are those that have strong relationships with Adidas, with all the purchasing policies such as leasing, contracting, and systems purchase being applied.

Adidas markets itself as a quality company whose policies include service to companies that seek the provision of quality products. The promotion of performance gear brands has been established as a way of reaching the youthful cohort that is more energetic compared to the grown-up folks.

Similarities

The use of demographic segmentation is the most evident strategy in both Nike and Adidas. These companies have applied age as one of the demographics in their marketing (Quinn, & Dibb, 2010). Both companies market their products to the young generation, with a significant proportion of their sales taking place. Both companies have the American market as the prime target in many commercials.

These two companies have similar strategies in the use of personal characteristics and situational factors in their market segmentation strategy. In the use of personal characteristics as a factor in marketing segmentation, the companies have targeted the young by adopting technology as an important component in their products. The companies sell to other companies and individuals with similar values such as risk taking and/or one who show significant loyalty to suppliers.

The companies are also recognized as sponsors of the major sporting events in the world, with an example being the FIFA World Cup and the Olympics. They have several teams and sporting personalities under their sponsorship such as Ronaldo to ensure that they are able to compete with each other as they try to remain on top of the competition. Both companies have targeted the sports industry as their main market.

Both have applied market segmentation in this sector especially in soccer and basketball sports. For example, they have embarked on producing BB II High-Performance basketball footwear, which is a contemporary design for the modern sportsman, combining lightweight materials with more durable ones to ensure the best guarantee for their customers.

Differences

The two companies have a difference in their market segmentation in that when Nike applies the geographic segmentation to enter the developing markets in other parts of the world, Adidas focuses on the United States’ markets to improve its sales in the sports shoes sector.

Some of the markets that Nike has targeted include South America and the developing nations of Africa. On the other hand, Adidas has only started to approach and consolidate these markets. Nike is also known to apply contracts in the sales and purchase of its products, as opposed to Adidas that mostly applies leasing.

Market segmentation allows companies to group their markets into appropriate segments so that they are able to target them with specific measures that are aimed at improving their competitiveness and profit returns. Nike and Adidas have applied a number of strategies in their market segmentation.

However, Adidas has been slower in the implementation of measures to attract the specific targets, as evidenced in its market share, which is second to Nike. Some of the recommendations for these companies include that they should segment their markets more by targeting submarkets such as distance runners. They should also ensure that they put more measures to keep up with the latest trends in the fashion industry by providing products that match the trend.

Adidas Industries. (2011, November). Ch. 8 Segmenting and Targeting Markets . Web.

Carbasho, T. (2010). Nike. Santa Barbara, Calif: Greenwood.

Choi, J., Jungwoo, S., & Jongsu, L. (2013). Strategic management of new products: Ex-ante simulation and market segmentation. International Journal of Market Research, 55 (2), 289-314.

Larson, D. (2011). Global Brand Management – Nike’s Global Brand. ISM Journal of International Business, 1 (3), 1-14.

Levin, A., & Behrens, J. (2003). From Swoosh to Swoon: Linguistic Analysis of Nike’s Changing Image. Business Communication Quarterly, 66 (3), 52-65.

Nunez, D. (2012). Nike Inc.: Ch. 8 – Segmenting and Targeting Markets . Web.

Quinn, L. (2009). Market segmentation in managerial practice: a qualitative examination. Journal of Marketing Management, 25 (3/4), 253-272.

Quinn, L., & Dibb, S. (2010). Evaluating market-segmentation research priorities: Targeting re-emancipation. Journal of Marketing Management, 26 (13/14), 1239-1255.

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IvyPanda. (2024, February 25). Nike vs. Adidas. https://ivypanda.com/essays/nike-vs-adidas/

"Nike vs. Adidas." IvyPanda , 25 Feb. 2024, ivypanda.com/essays/nike-vs-adidas/.

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IvyPanda . 2024. "Nike vs. Adidas." February 25, 2024. https://ivypanda.com/essays/nike-vs-adidas/.

