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. Alongside revenue forecasts, brand strength is a crucial driver of brand value. 1. adidas goes way back. Despite the havoc that COVID-19 is undoubtedly going to wreak on the sector in the coming year, agile brands are likely to fare much better than their inflexible counterparts. Positioning of Adidas Understanding the Segmentation, Targetting and Positioning of Adidas. Brand Finance evaluates brand strength in a process compliant with ISO 20671, looking at Marketing Investment, Stakeholder Equity, and the impact of those on Business Performance. Brand Value: $6.8 billion An official sportswear partner of the 2012 London Olympic Games and UEFA Euro 2012. Brand Finance pointed to Adidas’ success in North America — where it has been steadily carving out a larger slice of the market in recent years — as a significant factor in its rise. 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. Adidas — $16.7 billion ($14.3 billion) In the 21 st century, Adidas takes a lifecycle approach across the value chain to assess its impact. 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. Top Sports Brand Ranked By Brand Value. Nike has retained its position as the world’s most valuable apparel brand after a 13% rise in brand value to US$32 billion. The world’s most valuable apparel brands are ranked and included in the Brand Finance Apparel 50 2017. They enable core functionality such as security, network management, and accessibility. The brand Adidas is less costly than the brand Nike. Nike brand notifies to “just do it”, while Adidas tells you “impossible is nothing”. According to a former Assistant General Counsel at Nike, the brand’s core values are performance, authenticity, innovation and sustainability. 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. It provides the user with more traction. 3 Calculate royalty rate. Adidas collaborates with Parley for the Oceans – an organization that combats ocean pollution. 5 Determine forecast revenues using a function of historic revenues, equity analyst forecasts, and economic growth rates. In 2010 Adidas, who has for many years been the official kit North America is a priority market for Adidas. As of 2017 Nike’s brand value is estimated to be $29.6 billion ranking it 16th in Forbes list of the World’s Most Valuable Brands of 2017. Adidas has worked hard for creating awareness among people and target market. With new consumer behaviour habits likely to be borne out of the pandemic, brands will look towards greater innovation in their e-commerce businesses and the potential reassessment of their store business models. There is an intense competition that business in Sports industry is facing. Our COVID-19 impact analysis shows that the apparel sector is one of the most heavily impacted industries globally and could face a potential 20% loss in brand value as a result of the pandemic. It provides insights to support the various decision makers in the company and stresses that every member of the company contribute to this branding effort. Brand value is understood as the net economic benefit that a brand owner would achieve by licensing the brand in the open market. Uniqlo — $12 billion ($8.1 billion) Despite the brand only releasing one new model last year, Rolex saw solid sales across the UK and globally. See Also 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. 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. It has prepared some special version of shoes for Lionel Messi. 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. For more information, please see our Privacy Policy. Submitted By When it comes to the value of its brand, Nike is miles ahead of its competition — or rather $14 billion ahead, according to Brand Finance’s annual ranking of the top 50 apparel and accessories brands by value. Brand strength is the efficacy of a brand’s performance on intangible measures relative to its competitors. University. This statistic presents the brand value of Adidas worldwide from 2016 to 2019. Although its brand value has gone down to $5.8bn from $7.1bn last year. Fellow Inditex Group brand Bershka has suffered a similar fate, its brand value dropping 26% to US$1.6 billion. Although the Herzogenaurach-based company in its present form goes back to 1949, the shoe factory of the Dassler brothers was founded in 1924. Brand Finance calculates the values of brands in its rankings using the Royalty Relief approach – a brand valuation method compliant with the industry standards set in ISO 10668. 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. Latest products are covered in a large carousel, which is thankfully only has three large images and the transitions are slow and smooth. Brand Finance is the world’s leading brand valuation consultancy. 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. Nike’s market capitalization as of July 2019 stood at $140 billion - more than double that of Adidas’s $65 billion - illustrating the scale of both businesses. 3. Brand Finance has assessed the impact of COVID-19 based on the effect of the outbreak on enterprise value, compared to what it was on 1st January 2020. The famous Nike logo, a swoosh meant to portray the stylized wing of the goddess, Nike, was designed for just $35 by student Carolyn Davidson in 1971. Brand is defined as a marketing-related intangible asset including, but not limited to, names, terms, signs, symbols, logos, and designs, intended to identify goods, services, or entities, creating distinctive images and associations in the minds of stakeholders, thereby generating economic benefits. The cookies collect information in a way that does not directly identify anyone. As these brands negotiate store and factory closures, broken supply chains and a customer base that is facing unprecedented economic uncertainty, they will have to prepare for a tough and turbulent journey ahead.”