When soccer teams battle for the World Cup in Brazil next year, another fight for global supremacy will be played out on the pitches - between Adidas and Nike.
In the next round of their tussle to be the world’s biggest sports brand there is everything to play for.
Nike currently owns 14.6% of the global sporting goods market to Adidas’ 11.4%, and is whittling away at the German brand’s No. 1 position in Europe. Adidas held 13.2% of the western European sporting goods market in 2012 to Nike’s 12.4%, according to Euromonitor data.
“It’s not easy to evaluate (next year’s) collections. Adidas is definitely putting a lot of effort into winning lost ground, but a company like Nike won’t rest on its laurels,” said Hans Allmendinger, head of marketing for German sporting goods retailer Sport2000.
Adidas has for more than 40 years decorated soccer kit and shoes with its distinctive parallel lines logo. It has strong partnerships setting it up well for the coming challenge: a close relationship with German club Bayern Munich, of which it owns 9%, and with FIFA, soccer’s world governing body, for whom it designs official World Cup kit.
Adidas has forecast record 2014 soccer sales of over 2bn euros and aims to boost group sales to 17bn euros ($23bn) in 2015.
US Nike, meanwhile, only entered the soccer market in 1994. But already it has several major partnerships with clubs, including English champions Manchester United.
The owner of the distinctive ‘swoosh’ or tick logo, does not give forecasts for individual sport categories, but it is predicting group sales of up to $30 billion by 2015 - suggesting it thinks it can put in a sufficiently strong performance during the World Cup to stretch its global lead over the German company - and maybe beat it at home too.
In Nike’s first fiscal quarter of 2013, ended August31, it posted an 8% jump in sales in Europe. Over the same period, Adidas’ European sales fell 7%.
Adidas is pulling out all the stops to make its presence felt in Brazil, where Nike sponsors the national team.
Brazil have won the World Cup a record five times and the country is a byword for stylish soccer, meaning there is a huge buzz around the tournament - and Nike’s designs.
Adidas is aiming to make its presence felt with players like Lionel Messi and Mesut Ozil, who play for Adidas-sponsored national teams Argentina and Germany - and the launch of the official match ball, the “Brazuca” - on sale for $160 but free to Brazilians born on its launch day.
Given the scale of the battle however it will also be using what is politely known as “ambush marketing.” Soccer watchers cite as an early example in this year’s World Cup campaigns the launch of a new soccer top for the Palmeiras club in the yellow, green and blue worn by the Brazil national team.
“That will be ruffling a few feathers,” said Berenberg Bank analyst John Guy. “They’ve certainly got a few tactical moves up their sleeves to consolidate their position against Nike and that’s good to see.”
Klaus Jost, president of the world’s largest sportswear retailer Intersport, said Nike’s roster of top soccer players like Frenchman Franck Ribery and Portugal’s Cristiano Ronaldo was one of the reasons for Nike’s increasing sales in Europe.
“It’s much more about creating the right image,” he told Reuters. “Stars like Ribery, Ronaldo and (Zlatan) Ibrahimovic have such an attraction that many kids want to copy them.”
Big name endorsements are also responsible for Nike’s broader success.
Retailers say the US brand has gained market share this year thanks to well designed, comfortable products such as the top-selling Nike Free sneaker - and getting its performance-enhancing shoes on the feet of the biggest sports stars.
