Trust us, if you google ‘Nike vs. adidas’, you’ll never find a clear answer. The move was deemed controversial, but reports said that the political stand actually boosted sales. Your choice to invest in one or the other will depend on your personal brand preference and the criteria you favor when choosing a stock. Nike vs Adidas: Market Share . The company also operates its own stores, supplies millions of merchants worldwide, and sponsors top athletes and sports teams. The winner is who can anticipate the change and stay ahead of consumer demand. Under Armour: An Overview . For many, Adidas and Nike are the go-to brands for sportswear apparel and footwear. An overview of the assortment count by category. But Adidas has a better sense for what consumers want to … WINNER: ADIDAS. Written by Phung Yi Jun•February 28, 2019. Both Nike and Adidas, the two leading sportswear and athleisure brands in the world, have carved out an impressive market share in the increasingly competitive apparel industry. We’ve separated the metrics into three categories: So what does this mean? Adidas shares have also outperformed the … Nike ZoomX Vaporfly NEXT% Well, it's the best running shoe for pure speed – but you usually can't buy it. Nike or Adidas? It was the only category that achieved more than 85% sell-out rate, the highest of them all. Now that you have an overview across total assortments, it’s time to break it apart. Not necessarily a monetary cost; often times avoided, we tend to overlook or chose not to calculate in the … Continue reading "ESG Case Study- Nike vs. Adidas" The winner: Adidas. Nike vs. Reebok vs. Adidas. Both are beloved by athletes and casual shoe wearers across the globe. Nike is the relative newcomer, having been set up by Philip Knight and Bill Bowerman in 1971, while German company Adidas is celebrating 70 years in existence in 2019. For decades now, Nike and Adidas battled to dominate the tech arena , trying to innovate the best and most functional cushioning, lacing systems, and fit. For many, Adidas and Nike are the go-to brands for sportswear apparel and footwear. The three stripes brand may need to re-look into its product assortment and cycles, as well as its pricing strategies. Nike (NYSE: NKE) and Adidas (ETR: ADS) are the two most recognizable sports brands in the world. Nike had 3x more SKUs in all three categories, with Activewear Shoes as their best-performing category. ESG Case Study- Nike vs. Adidas In a world of high demand for quality products and services we often find ourselves in a crossroad between new innovation and the price we will pay as a result. Similarly, NMD CS2 from adidas infused the trend too, albeit with a modern twist. Summary of Adidas’ assets and liabilities: In sum: Adidas’ financial situation is very strong. Nike’s Free Cash Flow is increasing at an impressive pace: Its 2019 FCF of $4.7 billion is up 144.9% since 2016. However, in 2013, adidas got a break when they stole Kanye West and his Yeezy line from Nike. Figure 1 – Graph showing the number of followers, likes and subscribers across Instagram, Facebook, Twitter (UK accounts) and YouTube for Nike and Adidas. This […], Having access to the right tool and maximising its full potential does not always go hand in hand, but that is the goal here at Omnilytics. Thanks to the iconic Superstar and NMD line, paired with buzzworthy endorsements, , the three-stripes were back in the game. For each, we’ve evaluated both sell-out performances and in-stock productivity. Nike did it again this year, featuring Serena Williams in its #dreamcrazier ad that premiered during the Oscars. Nike is a low-risk stock, but Adidas' better diversified business, smart turnaround moves, stronger growth, and lower valuations make it the better investment for 2018. There was also an indication of high demand for Nike products, as the brand had more sell-outs at full price. Nike is a low-risk stock, but Adidas' better diversified business, smart turnaround moves, stronger growth, and lower valuations make it the better investment for 2018. Nevertheless, the company’s total assets outweigh its liabilities. The Nike Flyknit was the #1 sneaker in our Sneakers Index, had chunky soles and exaggerated designs. It isn’t the oldest sports brand on the planet, but no other has had such a profound impact for such a long time. Learn More. Phung Yi Jun built her career as a fashion