nike vs adidas case study

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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 Malcolm P. McNair Professor of Marketing at Harvard Business School.

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Adidas vs Nike: Competitive Analysis with Data Visualizations

Nike and Adidas, two of the most iconic and influential brands in the global footwear industry, have consistently set benchmarks in style, performance, and innovation. Their extensive product lines and strong brand identities have cultivated large and loyal customer bases worldwide. As industry leaders, both companies are renowned for their high-quality, stylish, and performance-driven products that cater to a diverse range of consumers, from professional athletes to casual wearers.

In this blog post, we delve into a comprehensive competitive analysis of Nike and Adidas, supported by detailed data visualizations. By examining product variety, pricing strategies, discount approaches, market share, and brand value, we aim to uncover the strategies that have propelled these brands to the forefront of the footwear market.

Adidas vs Nike: Inventory

Nike and Adidas are both leaders in the footwear industry, known for their extensive and diverse product ranges.  By examining the inventory data, we can gain insights into their market strategies and consumer targeting. Here’s a detailed analysis based on the extracted data and visualizations.

Adidas vs Nike: Product Offering

Nike  offers 874 products, with prices ranging from 1,695 INR to 26,995 INR. This collection showcases a balanced mix of performance-oriented and lifestyle footwear, catering to a broad spectrum of consumer needs.

Adidas , on the other hand, provides a significantly larger inventory of 2,696 products, with prices spanning from 499 INR to 69,999 INR. This wide range highlights Adidas's strategy to address a more varied audience, from budget-conscious shoppers to those seeking premium, high-end products.

Adidas vs Nike: Gender Distribution

Nike's inventory:.

38% men's products

32% women's products

30% unisex products

Nike’s inventory distribution reflects a relatively balanced approach towards catering to both male and female consumers, with a notable portion of unisex products to appeal to a broader audience.

Adidas's Inventory:

59% men's products

23% women's products

18% unisex products

Adidas's inventory shows a strong focus on men's products, which make up the majority of their offerings. The brand also provides a significant number of women's and unisex products, but the emphasis is clearly on the male market segment.

Adidas vs Nike: Max Retail Cost

Pricing strategy plays a pivotal role in shaping a brand's market presence and influencing consumer behavior.  By examining the maximum retail price (MRP) of products, we can better understand how Adidas and Nike position their offerings across different price segments. This analysis focuses on four price categories, providing a clear view of their pricing strategies.

Products Priced Under 5,000 INR (Roughly $60)

Offers 829 products in this price range.

The lowest-priced product is 999 INR.

Offers 65 products in this price range.

The lowest-priced product is 1,695 INR.

Adidas clearly targets a more price-sensitive segment in this category, offering a significantly larger number of products at lower prices compared to Nike

Products Priced Between 5,000 – 12,000 INR (Roughly $60 – $144)

Has 1,278 products in this price range.

The lowest-priced product is 5,299 INR.

Has 428 products in this price range.

The lowest-priced product is 5,295 INR.

In this mid-range category, Adidas continues to offer a broader selection, indicating a strategy to capture a larger market share within this price bracket.

Products Priced Between 12,000 – 25,000 INR (Roughly $144 – $300)

Offers 541 products in this price range.

The lowest-priced product is 12,999 INR.

Offers 373 products in this price range.

The lowest-priced product is 12,295 INR.

Both brands maintain a significant presence in this higher price range, but Adidas again provides a wider variety of options.

Products Priced Above 25,000 INR (Roughly $300+)

Offers 48 products in this price range.

The lowest-priced product is 26,999 INR.

Offers 8 products in this price range.

The lowest-priced product is 25,095 INR.

In the premium segment, Adidas offers more high-end products than Nike, showcasing its commitment to catering to the luxury market.

Adidas vs Nike: Discount Strategies

One of the most impactful marketing strategies is offering discounts, as they entice customers by providing opportunities to save money. This approach not only boosts sales but also enhances a company's reputation. Discounts create a sense of urgency and value for customers, driving them to make purchases they might otherwise delay.

However, striking the right balance in discounting is critical. Offering discounts that are too small may fail to capture customer interest, while overly large discounts can undermine the perceived value of the products and hurt the company's brand image. Therefore, maintaining an optimal discount percentage is a delicate task that companies must carefully manage to maximize benefits without compromising their market positioning.

Adidas vs Nike: Discount Analysis

The discount strategies of Adidas and Nike reveal distinct approaches to attracting customers and managing brand perception.

Out of the total 874 products, only 13% are on discount.

Nike provides an average discount of 0.66%, with the maximum discount offered being 5%.

The discounts are primarily within the 0-10% range.

Nike's limited discounting strategy emphasizes its premium positioning, focusing on maintaining high perceived value rather than competing on price.

Out of the total 2,696 products, 75% are on discount.

Adidas offers an average discount of 30.77%, with the maximum discount reaching 64%.

Discounts span almost all ranges, with nearly half exceeding 40%.

Adidas's aggressive discounting strategy aims to attract a broad customer base, including price-sensitive consumers. This approach boosts sales volume and market penetration, particularly appealing to shoppers looking for value deals.

Adidas vs Nike: Selling Price

Another crucial aspect of pricing strategy is the average sales price (ASP). The ASP refers to the typical price at which a specific group of goods or services is sold. It serves as a key metric for evaluating the effectiveness of a company’s sales strategy and is often visible to customers. Maintaining a competitive ASP is essential for attracting and retaining customers, as it influences their perception of value and affordability.

A well-calibrated ASP not only reflects the brand's market positioning but also helps in sustaining profitability while remaining appealing to the target audience. By analyzing ASP, companies can gain insights into their pricing efficiency, identify trends, and adjust their strategies accordingly to maximize revenue and market share.

Adidas vs Nike: Analysis of Selling Prices

Products sold under 5,000 inr (roughly $60).

1,431 products in this price range.

Lowest-priced product: 499 INR.

65 products in this price range.

Lowest-priced product: 1,695 INR.

Adidas offers a significantly higher number of products in the low-price segment, targeting budget-conscious consumers more aggressively than Nike.

Products Sold Between 5,000 – 12,000 INR (Roughly $60 – $144)

978 products in this price range.

Lowest-priced product: 5,015 INR.

436 products in this price range.

Lowest-priced product: 5,295 INR.

In this mid-range category, Adidas continues to provide a broader selection of products compared to Nike, catering to a wide audience within this price bracket.

