Two well-known sportswear brands, Puma and Adidas, have made a big impact on the athletic and lifestyle fashion sectors. Even though they both come from Germany, they have different strategies for branding, marketing, and design in the competitive sportswear market.
Puma is famous for its creative designs and partnerships with influencers and celebrities. They focus on mixing sports with lifestyle. On the other hand, Adidas is known for its popular lines like Adidas Originals. They stay strong in both professional sports and casual wear because they prioritize technology and performance.
In this article, we’ll explore the story behind these iconic brands. We’ll provide a comparison of their business strategies, market positioning, and innovative approaches. Let’s see what has shaped their success in the global sportswear industry.
How Did It All Start? The Rivalry Between the Two Brothers
Adidas vs Puma: Business Model
Adidas vs Puma: Brand Identity
Adidas vs Puma: Marketing and Sponsorships
Adidas vs Puma: Research and Development Lab
Adidas vs Puma: Financials
Adidas vs Puma: The Real Battle
Puma and Adidas Today
How Did It All Start? The Rivalry Between the Two Brothers
The rivalry between two brothers – Puma vs Adidas
The turbulent story of the family of entrepreneurs starts in the small German town of Herzogenaurach, Germany. It was here that the Dessler Brothers, Adolf (“Adi”) and Rudolf (“Rudi”) Dassler founded and successfully ran a shoe shop together in the early 1920s. In 1919, they founded the shoe manufacturing company Gebrüder Dassler Schuhfabrik, or Geda for short.
The Olympics and the success of Geda
Despite the challenging political landscape in Germany during the 1930s and 1940s, Geda achieved success. It was demonstrated in the 1936 Olympics where the legendary African-American runner Jesse Owens wore Geda shoes as he won a gold medal.
With the Olympic win, the sales of the Dassler Shoe grew. However, their relationship soured due to tensions, conflicts, and personal issues, eventually leading to the dissolution of their partnership in 1948. \
Tejas Mundhada
The Birth of the Two Brands
In 1949, Adolf Dassler founded Adidas, while Rudolf Dassler started Puma. They moved to different sides of the Aurach River and gave employees the choice of whom they wanted to work for. This marked the rise of two global brands and the beginning of a fierce battle for dominance in the international sports market. The brothers sued each other many times over the years over all sorts of Design and Trademark issues. This cost each other a fortune in lawyers and suits.
The Pelé Pact
“The Pelé Pact” was an arrangement signed by Armin Dassler (the son of Rudolf Dassler) of Puma and his cousin Horst Dassler (Adolf’s son) a few months before the 1970 FIFA World Cup. Pelé was off limits to Adidas and Puma according to this agreement, which felt that a bidding battle for the world’s most famous athlete would get too expensive. However, Puma broke the deal and signed Pelé.
The most significant development in the rivalry between the Dassler brothers was the “Pelé Pact” breach, which angered Horst and led to the cancellation of further peace negotiations.
Now, let’s move into a comparison of Adidas and Puma, examining their business models, brand identities, and marketing strategies to better understand how each brand positions itself in the market.
Adidas vs Puma: Business Model
When we discuss Adidas, it has a very value-driven company strategy, therefore producing high-quality goods that offer customers the most value comes first. This covers costs related to production and manufacturing, distribution and storage, and research and development. Adidas appeals to more people than only professional athletes and sports fans, even if its primary focus is on sportswear and footwear. Adidas outsources the production portion of their company to independent contractors, to whom they rely heavily. As a result, the more than 1,000 suppliers—the majority of whom are based in Asia—who make their clothes and footwear lines are their most important business partners.
Conversely, Puma’s business strategy is centered on offering items that are performance-driven and stylish. Puma provides its clients with a variety of value propositions, ranging from performance, innovation, style, sustainability, brand legacy, quality, and durability, to sports and lifestyle.
Sportswear, footwear, accessories, performance gear, lifestyle collections, and sustainability initiatives are some of Puma’s main offerings. Athletes, fitness enthusiasts, fashion-conscious consumers, youth markets, sports teams, and environmentalists are among the primary customer sectors that it focuses on. Product sales, licensing and brand collaborations, performance gear sales, lifestyle collections, online sales, and sustainability initiatives are some of the ways it makes money.
Adidas vs Puma: Brand Identity
A brand needs to communicate well with its customers and create a sense of belongingness. Adidas is well-known for its recognisable three-stripe emblem and is frequently linked to performance, innovation, and collaborations with athletes and sports organisations.
Conversely, Puma is well-known for fusing sports and lifestyle fashion and for its eye-catching leaping cat emblem. The company is well-known for both casual and sporty clothing.
Adidas vs Puma: Marketing and Sponsorships
Adidas and Puma have both become well-known sportswear businesses by utilising a variety of marketing techniques. Adidas and well-known athletes and sports organisations have a history of strategic alliances. This includes international collaborations with groups like Manchester United and long-term connections with football players such as Lionel Messi.
Adidas has effectively combined sports and lifestyle by working with celebrities, fashion designers, and artists to produce one-of-a-kind collections. It stays active on social media, interacting with users through eye-catching posts, new product announcements, and marketing initiatives.
Puma has purposefully partnered with influencers and celebrities, like Kylie Jenner and Rihanna, to develop exclusive designs. These collaborations enhance Puma’s reputation as a pioneer in the sports and lifestyle domains. Puma frequently presents itself as a brand that appeals to younger consumers by highlighting current trends and cultural significance.
