As well as the Nike brand, the company owns Converse, Hurley, and the Jordan brand (after basketball player Michael Jordan), while Adidas also owns the Reebok brand. As one of America’s oldest companies, Levi’s has been focusing on maintaining its relevance against its younger, more modern counterparts, through partnering with music festival Coachella and launching its ‘Use Your Voice’ advertising campaign – empowering the younger generation to spark change. Course. 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. View the full Brand Finance Apparel 50 2020 report here, Up to US$1 trillion estimated brand value loss from COVID-19 globally. Here is Nike.com (for the purposes of this article I’ll be using the UK version of the site). In contrast Valentino (brand value US$1.4 billion) and Gap (brand value US$1.6 billion) are the two fastest falling brands in the ranking both recording a 39% drop in brand value. To really win the World Cup, it means one of the brands also saw more soccer-related revenue, developed more marketing buzz, and established a larger, more engaged … In addition to measuring overall brand value, Brand Finance also evaluates the relative strength of brands, based on factors such as marketing investment, familiarity, loyalty, staff satisfaction, and corporate reputation. Adidas is still an impressive third in the most valuable sports brand list. The swoosh also generates a 32.6 per cent return on equity, compared with 16.8 per cent for the brand with three stripes. Each product has its own ‘shop now’ button. Nike’s revenue growth since 2015 has averaged 6.5%, as opposed to growth in excess of 11% for Adidas. Page 1 of . Rolex retains crown as sector’s strongest. 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. The reasons for this are two-fold. NIKE BRAND EQUITY 2. The 50 most valuable apparel brands are included in the Brand Finance Apparel 50 2020 report. The Adidas Symposium at ISPO Digitize in pictures. For more information, please see our Privacy Policy. Image gallery. Adidas is an international sports brand. 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. 2019 was a solid year for the brand, as it celebrated its highest growth rate in more than 25 years and undertook an extremely successful IPO after trading privately for over 30 years. 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. Kylie Jenner Masters Winter 2020's Buzziest Trends With Exclusive Nike Sneakers For Rodeo Drive Shopping Trip This technology makes the shoe ultra comfort. This statistic presents the brand value of Adidas worldwide from 2016 to 2019. 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. 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 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). The running category has been one of the adidas brand’s biggest growth … ; 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 … These mission and values played a role in its decision to work with the leader of one of the biggest social movements of the past few years. It provides the user with more traction. Every year, Brand Finance values 5,000 of the world’s biggest brands. 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. They challengedNike in endorsement strategy, and in advertising, but with a slight difference incommunicated message, by doing it through the same media. adidas’ rival Nike sits at number 29, dropping three places from last year but reversing last year’s slump in value. In luxury, the maximum percentage is high, while in extractive industry, where goods are often commoditised, it is lower. Here are 9 reasons why adidas is better than Nike. Adidas: Nike: A famous company of manufacturing sportswear and other accessories founded … 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. With a rich history of corporate responsibility, Deckers Brands embraces a holistic approach to doing the right thing. In 2019, the adidas brand continued to pioneer the future of fashion and streetwear culture by partnering with influential brands such as Beyoncé’s Ivy Park, as well as Prada and Palace. 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. They enable core functionality such as security, network management, and accessibility. 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. Want to read more articles like this one? 4 Determine brand-specific revenues by estimating a proportion of parent company revenues attributable to a brand. Brand strength is the efficacy of a brand’s performance on intangible measures relative to its competitors. Sustainability – Consumers want to have a positive impact on the environment, and they don’t hesitate to reward brands that do. One caters for swoosh addicts, while the other caters to stripe enthusiasts. Hermès — $10.9 billion ($11.3 billion) A Project Report on A COMPARATIVE MARKET STUDY: NIKE VS ADIDAS. 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. Despite the brand only releasing one new model last year, Rolex saw solid sales across the UK and globally. Part of Nike’s huge success is its focus on partnerships with professional athletes. 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. It involves estimating the likely future revenues that are attributable to a brand by calculating a royalty rate that would be charged for its use, to arrive at a ‘brand value’ understood as a net economic benefit that a brand owner would achieve by licensing the brand in the open market. 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 … According to a former Assistant General Counsel at Nike, the brand’s core values are performance, authenticity, innovation and sustainability. The direct-to-consumer model … Nike partners with many top athletes across the board to promote and advertise their products, apparel, and designs. It is an official sponsor of World Cup. Necessary cookies are essential for the website to function properly. 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. 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. Brand strength is the efficacy of a brand’s performance on intangible measures relative to its competitors. Nike's value is almost double that of second-place Gucci, which moved up this year with a value of $17.6 billion. Rolex, along with other luxury apparel brands, is now having to brace itself for a steep decline in sales as travel restrictions, rapid unemployment and worldwide economic uncertainty ensue following COVID-19. A big part of adidas and Nike’s brand strategy focuses on sponsoring teams and players that can win the actual tournament. Brand Finance does not intend the study to be relied upon for any reason and excludes all liability to any body, government, or organisation. Positioning of Adidas Understanding the Segmentation, Targetting and Positioning of Adidas. In 2017, Adidas made an annual revenue of 21 billion euros and a brand value of seven billion US Dollars. WordPress.com VIP. It created awareness by sponsoring major 12 … Nike and Adidas are renowned sportswear brands, who have penetrated, targeted, segmented and positioned their own brands in the minds of customers. Moving toward direct-to-consumer e-commerce. 