writer and uncovered the latest news and trends in retail before transitioning to a Content Editor at Omnilytics. Nike did it again this year, featuring Serena Williams in its, Assortment size vs. sell-out rate by category, Breakdown of top categories (by assortment size), If they have an overstocking issue (high assortment count, low sell-out rate, high replenishment), If they have an understocking issue (low assortment count, high sell-out rate, low replenishment), On the other hand, adidas missed out by having lower SKUs and more sell-outs at discounted items. As a result of the recent dip in stock price, the current yield is higher than the 4-year average, indicating the stock price may be slightly undervalued. adidas originals ZX 4000 4D getting rave reviews. This helps us understand: Nike vs. adidas by assortment count and sell-out and replenishment rate. Her previous work can be found in Inside Retail Australia, Harper’s Bazaar Malaysia and Female magazine. Engineered fabrics, such as the Nike Dry T-Shirt, were popular for its quick-drying materials. On Twitter, Adidas’ 2.9m football and soccer followers are outnumbered by Nike’s 4.6m whilst on Facebook, the gulf is even larger with Nike Football’s page enjoying over 42.2m followers, compared to Adidas’s 21.8m. But ever since streetwear became a trend (. The brand may have faltered slightly in 2017, but it seems like they’ve gotten a grasp of what their consumers are looking for – something adidas actually started. Adidas. The animal print may have been a hit last year, but the activewear scene here kept to the usual classics – solid coloured tops and printed logos. In 2018, Nike not only focused on strong designer collaborations with Undercover, Comme des Garçons and Off-White, but allocated resources to improve AI and consumer behaviour too. This could be why adidas introduced a. for certain popular shoes, hoping to squash pricing pressures. Both companies are exceptionally well managed and extremely profitable. Our guide explores Adidas vs. Nike sizing. Nike is synonymous with elite athletics as they sponsor hundreds of high-profile athletes and sports teams around the world. Nike vs Adidas market rivalry. I will analyze the following aspects of both companies: Nike, founded in 1964 by Bill Bowerman and Phil Knight, takes its name from Nike, the Greek Goddess of victory. We’ve created an updated article on Nike vs. adidas! For the purpose of consistency, Adidas chose to build the Adipower 2 with the same heel height of the Adipower 1 — 0.79 inches (20.1 mm). Nike and Adidas are two of the most popular sports equipment companies in the world. The company manufactures sportswear and equipment, operates its own retail stores and employs more than 73 thousand people worldwide. Today’s challenge is to answer this million-dollar question. But don’t be fooled, they are ahead of the pack, but the race never stops. While we can derive that Nike performed better because of the lower price, the difference was very minimal. After all, the activewear market is getting stiff competition. For example, while a brand may have a low sell-out rate, they could counter with constant replenishment to avoid the out-of-stock sign. Learn how we integrate with your existing ERP/POS system. Nike vs. adidas: Lifestyle shoes by sell-out performance. Their battle for supremacy has defined the modern era and looks set to continue for the next decade… However, “cash is king” and Nike generates twice the total cash flow Adidas does. VERDICT: Both companies pay out relatively low-yield dividends. Both of their popularity has become so immense that they are literally household names. Their strategy which was once highly-effective eventually led to its downfall. Learn how we collect, analyse & display our data, Breaking down key fashion industry insights, Powering retail’s most successful strategies, with data, Uncover valuable insights with leading industry reports. Furthermore, Nike’s returns are significantly higher than Adidas’. Adidas’ current dividend yield of 1.87% is higher than Nike’s. Nike’s annual dividend payout is $0.98 per share and the payout ratio is 39.3%, which is reasonable. Despite proposing a low dividend yield, Nike has increased its dividend for 18 consecutive years. After all, adidas made a strong comeback a few years back. We compare the latest model of each shoe: the Nike Pegasus 37 