Products Sold Between 12,000 – 25,000 INR (Roughly $144 – $300)

243 products in this price range.

Lowest-priced product: 12,319 INR.

365 products in this price range.

Lowest-priced product: 12,157 INR.

Nike has a stronger presence in this higher price range, offering more products compared to Adidas, indicating a focus on higher-end consumers.

Products Sold Above 25,000 INR (Roughly $300+)

44 products in this price range.

Lowest-priced product: 27,999 INR.

8 products in this price range.

Lowest-priced product: 25,095 INR.

Average Sales Price (ASP)

Adidas : 6,476.9 INR

Nike : 11,623.82 INR

Adidas's lower ASP indicates a strategy focused on affordability and attracting a larger customer base, while Nike's higher ASP reflects its premium market positioning and emphasis on high-quality, performance-driven products.

Adidas vs Nike: Market Share

Market share represents the percentage of total sales in an industry attributed to a specific company. Companies with significant market shares are often industry leaders and set benchmarks for smaller competitors. Thus, market share acts as a critical indicator of a company's dominance and influence within a particular market.

Nike and Adidas are two leading giants in the footwear industry, each holding substantial market shares. As of July 2024, Nike boasts a market capitalization of $115.96 billion USD, while Adidas stands at $42.06 billion USD. These figures highlight their prominence and competitive edge in the market.

Having a large market share not only signifies financial strength but also reflects brand loyalty and consumer trust. It enables companies to exert considerable influence over market trends and pricing strategies.

Nike's Market Share

Nike's market capitalization of $115.96 billion USD reflects its strong global presence and leadership in the footwear industry. Nike has consistently maintained its position as the top brand, driven by innovative designs, high-performance products, and extensive marketing efforts. The brand's influence extends across various segments, including sportswear, casual footwear, and high-end athletic gear.

Adidas's Market Share

Adidas, with a market capitalization of $42.06 billion USD, also holds a significant share of the global footwear market. Known for its versatile product range and strong brand heritage, Adidas continues to grow its market presence. The company's focus on sustainability, fashion-forward designs, and collaborations with influencers and celebrities has bolstered its appeal among diverse consumer groups.

The market share analysis underscores the dominance of Nike and Adidas in the global footwear industry. Nike's larger market share reflects its leading position and robust financial performance, while Adidas's substantial market presence demonstrates its competitive strength and growing influence. Both brands leverage their market shares to drive industry trends, set pricing strategies, and enhance their overall market positioning, making them formidable competitors in the footwear sector.

Adidas vs Nike: Brand Value

Brand value reflects a company's identity and reputation, representing its worth in the eyes of consumers.  A high brand value indicates strong consumer trust and loyalty, making it easier for the company to launch and sell new products, as customers are more inclined to try offerings from brands they respect. Therefore, building and maintaining a strong brand value is crucial for long-term success.

Nike's Brand Value

As of 2024, the Nike brand was valued at just under $30 billion USD. This figure represents a slight decrease of about $1.4 billion from the previous year. Despite this decline, Nike remains a powerhouse in the global market. The brand's value is bolstered by its consistent delivery of innovative products, strong marketing campaigns, and partnerships with top athletes and sports teams. Nike's "Just Do It" slogan and iconic swoosh logo have become synonymous with high performance and cutting-edge design, reinforcing its position as a leader in the athletic wear industry.

Adidas's Brand Value

In 2023, Adidas was valued at over $15.7 billion USD, an increase from the $14.6 billion USD recorded the previous year. This growth reflects Adidas's successful strategies in expanding its market presence and enhancing its brand image. Known for its commitment to sustainability, innovative product lines, and collaborations with fashion influencers and celebrities, Adidas has strengthened its appeal to a broad range of consumers. The brand's three stripes logo and focus on stylish, high-quality products have cemented its reputation as a key player in both sports and lifestyle markets.

Nike and Adidas are both powerhouse brands in the footwear industry, renowned for their distinctive designs, comfort, performance, and price points . Choosing between the two can often be challenging due to the vast array of options available for all types of customers, whether they are sports enthusiasts or casual wearers. The ongoing Nike vs. Adidas debate adds to the complexity of this decision.

To provide clarity, we conducted a comprehensive analysis of the product range, pricing strategies, discount approaches, market share, and brand value of both Nike and Adidas. Our findings reveal several key differences and strengths for each brand:

Product Range:  Adidas offers a broader range of products, catering to a wider audience. This extensive product variety ensures that consumers have numerous choices across different price points and styles.

Average Sales Price:  Adidas maintains a lower average sales price, making its products more accessible to a larger demographic. This strategy helps Adidas appeal to budget-conscious consumers.

Discounts:  Adidas provides more discounts and has a higher average discount percentage. This approach not only attracts price-sensitive shoppers but also enhances the perceived value of Adidas products.

Market Share:  Nike leads in terms of market share, indicating its dominant position in the footwear industry. This leadership is supported by strong brand recognition and consumer loyalty.

Brand Value:  Nike's brand value, despite a slight decrease from the previous year, remains significantly higher than Adidas's. This high brand value underscores Nike's global influence and strong market presence.

Premium Positioning:  Nike's higher average sales price reflects its premium market positioning. The brand's focus on high-quality, performance-driven products appeals to consumers willing to invest in superior footwear.

Key Takeaways:

Adidas excels in affordability and diversity,  offering a vast range of products at competitive prices. The brand's aggressive discounting strategy further enhances its appeal to cost-conscious consumers.

Nike stands out for its market dominance and brand strength,  driven by its premium product offerings and strong consumer loyalty. Despite a slight decline in brand value, Nike continues to lead the industry with its innovative designs and influential marketing campaigns.

Ultimately, both brands have unique strategies that contribute to their success in the footwear industry. Adidas's focus on affordability and variety makes it a go-to choice for many consumers, while Nike's emphasis on premium quality and brand prestige ensures its continued leadership.  Whether a customer prioritizes cost, variety, or brand reputation, both Nike and Adidas offer compelling options to meet diverse needs and preferences.

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Nike vs Adidas: Business Model, Branding and Marketing

In the competitive world of sportswear, two prominent companies have consistently stood out - Nike and Adidas . These industry giants have not only captured the market's attention but have also revolutionized the way business models, branding, and marketing work. In this article, we will delve into Nike and Adidas business models, explore their branding strategies, analyze their marketing tactics and campaigns, assess the role of sponsorship in their brand promotion, and evaluate their social media presence and impact.

