Why Adidas keeps catching up with Nike

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Adidas is a German brand based in the heart of Bavaria and is the largest manufacturer of sportswear in Europe. Rudolf and Adolf Dassler founded the company as early as 1949, which is why they can look back on many years of experience. Nike, on the other hand, was founded in 1964, which is why Adidas’ experience is somewhat longer.

Why can Adidas catch up with Nike again and again?

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Adidas works with designers and there are always new collections. The brand shows itself with genuineness and authenticity. The brand is generally a big fan of the big fashion houses and musicians. Adidas can market itself very well and the brand can create a lot of hype. Without a doubt Adidas offers the more interesting and longer background story.

After all, the brand must be said to have survived several economic crises and the Second World War.

Adidas tries to grow even further with testimonials from the sports and music industry. Adidas is also sprinting to a sales record, as the balance sheet for 2017 is very good and profits have risen by a third. The reason for the success is that it runs in China and in shoes. In 2017, Adidas had earned over 21 billion euros.

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Adidas has around 57,000 employees worldwide, an average of thirty years of age. Before that, however, the company had also shed some jobs. In the course of time, Adidas finally separated from an ice hockey brand and a golf brand. The divisions did not make a profit.

Adidas produced more than 400 million pairs of shoes in 2017 and most of the money is made with this product. Particularly popular are adidas neo and adidas originals street shoes, basketball shoes and running shoes. Adidas grew its footwear business by 25 percent compared to 2016. Adidas caused a sensation last year with its new laceless running shoes.

 

Important information about Adidas

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The main driver of this success is China. In the world’s most populous country, Adidas now accounts for one-fifth of sales. Last year, the sporting goods manufacturer built two new logistics centers worldwide, located in China and Germany. Around a quarter of Adidas garments are also produced in Chinese textile factories. The company benefits from comparatively low wages and short delivery routes. North America is the most important market for sporting goods worldwide, with Adidas increasing sales by thirty percent. In 2017, the company opened the largest flagship store to date for Originals footwear.

The Adidas Superstart shoe is one of the best-selling shoes in the USA. However, the Reebok brand has a little bit of a problem, because Reebok was acquired more than 10 years ago and the brand has not been successful to date. About half of the Reebok stores are to be closed by the CEO.

Reebok.com and adidas.com are the main points of sale and digital sales grew by fifty percent worldwide. Adidas also offers its own shopping app, which has already been downloaded very often. For the company, the advantages are that expensive sales space is saved, data is collected and sold directly to customers.

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