Nike vs Adidas Footwear
Throughout history Nike has dominated the footwear industry
both in the United States and in Europe. In the United States Nike is the clear
leader, enjoying a 41% market share of the footwear industry. The other major
players in the industry include Reebok with a 16% market share, Adidas with a
6% market share and New Balance with a 3% market share. Nike has been the
leader in the United States since the company was formed and developed the first
running shoe. They have signed many famous athletes for sneaker contracts
including Lebron James, and other famous iconic athletes. These signings make
almost any kid wants Nike sneakers. Adidas is slowing catching up with Nike, although
they only have 6% market share they have recently signed major athletes like
Derrick Rose and Robert Griffin to big sneaker contracts attracting consumers
toward their sneakers. Domestically, Nike is still the footwear industry
leader, but does not have as strong of a hold only having 31% of the market. Adidas
is Nike’s closet competitor having 16% of the market share. Reebok, Puma, and
New Balance all have 6% of the global market share. Although the numbers say
that Nike has an edge of the competition, over my first month here in Europe, I
have not noticed the same Nike Dominance that I noticed in the United States.
In America, it seems like everyone from the time they were born owned a pair of
Nike sneakers. From what I have noticed thus far in Europe only teenagers wear
Nike, while New Balance, Adidas, Reebok, and Puma are much more popular. Nike currently
has a stronghold on both the American and European footwear market, but
competitors like Adidas are slowing catching up to the industry leader.
Scott Kettig
This was definitely an interesting blog to read. I also did an industry comparison of the two companies Nike Inc. and Under Armour Inc. for a business class last semester. I found pretty similar results, as Nike appears to dominate in just about every aspect. I agree with you when you say that Nike is most prevalent with teenagers, probably because of the athletes that ares used as corporate icons. However, I am very interested to see where this goes in the future. Under Armous is an exciting, up and coming brand, and from what I read for my project, CEO Kevin Plank intends to make footwear a leading part of their organization, so it will be interesting to see how this all plays out in years to come.
ReplyDelete~Paul
I agree that after being in Europe for a month I have noticed that Nike is not as dominant in the shoe industry as they are in America. I thought the numbers you listed about the market share were interesting and I think that in American sports Nike is even more dominant in the shoe industry then they are in every day footwear. Although Adidas has signed some big athletes like Derrick Rose and Dwight Howard, I do not think any shoe company will be able to catch up to Nike in American sports. However, in europe I can definitely see other shoe competitors catching up. I think overall the shoe industry is more diverse in Europe then it is in America and this helps other shoe companies a lot as they will be able to catch up to Nike.
ReplyDelete-Sam Mendelson
I wouldn't go as far as competitors such as Adidas are catching up. I believe Adidas is doing a good job and staying competitive, but I believe Nike is so much ahead of all other footwear companies. Everyone in the world is so star struck when the hear the name Michael Jordan and everyone who has heard of MJ knows with MJ comes Nike and Jordan. Nike owns somewhere between 89-95 percent the basketball shoe market The one upside that Adidas has is the soccer industry were Adidas has 38 percent of the market while as NIke is right behind them with 36 percent of the market. If anything I would say that NIke is starting to become more diverse and is spreading their dominance to other industries besides just basketball
ReplyDeleteIt is interesting to see the brands fight for market share here in Europe. Adidas has a stronghold on this market because of how connected they are with soccer. Nike is still climbing the soccer ladder here in Europe, but they are making headway with big names like Ronaldo and FC Barca. As Paul was saying I am interested to see how Under Armour does in Europe. Their apparel is focused on american football and baseball, which doesn't really appeal to the majority of this market. However, CEO Kevin Plank has said that they wish to focus on running and cycling gear as they are global sports and are popular with this culture.
ReplyDelete-Jimmy Madden
Nike is by far the clear leader in the apparel industry throughout the world and I think it has a lot to do with the iconic figureheads that they have representing Nike and Nike Shoes. It dates back the the 1980s where Michael Jordan was able to develop the Jordan Brand and from there everybody wanted to be able to wear Nike shoes and be "like Mike." Did you notice if Adidas or Reebok in the USA for that matter are planning a marketing campaign surrounding one iconic athlete to be able to increase their market share? You brought up a good point of Adidas signing athletes like RG3, but is his popularity enough to even allow Adidas to step just a little closer to Nike, or would they need a bigger superstar? Which athlete do you think Adidas could attempt to build around in order to increase the popularity of the company, or does Nike have such a strong reputation and customer loyalty that nobody will ever supplant them as the leader is athletic apparel and footwear? No matter what though, it will be tough for any company to top Nike.
ReplyDeleteI agree with what everyone has posted, it sounds like everyone agrees that Nike's dominance is threatened. I feel like Adidas not only needs to continue to sign stars, but they need to have the next great idea. I feel like Nike has a loyal following, but if Adidas were to come out with some blue market idea, they would be able to swing the market share in their favor. Nike was able to do this when they created the running shoe, a brand new idea that captured the nation, their blue market idea.
ReplyDeleteScott
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