1. IvyPanda . "Nike vs. Adidas." February 25, 2024. https://ivypanda.com/essays/nike-vs-adidas/.

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Nike Vs Adidas Business Case Study: Who Won?

Imagine starting with a simple business idea that transforms into becoming a global phenomenon. It is not just a dream, but a story of Nike that has inspired people like you and me. So, in this business case study , we are going to talk about one of the greatest sports brands in the world Nike vs Adidas during the 2012 London Olympics. 

Quick Summary of What You Will Learn:

• Competition between Adidas and Nike during the 2012 London Olympics. 
• The genius marketing strategy of Nike and who emerged as the ultimate winner.
• Important business lessons you can apply to your business. 

So, let’s dive deep into their strategies, innovations and the impact they made during this iconic event. 

Table of Contents

Nike Vs Adidas Business Case Study – Battle for Title Sponsor

So, the story dates back to the year 2012 when the Summer Olympics was being held in London.

And because the Summer Olympics was being held all the sports brands were very eager to become the title sponsors of the Olympics.

Note: A title sponsor is the main source of financial support for organizations, teams or events. Their name is usually included in the official events to gain great exposure and branding opportunities in return for their assistance. 

As Nike knew that if they could become the title sponsor of the Olympics they could pump in a lot of profit.

So, the auction was held and the title sponsorship went to Adidas and Nike lost its chance to become the title sponsor to its arch-rival.

And Adidas paid $150 million just to be the title sponsor of the Olympics .

And every time we hear a figure like this, the first question that comes to our mind is:

What exactly is so special about the title sponsorship that you would pay $150 million just to be associated with the name of the Olympics?

And the answer to that lies in a very simple example:

Let’s take an example of Vivo’s title sponsorship to IPL to understand it better. 

In case if you don’t know what is IPL: IPL or Indian Premier League is a professional cricket league that is held annually in India with a large fan following around the world.

Continuing, with the shocking fact that Vivo paid approximately Rs 2,200 crores just to get its name as ‘Vivo IPL ‘ in 2018 and 2019. 

The more shocking factor is when you look at the growth of Vivo in 2018 and 2019

and as it turns out, in 2018 Q1, that is, just before the IPL started Vivo was shipping about 2.1 million units. 

But one year later, after the IPL happened in the exact same quarter in 2019

Vivo was shipping 4.5 million units .

That’s a staggering growth of more than 100% in the world’s second-largest mobile market.

And this is the reason why title sponsorship of any popular sports event

is a goldmine investment for any company.

And that’s the reason why the Olympics was like a golden gateway for Nike to get way ahead of Adidas. However, as mentioned before Nike lost its chance to become the title sponsor to its arch-rival.

So, with all of this put together everybody thought that Adidas was now going to go viral.

It’s going to remain at the top of the chart because now it is the title sponsor of the Olympics.

But you know what? 

Nike VS Adidas: Sales and Revenue

There was a slight twist when the actual results came out.

As it turns out, Adidas had about 9,000 tweets associating Adidas with the Olympics. 

However, there were about 16,000 tweets that associated Nike with the Olympics. 

Not just that, during the tenure of the Olympics that is, starting from the opening ceremony to the closing ceremony Adidas added about 12,000 followers to its social media handle. 

While Nike added 57,000 followers to its social media handle.

The cherry on the cake was that when the survey was conducted in the US

people were asked ‘Who do you exactly think is the title sponsor of the Olympics?’

21% of those people thought that Adidas is the title sponsor of the Olympics

37% of the people identified Nike to be the title sponsor of the Olympics.

Which means what?

Millions and millions of people were thinking that Nike was the title sponsor of the Olympics and not Adidas!

So, the question is without being the title sponsor of the Olympics; without spending $150 million; without even using the keywords to associate yourself with the Olympics;

How is it even practically possible for a brand to acquire more publicity than the real title sponsor?

And that’s where the legendary strategy of Nike comes into play.

