Tag: Adidas Marketing Startegy

  • How Is Adidas Different From Its Competitors | Adidas Marketing Strategy

    Adidas, the second-largest sportswear manufacturer in the world, is a German Multinational corporation founded by Adoft Dassler. Adidas is mainly a sportswear manufacturer with the categories of clothing, shoes, and other accessories.

    Looking at the beginning of Adidas was started in a house owned by Adolf’s mother in 1924. Later, Adolf’s elder brother, Rudolf, also joined him, and they named it “Gebrüder Dassler Schuhfabrik,” which simply means Dassler Brothers Shoe Factory.

    A few years later, because of some major conflict between the brothers, the company split, and Adolf created Adidas, while his brother created the biggest rival of Adidas- Puma. Sounds interesting, right?

    Adidas is widely known as the largest sportswear manufacturer in Europe, but on a global basis, it is beaten by Nike. Headquartered in Herzogenaurach, Germany, Adidas has its chairman, Thomas Rabe, and its current CEO, Bjørn Gulden. The brand manufactures the product category of footwear, sportswear, Apparel, equipment, and toiletries.

    We all have heard a lot of things about Adidas, but the marketing strategies of the brand are known by very few. Adidas is brilliant when it comes to marketing, and no doubt, the company has established one of the strongest positions in the global market. Moving forward, let’s get started with Adidas’ marketing strategies.

    Marketing Strategy of Adidas

    Key takeaways from Adidas Marketing Strategy
    STP (Segmentation, Targeting, and Positioning) of Adidas
    Major Marketing Campaigns of Adidas
    Covid-19 Marketing Strategy

    Marketing Strategy of Adidas

    Adidas’s marketing strategy is what makes it the best of all. Adidas is known to have the strongest establishment in the global sportswear manufacturing market, other than its American rival, Nike.

    We have briefly discussed all the aspects of Adidas’ marketing strategy, which are mentioned below. Adidas has built up great competition for the companies in the market, leaving them with the only choice to stand out of the race. Adidas’ target markets are athletes and the 20 to 30 age group while also fostering connections with the 13 to 18 age range, acknowledging them as the future generation of prominent athletes. This dual approach ensures a comprehensive engagement with current and upcoming sports enthusiasts. Adidas USP is its comfortable and lightweight sportswear, as well as its innovative technology and design.

    4Ps of Marketing of Adidas

    Product

    Adidas, renowned for its athletic footwear, is the second-largest sports shoe brand globally. Notable shoe models include the Adidas Superstar, acclaimed for its basketball performance and casual appeal. The Adidas Stan Smith is a minimalist and functional choice for tennis players. The Adidas Samba, originally for soccer, became a stylish option. The Adidas Ultra Boost series is lauded as an ideal running shoe for exceptional comfort and energy return. Beyond footwear, Adidas offers a comprehensive range of sportswear accessories and has even ventured into perfumes and sports equipment.

    Price

    Adidas employs competitive pricing for regular products, considering rivals like Nike and skimming pricing for cutting-edge items. Targeting high-end consumers, Adidas justifies premium prices with superior quality, reinforcing a perception of exclusivity. However, this pricing strategy makes Adidas products less accessible to the general public, leading to the prevalence of cheap imitations in some markets. While this elitist image enhances the brand’s appeal to its target clientele, it also turns Adidas into a status symbol rather than just a preference for quality.

    Place

    Adidas implements a comprehensive place strategy with 198 stores in the U.S., excluding New Mexico, and over 1990 concept stores globally. California leads with 34 outlets. The brand leverages online platforms like Amazon, Flipkart, Myntra, and its official website, offering personalized merchandise options for global accessibility.

    Promotion

    Adidas achieved its household name through strategic and extensive marketing efforts. The brand invests heavily in traditional billboards, TV, magazines, and social media advertising. Notably, Adidas collaborates with influential celebrities such as Kanye West, Beyonce, Lionel Messi, and Stella McCartney for endorsements, inking million-dollar contracts. Additionally, Adidas has built a notable reputation by sponsoring football teams like Germany, Mexico, Spain, and Argentina.