Nike vs Adidas - Business Model

Before diving into the specifics of Nike and Adidas, it is essential to grasp their respective business models and how they contribute to their success in the sportswear industry.

In order to fully understand the business models of Nike and Adidas, it is important to delve deeper into the strategies and principles that have propelled them to the top of the sportswear market.

Nike Business Model

Nike's business model is centered around innovation and athlete endorsement. By continually pushing the boundaries of design and technology, Nike has established itself as a frontrunner in the sportswear market.

One of the key factors that sets Nike apart is their commitment to research and development . They invest heavily in exploring new materials, manufacturing techniques, and performance-enhancing technologies. This dedication to innovation allows Nike to create cutting-edge products that resonate with athletes of all levels.

Additionally, Nike's strategic partnerships with high-profile athletes have played a significant role in strengthening its brand image. By associating themselves with sports icons, Nike not only gains credibility but also inspires a sense of aspiration and achievement among its target audience.

These athlete endorsements go beyond mere sponsorship deals. Nike works closely with athletes to co-create products that meet their specific needs and preferences. This collaborative approach ensures that Nike's products are not only technologically advanced but also tailored to the demands of top athletes.

Nike's Revenue Streams

Nike's annual revenue soared to $51.2 billion in 2023,representing a 9.65% increase from the previous year. Source: Macrotrends

Nike's revenue streams can be divided into four main categories:

Footwear: Footwear sales account for the majority of Nike's revenue, making up around 68% of the company's total revenue in 2023. Nike offers a wide range of footwear products for different sports and activities, including running, basketball, soccer, training, and lifestyle. The company's footwear products are known for their innovative design, performance, and durability.

Apparel: Apparel sales make up the second-largest portion of Nike's revenue, contributing around 28% of the company's total revenue in 2023. Nike offers a wide range of athletic apparel products, including shirts, pants, shorts, jackets, and hoodies. The company's apparel products are designed to be both functional and stylish, and they are popular among athletes and casual consumers alike.

Equipment: Nike also sells a variety of athletic equipment, such as balls, bags, and accessories. This category of revenue makes up around 4% of the company's total revenue in 2023. Nike's equipment products are designed to help athletes perform at their best and to protect them from injury.

Licensing : Nike generates the remaining of its revenue from licensing agreements with other companies. These agreements allow other companies to use Nike's branding on their products. Nike's licensing program includes a wide range of products, such as toys, video games, and sporting goods.

In addition to the four main revenue streams listed above, Nike is also exploring new services like:

Digital services: Nike is investing in digital services, such as its Nike Run Club app and Nike Training Club platform. These services provide users with access to personalized training plans, exclusive products, and other benefits. Nike is generating revenue from these services through subscription fees and advertising.

Image Source: Nike Website

Nike Direct: Nike is also expanding its Nike Direct sales channels, which include its own e-commerce platform and retail stores. This allows Nike to sell its products directly to consumers and avoid paying wholesale margins. Nike is generating incremental revenue from its Nike Direct channels.

Nike's direct-to-consumer brand, Nike Direct, generated approximately $21.3 billion in revenue in the year ended May 31, 2023. This growth was driven by strong sales on Nike's e-commerce platform and in its retail stores. Source: Statista

Adidas Business Model

On the other hand, Adidas focuses on collaboration and brand expansion. Adidas has championed the idea of working with influential designers, celebrities, and other global brands to create unique and sought-after products.

Adidas' collaboration-focused business model has allowed them to tap into new markets and cater to diverse consumer preferences. By partnering with designers and celebrities, Adidas is able to infuse its products with a sense of style and fashion-forwardness that appeals to a wider audience. Furthermore, Adidas has successfully created a sense of exclusivity around its brand through limited edition releases and collaborations with highly coveted brands. This strategy not only generates hype and demand but also positions Adidas as a trendsetter in the industry.

Adidas also places a significant emphasis on sustainability and corporate responsibility. They have incorporated these values into their business model, making conscious efforts to reduce their environmental impact and ensure ethical practices throughout their supply chain. By doing so, Adidas has created a positive brand perception among consumers who value sustainability and social responsibility.

Adidas Revenue Streams

Adidas AG revenue for the twelve months ending June 30, 2023 fell 5.13% year-over-year to $23.3 billion. Source: Macrotrends

Adidas revenue streams are focussed on:

Products: Product sales account for the majority of Adidas' revenue, making up over 95% of the company's total revenue in 2023. Adidas offers a wide range of products, including footwear , apparel , and accessories and gear . The company's products are designed for a variety of sports and activities, including running, basketball, soccer, training, and lifestyle. Adidas is known for its innovative design and high-performance products.

Licensing: Adidas generates the remaining of its revenue from licensing agreements with other companies. These agreements allow other companies to use Adidas' branding on their products. Adidas licensing program includes a wide range of products, such as toys, video games, and sporting goods.

In addition, Adidas is also exploring new revenue streams, such as:

Direct-to-consumer sales: Adidas is investing in direct-to-consumer sales channels, such as its own e-commerce platform and retail stores. This allows Adidas to sell its products directly to consumers and avoid paying wholesale margins. Adidas is generating incremental revenue from its direct-to-consumer channels.

Adidas' wholesale channel remained the company's largest in 2022, accounting for 61% of total net sales. However, the share of direct-to-consumer (DTC) business, which includes own retail and e-commerce sales, continued to grow, reaching 39% of total net sales in 2022. Source: Adidas

Subscriptions: Adidas is also offering subscription services, adiClub . This app provides users with access to personalized training plans, exclusive products, and other benefits.

Image Source: Adidas Website

Nike vs Adidas - Branding Strategies

When it comes to branding, Nike and Adidas have taken divergent approaches, each with its own strengths and advantages.

Nike Branding Strategies

Nike has successfully cultivated a brand image that is synonymous with inspiration, determination, and excellence. Through their iconic slogan "Just Do It" and memorable advertising campaigns, Nike has positioned itself as the brand for athletes and enthusiasts alike. Their consistent message of pushing boundaries and surpassing limitations defines their brand identity and resonates strongly with their target market.

Video Source: Nike YouTube Channel

Moreover, Nike's collaborations with leading athletes and sports teams have further solidified the brand's association with peak performance and success. By aligning themselves with the best in the game, Nike has positioned its brand as a symbol of achievement and credibility.

