It has developed strong network with suppliers and customers across the globe. From an investor point of view, Nike is much cheaper than Adidas on a price to earnings basis, with the stocks trading at 23.4x and 34.9x, respectively. INTERNATIONAL BRAND ANALYSIS OF NIKE, ADIDAS AND PUMA: A DECADE OF GLORY Nike brand notifies to “just do it”, while Adidas tells you “impossible is nothing”. Nike’s bitter rival and fellow sportswear superpower, Adidas, has seen a less successful year, recording a 1% decrease in brand value to US$16.5 billion. Adidas has worked hard for creating awareness among people and target market. However, exceptions are also there because of some Adidas shoes like ‘Adidas Yeezy shoes,’ that cost a lot more than specific Nike product; on the other hand, Nike is having slightly higher price rates than Adidas. They challengedNike in endorsement strategy, and in advertising, but with a slight difference incommunicated message, by doing it through the same media. The opinions and financial analysis expressed in the study are not to be construed as providing investment or business advice. Online shopping and e-commerce channels are vital to help alleviate some of the economic damage from COVID-19. With a rich history of corporate responsibility, Deckers Brands embraces a holistic approach to doing the right thing. Grow. (H&M, which last year was second to Nike, sunk to fourth place amid inventory issues and a struggle to move away from rampant discounting.) In 2017, Adidas made an annual revenue of 21 billion euros and a brand value of seven billion US Dollars. 4.2 Cost drivers of Adidas Value Chain Analysis. Raw material production has a huge influence on the company’s footprint: life cycle analysis shows that it accounts for half of Adidas’ total environmental impact, and 68% of the company’s overall water consumption. Brand Finance is a regulated accountancy firm, leading the standardisation of the brand valuation industry. One caters for swoosh addicts, while the other caters to stripe enthusiasts. In the same year, Adidas employed 56,888 people worldwide and generated 50% of its sales by the footwear category which is the most important category for Adidas. ADIDAS VALUE CHAIN ANALYSIS. Based on this impact on enterprise value, Brand Finance estimated the likely impact on brand value for each sector. For more information, please see our Privacy Policy. The swoosh wasn’t the only athletic brand that made strides this year, however: Adidas moved from the fourth spot up to third as its brand value soared 17 percent to $16.7 billion. Brand value is understood as the net economic benefit that a brand owner would achieve by licensing the brand in the open market. While some people called for a boycott, Nike received more than $43 million worth of media exposure in the first 24 hours after the campaign dropped, according to Apex Marketing Group. Latest products are covered in a large carousel, which is thankfully only has three large images and the transitions are slow and smooth. Nike surpassed the US$1 billion milestone in quarterly online sales last year, a feat that not only demonstrates the brand’s sheer dominance in the sector but also puts the brand in a solid position to rise up to the challenge of current worldwide turmoil. The lowest-priced product belongs to Adidas at the pricing of Rs 27999. The brand value of the world’s 500 biggest companies, according to the Brand Finance Global 500 2020, is set to potentially lose up to an estimated US$1 trillion as a result of the Coronavirus outbreak, with the apparel sector being one of the most affected. According to these criteria Rolex (down 2% to US$7.9 billion) is the world’s strongest apparel brand with a Brand Strength Index (BSI) score of 89.8 out of 100 and a corresponding elite AAA+ brand strength rating. Adidas collaborates with Parley for the Oceans – an organization that combats ocean pollution. Adidas can control following drivers to add value, set differentiation basis and enhance efficiency. Comparison Chart. Richard Haigh, Managing Director, Brand Finance commented: “The COVID-19 pandemic is undoubtedly going to hit the apparel sector hard – Brand Finance has predicted that apparel brands could face up to a 20% drop in brand value. Despite the challenges facing all of Inditex Group’s brands, there is no doubt that the power of Amancio Ortega, and his ability to face the crisis head on, paired with the brands’ strength internationally, should stand these brands in good stead once stores are re-opened and normality is reestablished. The brand name of Adidas Group is a combination of the name of the founder and the company name, and is structured in three main divisions, which entail the Adidas sport performance, heritage, and sport style. Brand strength is the efficacy of a brand’s performance on intangible measures relative to its competitors. See Also Bridging the gap between marketing and finance, Brand Finance evaluates the strength of brands and quantifies their financial value to help organisations of all kinds make strategic decisions. The running category has been one of the adidas brand’s biggest growth … Adidas and Nike, two brands that are very often compared need to be chosen by the customer and to be so they need to find this one unique detail, a value for a customer that would differ them from the brand that offers the same product for the same price. Making this year’s top 100 is adidas, which squeezed in at number 100 after its brand value surged by 50 percent to $12.5 billion from $8.3 billion. The swoosh wasn’t the only athletic brand that made strides this year, however: Adidas moved from the fourth spot up to third as its brand value soared 17 percent to $16.7 billion. Adidas and Nike are the most significant brand names in the minds of customers. 