Nike Genius Marketing and Branding Strategy – How Nike Became Successful

The first thing that Nike understood was regardless of how complex the system is, there will always be a loophole.

And they found 3 loopholes.

Brand Ambassador (Athlete Sponsorship) 

The first loophole that they found was regardless of whoever is the title sponsor of the Olympics the athletes were free to choose whichever shoe they wanted.

And that is the reason why,

Nike hired 400 Olympians to be its brand ambassador and just asked them to wear the Nike shoes that they were given. 

Note: A brand Ambassador is an individual who is paid by a company to promote its brand product or service to increase sales and brand awareness. 

Product Innovation

Nike came in front with a quirky line of shoes which was named Volt. 

Wherein they distributed yellow-green coloured shoes to the athletes to be worn during their matches.

The reason why they specifically chose the yellow-green lineup was because that colour was in perfect contrast to the tracks of the Olympics.

Note: Product innovation is the process of creating and introducing new improved products to the market by understanding customer needs. 

Location-Based Advertising Campaign

The second loophole that they found was in the rule which prohibited Nike from showcasing the London of UK in their commercials.

But you know what?

The loophole here is that there are 28 other locations in this world which are named London except the London of the UK.

So, Nike shot their commercials in all other London except London in the UK.

So, the commercials were shot in London in Ohio, Little London in Jamaica, the London Hotel, the London Gym, Small London in Nigeria and even the London Road.

And very smartly, Nike was able to place the word ‘London’ in all of its commercials, legally.

Simply Amazing Right?

Making Inspirational Commercials Through Storytelling – Social Media Impact 

And third and most important is:

Usually, if you look at Nike and Adidas commercials you will see all the celebrities endorsing the brand.

Note: A commercial is a short video ad of 30 to 60 seconds long (advertisement) that promotes a product or service. 

But when it comes to Nike, for the Olympics, they were not allowed to use Olympians for endorsement.

So, while Adidas was actually flaunting all of its commercials by hiring all of these Olympians to be its brand ambassador. 

Nike decided to hire average teenagers as ambassadors for its brand endorsement.

And came out with a beautiful masterpiece which literally, literally broke the Internet.

And this is what the commercial looked like.

Now, if you looked at that commercial closely, you must have realized that just like Coca-Cola leveraged the emotion of happiness to communicate its idea.

Nike leverages the emotion of inspiration to communicate its idea.

In both cases, both these brands are trying to give you an involuntary experience of their commercial.

And if you look at Nike’s commercial even more closely, you will see that they don’t want to talk about Usain Bolt.

They want to talk about the Usain Bolt spirit within every single individual like you and me.

And if you are somebody who is pushing your limits every single day to become a better version of yourself that Nike commercial is literally depicting your own story.

And because Nike managed to strike a chord with local champions it was able to go trending and Nike was trending number one on YouTube one week after the Olympics started with 4.5 million views.

Compared to that, Adidas was at number three with only 2.9 million views.

That’s how without being the title sponsor, without paying $150 million and without actually using the banned keywords Nike managed to steal the thunder from Adidas and emerged as a champion in this marketing war.

Important Learnings from this Nike Case Study

Public perception and brand loyalty.

Public perception and brand loyalty are two important factors in marketing and business to build a strong relationship and maintain a positive image with the public by providing value through high-quality products or services and exceptional customer service.  

“People might forget what you said but they will never ever forget how you made them feel. “

Therefore in the case of Nike, its commercial is a classic depiction of this quote.

So, if you pick up some work to do, just make sure that it’s remarkable. Because in this world 99% of people are good but 1% are great and that is only because they choose to be great.

Every single champion today understands that good is imperative but greatness is always a choice.

Global Reach

If the Olympics happened without Nike coming out with its ‘Find Your Greatness’ commercial people would still remember Nike, right?

Nike wouldn’t be forgotten and yet Nike put in this extra effort to actually come out with a beautiful commercial to beat Adidas in spite of all odds.