Puma is a sponsor of several teams and sporting events, including football teams like Borussia Dortmund and AC Milan. This tactic upholds Puma’s reputation for performance and athleticism. Like Adidas, Puma capitalises on the allure of limited-edition products. This scarcity marketing strategy piques customers’ interest by evoking a sense of urgency and exclusivity.
Adidas vs Puma: Research and Development Lab
The company’s research and development (R&D) initiative, Adidas Future Lab, has made progress in preparing the technologies that athletes will need in the future. Since 2010, the lab has improved athletes’ lives via the use of advanced robotics, 3D scanning, motion analytics, and other technologies.
Adidas has practically transformed into a tech corporation with its rising R&D expenditures. In 2022, the Adidas Group spent approximately 153 million euros on research and development.
To foster creativity and provide top-notch goods for athletes and customers, PUMA maintains specialised research and development facilities. Situated in Boston, Massachusetts, USA, the PUMA NITRO Lab is one of their cutting-edge labs. The lab collects information to support data-driven decisions on every facet of PUMA footwear.
Since 2013, the sportswear brand Puma has significantly boosted its investment in research and development. The corporation invested heavily in 2022, allocating over 80 million euros towards research and development.
Archana Karthikeyan
Adidas vs Puma: Financials
For a thorough comparison between Adidas and Puma, the financials have to be presented. In 2023, Puma reported revenues of €8.6 billion, showing a modest increase from €8.47 billion in 2022. This steady growth highlights Puma’s resilience in a competitive market.
Adidas Group, meanwhile, generated €21.43 billion in 2023, a decline from €22.51 billion in 2022. The dip in Adidas’ revenue reflects some challenges the brand faced over the past year, possibly due to shifting consumer trends or increased market competition. Despite this, Adidas remains significantly larger in terms of overall revenue compared to Puma.
Adidas vs Puma: The Real Battle
Both brands are competing with each other to be at the top and to gain their market share. One of the greatest assets that Adidas has is that of innovation. This is demonstrated by the numerous ground-breaking technological innovations it has made, like BOOST and Primeknit, which have increased sales and enhanced its market value. The corporation operates in more than 160 countries and has a strong global footprint. Due to its extensive distribution network, which consists of partnerships with individual merchants, online retailers, and physical stores, it can reach a wide range of markets and geographical areas.
Adidas has a broader range of products than some of its competitors, but its product lineup is still smaller. Adidas outsources a large portion of its manufacturing to facilities in countries where labour costs are lower. This strategy might save money, but it also puts the company at risk for issues like unsafe working conditions, labour law infractions, and supply chain disruptions.
Puma has a lengthy history in the athletic industry and is a well-known brand throughout the world. Its e-commerce sites, retail locations, and independent retailers make up a sophisticated distribution network. Despite being a well-known brand, Puma’s market share is significantly lower than that of leaders in the industry like Adidas.
Puma manufactures a large number of its items in nations like China, Vietnam, and Indonesia, utilizing a worldwide supply network. Increased manufacturing costs, delays, or shortages may result from supply chain disruptions caused by events like trade disputes, natural catastrophes, or unstable political environments. Counterfeit products also hurt Puma and Adidas’s sales and brand reputation in the worldwide sportswear market.
PV Vyshnavi
Puma and Adidas Today
Today Herzogenaurach is still home to Adidas and Puma. Since 1986, Puma has been a publicly traded business, having gone public on the Frankfurt Stock Exchange. Along with Adidas, Puma is one of the leading shoe brands and has over 18,000 employees globally.
Adidas reported their highest-ever revenues by year’s end, and CEO Herbert Hainer was upbeat about the upcoming year. Adidas currently operates numerous company locations across the globe, including London, Portland, Toronto, Tokyo, Australia, Taiwan, and Spain, in addition to its worldwide corporate headquarters in Herzogenaurach, Germany. The first mobile reservation app for the footwear industry was released by Adidas in January 2015. Using geo-targeting technology, customers may reserve and obtain access to the brand’s limited-edition trainers through the Adidas Confirmed app.
Concluding Thoughts
The sports sector has been significantly impacted by the competition between Puma and Adidas. These companies have grown to be worldwide giants and have influenced sports marketing. The Dassler brothers’ intense rivalry lasted until their deaths despite their achievements, establishing a legacy of rivalry and hatred. Today, both brands continue to lead the global athletic market, always finding new ways to improve. Their competition drives innovation in sportswear technology. This helps them maintain a strong presence in key markets and keeps their influence strong in the sports industry.
FAQ
What is Adidas’ full form?
Adidas doesn’t have a full form; it’s named after its founder, Adolf “Adi” Dassler, combining his nickname and last name.
Who is the CEO of Adidas?
The current CEO of Adidas is Bjørn Gulden, who took over the role in 2023.
What is Puma’s full form?
Puma doesn’t have a full form; the brand is named after the puma, a wild cat known for its speed and strength, reflecting the company’s focus on athletic performance.
Who is the CEO of Puma?
Arne Freundt is the CEO of Puma, having taken over the role in 2022. He leads the company’s global operations and continues to drive Puma’s growth in the competitive sportswear market.
Who is richer, Adidas or Puma?
Adidas is generally considered richer than Puma in terms of revenue and market share. Adidas consistently reports higher annual revenues and has a larger global presence compared to Puma in the sportswear industry.
