Olympic Sneaker War |
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| Tuesday, 08 July 2008 | |
 The long-running competition between sportswear giants adidas and Nike continues with adidas opening its largest store worldwide in Beijing last Friday. The long, glass-clad rectangular four-story building measures 3.170m2 (34,100 square feet), about 1½ times the size of adidas’
previous largest outlet on Paris’ elite Champs-Elysees. It will employ about 100 staff members, have several “interactive zones” and a rooftop basketball court.
The store also serves to proclaim adidas’ dominance over Nike in the Olympics. However, according to a recent Nielsen survey, adidas faces significant challenges from Nike and Li Ning. Many Chinese believe that Nike is an Olympic sponsor because of its contracts with athletes and its development of specialized footwear for the Olympics. Both Nike and adidas have spent thousands of hours developing and inventing specialty shoes for Olympic sports such as badminton, table tennis, boxing, horseriding, basketball and about 22 other sports. Both sportswear titans seek for increase of their market share in China because sales in primary markets like the US are flattening. Nike’s shares sank 9.8% on July 3rd and adidas’ shares fell 3% on the same day. China’s sportswear market in 2009 is expected to increase by 90% from 2006 to $7.2 billion (source: ZOU Marketing for WSJ). “The opening of the world’s first adidas Brand Center is another milestone in securing market leadership in China, one of the world’s most important markets for the adidas brand” said Erich Stamminger, President of the adidas brand. Nike opened its flagship store in Beijing last August. “China is one of Nike’s biggest growth opportunities, and one of the most dynamic retail markets in the world. Our Beijing flagship store creates a strong brand statement with a compelling world-class shopping experience. As we head toward the Olympics, we’re extending our brand leadership, deepening our consumer relationships and building what we expect soon to be a $1 billion business and Nike’s second-largest market in the world” said Nike brand President Charlie Denson at the time. Beijing is key. The rivals agree on that, at least. |
The choice of location for the prestigious Brand Center is no coincidence. Adidas is an official sponsor of the Beijing 2008 Olympic Games that start on August 8th, a privilege that costs an estimated $80-100 million according to the Wall Street Journal. In this role, the German sportswear company will supply 2.5 million pieces of products to volunteers, staff, officials and athletes. 