By Brad Hubbard | @bradhubbard
Adidas is in trouble. No really. They are getting their ass kicked in just about every way by Nike and Under Armour. While one of their brands, Reebok, is doing the best they can at staving off elimination, it may not be enough for the iconic German brand to survive.
Nike is the best of breed and that’s a fact. From the Jumpman brand to a logo that doesn’t even need a word for you to know who it represents.
Under Armour is coming on strong. It signed a massive deal to be the brand for Notre Dame (some deal worth around $90 million) and have under contract the hottest player in the NBA (Stephen Curry), a future Hall of Fame quarterback as a partial owner (Tom Brady) and the best American golfer since Tiger Woods in Jordan Spieth.
Adidas meanwhile is losing market valuation. They are around $15 billion while Under Armour is around $20 billion and Nike is around $100 billion. The German company has pinned it’s hopes on the beautiful game. While that is noble, it is also falling behind in other sports and it recently lost an SEC school (Tennessee) to Nike which is never a good sign.
Like we mentioned earlier, the Reebok brand is making a noble effort. Reebok has become a title apparel sponsor for the UFC and CrossFit. While all that is well and good, it doesn’t distract from the fact that they are coming in a distance third in the originality department.
Originality is key in this business. Nike and Under Armour have it and Adidas doesn’t. The cool factor plays in too which Nike and Under Armour have and Adidas doesn’t. Heck, part of the reason Tom Brady signed with Under Armour was the fact that that was the brand he was seeing in the locker room and on younger players.
Adidas needs a bad ass at the top to stop the bleeding. Nike has Mark Parker and Under Armour has Kevin Plank, two of the more respected CEO’s in America. Adidas has Herbert Hainer in Germany……..exactly.
Adidas is a solid brand. It can make good products but this business isn’t all about who makes the best product. It’s a coolness factor, the latest trend combined with innovation. Adidas better get it together because right now, they are an Under Armour purchase of Lululemon away from being completely irrelevant.