Nike, Adidas Puma comparison – additional information
The global sports apparel market is highly fragmented, with basic discount brands to high-end fashion name brands competing for market position. The U.S.-based Nike is the world’s leading brand in athletic footwear and apparel, and the most valuable sports business brand in the world. Nike has higher global revenue than its main competitors, Adidas and Puma. North America is a key market for Nike, as around 50 percent of its global revenue was generated in North America in 2017, mainly from footwear sales. Much of Nike's success can be attributed to the brand’s marketing campaign as well as sponsorship agreements with celebrity athletes and professional sports teams.
Adidas and Puma used to be one company named Gebrüder Dassler Schuhfabrik, established by two brothers, Adolf and Rudolf Dassler. Upon disagreement between them, the company split, creating the two widely known sporting brands, Adidas and Puma. Adidas is the largest sportswear manufacturer in Europe, and the second largest in the world, just behind Nike, with over 21 billion euros in annual revenue and a brand value of seven billion U.S. dollars. Adidas employed 56,888 people worldwide in 2017. Just as Nike, footwear is the most important category for Adidas. In 2017, over 50 percent of the Adidas Group net sales were generated by the footwear category.
Puma, also another leading sporting brand in the world, has a long-term mission of becoming the most desirable sport lifestyle company in the world. Europe and the Americas are the most profitable markets for Puma, as these regions accounted for nearly 75 percent of Puma’s consolidated sales in 2017. Describing themselves as the 'blue mountains', Puma has been trying to incorporate more edge, creativity and uniqueness into their designs with their collaborations with fashion designers such as Sergio Rossi and Alexander McQueen, and singer Rihanna. Collaboration with celebrities and fashion designers is a common strategy amongst these leading sports brands, as they aim to maintain their share of the market by broadening their product lines.