. Both Adidas and Nike are shifting toward online sales in response to a more general decline in traditional retail sales. Nike and Adidas are international sports shoes making companies that have been successful in the business through adopting of appropriate marketing tools. We use necessary cookies to make our site work. Brand Finance is a regulated accountancy firm, leading the standardisation of the brand valuation industry. This technology makes the shoe ultra comfort. You may disable these by changing your browser settings, but this may affect how the website functions. Both brands, however, have been forced to close stores following the COVID-19 pandemic and thus sales are going to take a damaging hit. Home » Press Releases » Nike Strikes Again as World’s Most Valuable Apparel Brand. 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. 2. Strong brand equity is a result of consistent focus on customer experience, product quality as well as sustainability and other aspects of business. It’s a non-responsive site disappointingly, but Nike does operate a specific mobile site. In 2020, the Nike brand was valued at approximately 34.8 billion U.S. dollars, which was an increase of over two billion U.S. dollars from 2019. The lowest-priced product belongs to Adidas at the pricing of Rs 27999. Rolex — $8 billion ($6.4 billion), © 2020 Fairchild Publishing, LLC, a subsidiary of Penske Business Media, LLC.FN and Footwear News are registered trademarks of Fairchild Publishing, LLC. The consulting firm credits this boost in part to Nike’s strong financial results: The company reported double-digit sales growth going into the holiday season, with healthy performance in all international markets. View the full Brand Finance Apparel 50 2020 report here, Up to US$1 trillion estimated brand value loss from COVID-19 globally. Gucci — $10.2 billion ($8.6 billion) Here are 9 reasons why adidas is better than Nike. Hermès — $10.9 billion ($11.3 billion) The 50 most valuable apparel brands are included in the Brand Finance Apparel 50 2020 report. Like,Share & Subscribe To Our Channel For More Amazing Videos!!!!! Adidas and Nike are the most significant brand names in the minds of customers. Image gallery. Adidas announced that it expects to lose over US$1 billion from sales in the first quarter of 2020 from greater China alone. It also made a major splash with its “Just Do It” campaign starring Colin Kaepernick, the former NFL quarterback who has become a divisive figure over his choice to take a knee during the national anthem to protest police brutality and racism. Brand strength is the efficacy of a brand’s performance on intangible measures relative to its competitors. Nike’s revenue growth since 2015 has averaged 6.5%, as opposed to growth in excess of 11% for Adidas. Adidas is Nike’s main competitor, and despite setting its sights to overtake the overall market leader, Adidas has this year failed to beat Nike in the Global 500, ranking 139th. While Google, brand value of around $302 billion USD, takes the top spot — with Apple and Amazon in tow — the ranking also spotlights Tencent, Alibaba, Nike and more well-known brands. In the 21 st century, Adidas takes a lifecycle approach across the value chain to assess its impact. Within the sports industry, Adidas and Nike are two prominent names across the world countries. Based on the score, each brand is assigned a corresponding Brand Rating up to AAA+ in a format similar to a credit rating. With a brand value of US$14.6 billion Spanish retailer, Zara, has slipped down the ranks to 6th position following a 21% drop in brand value. Each brand is assigned a Brand Strength Index (BSI) score out of 100, which feeds into the brand value calculation. Louis Vuitton — $13.6 billion ($10.5 billion) 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. Its brand value has also increased from last year to US$6.8 billion. Nike remains the world’s most valuable apparel brand, valued at US$32 billion Here are the things you should know about the digital marketing strategy of Nike and Adidas brands: Adidas Branding Strategy Peculiarities. 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 adidas brand has assigned each category a role and ambition until 2020, allowing the brand to exploit short- and medium-term potential, while at the same time incubating long-term opportunities for the brand. Course. 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. Nike's value is almost double that of second-place Gucci, which moved up this year with a value of $17.6 billion. Adidas is an international brand for sports and fashion. “In a time when customers look for experiences and emotional connection, Nike’s offering comes with unambiguous messages and values that people can rally behind.”. The opinions and financial analysis expressed in the study are not to be construed as providing investment or business advice. Adidas can control following drivers to add value, set differentiation basis and enhance efficiency. They challengedNike in endorsement strategy, and in advertising, but with a slight difference incommunicated message, by doing it through the same media. With a rich history of corporate responsibility, Deckers Brands embraces a holistic approach to doing the right thing. 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. 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”. Zara — $18.4 billion ($17.5 billion) ... (ROI Using the right metrics to measure brand value, equity and activities are crucial – as KPIs and benchmarks provide information about business … 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. 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). Has only helped to cement adidas ’ position as football ’ s core values performance... Brand communicates the company ’ s brand strategy focuses on sponsoring teams and players that can win the tournament... 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