Adidas Branding Strategies

Adidas, on the other hand, has successfully forged a brand identity rooted in tradition, authenticity, and versatility. With its classic three-stripe logo and timeless designs, Adidas has managed to appeal to a wide range of consumers, from athletes to fashion enthusiasts.

Video Source: Adidas YouTube Channel

By effectively leveraging celebrity endorsements and collaborations with influential designers, Adidas has been able to maintain a sense of relevance and innovation while staying true to its heritage. This brand strategy has allowed Adidas to maintain a loyal customer base while attracting new, trend-conscious consumers.

Nike vs Adidas - Marketing Strategies and Campaigns

Both Nike and Adidas have developed innovative marketing approaches to capture consumer attention and maintain their market dominance.

Nike Marketing Strategies

Nike's advertising and promotion costs soared to $4.06 billion in fiscal 2023, a clear sign of the company's commitment to brand building and customer engagement. Source: Statista

Nike has built a reputation for creating captivating marketing campaigns that leave a lasting impact. They have consistently employed storytelling techniques to connect with their audience on an emotional level. Their advertisements often showcase inspirational narratives that resonate with both athletes and everyday individuals, making Nike a brand that people can relate to.

Nike Website Traffic (Organic and Paid): SEMRush

Nike has also capitalized on digital marketing channels, leveraging social media platforms and influencers to reach a wider audience. Their creative and interactive campaigns have made Nike a prevailing force on platforms such as Instagram, YouTube, and TikTok, allowing them to engage with consumers in real time and drive brand loyalty.

Adidas Marketing Strategies

Adidas ramped up its marketing and point-of-sale expenses to nearly €2.8 billion in 2022. Source: Statista

Adidas has adopted a different marketing approach, placing a strong emphasis on experiential marketing and connecting with local communities. By organizing and sponsoring events, Adidas creates memorable brand experiences that go beyond traditional advertising methods.

Adidad Website Traffic (Organic and Paid): SEMRush

Additionally, Adidas has embraced user-generated content and influencer marketing, encouraging consumers to actively participate in shaping the brand's narrative. By leveraging the power of social media and collaborating with influencers, Adidas has successfully built a community of brand advocates who champion their products and experiences.

Role of Sponsorship in Brand Promotion

One aspect that significantly contributes to Nike and Adidas' brand promotion is their involvement in sponsorships and partnerships with athletes, teams, and events.

Nike Sponsorship Deals

Nike has been at the forefront of securing high-profile sponsorship deals with legendary athletes across various sports. From Michael Jordan in basketball to Cristiano Ronaldo in soccer, Nike has managed to create strong and enduring relationships with sporting icons. These partnerships not only generate significant brand exposure but also provide Nike with invaluable insights into athlete preferences and market trends.

Additionally, Nike's sponsorships extend beyond individual athletes, as they collaborate with sports leagues and teams worldwide. By associating themselves with successful sports entities, Nike reinforces their brand's authority and credibility.

Adidas Sponsorship Deals

Similarly, Adidas has established a notable presence in sponsorships, with collaborations ranging from individual athletes to major sports events. Adidas has strategically partnered with influential sports figures such as Lionel Messi and Beyoncé, leveraging their popularity and influence to enhance brand visibility and association.

Furthermore, Adidas has secured sponsorship agreements with global sports tournaments, positioning the brand at the center of key sporting moments. These partnerships not only provide Adidas with substantial exposure but also allow them to align their brand values with the excitement and passion of sports.

Social Media Presence and Impact

Social media plays a significant role in brand visibility, consumer engagement, and market influence. Nike and Adidas understand the power of social media and have utilized it to their advantage.

Nike Social Media Strategy

Nike has a robust presence on social media platforms, employing strategies that foster brand loyalty and prompt engagement. They create shareable content that resonates with their audience, often featuring athletes and inspirational stories that evoke emotions and motivate action.

Nike Instagram: 306M Followers (Nov, 2023)

Nike's social media platforms serve as a space for them to amplify their brand's mission and values, while also keeping consumers informed about product releases, events, and collaborations. By maintaining an interactive and responsive online presence, Nike ensures that its brand remains at the forefront of consumers' minds.

Adidas' Social Media Approach

Adidas, too, recognizes the importance of social media in the marketing landscape. They have adopted a multi-platform approach, leveraging each social media channel's unique features and audience demographics.

Adidas Instagram: 28.1M Followers (Nov, 2023)

Adidas uses social media to foster a sense of community among its consumers, encouraging them to share their experiences and connect with like-minded individuals. By positioning itself as a lifestyle brand that extends beyond sportswear, Adidas creates a space where consumers can identify with the brand's values and engage with curated content that resonates with their interests.

Wrapping Up

The battle between Nike and Adidas extends beyond sportswear, encompassing business models, branding strategies, marketing tactics, and engagement on social media. While Nike champions innovation and athlete endorsement, Adidas focuses on collaboration and brand expansion. Nike excels at emotional storytelling, while Adidas creates unique brand experiences. Both companies understand the power of sponsorship in brand promotion and have carved strong positions in the realm of social media marketing.

Ultimately, the success of Nike and Adidas lies in their ability to adapt to changing consumer preferences, stay ahead of industry trends, and consistently deliver products and experiences that resonate with their loyal fan bases. As the rivalry continues, the sportswear industry eagerly awaits the next chapter in this ever-evolving competition between two global giants.

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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 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 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 .

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.

18 Sustainable Gender Neutral Brands and Gender Inclusive Clothing for Every Body

14 clothing brands from italy doing better by people and the planet, 10 retro alternatives to nike’s cortez sneakers, 13 more sustainable alternatives to brandy melville, ethical brand ratings. there’s an app for that..

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Nike vs. adidas: Understanding the two tribes that attach themselves to each brand

The competition between adidas and Nike has been a feature of the sports footwear and apparel market for nearly 60 years. Over the decades a dedicated fan base has emerged for each, with some individuals passionately aligning themselves with either adidas or Nike and snapping up the latest Spezial or Dunk Low releases. These allegiances have helped to propel both companies to global success.

But aside from a loyalty to one brand or another, are these two tribes so very different from one another?

To give us a feel for the answer, in this YouGov analysis we delve into the demographics, attitudes, and preferences of two specific groups – current customers of adidas who have not bought Nike recently, and current customers of Nike who have not bought adidas recently. By ‘current’ and ‘recent’, we mean over the past three months. In each case, we will call these segments ‘Nike loyalists’ and ‘adidas loyalists’.

