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. This has only helped to cement Adidas’ position as football’s top brand. Date Discussion. 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. As with most sectors, however, the damage that will ensue on apparel brands will greatly depend on how long this pandemic engulfs the world. 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. See Also Adidas AG (stylized as ɑdidɑs since 1949) is a multinational corporation, founded and headquartered in Herzogenaurach, Germany, that designs and manufactures shoes, clothing, and accessories.It is the largest sportswear manufacturer in Europe, and the second largest in the world, after Nike. 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. Name. For more information, please see our Privacy Policy. Brand Finance is a regulated accountancy firm, leading the standardisation of the brand valuation industry. “Sport performance”, “sport heritage” and “sport style” are the three different areas that Adidas has chosen to compete with the value … 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. 2 Determine royalty range for each industry, reflecting the importance of brand to purchasing decisions. It’s a non-responsive site disappointingly, but Nike does operate a specific mobile site. 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. It isn’t the oldest sports brand on the planet, but no other has had such a profound impact for such a long time. 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. Every year, Brand Finance values 5,000 of the world’s biggest brands. Based on the score, each brand is assigned a corresponding Brand Rating up to AAA+ in a format similar to a credit rating. If product differentiation is the aim of Adidas, Value Chain Analysis will help the company in maximising the efficiency and enhancing the product quality by improving processes. The companies and marketers nowadays have to be stylish and functional at the same time to survive in the competition. Brand Finance is the world’s leading brand valuation consultancy. 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. Based on this impact on enterprise value, Brand Finance estimated the likely impact on brand value for each sector. Here are the things you should know about the digital marketing strategy of Nike and Adidas brands: Adidas Branding Strategy Peculiarities. Iconic jean brand Levi’s is the fastest growing brand in this year’s ranking, increasing an impressive 38% to US$4.1 billion, as of 1st January 2020. 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 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. Adidas is an international sports brand. 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. 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. The BSI score is applied to the royalty range to arrive at a royalty rate. This technology makes the shoe ultra comfort. Enjoy Watching The Top Brands Competing Each Other For The Number 1 Spot. The sports giant has focused on implementing a pivotal distribution strategy move, drastically reducing the number of retailers selling its products, with the aim of regaining control of the brand customer relationship and improving profit margins. The global luxury watch market has been celebrating continuous growth over the previous few years - a result of growing demand amongst millennials and the upsurge in e-commerce channels. The brand is strategically growing its investment in North America in assets, infrastructure and people. View the full Brand Finance Apparel 50 2020 report here, Up to US$1 trillion estimated brand value loss from COVID-19 globally. We use necessary cookies to make our site work. Both brands will need to rely heavily on their e-commerce businesses to protect themselves as much as possible. A Project Report on A COMPARATIVE MARKET STUDY: NIKE VS ADIDAS. Instructor. Positioning of Adidas Understanding the Segmentation, Targetting and Positioning of Adidas. 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. 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. 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. Like,Share & Subscribe To Our Channel For More Amazing Videos!!!!! Powered by Comparison Chart. Companies manufacture sporting equipments ranging from clothes, shoes and other equipments need to … 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. Adidas brand communicates the company’s goal of fusing sport performance and style competing very closely with Nike’s value proposition. You may disable these by changing your browser settings, but this may affect how the website functions. 1. adidas goes way back. 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. Adidas 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. Nike has retained its position as the world’s most valuable apparel brand after a 13% rise in brand value to US$32 billion. Similarly, Gap’s fortunes have been less than favourable. 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. Companies can now sell their products more cheaply and at higher profits because of the elimination of retail middlemen. 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. Here is Nike.com (for the purposes of this article I’ll be using the UK version of the site). 6 Apply the royalty rate to the forecast revenues to derive brand revenues. Adidas — $16.7 billion ($14.3 billion) Want to read more articles like this one? In luxury, the maximum percentage is high, while in extractive industry, where goods are often commoditised, it is lower. Both brands, however, have been forced to close stores following the COVID-19 pandemic and thus sales are going to take a damaging hit. ; 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 … The lowest-priced Nike product is priced at Rs 36500. 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. It is engaged in sports business from past 90 years. Adidas: Nike: A famous company of manufacturing sportswear and other accessories founded … Brand strength is the efficacy of a brand’s performance on intangible measures relative to its competitors. Video Play Button Videos you might like Although its brand value has gone down to $5.8bn from $7.1bn last year. Nike brand notifies to “just do it”, while Adidas tells you “impossible is nothing”. The Oregon-based sportswear giant came in at the head of the list, with a brand value of $32.4 billion, a gain of 16 percent over last year. The brand Adidas is less costly than the brand Nike. ADIDAS VALUE CHAIN ANALYSIS. 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, Nike's biggest competition, slipped to third place with a value of $16.5 billion. NIKE BRAND EQUITY 2. The swoosh also generates a 32.6 per cent return on equity, compared with 16.8 per cent for the brand with three stripes. Nike’s revenue growth since 2015 has averaged 6.5%, as opposed to growth in excess of 11% for Adidas. 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. 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. 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. Every year, Brand Finance conducts more than 5,000 brand valuations, supported by original market research, and publishes nearly 100 reports which rank brands across all sectors and countries. 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. Adidas is concentrating on its … Brand Finance does not intend the study to be relied upon for any reason and excludes all liability to any body, government, or organisation. 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. 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. 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. 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. All rights reserved. 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. Adidas Strengths. The second category where the adidas brand is focused on driving significant market share gains is adidas Core. ... From a brand’s perspective, these unique facets of the direct-to-consumer model are massively beneficial. With declining sales, the abrupt exit of CEO Art Peck, and the plan to close 230 of its stores on the horizon, the brand is evidently taking measures to attempt to counteract its sharp drop in earnings. In 2019, the athletic brand was valued at over $32 billion, which is the most valuable sports brand in the business, reports Interbrand. WordPress.com VIP. Though Nike was still leading with 13.44 billion euros while Adidas made 10.08 billion euros. Although the Herzogenaurach-based company in its present form goes back to 1949, the shoe factory of the Dassler brothers was founded in 1924. 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) Moving toward direct-to-consumer e-commerce. The adidas Golf segment distribute and sell Adidas golf brand products. It has developed strong network with suppliers and customers across the globe. 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According to a former Assistant General Counsel at Nike, the brand’s core values are performance, authenticity, innovation and sustainability. Necessary cookies are essential for the website to function properly. 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 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. 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. 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