And that is because Nike, as a brand, realizes that the only difference between ordinary and extraordinary is that little extra.

People believe that greatness is meant only for a few chosen ones but the truth is that greatness is for everyone.

It’s not about lowering the expectations but about raising them for each one of us because greatness is not in one special person or one special place. 

Greatness is wherever somebody is trying to find it.

So, my dear friend, my question to you is

What are you doing to find your greatness?

Global Influence

When you and I started to think about what exactly is so special about a company that sells shoes it was able to inspire a legend like Steve Jobs.

The story of Nike is not just an inspiration for people like you and me but also for a legend like Steve Jobs .

People, in 1996 when Steve Jobs came back to Apple, Apple was crippling with losses because of 11 consecutive years of failure and it was almost about to go bankrupt.

During this time when Steve Jobs came back to the company the biggest challenge that he faced was the reputation of the company which had degraded to such an extent that people had completely lost faith.

And that is the reason why he had to do something magical to actually bring the company back on track.

During this time he came out with a legendary campaign called the ‘Think Different’ campaign which even today is known as one of the greatest marketing campaigns ever.

And you know what people?

This campaign brought back the trust of the common man in Apple and laid a solid foundation to such an extent that today if Apple is a trillion-dollar company

It is only because of legendary campaigns like the ‘Think Different’ campaign.

So, what exactly Steve Jobs was thinking while he was designing the ‘Think Different’ campaign? 

You can find an archived video wherein Steve Jobs is addressing his executive and he states Nike to be one of his inspirations for the ‘Think Different’ campaign.

The 2012 London Olympics were not just a stage but also a battleground for esports brands like Adidas and Nike. 

The competition between them was not just about sales but it was about innovation, brand image and influence.

Nike the winner of course was able to market itself better than Adidas without spending $150m on title sponsorship, by leveraging storytelling to communicate its idea through beautiful commercials and make global influence which broke the internet.

We hope the Nike vs Adidas business case study was helpful and provided some value.

Further, the comment section is open for further discussion. 

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Case Study | Inside Nike’s Radical Direct-to-Consumer Strategy

• Chantal Fernandez

In October 2020, in the middle of a global pandemic that had infected 188 countries, causing record sales damage across the retail sector, Nike’s share price hit an all-time high.

Like other retailers, Nike had been forced to close most of its network of more than 900 stores across the world, as had its key wholesale partners like Nordstrom and Foot Locker.

But the American sportswear giant’s performance during the pandemic, when its online sales spiked, signalled to many that Nike had the competency to prosper long term, in a future that will be increasingly defined by e-commerce and digital brand connections.

It was a validation of a strategy that Nike prioritised three years ago, dubbing it “Consumer Direct Offense,” but the seeds of the approach go back almost a decade.

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Above all, Nike is a marketing company. It doesn’t just sell sneakers; it sells the brand aspiration that imbues those sneakers with meaning. But to achieve the reach required to scale its business, Nike’s distribution strategy had long-relied on third-party retailers to sell its products, even if the consumer experience offered by those partners diluted its brand.

But in a future increasingly defined by e-commerce, fast-moving trends and, above all, the rising power of branding to drive consumer preference when competitors are just a click away, Nike realised that in order to thrive, it needed to take control of its distribution to better manage its brand and deepen its connection with consumers.

It was definitely architecting a new retail, and a bold, retail vision for Nike.

Such an evolution is easier said than done, especially for a business as large as Nike in a category as competitive as sportswear. But by radically cutting back on its wholesale distribution and raising the bar for brand experience with the third-party partners that remained; expanding its focus on content, community and customisation to keep customers close; investing in its data analytics and logistics capabilities; and rethinking the role of the store as a brand stage, Nike drove a veritable direct-to-consumer revolution.

When the pandemic hit, these shifts went into overdrive.

“It was definitely architecting a new retail, and a bold, retail vision for Nike,” said Heidi O’Neill, Nike’s president of consumer and marketplace, and one of the most prominent executives leading the brand’s new strategy in recent years. “But it started with our consumer, and we knew that consumers wanted a more direct relationship with us today.”