Data from YouGov Profiles reveals that for both companies, the lion’s share of these loyalists are made up of Millennials (36% and 44% respectively) and Gen Xers (35% and 34%) - although it’s worth noting here the significantly larger share that millennials make of Nike’s business.

Making up a smaller share of loyalists for each brand are members of Gen Z – and both have a roughly equal proportion (adidas 10% and Nike 11%). A much higher proportion of adidas loyalists are Boomers – they make up 16% of the loyal group, while for Nike this generation makes up just 12% of loyalists.

There are also significant gender differences to be found within the two tribes. Adidas loyalists are more likely to be men (53% vs. 46% women), while Nike loyalists are more likely to women (54% vs. 47% men).

Analysis of income brackets indicates that adidas loyalists are more likely to be from the middle-income group (40% vs. 36% of the Nike tribe). By contrast, Nike loyalists are more likely to be drawn from higher income brackets, compared to their adidas equivalents (24% vs. 18% for adidas).

Shared affinity for sports

Loyalists of both brands – unsurprisingly – either actively read about or watch similar sports, with football being the most popular among both (39% adidas and 43% Nike).

The top six sports for both sets of loyalists are the same – but in different orders and to different degrees. The biggest differences in popularity are to be found in boxing (popular with 19% of Nike loyalists but only 10% of the adidas group), cricket (17% adidas vs. 13% Nike) and football (43% Nike vs. 39% adidas loyalists).

Digital engagement and entertainment choices

So, what’s the best way to reach these two tribes? Let’s see if there are any interesting differences in their habits when it comes to spending time in front of a screen across social media, podcasts, broadcast/cable TV and streaming.

YouGov Profiles data reveals that while Facebook remains a popular platform among both sets of customers, adidas loyalists (74%) slightly surpass fans of Nike (71%) when it comes to being a member of the platform. On the other hand, “Tribe Nike” show a higher likelihood of being members of Instagram (58% vs. 55%), X (45% vs. 40%) and Snapchat (32% vs. 28%).

A look at other forms of entertainment reveals that roughly half of adidas and Nike loyalists say they listen to podcasts. Around a fifth of both customer bases use Spotify to listen to podcasts (21% and 20% respectively). However, Nike loyalists are more likely to listen to Apple (14% vs. 9% adidas) and YouTube podcasts (13% vs. 8% adidas).

Among podcast genres listened to regularly, customers of both brands are most likely to listen to comedy podcasts (21% adidas and 20% Nike). Fewer than one in ten customers listen to sports podcasts (9% vs. 8%). While adidas loyalists lean towards true crime (10% vs. 2%), Nike customers are twice as likely to listen to music podcasts (16% vs. 8% adidas) and significantly more likely to subscribe to TV and movie podcasts (15% vs. 10% adidas).

About half of loyalists of both brands watch BBC One regularly (52% for Nike and 49% for adidas). However, data shows that Nike customers are more likely to watch traditional TV regularly compared to adidas customers. This includes ITV (42% vs. 37%), Channel 4 (38% vs. 33%), and Channel 5 (21% vs. 16%).

Switching to streaming, a large proportion of both groups binge on Netflix, but Nike loyalists take the lead at 67% compared to adidas' 57%. Nike fans also favour Disney+ (32% vs. 28% of adidas). On the flip side, adidas customers lean towards Amazon Prime Video (45% vs. 41%), YouTube (45% vs. 41%), and BBC iPlayer (43% vs. 37%) compared to their Nike counterparts.

Brand engagement

Comsumers with an allegiance to adidas are much more likely than Nike's to notice any type of sponsorships, especially of an event (54% vs. 41%). However, a substantial proportion of customers in both groups say they have noticed product placements (44% and 40%).

In the last six months, 45% of adidas customers noticed TV programme sponsorships, while 35% of Nike customers reported the same. Sponsorship of sports teams (32% adidas; 25% Nike) and of user-generated content like a YouTube video or podcasts (31%; 26%) also captures their attention – but to different extents.

Both customer groups are less likely to say they’ve noticed sponsorship of a social media post, venue, and co-branding partnerships in the last six months.

While Nike and adidas duke it out for market share, this analysis shows some clear differences between their customer bases and gives marketers for all sports apparel and footwear brands a sense of how customer segmentation using YouGov tools can help their brand.

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Methodology: YouGov Profiles is based on continuously collected data and rolling surveys, rather than from a single limited questionnaire. Profiles data for Great Britain is nationally representative and weighted by age, gender, education, region, and race. Learn more about Profiles .

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Nike vs Adidas: A Silent Rivalry Explained

Never Miss a Beat

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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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Stripes of Contention between Nike and Adidas on Protected Marks and Trademark Infringement

Nike and Adidas, two giants in the sportswear industry, have a long history of competition and innovation. Nike, founded in 1964 in the US, is known for its cutting-edge designs and marketing. Adidas, established in 1949 in Germany, is famous for its iconic three-stripe design. These companies have not only competed in the market but also in the courtroom, with recent legal disputes focusing on trademark infringement, particularly regarding the design of sports trousers.

Adidas’ Trademark Infringement Claim

In 2022, Adidas took legal action against Nike, alleging that five pairs of sports trousers introduced by Nike featured designs that closely mimicked Adidas’ iconic three-stripe pattern. Adidas argued that these designs infringed upon its trademark rights, which are crucial to its brand identity and consumer recognition. The three-stripe motif, prominently displayed on Adidas products, has been a hallmark of the brand since its inception and represents a significant element of its competitive edge.

Adidas’ claim was taken seriously by the Düsseldorf regional court in Germany. The court initially sided with Adidas, issuing an order that banned Nike from selling the trousers in question within the German market. This decision was a significant victory for Adidas, reinforcing the importance of its trademark and the legal protections afforded to it.

Nike’s Appeal

Unwilling to accept the regional court’s ruling, Nike decided to appeal the decision. The company argued that the designs of the disputed trousers did not infringe on Adidas’ trademark rights and that the ruling was overly broad. Nike’s appeal sought to overturn the ban and allow the continued sale of the trousers in Germany.

In September 2023, the Düsseldorf regional court upheld its initial decision, maintaining the ban on the sale of the trousers. However, Nike persisted, taking the case to a higher court, the Oberlandesgericht Düsseldorf, for a final resolution.

