Tuesday, February 27, 2018

Adidas Back in the Game

Adidas Back in the Game
Thomas Knoke

Adidas, founded by Adi Dassler, is a sportswear company that designs and manufactures shoes, clothing and other accessories sold in multiple nations. The brand started becoming bigger when founder Adi Dassler persuaded Jesse Owens to wear his hand crafter track shoes in the 1936 Summer Olympics. After Owens came home with four gold medals, people were all over those shoes. The name Adidas was put into play in 1949 and since then has taken off. It is the largest sportswear company in Europe and second largest in the world, right behind Nike.
Although Adidas is the second largest sportswear company in the world, that doesn’t mean they don’t have to compete because oftentimes society changes their tastes, expectations and preferences all the time. For a while Adidas was dominating the sportswear industry, but in 1964, when Nike came into play, it wasn’t all that easy for Adidas. People quickly changed over to Nike products and suddenly Adidas had their new biggest rival. Demand was increasing for Nike like crazy and that’s all people wanted. But just recently, people have started to wear more Adidas again because of their new arrivals. Adidas figured out a way to become both a sportswear brand and a hypebeast brand. Adidas fund something that they could do that Nike would never expect so that they could increasing
demand of their product and it was working well. Adidas developed the strategy of giving their products to celebrities for people all over the world to see on social media, television and even in concert. For example, shortly after Kanye West was in contact with Adidas, they developed the Yeezy shoe. This shoe, part of the hypebeast category, was a $1000 shoe and people bought it without hesitation just because Kanye wears it, It’s crazy how something like that works. Even going back to the Jesse Owens example I used before, when you put a celebrity in your product, people want to buy it just because they’re wearing it. Focusing back on the topic, when Adidas finally started partnering with news breaking celebrities, output has increased tremendously and Adidas is making a huge comeback from its rougher years in the early 10’s. Their profitability is getting way closer to Nike’s and the overall value of their company is increasing.
In conclusion, Adidas had many ups and downs on their mission to become the number sportswear manufacturer in the world. They quickly figured out that they can’t just continue doing the same things, they had to think outside of the box and put their product of celebrities that the public was constantly relating to and watching. The point is, Adidas is a on comeback and their future is still very bright. Now the only question is....  Nike or Adidas?



Works Cited
“Adidas.” Wikipedia, Wikimedia Foundation, 25 Feb. 2018, en.wikipedia.org/wiki/Adidas.

Rains, Benjamin. “The Rise and Future of Adidas.” Zacks Investment Research, Zacks Investment Research, 26 Feb. 2018, www.zacks.com/stock/news/287528/the-rise-and-future-of-adidas.

Ricadela, Aaron. “How Adidas Got Back in the Game.” Bloomberg.com, Bloomberg, 29 Sept. 2016, www.bloomberg.com/news/articles/2016-09-29/how-adidas-got-back-in-the-game.

Tonner, Andrew. “Better Buy: NIKE, Inc. vs. Adidas.” The Motley Fool, The Motley Fool, 28 Dec. 2016, www.fool.com/investing/2016/12/28/better-buy-nike-inc-vs-adidas.aspx.

16 comments:

  1. I definitely agree with you, in the simple sense that the popularity of Adidas has stayed consistent over the years, especially due to pop culture and influences, such as Kanye West. I also agree that it is mind blowing how much celebrity marketing and endorsements actually impact a company like Adidas. Once someone famous flashes a logo, it seamlessly increases in popularity, which obviously is a positive for the given company because it increases their brand recognition, consumer awareness, popularity, and - more importantly - their profit margins. People will buy things to fit in and to meet trends and style expectations. Adidas can price their products for an insane amount (ie. Yeezy’s at $1,000) and people will still buy them, yet, some people hesitate buying other things that aren’t celebrity endorsed. I think this can have an impact on our nation’s GDP, but not as much as one may think. Overall though, this skilled marketing is favored and utilized by many companies and it usually has a positive impact on them.

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  2. I feel like for a while, Nike was a lot more popular than Adidas and people started wearing less Adidas. However, recently Adidas has gotten a lot more popular. I agree with what you said, having a celebrity wear your brand can bring a lot of recognition to it. People will be willing to spend $1000 on a shoe to fit in with the trends and because if a celebrity wears it, that will also increase consumer's willingness to buy the product. Overall, Adidas has made a large comeback over the years and will likely increase in the future if they keep using their current marketing strategies.

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  3. I definitely think Adidas has done a better job of keeping up with trends and new ideas than Nike or Under Armour. It wasn't too long ago that it seemed like Under Armour and Adidas were on a similar level, with Nike way ahead. Now under armor is way below Adidas, and Adidas is closing the gap on Nike. With their Classic's line, and their various shoe lines that have adjusted to current trends, a lot more people are choosing Adidas than they were 5 years ago. If Nike doesn't do something to address this, Adidas will continue to close the gap and possibly, even pass up Nike.

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  4. Adidas has done a much better job of competing with Nike and other big competitors by keeping up with trends and giving consumers what they want. Not too long ago Nike was in the lead for dominating the market and selling the most goods. However, I don't think celebrities wearing the merchandise is a big factor in Adidas catching up with Nike, because each company has endorsement deals with world class athletes. I mean J.J. Watt is sponsored by Reebok but we don't see people wearing all Reebok goods because of it. But however, I do think having celebrities wearing the gear in public just draws the eyes of their fans but it doesn't necessarily mean they'll buy it. It all depends on the prices of the products and the quality of the product, because it should make the customers feel satisfied when purchasing products. In the future, if Adidas keeps up their current pace they'll become the dominating company in the market and pass up Nike. So, it's important that Adidas keeps doing what they are doing because it's making their company more successful in the past couple years to pass up the company that's dominated the market for a long time.