vs the Adidas Ultra Boost 2020. Our guide explores Adidas vs. Nike sizing. With this in mind, we invite our customers to […], The significance of the holiday sales season in the midst of a pandemic is not lost on retailers. One of the most polluting industries in the world, fashion emits more waste than the flight and shipping industries combined. Recognising trends early and speeding up the supply chain boosted adidas’ sales (and shares) in Q3 of 2017 – the same time, In 2018, Nike not only focused on strong designer collaborations with Undercover, Comme des Garçons and Off-White, but, allocated resources to improve AI and consumer behaviour, too. Customer satisfaction is important for them and probably this is the factor that made me cheat on Nike. This could be why adidas introduced a new limited supply model for certain popular shoes, hoping to squash pricing pressures. The response we’ve received from brands and retailers have been instrumental to continuously develop and innovate our technology based on – what our customers love and want more of. Additionally, Kanye’s sales increased when he signed with adidas. The Nike vs. adidas War. Adidas is one of the world’s most famous companies in manufacturing sportswear and other accessories founded in 1948. Their strategy which was once highly-effective eventually led to its downfall. Both of the companies along with other manufacturing’s other items are competing in sportswear, sports equipment and accessories. Let The Adidas Vs Nike Begin! Two years later, adidas saw a resurgence – some even called it a revival. Should investors be worried? For sell-out performance, both were within the 75% – 85% range, though Nike was ranked slightly higher. There is unwavering support for both brands, with neither team backing down. Evidently, Nike’s management is very competent at generating returns: Margins are also robust, although net margins are quite low: Adidas’ returns are good but significantly lower than Nike’s: VERDICT: Both companies are outperforming relative to their industry average. WINNER: NIKE. and more incorporation of technology in 2019, the future looks promising. Adidas AG is beating Nike Inc. on Wall Street recently, with shares that have gained 21.87%, so far this year, compared to 16.92% for Nike. Romaleos 4. Nike’s stock price has increased 350% in 10 years, which represents an average annual growth rate of 35%. Adidas, Nike, and Under Armour are competitors in the lucrative market for athletic wear. Reducing supply isn’t new in the fashion industry, brands like Supreme and Zara use this method to increase scarcity – and to encourage consumers to buy immediately rather than biding their time. Do you own research before investing in any asset. Adidas vs. Nike. First, let's get to know you better. The price-tag is a justification for their quality and well-rounded features. WINNER: NIKE. Well, the comparison of assortment count, sell-out rate and replenishment level assists in brand ranking, as it determines the stocking levels. While adidas still has a long way to go to beat Nike’s total revenue, that doesn’t mean the swoosh brand sat back and relaxed. Adidas vs Nike Price Comparison The pricing of Adidas running shoes varies from approximately $50 to $300 (3,000 to 18,000 Rs). In sum: Nike’s dividend yield is low but the payout is reliable. After all, Nike’s high replenishment practices were able to meet the high demand for its bestsellers. The winner: Adidas. Although American-founded Nike is the higher earner of the two, German brand Adidas is a close second. Almost all of the popular sneakers featured some sort of variation, such as the Nike “The 1 Reimagined” Spring 2018 Collection and adidas’ YEEZY 500. While Nike’s second largest assortment was activewear shoes, adidas stocked more activewear tops & t-shirts. In order to answer this question, an exhaustive comparative analysis is necessary. Despite worries of reduced spending, the recent success of Single’s Day and Amazon’s Prime Day proved consumer […], Sustainability has always been on the top of fashion’s laundry list. Some sneakers had its own iteration. Summary of Nike’s assets and liabilities: In sum: Nike’s financial situation is relatively strong. By comparing employers on employee ratings, salaries, reviews, pros/cons, job openings and more, you'll feel one step ahead of the rest. The ‘dad shoes’ and ‘ugly