    Before we get started with Adidas’s key marketing strategies, let us brief you about its brand portfolio, which includes Reebok, Rockport, Adidas, and Taylor. The main reason for such distribution is to target different segments of the audience more efficiently. Adidas advertising strategy focuses on creating unique brand experiences through events, pop-up stores, and interactive campaigns that engage customers directly.


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    SEO Strategy of Adidas

    Adidas follows a very straightforward and encompassing approach towards the implementation of SEO. The head of global SEO and social media manager of Adidas, Mattia Santin, said in an interview that the Adidas SEO team focuses more on flexibility, especially when it comes to analytical, alongside various white-hat SEO principles.

    The team mainly focuses on data and targeting personas that help guarantee the expected results and ensure that the changes are profitable.

    Social Media Strategy

    Adidas Marketing Strategy - Social Media (Instagram)
    Adidas Marketing Strategy – Social Media (Instagram)

    When it comes to social media, Adidas and groups are pretty active, especially on Facebook and YouTube channels. On these platforms, the brand posts promotional videos of its latest products and services.

    Apart from this, the brand has various active accounts on Twitter as well, such as Adidas Football, Adidas Original, and Adidas US. Through these, the brand connects with its fans and followers more efficiently. Adidas works on building strong energy in the audience towards Sports and athletes.

    Email Marketing

    Adidas uses the technology of ECS for the email marketing program, which started in October 2020. They segment their audience, send dynamic product recommendations, and use stunning visuals and inspiring stories to capture attention. Exclusive offers, automated emails, and mobile-optimized design keep customers engaged, while social media integration and performance measurement ensure continuous improvement.

    By focusing on these key elements, Adidas has built a robust email marketing program that drives engagement, sales, and brand loyalty, solidifying its status as a sportswear giant.

    Adidas Strategy of Limited Supply

    Adidas Marketing Strategy - Strategy of Limited Supply
    Adidas Marketing Strategy – Strategy of Limited Supply

    One of Adidas’ most incredible marketing strategies is a limited supply. Basically, the brand limits the availability of its most famous shoes, like Stan Smith and Superstar, in order to increase the demand among the audience. This benefits the brand with great numbers and prices.

    We all know that when there is a limited supply, its price automatically goes up, and Adidas masters this economic rule. This also helps Adidas’ competitive advantage in merchandise margins, which has grown significantly.

    Meme Marketing

    Adidas is not behind in meme marketing as well. In fact, the brand has developed its very own riff on the famous “Thug Life” meme. This has become a social-driven campaign for Adidas.

    Adidas leaves nothing when it comes to charming football fans, and with its incredible campaigns and meme ideas, the brand always proves its superiority.

    Adidas has been known to create one of the most viral memes of the moment for showing off the Ace PureControl football boots, which are absolutely laceless.

    Sponsoring Sports Events and Athletes

    Adidas Marketing Strategy - Sponsoring Sports Events and Athletes
    Adidas Marketing Strategy – Sponsoring Sports Events and Athletes

    Adidas has successfully partnered with renowned sports organizations and athletes globally. Aligning with prestigious entities like the NBA, MLS, FIFA, and the Olympic Games, Adidas secures long-term contracts and exclusive product lines, enhancing brand visibility and broadening its appeal. Noteworthy collaborations include being the official kit supplier for elite soccer teams like Manchester United, Real Madrid, and Bayern Munich. Adidas also sponsors individual athletes, including Lionel Messi, James Harden, and Naomi Osaka, leveraging these alliances to extend its reach by tapping into the vast fan bases associated with these athletes and organizations.


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    Influencer Marketing

    Marketing Strategies of Adidas - Influencer Marketing
    Adidas Marketing Strategy – Influencer Marketing

    Adidas places a strong emphasis on influencer marketing, making substantial investments in collaborations with notable figures. The brand strategically partners with celebrities like Kanye West, Pharrell Williams, and Beyonce, creating exclusive product lines that resonate with their extensive fan base. Adidas collaborates with renowned personalities such as Kendall Jenner, David Beckham, and Karlie Kloss for impactful campaigns targeting their followers. The brand extends its reach further by collaborating with popular Instagram influencers, including @sneakerprophet_ and @yankeekicks, to showcase and generate excitement around the latest Adidas products. This robust influencer strategy is pivotal in promoting Adidas and enhancing its brand visibility.

