Success story of Adidas is incredible though it has had its fill of ups and down, competitors, controversies, it stood tall amongst all adversities and today it is the world’s second biggest sports brand only after Nike. The success story of Adidas can be justified by the fact a brand growing so big that people were selling products with a similar-looking name and logo and customers were still buying them.
According to Forbes, in 2020, Adidas is the world’s 51st most valuable brand with a brand value of a whopping $12.9 B. Adidas AG net worth as of December 20, 2023 is $40.68B.
What is Adidas?
Adidas is an abbreviation of the name of the brand’s founder, Adolf (“Adi”) Dassler. Following World War I, the Dassler family started producing shoes. Jesse Owens, an American track and field great, wore shoes that were supposedly a gift from Adi Dassler during the 1936 Berlin Olympics.
What is Adidas known for?
Adidas is a world-renowned sportswear company, well-known for its sportswear and sneakers.
Adidas (Adidas AG) is a German maker of sports shoes, clothing, and sporting accessories. In the early twenty-first century, it was Europe’s biggest sportswear producer and the world’s second-largest after Nike. Adidas goods have historically been identified by a three-stripe trademark, which is still used in the company’s modern “trefoil” and “mountain” logos. Herzogenaurach, Germany, is the company’s headquarters. This was the beginning of the success story of Adidas.
History of Adidas
History of Adidas goes back to 1950s, during which time Adidas gained significant popularity as soccer players started using the company’s shoes, which were lightweight and included screw-in cleats. The firm subsequently expanded into recreational items, launching soccer footballs in 1963.
Adi Dassler died in 1978, and despite an innovative endorsement arrangement with the rap group Run-D.M.C., authors of the popular song “My Adidas,” the brand endured declining market share throughout the 1980s (1986). In 2016, the firm announced a new partnership with artist and entrepreneur Kanye West.
Highlights to the success story of Adidas
Here are the two instances that highlight the beginning of the success story of Adidas.
- Jesse Owens, an American athlete who wore Adidas shoes and won four gold medals in the 1936 Olympics, made the company renowned across the world.
- The German football team, wearing Adidas shoes, then won the World Cup final match in 1954.
Marketing mix of Adidas
The success story of Adidas too is incomplete without an exclusive focus on marketing. Adidas marketing budget reached 3.04 billion US dollars in 2019. While investment fell by over 670 million US dollars in 2020, the corporation increased its expenditure to 2.5 billion in 2021.
Its 2018 “Original is Never Finished” campaign was named one of the world’s most effective advertising efforts in 2018.
Ad Campaigns in success story of Adidas
Here are some ad campaigns that helped in the success story of Adidas, playing a crucial role.
The ‘All In Or Nothing’ Campaign
The ‘all in or nothing’ ad is Adidas’ most expensive media campaign to date. It is led by a television commercial titled ‘Leo Messi’s World Cup Dream,’ which includes brand ambassadors like the eponymous Argentine striker, Dani Alves, and Luis Suárez, as well as a tune by Kanye West.
Impossible is Nothing
One of the most noteworthy campaigns for the firm, the campaign was created by 180/TBWA in Amsterdam, although TBWAChiatDay in San Francisco also contributed significantly.
This advertisement featured football great David Beckham and boxing hero Muhammad Ali.
That is why Adidas’ new “Impossible is Nothing” ad strikes the target in terms of inclusive marketing. What makes the advertising stand out is how diverse it is in terms of sports, genders, races, and cultures.
All Adidas
The “all Adidas” campaign highlights the brand’s reach across several sports, cultures, and lifestyles, with celebrities like football players Lionel Messi and David Beckham, NBA star Derrick Rose, and music sensation Katy Perry.
Adidas’s tough competitors
Adidas has conquered many competitors to reach where it is today. Here are the prominent competitors in the story of Adidas that made life difficult for the company.
- Nike
- Puma
- New Balance
- FILA
- Under Armour
Controversies that marred the success story of Adidas
The journey of successful companies is often accompanied by controversies. The story of Adidas is also incomplete without controversies that shook the business to its core. Here are two of the major Adidas controversies.
- Launch of the Shackle Shoe.
Adidas attempted to launch a shoe in 2012 that was a far cry from its customary sleek, athletic footwear. The JS Roundhouse Maids were eye-catching street shoes with a unique design feature. The Jeremy Scott-designed shoes had a major flaw. Recognizing that the shoe was a lost cause, the firm apologized and terminated the product.
- USSR-Themed Adidas Products
Adidas was preparing for the 2018 FIFA World Cup in Russia with a nostalgic product in 2018. However, when they refer to a regime that is responsible for some of the worst moments in Russian history, it back fired.
Adidas Collaborations added to the success story
Over its tenure, Adidas has collaborated with several brands and personalities to take its product to the next level. Here are a couple of interesting collaborations in the story of Adidas.
Adidas Yeezy collaboration
Some of Adidas’ most significant partnerships have often included hip-hop stars. Kanye YEEZY-branded shoes, Pharrell Williams, Pusha-T, and Missy Elliott endorsements have all been launched by the label.
Collaboration with Manchester United
Adidas and Manchester United agreed to a ten-year kit partnership in July 2014, commencing with the 2015-16 Premier League season. This kit agreement has a guaranteed minimum value of £750 million (US$1.29 billion), making it the most lucrative kit deal in sports history. Nike has been replaced as the club’s worldwide equipment supplier.
Andy Murray, the former World No. 1 tennis player, was announced as Adidas’ highest-paid talent in November 2009.
Expansion plans by Adidas
The company claims it would spend “more than ever before” on women and LGBTQ+ persons in sports, which will be reflected in both new goods and a new marketing language.
Looking through the most important facets of the success story of Adidas, it would not be an exaggeration to say that it is currently among the top few sportswear companies in the world. And as long as Adidas products are being sold labeled as “Adibas”, or “Abidas”, the success story of Adidas is bound to add new chapters to it!
