With over $86 billions in revenue, Nike is the no.1 sneaker manufacturer worldwide. Adidas, one of its main competitors, has recently hired an army of poaching designers and marketing experts in an attempt to dethrone the king. Both companies specialize in sports apparel, footwear, and accessories. Adidas is the market challenger, while Nike is the market leader. The question is: who will win the sneaker wars?
A few decades ago, sneakers were considered casual shoes. Today, everyone has at least one pair. People of all ages wear sneakers at work, school, the gym, and even at the club. Nike has been an industry leader for years. Its strategy was simple: Crush your opponent. After all, everyone remembers the $10 million lawsuit that Nike filed in 2014 against its three main designers who got hired by Adidas.
Over the years, the conflict between Nike and Adidas became fiercer. Today, Nike relies more on its own team for fresh designs, while Adidas is famous for its collaborations with top designers like Stella McCartney. Nike is controlling over 62 percent of the global sneaker market, while Adidas owns only five percent of the market. However, Adidas is an industry leading retailer in Western Europe. Nike owns the American sneaker market.
Even though Adidas is still behind Nike in terms of revenue, it’s doing its best to win the sneaker war. At this point, it differentiates itself with attitude. Its products appeal to young athletes and Hollywood stars who want to stand out from the crowd. Adidas claims that people are looking for a change and that Nike oversaturated the market.
It’s hard to tell which company will win this battle. Their marketing strategies are similar, but Adidas puts more emphasis on innovation. It has also implemented a multi-brand strategy for targeting all segments of the market, from college students to world-famous athletes. However, the two sports giants have different implementation methods, so the surprises will keep coming!