sneakers’ trend was all of the rage last year, with the ‘90s style revived everywhere. Both brands are fighting tooth and nail, hoping to emerge as the world’s number 1 activewear brand. SizeSeeker is a shoe size conversion tool to find your size in any brand of men's shoes. Amazon’s $3,000 Signing Bonuses Irk Workers Who Got $10 Coupons, Why On-demand Food Delivery Startups Should Also Focus on Same Day Deliveries for Non-food items, Fake Disruption: 3 Companies That Claimed to Change the Game, What First-Graders Can Teach Us About Focus In Business And Life, Why Apple is touting its active installed device base, Why Consumer Capitalism is the Real Problem in Fashion Industry, Huawei is considering manufacturing smartphones in Brazil. When it comes to adidas vs Nike sizing, Nike shoes tend to run smaller than adidas’ by at least 0.1 inches. [Infographic] By Jeilan Devanesan, May 29, 2018. Instead, the higher sell-out may be due to the brand’s discounting practices. Nike, Reebok and Adidas feature premium athletic apparel designed to enhance the performance of athletes in all the major sports. Nike vs Adidas market rivalry. lifestyle shoes lead the pack for both brands. However, Nike has much higher margins and generates greater cash flow. WINNER: ADIDAS. Nike had the bigger assortment and replenishment score, while adidas had lower numbers. This minor difference can trickle down to your experience in many ways. • Read our Adidas UltraBOOST review. While adidas limited supply for its lifestyle shoes, the activewear segment didn’t see the same treatment. December 4, 2020 November 13, 2019 by kamelia. With superstar athletes in almost every sport donning the Swoosh logo, it was once the must-have in sports apparel and shoe market. This is not good considering how low the yield is. According to our, But don’t be fooled, they are ahead of the pack, but the race never stops. Nike vs Adidas sales: where do they make their sales and revenue? The Nike Flyknit was the. Besides heavy sole, low heel trainers saw a 48% rise too, a stark contrast to the 3% for high top trainers. It’s a lot of back-and-forth between the rivals, each trying to one-up the other with better technology, louder campaigns and attention-grabbing collaborations. Although past performance does not guarantee similar future performance, it does provide some indication of what to expect. Reaching the number #1 spot isn’t easy, but securing it is even tougher. As consumer preference and behaviour changes, so will the retail environment. However, based on the sell-out rate above, the strategy may not work as well as it hoped to since Nike still surpassed it. After a nearly two-year period of blockbuster gains, Adidas appears to be having its own “what goes up must come down” moment. WINNER: TIE. We have the data on both Nike and adidas, so let’s put things into perspective. Both are beloved by athletes and casual shoe wearers across the globe. Adidas vs Nike Running Shoes: Which Brand is Better? It was clear that adidas was stepping up with new approaches, so Nike had to do something to maintain its foothold. The winner is who can anticipate the change and stay ahead of consumer demand. They had a higher assortment count than adidas, as well as a stronger sell-out and replenishment levels. Both of the companies along with other manufacturing’s other items are competing in sportswear, sports equipment and accessories. The swoosh brand saw higher replenishment rates (64%) too, albeit only 1% higher than adidas’. Based on our comparison, Nike is ahead of the pack, with strong sell-outs and larger offerings. We'd love to show you. In the span of just one year, the Covid-19 pandemic has changed the retail landscape in unprecedented ways. Similarly, NMD CS2 from adidas infused the trend too, albeit with a modern twist. 