6 Apply the royalty rate to the forecast revenues to derive brand revenues. Nike’s bitter rival and fellow sportswear superpower, Adidas, has seen a less successful year, recording a 1% decrease in brand value to US$16.5 billion. The slogan “Just Do It” was inspired by Gary Gilmore’s last words. The values derived and opinions presented in this study are based on publicly available information and certain assumptions that Brand Finance used where such data was deficient or unclear. Currently, the company … Demand for Sportswear and Strength in Digital Drive Nike to Solid Second Quarter, “Nike’s bold marketing makes it standout in a busy marketplace of sportswear apparel brands,” said Richard Haigh, managing director of Brand Finance. adidas’ rival Nike sits at number 29, dropping three places from last year but reversing last year’s slump in value. Brand equity: Adidas has built strong brand equity over time. Data compiled for the Brand Finance rankings and reports are provided for the benefit of the media and are not to be used for any commercial or technical purpose without written permission from Brand Finance. Though Nike was still leading with 13.44 billion euros while Adidas made 10.08 billion euros. Italian luxury fashion brand, Valentino, has been negotiating slowing revenue and sales over the previous year, particularly in parts of its key Chinese market - which accounts for approximately 30% of the brand’s sales – in the face of civil unrest in Hong Kong and the general slowing Chinese economy. Companies can now sell their products more cheaply and at higher profits because of the elimination of retail middlemen. The steps in this process are as follows: 1 Calculate brand strength using a balanced scorecard of metrics assessing Marketing Investment, Stakeholder Equity, and Business Performance. All of Nike’s brands generated $34.4 billion in total revenue in the last financial year (running to the end of May 2017), while Adidas reported annual revenue of 19.2 billion euros in the last financial year, which matched the … 2 Determine royalty range for each industry, reflecting the importance of brand to purchasing decisions. A Project Report on A COMPARATIVE MARKET STUDY: NIKE VS ADIDAS. Adidas Sustainability – Consumers want to have a positive impact on the environment, and they don’t hesitate to reward brands that do. Nike and Adidas are renowned sportswear brands, who have penetrated, targeted, segmented and positioned their own brands in the minds of customers. The serial killer said “Let’s do it” before he was executed. Kylie Jenner Masters Winter 2020's Buzziest Trends With Exclusive Nike Sneakers For Rodeo Drive Shopping Trip Nike has retained its position as the world’s most valuable apparel brand after a 13% rise in brand value to US$32 billion. ... From a brand’s perspective, these unique facets of the direct-to-consumer model are massively beneficial. Want to read more articles like this one? The swoosh also generates a 32.6 per cent return on equity, compared with 16.8 per cent for the brand with three stripes. Home » Press Releases » Nike Strikes Again as World’s Most Valuable Apparel Brand. University. Both brands, however, have been forced to close stores following the COVID-19 pandemic and thus sales are going to take a damaging hit. Here is Nike.com (for the purposes of this article I’ll be using the UK version of the site). We'd also like to set optional analytics cookies to help us improve it. Adidas brand communicates the company’s goal of fusing sport performance and style competing very closely with Nike’s value proposition. The Adidas Symposium at ISPO Digitize in pictures. Both brands, however, have been forced to close stores following the COVID-19 pandemic and thus sales are going to take a damaging hit. 5 Determine forecast revenues using a function of historic revenues, equity analyst forecasts, and economic growth rates. The industries have been classified into three categories – limited impact (0% brand value loss), moderate impact (up to 10% brand value loss) and heavy impact (up to 20% brand value loss) - based on the severity of enterprise value loss observed for the sector in the period between January 2020 and March 2020. Please fill out this field with valid email address. It is why despite the dominating presence of Nike, it is among the leading brands with a large customer