Trainers are a business that has a huge demand throughout the world. The global sports shoe market was analyzed to have a net worth of $58 billion in 2018, and this is expected to rise by 2024 to $88 billion. Despite the fact that a large number of other businesses have entered this market, it is still dominated by the few heavyweights. Nike and Adidas have been ruling the sports footwear industry for a long time now and have made it quite difficult for others to enter this market.
Competition is not only between the other competitors but there a war going on between Nike and Adidas. Each is trying to attract the most number of customers possible with the urge to be in supremacy over the other.
In order to decide which brand is performing well in the market and is loved more by customers, a number of factors need to be considered. The performance of both brands is to be judged against those factors to evaluate which one is better. Before discussing those factors, we will look at the mission statement of both Nike and Adidas. A mission statement is a statement that lists the aims and objectives of a business.
Comparison of mission statements
If we summarize Nike mission statement into 3 points, they will be inspired by innovation, and to cover every athlete in the world. Being a leading manufacturer, Nike inspires people to have a winning attitude. The company’s slogan saying ‘Just Do It’ stresses the fact that Nike aims to generate winners and encourages people to think positive and develop a winner’s mindset. Their products represent the level of innovation their team has and how they aim to improvise their products and to make them unique. Nike does not focus on targeting a particular age or gender group. Its objective is to target customers from all spheres of the world and to meet their requirements.
On the other hand, we will weigh these aims and objectives with those of Adidas. Adidas focuses on improving sports by giving importance to each game individually and catering to each of them in a unique style. One of the reasons why people love Adidas so much is the fact that they do not compromise on quality. They aim to be more innovative and balance it with even better quality.
Other factors to consider
Revenue: Nike is leading the trainers market with an income of $24.2 billion in 2018, whereas Adidas has a revenue of $15 billion. In respect to growth, Adidas has added $5.8 billion in revenue, with an increase of 17.6%, while Nike has contributed to 6.8% growth.
Other than revenue, an essential element to take into account is the share price. Nike has a share price of 140$ billion in 2019, while Adidas stood up to almost half with $65 billion.
Conclusion
It is clear from the factors mentioned in this article that Nike is a better brand than Adidas. It has a larger share price, higher revenue, and a better-constructed mission statement than Adidas.