Nike vs adidas: who better than who?
Let’s find out: Nike vs adidas: who better than who?
This is the question that we often ask, but still have not got the exact answer. In the past 15 years, Nike has always been the leading brand in terms of revenue, with impressive marketing campaigns and many products that have left an impression on consumers.
However, adidas is undergoing extremely positive transformation since 2013, and is expected to take the throne of “the swoosh” in the near future. Indeed, in order to properly appreciate the current positions of these two sportswear giants, we need more than just temporary comments and personal predictions.
Today, let’s join EACHSHOES to put these two brands on the scale, to see if in many respects, adidas or Nike is the name that stands at number 1 today.
Financial situation in 2016
From an investor perspective, you are not merely looking at transient trends among young people to make a decision about which brand is more valuable. We need specific economic numbers and indicators.
|Company||Capital||In debt||Revenue from business activities|
|Nike||$ 6.1 billion||$ 3.5 billion||3.9 billion|
|Adidas||$ 2.1 billion||$ 2.6 billion||$ 1.2 billion|
Source: YAHOO FINANCE
Based on the above statistics, it is clear that Nike outperforms adidas. Considering only two factors of capital and debt, we can see Nike, despite its $ 3.5 billion in debt, the swoosh has a solid foundation of $ 6.1 billion, while adidas will have to work harder to make up for the deficit. 500,000 USD. Revenue from Nike’s business also amounted to $ 3.9 billion, three times higher than adidas’ $ 1.2 billion.
Reaching the global market, nothing has changed. In 2016, Nike outperformed adidas with revenue of $ 32.4 billion compared with $ 20.4 billion for adidas. With a wide variety of different product ranges, “the swoosh” clearly dominates the “3 stripes” of the profit margins the two brands achieve.
Of course adidas is still doing well and has a stable financial position, even better than previous years, but it is undeniable that it takes a lot of effort and time to adidas comparable to “the swoosh” metrics.
In contrast to the sales performance, adidas’ growth rate was better than Nike. Compared to 2013, the revenue earned by the German brand increased by 43% in the world market.
Over the past two years, “3 stripes” have consistently seen double-digit profit growth – a desirable result. Nike, by contrast, doesn’t have the desirable adidas profit percentage, but its revenue has steadily increased year over year.
Source: 2013 – 2016 financial summary of Nike and adidas (https://www.adidas-group.com and http://news.nike.com)
With the above results, adidas obviously wins in this category. However, it shouldn’t be forgotten that high revenue growth isn’t everything. It only reflects the level of growth year over year, showing adidas on its way to rapid growth. Don’t forget that a company with a negative percentage of sales can still be profitable.
Product development capabilities
Next, we will compare the product segment of adidas and Nike. When thinking about this, everyone would probably conclude adidas is the winner. Indeed, with the sneaker versions that have stormed the market recently such as Yeezy BOOST, NMD, Ultra BOOST, EQT … and legends such as Stan Smith, Super Star, Gazelle, Campus … “3 stripes ”Obviously made a better, stronger impression on sneakerheads around the world.
In fact, in the top 10 most expensive shoes in 2016, adidas made up 7 out of 10 products. This is enough to show how big the “3 stripes” have in recent times been.
10. adidas YEEZY BOOST 350 “Pirate Black” – Initial price: $ 200 USD; Resale: $ 1,264 USD
9. BAPE x adidas NMD – Initial price: $ 150 USD; Resale value: $ 1,309 USD
8. adidas YEEZY BOOST 750 “Glow in the Dark” – Initial price: $ 350 USD; Resale: $ 1,565 USD
7. adidas 3D Runner – Initial price: $ 333 USD; Resale value: $ 1,601 USD
6. Air Jordan 1 “Satin” – Initial price: $ 175 USD; Resale value: $ 1,955 USD
5. adidas NMD “Red Apple” – Initial price: $ 170 USD; Resale value: $ 2,327 USD
4. adidas NMD “Pitch Black” – Initial price: N / A; Resale value: $ 2,972 USD
3. Nike HyperAdapt 1.0 Initial price: $ 720 USD; Resale value: $ 3,528 USD
2. adidas Pharrell Human Race NMD “Friends and Family” – Initial price: N / A; Resale: $ 7,535 USD
1. Nike MAG – Initial price: N / A; Resale value: $ 28,638 USD
However, you will probably have to change your mind when looking at the list of the top 10 most valuable shoes of all time:
Source: Stocks X
On this list, Nike dominated again with 11 out of 15 products. Perhaps the outrageous promotional campaigns with big names like Kanye West and Pharrell Williams made us forget that Nike owns Jordan, a treasure, a legacy without a product line. comparable. And yet, Nike’s historic products like the AF1, Air Max, and Nike Dunk are still there.
Adidas may be more successful than ever before thanks to Yeezy BOOST, NMD, Ultra BOOST but it will take a long time and a little luck for the “3 stripes” to create a product line like the Air Jordan.
In conclusion, Nike will still have a lot of room for its products, and adidas be careful because overusing Ultra BOOST or celebrities will not bring about a lasting result in the future.
To confirm, it can be said that Nike is still the number 1 sports fashion brand in the world today. However, it cannot be denied that adidas has had two extremely successful years and promises to go even further in the future. Nike actually had a dumbfounded moment.
Still not sure what “the swoosh” is up to? If not, maybe in about five or six years, adidas (at today’s pace) will be able to topple Nike’s No. 1 spot. However, do not forget that Nike owns two unexploded cannons: Nike Air Mag and Nike Hyper Adapt, indeed the No. 1 position of “the swoosh” is still difficult to change.