Nike and Adidas are fighting to dress China's 2.6 billion feet, both brands taking advantage of the upcoming Beijing Olympics. The two leading sportswear companies are going head to head to deck the Chinese in their apparel, but its the footwear market they're targeting heaviest.
By the time the games hit, Adidas plan on having 4,000 stores in the country, including a monstrous, 10,000 square foot flagship in Beijing.
"Both companies expect the country to be its second-largest market, after the U.S., within a few years," Forbes says.
While Adidas is the official sponsor of the games, Nike is endorsing individual athletes. It's tough to say which approach is better.
"Adidas paid approximately $100 million in cash and merchandise donations for the partnership rights," Forbes says. "The company will supply apparel to athletes, staff volunteers and technical officials, plus sponsor interactive Internet gaming featuring several Chinese athletes, to place its brand in front of the crowd."
But Nike is representing superstar athletes like tennis champ, Roger Federer, track star Craig Mottram, and basketball stars, Kobe Bryant and LeBron James as well as Chinese star Yao Ming.
About a third of the competing athletes will just wear the Adidas gear on the medal stand, but Nike during game play. That means all the action shots will be in Nike gear, and aren't those the images that help boost a brand?
Referees, staff and about 2,000 athletes, however, will be in Adidas, so the German brand will be far more ubiquitous.
Olympic Brand Battles
Nike & Adidas for Beijing 2008
Trend Themes
1. Competition for Olympic Sponsorship - A trend of intense competition between Nike and Adidas for sponsorship opportunities during major sporting events like the Olympics, leading to innovative marketing strategies.
2. Footwear Market Expansion in China - A trend of Nike and Adidas aggressively expanding their presence in the Chinese footwear market, leveraging the popularity of sports and upcoming Olympic events.
3. Brand Endorsement of Individual Athletes - A trend of Nike endorsing individual superstar athletes, while Adidas focuses on official game sponsorships, leading to different brand exposure approaches.
Industry Implications
1. Sportswear - The sportswear industry has opportunities to capitalize on the intense competition between Nike and Adidas for Olympic sponsorships, potentially disrupting the market with innovative partnerships and marketing strategies.
2. Retail - The retail industry in China has the potential to benefit from the expansion of Nike and Adidas in the Chinese footwear market, creating disruptive opportunities for store expansion, logistics, and distribution.
3. Athlete Representation - The athlete representation industry can explore new approaches in brand endorsement and marketing collaborations, inspired by the different strategies employed by Nike and Adidas in sponsoring athletes for major sporting events like the Olympics.