The legal battle between Nike and Adidas over the design of sports trousers highlights the intense competition and high stakes in the sportswear industry. Trademark protection is a critical aspect of brand strategy for companies like Nike and Adidas, whose logos and design elements are instantly recognizable to consumers worldwide. The outcome of this case not only impacts the immediate sales and branding efforts of the companies involved but also sets a precedent for future trademark disputes in the fashion and sportswear sectors.

As the case moved to the Oberlandesgericht Düsseldorf, both companies awaited a definitive ruling that would determine the fate of the disputed trousers and potentially reshape the landscape of trademark protection in the industry. This legal confrontation underscores the importance of distinctive branding and the ongoing efforts of major companies to protect their intellectual property in a highly competitive market

Düsseldorf Higher Regional Court’s Ruling

The Düsseldorf Higher Regional Court partially overturned the Düsseldorf Regional Court’s ruling. The court confirmed that one of the Nike trousers infringed on Adidas’ trademark rights due to the similarity in design, but dismissed the claims against four other pairs of trousers.

The key aspect of the Düsseldorf Higher Regional Court’s decision was its emphasis on the specific design elements and the overall context of the garment, rather than just the presence of stripe patterns. The court stated: “It is undisputed that Adidas brands its sportswear with three vertical stripes of equal width on the sides, each one equidistant from the other. The relevant public is used to this and sometimes sees it as a reference to Adidas. However, this does not mean that every stripe pattern on the side, regardless of its specific design or the rest of the garment’s design, is attributed to Adidas.”

This ruling suggests that the court is taking a more nuanced approach to determining trademark infringement, recognizing that not all stripe patterns are exclusively associated with Adidas. The court’s consideration of factors such as the specific design of the stripes, the overall design of the garment, and the presence of other brand features indicates a willingness to balance trademark protection with fair competition in the industry.

Legal Implications

The Düsseldorf Higher Regional Court’s ruling aligns with the principle established in the landmark European Court of Justice case Adidas AG v. Marca Mode , where the court ruled that a trademark consisting of three parallel stripes does not prohibit the use of any stripe motif, but only the use of a motif that has the same or a similar visual impression.

However, the court’s decision also highlights the challenges faced by trademark holders in the fashion industry. While Adidas has aggressively defended its three-stripe mark, the Düsseldorf Higher Regional Court’s ruling suggests that the scope of protection for such common design elements may be narrower than Adidas had hoped.

The Shoe Branding Europe v. Adidas case further underscores these challenges. In that case, the EUIPO’s Second Board of Appeal agreed with Shoe Branding Europe’s argument that Adidas’ three-stripe mark lacked the required “secondary meaning” or “ acquired distinctiveness ” to be protected as a trademark. This decision suggests that even well-known trademarks can be vulnerable if the trademark holder fails to maintain their distinctiveness in the eyes of consumers.

These rulings raise critical questions about the balance between trademark protection and fair competition in the fashion industry. While trademark holders like Adidas have a legitimate interest in protecting their brand identity, the courts have shown a willingness to limit the scope of protection for common design elements to ensure that competitors can still use them in a non-confusing manner.

Impact on Nike and Adidas

The Düsseldorf Higher Regional Court’s ruling represents a partial victory for Nike, allowing it to continue selling most of the disputed trousers. For Adidas, the decision partially validates its trademark rights, but also highlights the need for the company to demonstrate a clear likelihood of consumer confusion to successfully enforce its mark against competitors’ use of stripe designs.

The case also has implications for Adidas’ ongoing dispute with Nike over shoe designs in Europe. In June 2023, the U.S. Supreme Court declined to hear Nike’s appeal in a longstanding shoe design infringement dispute with Adidas, leaving the European courts to continue grappling with the complexities of trademark protection in the sportswear industry.

The legal dispute between Adidas and Nike over stripe designs on sportswear highlights the complex balance between trademark protection and fair competition in the fashion industry. While Adidas has aggressively defended its three-stripe trademark, recent court rulings suggest a more nuanced approach to evaluating infringement. The Düsseldorf Higher Regional Court’s decision to partially overturn a previous ruling against Nike indicates that courts are considering specific design elements and overall context, rather than broadly prohibiting all stripe patterns. This case underscores the challenges faced by trademark holders in protecting common design elements while allowing for fair competition and may have significant implications for future trademark disputes in the sportswear industry.

Written by Nissy James, legal intern @intepat.

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Adidas’ Management vs. Nike Essay

• To find inspiration for your paper and overcome writer’s block
• As a source of information (ensure proper referencing)
• As a template for you assignment

The restructuring of Adidas was primarily aimed at eroding the market share of Nike. This plan involved the acquisition of companies whose products could be aligned with those sporting goods that were offered by Adidas.

However, this approach did not achieve the synergy among businesses because Adidas could not raise its effectiveness or improve the quality of products.

To a great extent, this plan failed to differentiate the products of Adidas. One may examine the differences in performance between various business units of Adidas in order to elaborate this response.

Overall, the management of Adidas was extremely concerned about the growing market share of Nike that clearly became the leader of the sporting goods industry. In response, Adidas attempted to diversify its products and acquired such companies as Solomon and Reebok.

However, the new divisions did not consistently display good financial results. For instance, many consumers were disappointed with Reebok’s failure to improve quality and styling of its products. As a result, its revenues declined during the period between 2007 and 2008.

The main problem is that these acquisitions did not add much value Adidas. More likely, they made the company more vulnerable, especially at the time of the global economic recession.

In this case, much attention should be paid to the process of differentiation. The management of Adidas had to show that their company could offer products which were superior to those ones of Nike in terms of quality or price.

However, they did not pay much attention to this issue. This is why Adidas failed to become more competitive than Nike and their restructuring plan did not make the company more efficient.

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IvyPanda. (2019, April 25). Adidas’ Management vs. Nike. https://ivypanda.com/essays/adidas-case-essay/

"Adidas’ Management vs. Nike." IvyPanda , 25 Apr. 2019, ivypanda.com/essays/adidas-case-essay/.

IvyPanda . (2019) 'Adidas’ Management vs. Nike'. 25 April.

IvyPanda . 2019. "Adidas’ Management vs. Nike." April 25, 2019. https://ivypanda.com/essays/adidas-case-essay/.