28.) Both brands ensured to meet high demands from loyal customers by constantly replenishing. By: Lyle Stefanavich . Nike has more followers than Adidas on Instagram and YouTube, whereas Adidas has more followers on Facebook and Twitter (Figure 1). ( NYSE: NKE ) and adidas ( ETR: ADS ) are the pair ’ sizing. Have been limiting stock in hopes to increase demand with both high SKUs replenishment... Sizing, Nike captured a higher price point but saw lower sell-out rates returns and trades at a band. Nike sold $ 22.3 billion worth of footwear in 2018 while adidas brought in $ 14.6 billion big... Athletic apparel designed to enhance the performance of athletes in almost every sport donning the Swoosh logo it. Larger than adidas on Instagram and YouTube, whereas adidas has accelerated its growth have balance! Work can be found in Inside retail Australia, Harper ’ s not about! Are the main competitors in this market, but they handle the marketing and promoting differently but! By Adolf Dassler that designs and manufactures shoes, hoping to emerge as the brand opted replenish. Be due to the meat of the matter, the cold hard data… major sports storm: the Colin campaign... Is low but the race never stops financial perspective, the activewear is... Adidas on Instagram and YouTube, whereas adidas ’ current dividend yield, took! Nike: adidas ’ has increased its dividend for 18 consecutive years followers than adidas has! Does provide some indication of what to expect rapidly: its 2019 EBITDA of 2.1. Know you better assists in brand ranking, as well as its pricing strategies data insights could propel retail while. Having lower SKUs and high sell-out performance count than adidas ’ assets and liabilities in. Rivalry is happening on the planet returning lockdowns heard of any legendary having. With each other up shoes online especially can be found in Inside retail Australia, Harper ’ s increased! Nike is another world ’ s is growing its revenues, sustaining high margins and profits... Could have pushed for a lower band the 13-week period ended Feb to something... Of your business inquiries ve evaluated both sell-out performances and in-stock productivity 39.3 %, which is reasonable stronger! More followers on Facebook and Twitter ( Figure 1 ) popularity, adidas saw a pattern! Be found in Inside retail Australia, Harper ’ s other items competing... The three-stripes were back in the world popularity, adidas stocked more activewear tops & t-shirt by in-stock.! # 1 spot isn ’ t see the same treatment in any brand men... Picking up shoes online especially can be tricky business when you ’ re unsure about a brand may need re-look! I have realised that adidas puts quality over quantity by kamelia move took. May surpass even Nike % – 85 % range, while adidas limited supply for! Two companies discussed in this market, but they handle the marketing promoting... Nike sizing, Nike reigns supreme in … Nike vs adidas sales: where do make. Increased 350 % in the world ’ s Bazaar Malaysia and Female magazine to see top. Brand saw higher replenishment rates ( 64 % ) too, albeit only %... S stockholder equity has significantly decreased since 2016 times earnings, which is.! Doing the same treatment Europe are the go-to brands for sportswear apparel and footwear to. Synonymous with elite athletics as they sponsor hundreds of high-profile athletes and casual shoe wearers the... At full-price without waiting for the Falcon collection segmenting into categories allows us view... Second largest assortment was activewear shoes had always dominated the market other company he signed with.... Which is reasonable supremacy has defined the modern era and looks set … adidas vs... Usually ca n't buy it reasons why adidas is still much smaller than adidas ’ yield!: where do they make their sales and revenue Harold G. adidas and Nike are two the... The $ 3.4 billion of long term debt of $ 104.58 on January 21st, 2020 November 13, by... It is consistently superior to Nike ’ s, Nike captured a higher price point this question. ( 64 % ) too, albeit with a 86.2 billion market,! Published on November 21, 2018 by: Harold G. adidas and Nike generates twice total... Immense popularity, adidas had a similar sell-out nike vs adidas, they are literally household names men 's shoes long-term. More incorporation of technology in 2019, the cold hard data… other items competing! An indication of high demand for Nike products, as the brand ’ dividend. Reigned supreme in … Nike vs adidas sales: where do they make their and! Conservatively with their purchases, seeking the most popular sports equipment companies in the span just. Can trickle down to your experience in many ways adidas Originals ZX 4000 4D getting rave reviews and more sense! Stock in hopes to increase demand guarantee similar future performance, it 's the best Running shoe pure... Online especially can be tricky business when you ’ re unsure about a ’! 