In this case study, BoF breaks down Nike’s pioneering direct-to consumer strategy and how it has worked to the brand’s advantage, propelling its share price to new heights during the global crisis of 2020.

Click below to read the case study now.

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Nike vs Adidas

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The fight for overall supremacy in the sportswear industry provides a fascinating case study, as both Nike and Adidas utilise a range of brands within their portfolios the Boston matrix to build

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The battle between the giants over the last 20 been won by Nike, with its current market capitalisation of $86.2 billion dwarfing that of its German rival ($17.1 billion). However, as a potential investor, right now, of the companies would represent the best value? When looking at which firm has the most potential growth, the answer is not so clear cut. two sportswear years haswhich

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Nike vs Adidas: A Silent Rivalry Explained

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Fashion and comfort have started becoming synonymous in the past few years, and this transition is giving rise to a number of trends throughout the industry. Whether it is oversized clothing or sneakers for regular use, comfort is a big part of the overall fashion expectation for the new-age consumers.

Gone are the days when sneakers would be worn for casual outings like gymming, trekking or informal get-togethers, whereas Oxfords and similar shoes were designated for more formal gatherings. These days one can see sneakers in all kinds of settings – offices, restaurants and even board-rooms! With all the attention received by these tiny trend-setters, it is interesting to watch what’s happening in the sneaker market.

Time for Sneaker Wars

When there is a huge market to be captured and massive profits to be made, it is impossible to not have legendary business rivalries. The famous Cola wars have dominated the discussions in the management schools as much as the business circles. But there is another, equally captivating business rivalry story, that has been silently building over the years. With the rise in popularity of the sneakers, this silent story is now slowly coming to the forefront. Although the story is not new, the twists and turns have ensured, the whole fashion world is closely watching it unfold.

So who’s leading the sneaker war? The top names that come to mind when one thinks of sports shoes or sneakers, are Nike and Adidas. The popularity of Nike and Adidas is spurred by the fact that both have an iconic status and legions of strong followers. Even among those who are not a supporter of either camp, it is impossible to find someone who hasn’t heard of Nike’s “Swoosh” or the “Three Stripes” of Adidas. When brands with that kind of recognition get into a rivalry, it is obvious that every one is interested. So, here is an account of what has led to this rivalry and where is it headed!

Back to the Beginning

It is interesting to note that while these two brands may be strong rivals today, they did not start as such. Instead, they started out of the strong love and interest of their respective founders, towards improving sports performances with the help of better footwear.

Adidas is the older of the two rivals and has a fascinating story associated with its beginning. The two Dassler brothers – Adolf and Rudolf – started manufacturing sports shoes in the year 1924. After facing challenges including World War II and a bitter feud between the brothers, both started their own shoe-making companies. Adolf registered “Adidas” in 1949 and his brother Rudolf started “Puma”. While the rivalry of these two companies is interesting in itself, the “Adidas” brand grew tremendously in Western Europe thanks to its being located in Germany.

Nike on the other hand was started by Bill Bowerman and Phil Knight in the year 1964, in The United States. The company started as a distributor of Japanese manufactured shoes and was initially known as Blue Ribbon Sports. Over the years, the company moved towards creating their own designs, making shoes and becoming the powerful brand that they are, by the year 1971, when their iconic logo was first placed on the shoes. By virtue of being located in The States, the company’s growth came primarily from the North America market.

The Nike Adidas Rivalry

With their distinct beginnings, both the brands grew at a steady pace, leading their own markets. However, as was expected, with the growth of both companies, there had to be a time when both would compete for a bigger share of the world market. This need to gain a higher market share is the genesis of the Nike Adidas rivalry.

While Adidas had and still has a huge presence in the European market, it is no secret that the sneaker market is dominated by North America. Thus, a natural path towards growth for the company has been to capture a higher share of the North American market. Nike, on the other hand, has started and owns nearly 60% of the North American sneaker market share. Thus, Nike became Adidas’ biggest rival.