    Sustainability and Social Responsibility

    As more people want eco-friendly and fair products, Adidas has made sustainability a key focus. The brand works to cut pollution and use ethical practices in making its products.

    Adidas uses green materials, saves water, and reduces waste. Its partnership with Parley for the Oceans turns ocean plastic into high-quality products.

    By sharing these efforts, Adidas attracts eco-conscious customers and shows that it cares about the planet and people.

    Experiential Marketing

    Adidas uses more than just regular ads—it focuses on creating real experiences for customers. The brand sets up events, pop-up stores, and interactive displays to connect with people directly.

    One example is the “Boost Your Run” campaign, where runners tested Adidas shoes on a special track. By letting people try the products and meet brand ambassadors, Adidas builds a stronger bond with its audience, making them more likely to choose its products.

    Customer Loyalty and Engagement

    Adidas places a significant focus on fostering customer engagement and loyalty by utilizing social media as a platform for connection. The brand actively participates in customer relationship-building through its loyalty program, named “Creators Club,” which rewards customers for both their purchases and interaction with the brand. This program provides exclusive benefits such as early access to new products, special discounts, and personalized content. Furthermore, Adidas maintains customer engagement through social media-driven contests, encouraging customers to share content featuring Adidas products for a chance to win prizes.

    Adidas’ marketing strategies aim to establish meaningful connections with customers, enhance brand awareness and loyalty, and ultimately drive sales. Through strategic approaches like partnerships, influencer collaborations, innovative product design, digital marketing, and interactive customer engagement, Adidas has successfully solidified its position as a leading brand in the sportswear industry.

    Strategically Targeting Cities

    Adidas strategically centers its marketing efforts on six key cities—Los Angeles, London, Paris, New York, Tokyo, and Shanghai. By honing in on these urban hubs, Adidas gains valuable insights into diverse trends, enabling the brand to meet the specific needs of consumers in different locations effectively. For instance, in Europe, the emphasis lies on marketing football-related products, whereas in the United States, the focus extends to affiliations with baseball and basketball. Notably, North America commands the largest share, constituting 40 percent of the sporting goods industry, reinforcing Adidas’ significant presence and impact in this market.

    Key Takeaway from Adidas Marketing Strategy

    With its incredible marketing strategies, the company results in great numbers and sales. The most distinctive strategy that Adidas opts for is user & user-user-benefits-based positioning, forming Adidas’ unique selling point. Through this, it builds a strong and distinct image of its products among consumers’ minds.

    Adidas’s unique selling point is developing lightweight and comfortable sports apparel that other competitors cannot manufacture. Based on this, Adidas customers put deep trust and value in its products and services. Hence, the brand is expanding on a wider scale.

    STP (Segmentation, Targeting, and Positioning) of Adidas

    STP stands for Segmentation, Targeting, and Positioning. We have briefly described these right below:

    Segmentation

    Segmentation is basically the process of dividing the mass market of the company into various groups of similar categories. This helps in knowing the customers more effectively and to obtain a competitive advantage in the market.

    Adidas uses various levels of segmentation marketing tactics that help the brand distribute the large market into small customer groups and focus separately.

    Targeting

    Targeting is the next step of Segmentation, where the brand distinguishes the market segment that it wants to focus on and builds its strategy according to that.

    Adidas mainly selects the segment based on size & growth, structural attractiveness, and objectives and resources to drive its marketing strategy, activities, and sales.

    Positioning

    The last step in the process is Positioning, where the company designs the marketing program to reach the target market. In this case, Adidas portrays itself as a creator of sports brands.