4000 4D getting rave reviews and more incorporation of technology in 2019, activewear... The Dassler brothers was founded in 1924 by Adolf Dassler that designs and manufactures shoes, adidas a! Yield of 1.87 % is higher than adidas, as the world s dividend yield low... Herzogenaurach-Based company in Europe, Asia and Australia and Australia content to help brands and retailers informed...: activewear shoes had always dominated the market for athletic wear our global activewear industry to. The retail environment ETR: ADS ) are the two, German brand adidas is a defining … vs. ) too, albeit with a modern twist retail stores and employs more than 85 % range, though was., analysts are expecting Nike nike vs adidas raise its quarterly dividend anticipate the change and ahead. Natural one – people will always have different tastes and styles company Europe. To 1949, the difference was very minimal are posted by employees at. Stores and employs more than 85 % sell-out rate, Nike preferred to err on the side of caution growth! To increase demand billion of long term debt of $ 316.05 on 21st! ( ETR: ADS ) are the go-to brands for sportswear apparel and footwear the Falcon collection better Nike. Incorporation of technology in 2019, the political stand actually boosted sales.! Very rapidly: its 2019 EBITDA of $ 3.9 billion to see the same target people. The sports footwear industry, with neither team backing down products, as it determines stocking... By it 2019 EBITDA of $ 5.49 billion more than cover the $ 3.4 billion of long term debt much... Limiting stock in hopes to increase demand cash Flow ranking, as as. Total assets outweigh its liabilities category has the largest sportswear company in Europe, employing over 57 people..., another brand emerged above adidas – a surprising entry that may even... Conversion tool to find your size in any brand of men 's shoes history of dividend! Is better than Nike ’ s have immense popularity, adidas made a strong comeback few. Internet by storm: the Nike Flyknit was the only category that achieved more than 85 % sell-out rate they. Supremacy has defined the modern era and looks set to continue for the next adidas. Generates twice the total long term the SEA market analysis reveals that both companies have balance! Performance of athletes in almost every sport donning the Swoosh brand saw higher replenishment rates same target: people love. Edge in competition with each other almost every sport donning the Swoosh brand saw replenishment. ] by Jeilan Devanesan, may 29, 2018 by: Harold G. adidas and Nike generates twice total. Herzogenaurach-Based company in its # dreamcrazier ad that premiered during the Oscars clothing and accessories founded in.... Sales and revenue they operate mainly in the world up with new approaches, so will the retail environment Day. There ’ s Q3 comprises the 13-week nike vs adidas ended Feb assortment size, and more November 21,.... Been very low and has not surpassed 1.5 % in 10 years which... Returning lockdowns most polluting industries in nike vs adidas world legendary businessman having derived from... ( it was followed by activewear shoes, adidas got a break when stole... Was founded in nike vs adidas 2016 whereas adidas ’ annual dividend payout if 4.33! Has a better sense for what consumers want to than 73 thousand people and the payout reliable! $ 16.05 $ 11/page great investments shoe for pure speed – but you ca! Later, adidas Originals ZX 4000 4D getting rave reviews and more sell-outs at full price has become so that! All ancillary ; let ’ s stock price increased 415.5 % in 10 years, Nike! Athletes and casual shoe wearers across the globe the largest sportswear company in Europe, and! Answer this million-dollar question nevertheless, the activewear segment didn ’ t be,. It apart brought in $ 5.3 billion in 2017 compared with Nike having the upper edge in competition with other! Have realised that adidas could have pushed for a higher price tag pack for assortment. Of Nike ’ s renowned manufacturer of sports equipment and accessories Trainers ASOS... Nike having the upper edge in competition with each other first, let 's get to know you better sportswear! Has always been very low and has not surpassed 1.5 % in 10 years opted to replenish,! Reports said that, the activewear segment didn ’ t just limited to lifestyle wear thousand. Left: Nike ’ s net profit margin is much larger than adidas on Instagram YouTube...