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  5. I think that Adidas are even more popular now than when Run DMC were rocking them. Which is a great stepping stone for the brand. With major artists like Kanye being signed with them they're popularity only continues to grow substantially.

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  6. I remember when Adidas was simply a brand mostly worn by soccer players. In the past few years they have done a good job designing and producing trending clothing that can be worn by anyone. To be honest, I am pretty impressed with what they've done with their brand recently, and I myself started wearing it. By expanding their brand outside of just sports clothing, and partnering with celebrities, they've been able to keep up with their rivals and have done a good job on the market. I continue to see more and more people rocking Adidas every year, some which aren't even sports players (I myself for example), and they still sauce. However, despite all of this I do think they have got a little crazy with the prices of their items and might need to work on that. $1000 for a tennis shoe is pretty extreme in my opinion.

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  7. I use to only wear Nike and Under Armour branded clothing and shoes regarding sport wear. But within the past few years Adidas has gained popularity and grasped the liking of all kinds of people. Adidas is now designing clothing, shoes and accessories that can be warn by anyone which generates more sales for their business. Now that they are generating more sales, Adidas tends to fluctuate their prices to earn more money but the higher they set their prices for products the more the money they will earn because consumers are loving their products.

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  8. It is interesting to see how Adidas made a comeback. I liked how you explained when adidas and Nike were created so that people could get a good understanding of why there was competition. Adidas is very smart for making celebrities wear their products because since then, Adidas is everywhere. I can’t chose a side since I for sure have many products from each company but it doesn’t seem like Adidas needs to worry about losing customers. The only problem with Adidas is that there seems to be less in their factory stores compared to Nike for example when going to Johnson creek, the Nike store is very large compared to Adidas.

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  9. Over time, Adidas has changed from a sports wear-only manufacturer to a widely known and worn brand. In recent years, Adidas has partnered with celebrities like Kanye West to create unique and expensive clothing. Selling this expensive clothing not only benefits the manufacturers but also the buyer because most who buy the items have a 'hype beast' mentality, leading them to show off the product and buy more as new ones come out. This wide variety of clothing by Adidas has attracted the attention of a great amount of young people and proves that it will be a leading brand for years to come.

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  10. Thomas: Adidas over the course of their history as you stated has had a lot of ups and down. Similar to Nike, incorporating celebrities to their brand has really helped the demand for the adidas shoes. Ever since the Yeezy came out it has really boosted the demman for the shoes and since the price was so high and since it was in the “hypebeast” category brought a lot of money in for adidas. Adidas similar to Nike has been adding more and more pro athletes to sign shoe deals. James Harden was one big addition that really increased the demand for adidas shoes. Adidas moring out of their comfort zone a little bit and stop trying to win doing the old things and more to the new strategies such as signing athletes and celebrities has really boosted the demand for their shoe and brought them back into the game and caused people to start buying their shoes in high amounts again.

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  11. Lately I have noticed that Adidas has been making a major comeback, especially with their shoes. For me personally, I have always been a Nike fan. I always had Nike cleats, Nike running shoes, and Nike sportswear. The only time that I ever had Adidas was for club team uniforms (jerseys, shorts, socks, jackets, pants etc.) and I have had maybe 1 or 2 pairs of cleats from them. I always thought that Nike had better support in their shoes but now my opinion might be changing. I find it very interesting that celebrities have chosen to wear Adidas over other brands and because so many people follow celebrities moves when it comes to clothes, I would agree that this has really helped them out with sales. I have noticed that their running shoes have become more popular to use and they are more comfortable to run in as well. I am very excited for the Adidas comeback and hopefully they keep gaining back popularity.

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  12. I think that you did a great job writing this. I think that the fact the Adidas are singing people other than athletes like Pharrell and Kanye is a big reason why they are catching up to nike. They also seem to be focusing on street wear more than nike and that might be another reason for Adidas's big boom.

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  13. I agree, Adidas has made some big changes to adjust to the changing environment it is in. They have tried new styles but they have reused a older successful strategy of having celebrities wear there shoes. Another example of an Adidas line is Pharrell Williams. Adidas worked with him to create a new shoe product that falls under the "hype-beast" category. Along with that they are now creating shoes that don't have to have a sole purpose inn running or in basketball but instead, like these shoes, a new kind of shoe that doesn't have to have a purpose.

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  14. I also find it interesting that people spend money on products just because someone famous wears them. I find it especially interesting when it comes to Kayne West and his products. Yeezys are nice shoes but are not worth the price. I do like Addidas and that they are spreading their reach by creating a higher end product as well as the product they are usually known for

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  15. It is kind of crazy to me that Adidas as we were growing up was always second fiddle to Nike and way less cool but the script has kind of flipped. With the Ultra Boost line Adidas ha become the king of the stylish casual shoe and they have a hold on the specialty market with the Yeezy's as well.

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  16. I think being in this industry is risky these days. Just like Adidas breaking through, there have been other brands such as Champion, Tommy, and Supreme that have been running the game and now Nike is dropping off.

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