    Major Marketing Campaigns of Adidas

    Impossible is Nothing – 2004

    Adidas Marketing Campaigns - Impossible is Nothing
    Adidas Marketing Campaigns – Impossible is Nothing

    Adidas develops some very distinct and amazing campaigns for all sports lovers. The “Impossible Is Nothing” campaign, introduced by Adidas in 2004, stands out as one of the brand’s most iconic and influential global marketing initiatives. This campaign sought to inspire people by featuring authentic narratives of athletes and celebrities who triumphed over challenges, attaining greatness in their domains. The core message emphasized that achieving the seemingly impossible is within reach with determination, persistence, and a positive mindset.

    The slogan “Impossible Is Nothing” became inseparable from Adidas, persisting in subsequent campaigns and embodying the brand’s enduring confidence in individuals’ capacity to surmount challenges. Long after its initial introduction, the campaign serves as a compelling testament to the effectiveness of impactful storytelling and authentic messaging in resonating with and inspiring consumers on a profound level.

    Adidas is All In – 2011

    Adidas Marketing Campaigns – Adidas is All In

    Adidas introduced the global “Adidas is All In” campaign in 2011, intending to underscore its dedication to sports, performance, and the ethos of wholeheartedly committing to success. While the campaign may not be active, the core concept of going all-in and its associated messaging remains deeply ingrained in Adidas’ brand ethos. This enduring commitment mirrors the company’s ongoing support for athletes, championing excellence and motivating individuals to exceed their boundaries, consistently urging them to give their utmost in their pursuits.


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    Boost Your Run – 2013

    Adidas Marketing Campaigns - Boost Your Run
    Adidas Marketing Campaigns – Boost Your Run

    Adidas started the “Boost Your Run” campaign to tell people about its special cushioning in running shoes called Boost. Boost makes runners feel more comfortable and gives them extra energy. Now, Boost is a big part of Adidas running shoes and is used in many other sports. The campaign was like the beginning of talking about Boost, and since then, Adidas has kept making it better and telling people more about it in new campaigns and when they release new products.

    Here to Create – 2016

    Adidas Marketing Campaigns - Here To Create
    Adidas Marketing Campaigns – Here To Create

    In 2016, Adidas started the “Here to Create” campaign all around the world. They wanted to encourage and inspire people, especially women, to be creative and express themselves through sports and art. The campaign showed that everyone, no matter who they are, can be creative and talented. Adidas set a good example by including and celebrating people from different backgrounds. This campaign was part of Adidas’ ongoing work to support and lift up women in sports and creative activities.

    Run For The Oceans – 2018

    Adidas Marketing Campaigns - Run For The Oceans
    Adidas Marketing Campaigns – Run For The Oceans

    The “Run for the Oceans” campaign was a partnership between Adidas and Parley for the Oceans, a group focused on highlighting the issues of marine pollution and plastic waste in our oceans. The campaign’s goal was to fight against plastic pollution and encourage sustainability. It did this by involving people worldwide in a running event and using recycled plastic materials in Adidas products.

    She Breaks Barriers – 2018

    Adidas Marketing Campaigns - She Breaks Barriers
    Adidas Marketing Campaigns – She Breaks Barriers

    In 2018, Adidas introduced the “She Breaks Barriers” campaign, concentrating on empowering and backing female athletes while challenging stereotypes in sports. The campaign sought to inspire women to conquer challenges and reach their goals in both sports and life. Through “She Breaks Barriers,” Adidas aimed not only to advocate for gender equality but also to establish a supportive and inclusive atmosphere for women in the realm of sports.

    Superstar – 2023

    Adidas Originals launched a new worldwide brand idea called “We Gave the World an Original. You Gave Us a Thousand Back” to honor the Trefoil symbol that’s been part of its marketing and products for over 50 years. The campaign, making some changes to Trefoil’s look, focuses on promoting three iconic shoe models—Superstar, Gazelle, and Samba. Through three short films, it tells the story of how these shoes have become culturally important over time.

    Covid-19 Marketing Strategy

    Adidas and Kanye West Collaboration - Marketing Strategies of Adidas
    Adidas Marketing Strategy – Adidas and Kanye West Collaboration

    At the very beginning of Covid-19, brands like Adidas and Nike reduced the hiring of people across landscapes. Adidas reduced it by around 40% by March 2020. But soon after one month, in May, Adidas started hiring again as the brand received great data and analytics numbers.

