Adidas Plans to Close Gap to Nike at 2012 Games
Adidas Plans to Use 2012 Games to Close Gap to Nike
Guenter Schiffmann/Bloomberg
A pair of Adidas AG soccer shoes sit on display during a news conference in Herzogenaurach, Germany, on Wednesday, March 2, 2011.
A pair of Adidas AG soccer shoes sit on display during a news conference in Herzogenaurach, Germany, on Wednesday, March 2, 2011. Photographer: Guenter Schiffmann/Bloomberg
Adidas AG (ADS), the world’s second-largest sporting-goods maker, plans to use the London 2012 Olympics to bridge a gap with Nike Inc. (NKE) in the U.K. capital that gives its larger competitor overall market leadership in the country.
Adidas controls about 15 percent of the 4.3 billion-pound ($7.1 billion) U.K. market for sports clothing and footwear, less than Nike’s 18 percent to 19 percent, Gil Steyaert, head of the company’s U.K. business, said at a press conference. The difference is due to Nike’s lead in London, he said.
“We have a history of being more relevant to the northern part of the U.K. and Scotland than the south part,” Steyaert said. “Nike has always been more relevant in London.”
Adidas is the official sportswear sponsor at London 2012, which Chief Executive Officer Herbert Hainer said will provide an opportunity to add about 100 million pounds to annual revenue and help it achieve a goal to overtake Nike in the U.K. by 2015. The Herzogenaurach, Germany-based company will produce all clothing bearing the official games logo, he said.
“We will see the brand being at its best during 2012,” Steyaert said. “We have the ability to actually take leadership with the games just after that, and that’s our ambition.”
Adidas already has the sporting-goods lead in countries including Russia, Germany and France, Hainer said.
The Olympics sponsorship includes supplying uniforms designed by Stella McCartney to be worn by members of the British team, Hainer said. Adidas will also outfit all volunteers, technical staff and officials at the games.
Expanded Distribution
The London games will give the company the opportunity to expand distribution beyond existing channels, by selling non- Adidas branded products in supermarkets, and at stores in airports and train stations, Steyaert said. It will be the first time Adidas supplies U.K. grocery chains, he said.
Adidas has been associated with the Olympics since the 1928 summer games in Amsterdam. The company was the official sportswear sponsor at Athens in 2004 and Beijing in 2008.
“We want to use the Olympic Games to show to the world that we are the Olympic brand,” Hainer said.
To contact the reporter on this story: Paul Jarvis in London at pjarvis@bloomberg.net.
To contact the editor responsible for this story: Celeste Perri at cperri@bloomberg.net.
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