1. IvyPanda . "Adidas’ Management vs. Nike." April 25, 2019. https://ivypanda.com/essays/adidas-case-essay/.

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Case Study - Nike vs Adidas, market and comprehensive

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Madeeha Kanwal

Strategy is about the most crucial and key issues for the future of organizations. Strategy is also important to explore several strategic options, investigating each one carefully before making strategic choices. The study incorporates a rigorous and systematic effort to uncover the strategies and its impact on the company's performance by analysing case studies, articles and the annual report of Nike Inc. and Adidas Inc. The study attempts to find out the relevance of the strategies adopted by these companies, which are globally successful athletic apparel companies in the context of Bahrain. The findings of the study highlight Nike's strategies which focus on innovation and emphasis on its research and development department, provision of premium pricing for its customers, broad differentiation strategy, market Segmentation Strategy and Closed-Loop strategy. The Adidas strategies focus on the broad differentiation, innovation, trying to produce new products, services and processes in order to cope up with the competition. It embraces a multi-brand strategy, emphasis on expanding activities in the emerging markets, continuously improving infrastructure, processes and systems, foster a culture of challenging convention and embracing change, foster a corporate culture of performance, passion, integrity and diversity. These strategies coupled with its resources and unique capabilities form the basis of sustainable competitive advantage for both the companies. INTRODUCTION: The strategy is a path towards achieving the optimum goals of individuals, groups and organizations. In addition, it leads to a best use of companies' available resources and it also guides the company to stay in a business successfully and continuous improvements for its processes. The definition of strategy could be differ from one author to another, but the most common definition is that the strategy is long term plans and approaches towards the intended visions and objectives. It is a general framework that specified the organizations' plans, policies and approaches to meets its objectives, goals and end results. The way an organization used to shape its strategies could be differentiate from other organizations in order to make its products unique and remarkable. Globally, companies formulate their strategies based on their visions and reaching the satisfaction of customer's needs, requirements and expectations. Subsequently, they use those strategies as a baseline to compare their actual performance with planned ones, to evaluate the end results and ensuring the continuing organizational excellence. There are many kinds of strategies that are pursued by the companies; Such as cost leadership, differentiation and the focus strategies (Porter, 1985), services strategies, growth strategies. Based on the goals, the companies form those strategies and they rank them upon the priorities. It is more than important for any organization to put strategies and not any strategies; the correct strategies which are formulated after a long time of studying and after numerous number of brainstorming among the top management members. Therefore, those strategies then to be implemented by converting the organization's plans and policies into real actions through the best use of available resources such as: human resources, budgets and technological advance; in order to enhance the organization's performance, productivity and sustainability.

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Adidas Case Study – Best Ideas for the Real Fans

In 2023, the German sportswear maker Adidas AG celebrates its 74rd anniversary. After all these years into the game, the brand is as popular as ever. Adidas constantly improves its designs, collaborating with celebrities like Beyonce, Kylie Jenner, and Pharrell Williams. A student can learn many helpful business lessons from the Adidas case study!

• 🤔 Adidas Facts
• 💡 Adidas Case Study Ideas
• 📈 Marketing Plan
• ☎️ Supply Chain
• 🦖 Sustainability Strategy
• 🤓 Crisis Management
• 📱 Social Media
• 👟 Adidas Vs. Nike
• 🎾 Adidas Vs. Reebok

🔗 References

🤔 5 facts about adidas people don’t know.

• The company was founded in 1924 by Adolf Dassler, a shoemaker’s son. However, the most recognized trademark with the three stripes was not Dassler’s original idea. He purchased it from the Finnish shoe brand for two whiskey bottles and €1600.
• Adidas’s iconic sneakers “Stan Smith,” were initially named after Robert Haillet , the French tennis star. However, Stanely Smith was considered a better candidate to represent the tennis shoe model.
• There was a park in Boston called “Adidas Park,” where nobody but people with Adidas Adidas brand clothes were allowed.
• Adidas was the first to make a microchip for their sneakers to check the amount of calories athletes burn.
• Michael Jordan, the world-famous basketball player, almost signed a deal with Adidas before going for the Nike shoe brand.

💡 Adidas Case Study – Ideas for Any Taste

Numerous external and internal factors influence Adidas’ financial performance. When doing an Adidas case study, a student can focus on the company’s marketing approach, supply chain , or CSR policy. Here’re some more ideas!

• The history of Adidas company.
• Corporate values and mission.
• The role of Adidas’ executive board.
• Key products and collaborations.
• Manufacturing process.
• Supply chain.
• Strategic management.
• The global presence and market influence.
• Employment and internships at Adidas.
• E-commerce and digital marketing.
• Advertising campaigns.
• Target customers.
• Official sponsorship.
• Key market competitors of Adidas.
• Sustainability principles.
• Adidas’ environmental initiatives.
• Criticism of a company.
• CSR policy.
• Crisis management.
• Adidas’ financial figures.

📈 Adidas Marketing Plan

• Adidas uses marketing to build a bond with the audience Adidas interacts with its customers with the help of social media and ads. It creates a strong bond that makes the customers come back for new purchases. The brand works to create excitement around the world of sports on a personal level.
• Adidas takes inspiration from the cities The company carefully determines which items sell better and in what specific areas. For example, in London, Adidas primarily focuses on selling soccer-related products. Meanwhile, the main product focus in New York is basketball or baseball.
• Adidas collaborates with athletes Collaborating with professional athletes helps Adidas enhance its creativity in branding. Adidas’ partnerships also include major music and fashion artists to reach out to people who are not into sports. For example, When Adidas had a deal with Kanye West to create Yeezy footwear, it became one of the most popular footwear lines in the industry.

☎️ Adidas Supply Chain Case Study

• Subcontractors,
• Material providers,
• Adidas’ Speedfactory Speedfactory is a factory where robots do most of the work. Products are assembled using 3D printing, which increases the efficiency of mass customization. Compared to the months it takes to make a sneaker using the traditional supply chain, Speedfactory completes production in a few days.
• Adidas’ Click and Collect program To make the consumer experience easier, Adidas has created a multidimensional purchasing program—” Click and Collect “. It enables consumers to choose how they prefer to shop. For example, if the product a customer wants to order is available at the online shop, they can reserve it immediately and take it from any store.

