Nike vs Adidas

NIKE VS ADIDAS

Both Nike and Adidas are well known sportswear firms that have become household names of sorts throughout many parts of the world. The undisputed giants of the sportswear and sports equipment industries, consumers can generally expect quality products from the two brands. Nevertheless, there are instances wherein one may be the better option over the other, and the factors that go into making such a decision do not always have anything to do with the quality of the products. Let's take a look at some of the factors that may influence your purchase decision in the future.

Sponsorships And Market Focus

Nike has always come in ahead of Adidas in terms of celebrity sponsorships, although to its credit, Adidas has taken considerable steps to narrow the gap. Nike still has the edge over its competition in terms of sales however, and it remains to be seen whether Adidas will catch up any time soon.

In terms of market focus, Nike has a more varied line-up, comprised of basketball and running shoes, as well as cross-training products. Among the different brands under the Nike umbrella are Umbro, Converse and Cole Haan.

Adidas for its part currently offers products that are geared primarily towards the soccer, tennis and general athletics markets. Among the companies in Adidas' roster are Reebok, Taylor Made and Rockport.

Market Strategies

Nike remains firmly focused on the domestic market, although it has made inroads into the lucrative international soccer market fairly recently. The company is also considered largely responsible for the frenzy of athlete sponsorship that the industry is known for today. All of this ties in with Nike's dominance of the advertising and marketing aspects of the business, a hold that the company will likely retain for the foreseeable future.

Adidas on the other hand has traditionally focused on the European market, although it is a formidable name in the rest of the world as well. This is mainly due to the company's affiliation with soccer, which is widely considered to be "the" International sport. The company has recently taken steps to increase its marketing and advertising budget, and has even made inroads into the lucrative sports equipment and sportswear markets.

 
 Outsourcing Policies


Nike isn't really a production company per se, and almost all of its products are outsourced to various countries in Asia, particularly Taiwan and Korea, which in turn outsource production to still other Asian countries, among them China, Indonesia and Vietnam. The company does have a home office in Beaverton, and it is there that Nike products are designed, developed and marketed.

Adidas recently adopted a similar approach, with virtually all the design and development work being handled in Germany, and production being outsourced to Asian countries as well. This move has helped Adidas remain competitive in the industry.

Summary

Nike

•   More focused on the local market
•   More effective advertising and marketing
•   Recently updated the look of its line
•   Offers custom product lines
•   Excellent website support for custom options
•   All production is outsourced

Adidas

•   More focused on the European market
•   Specializes in soccer, tennis, and athletics
•   Recently expanded its product line to include sports equipment and clothing
•   Recently updated its production for increased efficiency and cost effectiveness
•   Production is outsourced to Asian countries