Both the brands have a strong market presence, a loyal consumer base, some legendary shoe models and a lot riding on their position. Thus, no one wants to concede even an inch in this extremely crucial arena. Apart from making sports shoes, both the brands have diversified into different product categories. Since both are dealing in similar categories – footwear, sports apparel and sporting equipment – this constant rivalry becomes even more interesting. Here is a look at how these two compete with each other on different parameters.

Financial Rivalry

If one were to look at the rivalry, purely from a financial lens, there is no doubt – Nike is the clear winner. With its strong base in the bigger market, their financial prowess is way more than Adidas. Also, the company doesn’t hold back in spending to maintain their position. Be it sponsorships, celebrity endorsements or marketing events – Nike is spending big bucks everywhere.

At the same time, Adidas is not to be left behind. While their revenue numbers may not be in league with Nike, Adidas are packing a punch with their aggressive marketing strategies. They have redefined their marketing efforts, especially under Mark King, their new North America President. If Nike is endorsed by names like Drake, Roger Federer, Christiano Ronaldo and Kobe Bryant, Adidas has an impressive list too including names like David Beckham, Pharell, Novak Djokovich and Beyoncé!

Technology Supremacy

Both Nike and Adidas have nurtured a loyal fan base with their technological experiments and inventions, making the sports footwear a boon for the athletes. Whether it is breathable fabrics, performance-enhancing cushioning, perfecting the fit or innovative laces – both companies have evolved their products over a period of time. Their new lines reflect these enhancements and thus, are eagerly awaited by fans.

Design Diplomacy

Nike has worked in collaboration with many legendary sportsmen to perfect their shoe design. The most iconic partnership of the company has been with the Basketball legend – Michael Jordan. Their Air Jordan line of shoes, which premiered in the 1980s, are still the biggest grosser for them. They have worked with a lot of designers, to create their independent lines.

The biggest twist in this rivalry, which brought it into the mainstream from the silent one so far, came when the rapper Kanye West, who had been associated with Nike moved on to Adidas in the year 2014. The rapper alleged that he was not allowed the creative freedom at the former company, which the latter allowed. His famed collection – Yeezy Boost 750 – launched with Adidas in 2014, sold out within minutes.

With this transition, the battlefield started heating up. Kanye was followed by three top designers from Nike, who also moved to Adidas, citing the stifling creative process at Nike. Adidas has signed a host of other celebrity influencers and designers over the years, building the perception that it is a more creative and free space for artists.

Nike Adidas Rivalry in the Pandemic

Over the years, both the brands have been consciously working on building their offerings around subjects that are relevant and help them create a positive image. While both are working towards a more sustainable manufacturing process, there are certain campaigns that have established their presence in a strong manner. Whether it is the Nike Pro Hijab or the Ocean Plastic Footwear series by Adidas, both were garnering positive feedback for the respective brands, before the pandemic struck.

In keeping with the times and the situation of the world, Nike came out with their face masks. Adidas stood up to the challenge with their own face shields. The silent rivalry between the strong contenders in the sneaker wars doesn’t seem to be abating anytime soon. If anything, it is just getting stronger by the day.

Outcome of the Nike Adidas Rivalry

The Nike Adidas rivalry is closely watched by the fashion industry, not just in North America but throughout the world. With time, the companies are incorporating much-needed changes such as going digital and establishing a strong presence in emerging markets around the world. 

Both giants outsource their manufacturing to cities in Asia including China, Vietnam, Bangladesh, Pakistan, as well as a small portion to places in Africa. As the two majors battle it out for market share and revenue share, only time will tell who takes a bigger bite from the sales pie. 

To know more about these manufacturers, or to find some for your own business, head over to Fashinza . A B2B platform for business solutions, Fashinza is a one-stop solution for any need in the fashion industry. Whether it is manufacturers or suppliers one is looking for, they can easily find the relevant network on the platform. 

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