base and market share. ... and will be the instrument used to compare Nike and … Firstly, attrition by rival sportswear brands – particularly Adidas – has eaten into Nike’s brand equity: the Brand Finance ranking shows Adidas’ brand value growing significantly by 41% to $14.3 billion in 2018, outpacing Louis Vuitton to become the fourth most valuable apparel brand in the world. Strong brand equity is a result of consistent focus on customer experience, product quality as well as sustainability and other aspects of business. Video Play Button Videos you might like Raw material production has a huge influence on the company’s footprint: life cycle analysis shows that it accounts for half of Adidas’ total environmental impact, and 68% of the company’s overall water consumption. It created awareness by sponsoring major 12 … Adidas brand increased its value at 6%, ranked 62th on the list of Best Global Brands 2009 and continued to take the second largest sporting goods manufactures behind Nike (Interbrand, 2009) The overall Adidas brand competes straightly and closely with Nike’s value proposition. The data presented in this study form part of Brand Finance's proprietary database, are provided for the benefit of the media, and are not to be used in part or in full for any commercial or technical purpose without written permission from Brand Finance. Published by M. Shahbandeh, Nov 23, 2020 The brand value of Nike has increased year-on-year since 2010 and reached around 34.4 billion U.S. dollars in 2020. The reasons for this are two-fold. Adidas, Nike's biggest competition, slipped to third place with a value of $16.5 billion. Like,Share & Subscribe To Our Channel For More Amazing Videos!!!!! Within the sports industry, Adidas and Nike are two prominent names across the world countries. Rolex retains crown as sector’s strongest. In 2018, its core focus were North America and China markets. Adidas CEO Kasper Rørsted said at the time that the company’s website was its most important store and main priority in terms of asset allocation. Date Discussion. The world’s most valuable apparel brands are ranked and included in the Brand Finance Apparel 50 2017. Brand Finance is the world’s leading brand valuation consultancy. As with all brands across the sector, Zara and Bershka are negotiating a significant drop in visibility with store closures and consumers staying at home. View the full Brand Finance Apparel 50 2020 report here, Up to US$1 trillion estimated brand value loss from COVID-19 globally. ; An Iconic Brand with a Prestigious Legacy: Adidas has nurtured a strong and prestigious legacy and heritage over its long, illustrious history by influencing and shaping numerous aspects of … ... (ROI Using the right metrics to measure brand value, equity and activities are crucial – as KPIs and benchmarks provide information about business … The estimated value of the brand’s top player endorsements at the Championships this year will include France’s Paul Pogba (+€4m), Wales’ Gareth Bale (+€4m) and Germany’s Mesut Özil (+€3m), while Nike’s catalogue of superstars includes the likes of Portugal’s three time Ballon d’Or winner, Cristiano Ronaldo (+€19m), England’s Wayne Rooney (+€3m) and Sweden’s Zlatan Ibrahimović (+€1.5m). For the sixth consecutive year Nike has claimed the title of the world’s most valuable apparel brand, recording a 7% increase in brand value to US$34.8 billion, as of 1st January 2020. This, paired with broken supply chains and factory closures, certainly marks a tough journey ahead for both Rolex and the luxury apparel sector in general. They enable core functionality such as security, network management, and accessibility. It’s a non-responsive site disappointingly, but Nike does operate a specific mobile site. Brand Value chain Brand value chain is a structured approach to assessing the sources and outcomes of brand equity and the manner by which marketing activities create brand value. Positioning of Adidas Understanding the Segmentation, Targetting and Positioning of Adidas. Similarly, Gap’s fortunes have been less than favourable. ESPN reported that Nike had sold $70 million worth of the shoes by May — just a month into the release — and that the Air Jordan brand had made Nike more than $100 million by the end of the year. A big part of adidas and Nike’s brand strategy focuses on sponsoring teams and players that can win the actual tournament. Brand Value: $6.8 billion An official sportswear partner of the 2012 London Olympic Games and UEFA Euro 2012. A new survey from Canaccord Genuity among 1,400+ athletic apparel consumers finds Nike is way out front in innovation, fashion and purchase intent as compared with Adidas, Under Armour and Lululemon. Uniqlo — $12 billion ($8.1 billion) Target market is engaged in sports business from past 90 years growing its investment North... Nike in 2015 won the bid against adidas and Nike are shifting toward online sales in to. Directly identify anyone cookies to make our site work Nike was still leading with 13.44 billion euros at... 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