📘 Adidas Case Study Ethics

• Adidas’ anti-discrimination policy Adidas Company believes all employees have the right to work in a safe and respectful environment with equal opportunities. The company has a Legal & Compliance department that investigates all reported violations of the company’s policy.
• Adidas’ integrated management system policy for health and safety Adidas has created an integrated management system (IMS) approach to ensure all operations happen safely and healthily. This policy controls the performance of the whole organization, including all the brands and locations.
• Adidas supporting the employees during COVID-19 When the pandemic hit, Adidas continued to pay workers during the shutdown period, including the migrant workers who could not return to their residences. Moreover, Adidas provided earlier cash and year bonuses to help workers meet their daily needs.
• Adidas joining the fur-free initiative In 2021, Adidas announced joining the global Fur-Free Retailer program . Frank Henke, senior vice president of sustainability at Adidas, says that the number of their vegan products is growing. For example, the famous sneakers Stan Smith and Superstar are already available as vegan versions.

🦖 Adidas Sustainability Strategy

• An overview of Adidas’ sustainability Consumers ranked Adidas as number 53 out of the 100 most sustainable brands . While the brand is already seen as sustainable, there is still room for improvement. For example, Adidas promises that by 2025, nine out of ten of its products will be sustainable.
• Adidas sustainability targets Adidas applies the Three Loop Strategy when creating its products: sportswear is made from recycled materials, made to be remade, or made with renewable materials. By 2030, the company promises to reduce greenhouse gas emissions by 30%.
• Adidas & Allbirds eco-collaboration In 2020, Adidas and Allbirds announced a collaborative project to find solutions for reducing the industry’s emissions. Two sports brands also wanted to show that competitors can work together. They collaborated to create a running shoe that clocks in at just 2.94kg CO2 per pair.
• Kermit the Frog in Adidas’ latest sustainability campaign In 2021 Adidas released a 60-second commercial where Kermit talks about the danger of climate change. The loveable frog character says it’s not easy to be green. The campaign shows Adidas’ commitment to lowering its carbon footprint and using only 100% recycled polyester.

🤓 Adidas Crisis Management

• Adidas social media crisis In 2017, on the second day of the Annual Boston Marathon , Adidas sent an email to all the participants, saying: “Congrats, you survived the Boston Marathon.” It was a huge mistake, considering that Islamic terroristic actions occurred four years earlier near the marathon’s finish line. It took Adidas less than four hours to publicly apologize on social media.
• Adidas handling its PR crisis In 2018, US prosecutors charged ten people, including Adidas’ director of global sports marketing, with bribery and fraud. When the scandal got public, Adidas’ share price dropped 2.5%. Soon Adidas responded via email, saying that the company is committed to ethical business practices and is ready to cooperate with the authorities.
• Adidas losing out in China After the Coronavirus pandemic, statistics reveal that Chinese shoppers prefer their local brands to Western companies. As a result of the boycott, Adidas’ sales there fell 16% in the second quarter. For now, Adidas assumes that the company will soon see a steady recovery in China.

📱 Adidas Social Media Case Study

• An overview of Adidas’ social media strategy The most striking feature of Adidas’ branding strategy is that it’s more than selling sportswear. It’s about pitching a lifestyle. Adidas’ catchy taglines are one of the most recognized slogans of modern brands. Another characteristic is that Adidas has powerful collaborations with athletes, singers, and designers.
• Adidas’ campaign “She Breaks Barriers” This initiative began in 2019 from a social media post where Adidas asked athletes to share the challenges and barriers they face. Using the collected responses, they developed a campaign to address inequality for female athletes. The company’s goal is to give women in sports more visibility.
• Adidas’ campaign “End Plastic Waste” In 2020, Adidas started a massive social media campaign with the message “End Plastic Waste.” This hashtag is in the top 10 hashtags used by Adidas on Instagram. Later Adidas made a documentary on its YouTube channel about its contributions to ending plastic waste.

👟 Adidas Vs. Nike Case Study

• Adidas vs. Nike: technology difference Adidas always puts quality over quantity, focusing on customer satisfaction. The company addresses many athletes to learn about their preferences. The most famous shoes made by Adidas are Ultraboost, Gazelle, Supernova. In the case of Nike, the company uses lighter materials such as polyester, rubber, and cotton. The brand also uses ZoomX technology to help consumers achieve high speed during running.
• Adidas vs. Nike: the business model Adidas’ business focuses on creating innovative products to fulfill customers’ specific needs. For example, the company has unique speed models in its supply chain, which helps Adidas to respond quickly to consumers’ needs. On the other hand, the main focus of Nike has been building solid and promising networks and partnerships with celebrity athletes like Michael Jordan.
• Adidas vs. Nike: marketing strategies Adidas opens its doors to all athletes and other consumers worldwide on its social media websites. The company has a “Calling All Creators” campaign to collect customers’ opinions and build new partnerships. In the case of Nike, the company heavily relies on its storytelling abilities. Their marketing campaigns are often built around telling real stories.

🎾 Adidas Vs. Reebok Case Study

• Adidas vs. Reebok: brands’ history The story of Adidas begins in the 1900s in Bavaria, Germany when the founder Adolf Dassler started making running shoes for athletes. When Robert Louis Dreyfus became the new CEO, he bought the Reebok company in 2005. Reebok was founded in Bolton, United Kingdom, by Joseph William Foster in 1958. The company aimed at making innovative footwear but only became wide-known after Adidas AG finally bought it.
• Adidas vs. Reebok: materials and manufacturing Adidas uses natural and synthetic materials for production. One of Adidas’s sustainable initiatives, “Made to be remade,” makes it possible to return worn-out shoes. Reebok has product lines made from plant-based materials, recycled plastic waste, and organic cotton. The company’s unique footwear technologies, like Reebok Pump, provide athletes with better traction.
• Adidas vs. Reebok: pricing strategies Price is an essential element of the marketing mix of Adidas. The brand charges premium prices for its high-quality products. Adidas’ sportswear is aimed at high-end customers. On the opposite, Reebok has a very flexible pricing policy. When the company introduces any new product, they keep a low pricing strategy until customers’ demand rises.
• What is supply chain management? | IBM
• Adidas | History, Products, & Facts | Britannica
• What Is the Executive Board of a Corporation? | Small Business – Chron.com
• (PDF) Sourcing Practices of Adidas | Vasant Kothari – Academia.edu
• adidas Sustainability | End Plastic Waste | adidas US
• Recycling Basics | US EPA
• SWOT Analysis: How To With Table and Example

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