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. 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. “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.”. Adidas chose a brand-building strategy that was built on thesame theoretical criteria as Nike.Adidas had the same strategy within creating equity value to their brand. INTERNATIONAL BRAND ANALYSIS OF NIKE, ADIDAS AND PUMA: A DECADE OF GLORY Though Nike was still leading with 13.44 billion euros while Adidas made 10.08 billion euros. ... (ROI Using the right metrics to measure brand value, equity and activities are crucial – as KPIs and benchmarks provide information about business … Adidas, Nike's biggest competition, slipped to third place with a value of $16.5 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 (up 41 percent to $14.3 billion) played a key role in the struggles Nike has faced in the past two years, with the German-based sportswear brand … 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. This is done by reviewing comparable licensing agreements sourced from Brand Finance’s extensive database. By clicking “Accept”, you consent to the use of all the cookies. Nike brand notifies to “just do it”, while Adidas tells you “impossible is nothing”. North America is a priority market for Adidas. See Also Video Play Button Videos you might like It is important to get remembered, to be remarkable, different from the competitors. One caters for swoosh addicts, while the other caters to stripe … Brand Finance is a regulated accountancy firm, leading the standardisation of the brand valuation industry. Adidas collaborates with Parley for the Oceans – an organization that combats ocean pollution. Although the Herzogenaurach-based company in its present form goes back to 1949, the shoe factory of the Dassler brothers was founded in 1924. Although its brand value has gone down to $5.8bn from $7.1bn last year. In 2019, the athletic brand was valued at over $32 billion, which is the most valuable sports brand in the business, reports Interbrand. All rights reserved. Adidas uses boost technology for the sole of its shoes, where the pallets are compressed and molded. Brand Finance has produced this study with an independent and unbiased analysis. adidas Core targets a value-minded consumer, offering entry-price-point styles … Brand Finance is the world’s leading brand valuation consultancy. Like,Share & Subscribe To Our Channel For More Amazing Videos!!!!! Fellow Inditex Group brand Bershka has suffered a similar fate, its brand value dropping 26% to US$1.6 billion. Brand strength is expressed as a Brand Strength Index (BSI) score on a scale of 0 to 100. 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. Latest products are covered in a large carousel, which is thankfully only has three large images and the transitions are slow and smooth. It is why despite the dominating presence of Nike, it is among the leading brands with a large customer base and market share. The second category where the adidas brand is focused on driving significant market share gains is adidas Core. Companies manufacture sporting equipments ranging from clothes, shoes and other equipments need to … The world’s most valuable apparel brands are ranked and included in the Brand Finance Apparel 50 2017. Gucci — $10.2 billion ($8.6 billion) Adidas Strengths. There is an intense competition that business in Sports industry is facing. Name. 5 Determine forecast revenues using a function of historic revenues, equity analyst forecasts, and economic growth rates. But it’s not everything. 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. Nike in 2015 won the bid against Adidas and officially became the next exclusive provider of uniforms to the NBA. 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. Adidas with a focused portfolio. Both Adidas and Nike are shifting toward online sales in response to a more general decline in traditional retail sales. 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. 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. Nike remains the world’s most valuable apparel brand, valued at US$32 billion That is a major achievement crucial to building their soccer-apparel brand. Both brands, however, have been forced to close stores following the COVID-19 pandemic and thus sales are going to take a damaging hit. Companies can now sell their products more cheaply and at higher profits because of the elimination of retail middlemen. Date Discussion. 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. 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. Nike brand equity 1. 2 Determine royalty range for each industry, reflecting the importance of brand to purchasing decisions. 4.2 Cost drivers of Adidas Value Chain Analysis. ADVERTISEMENT. Below are the top labels by valuation, as calculated by Brand Finance for both this year and last (figures in parenthesis reflect those of 2018): Nike — $32.4 billion ($28 billion) It’s a non-responsive site disappointingly, but Nike does operate a specific mobile site. 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. 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. We use necessary cookies to make our site work. Based on this impact on enterprise value, Brand Finance estimated the likely impact on brand value for each sector. 6 Apply the royalty rate to the forecast revenues to derive brand revenues. 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 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. 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. “Sport performance”, “sport heritage” and “sport style” are the three different areas that Adidas has chosen to compete with the value … 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. Owner would achieve by licensing the brand Finance has produced this study an. Sales in response to a more general decline in their traditional retail sales a format similar a... Company ’ s leading brand valuation industry the lowest-priced Nike product is priced at Rs 36500 equipments. 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