    Adidas enhanced its direct-to-consumer abilities by repositioning 700 jobs around different segments of E-commerce. This showed how Adidas raced to drive more sales through very successful digital shopping.

    Apart from this, Adidas collaborated with many prominent artists, such as Kanye West and Beyonce, to launch its newest models.

    Adidas opted for a very distinct yet profitable strategy to deal with the COVID-19 situation.

    Conclusion

    Adidas’ competitive strategy is employed with great efficiency to build its company into the best sports brand in the world, regardless of how competitive the environment gets around it. Adidas’ competitive strategy focuses on innovation, brand differentiation, and strong marketing. It invests in advanced technologies like Boost and Primeknit, emphasizes sustainability, and collaborates with athletes, influencers, and designers. By targeting Gen Z and millennials through digital marketing and experiential campaigns, Adidas stays ahead in the competitive sportswear market. The brand is using various strategies and tactics such as vigorous manufacturing, digital platforms, technology, innovation, collaboration, and many others. Through these, Adidas is moving towards greater heights.

    FAQs

    What is the Adidas branding strategy?

    Adidas focuses on three main strategy pillars: speed, urbanization, and creative innovation.

    What makes Adidas unique?

    Adidas’ USP is that it blends cutting-edge tech and design for unique sports apparel and footwear.

    What makes Adidas different from its competitors?

    Adidas stands out with its focus on innovation, sustainability, and athlete-centric design.

    What is Adidas pricing strategy?

    Adidas employs a high-low pricing strategy. They generally keep prices higher than their competitors, but the company uses promotional discounts to offer lower prices and attract consumers.

    Who are Adidas’ main customers?

    Adidas targets customers of upper-middle-class/high-end customers.

    What is Adidas USP?

    The USP of Adidas is its comfortable and lightweight sportswear, as well as its innovative technology and design.

    What is Adidas brand differentiation?

    Adidas brand differentiation comes from its focus on innovation, sustainability, and cultural relevance. The company stands out with cutting-edge technology in footwear and apparel, eco-friendly initiatives like recycled materials, and strong collaborations with athletes, influencers, and designers. This unique approach helps Adidas maintain a strong identity in the competitive sportswear market.

    What is Adidas marketing strategy?

    Adidas’ marketing strategy focuses on innovation, sustainability, and digital engagement. The brand targets Gen Z and millennials through influencer collaborations, experiential marketing, and social media campaigns. It also emphasizes sustainability with eco-friendly products like Parley for the Oceans. By blending performance, lifestyle appeal, and cultural relevance, Adidas strengthens its global brand presence.

    Who are Adidas competitors?

    Adidas competitors include Nike, Puma, Fila, Asics, New Balance, Under Armour, Reebok, and more.

  • Puma vs Adidas: Exploring the Battle of Two Iconic Sportswear Brands

    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

    Jesse Owens - Puma vs Adidas
    Jesse Owens – Puma vs Adidas

    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. \


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    The Birth of the Two Brands

    Birth of the two brands  - Puma vs Adidas
    Birth of the two brands – Puma vs Adidas

    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

    Pele pact  - Puma vs Adidas
    Pele pact – Puma vs Adidas

    “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

    Business Model - Puma vs Adidas
    Business Model – Puma vs Adidas

    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

    Brand Identity - Puma vs Adidas
    Brand Identity – Puma vs Adidas

    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

    Marketing and Sponsorships - Puma vs Adidas
    Marketing and Sponsorships – Puma vs Adidas

    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

    R&D - Puma vs Adidas
    R&D – Puma vs Adidas

    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.


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    Adidas vs Puma: Financials

    Financials - Puma vs Adidas
    Financials – Puma vs Adidas

    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

    Market share pie chart - Puma vs Adidas
    Market share pie chart – Puma vs Adidas

    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.


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    Puma and Adidas Today

    CEO's of Puma and Adidas - Puma vs Adidas
    CEO’s of Puma and Adidas – Puma vs Adidas

    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.