Published By : 28 Sep 2017 | Published By : QYRESEARCH
Nike and Adidas have been the top dogs in the athletic wear and footwear market for so long that the dropping intensity of the battle between these two giants has taken some time to register. Recent trends, however, clearly state what has been on the cards all along: Adidas is winning the battle of the boots, while Nike has fallen behind the times and is now at risk of losing more of the market to newer, emerging companies.
Nike’s North America fell 3% in the three-month period ending on August 31, which is the first time the company has failed to register quarterly gains in what still remains its most important sales outlet. Adidas, meanwhile, has posted an average sales gain of a whopping 26% over the last six quarters, illustrating the growing gulf between the two companies.
Failure to Keep up with Changing Trends Costing Nike
The key aspect of Nike’s failure to compete with Adidas in North America is considered to be its reliance on brick and mortar stores and outdated designs. Brick and mortar stores have witnessed a steady decline in North America, where online and other direct-to-consumer sales channels have picked up steam. Nike’s previously reliable brands such as Air Jordan have also lost their appeal in recent times, with the growing focus on athleisure footwear rendering them redundant. Adidas have scored majorly in this department thanks to its continuous focus on updating its design profile as well as keeping in touch with modern consumer demands, which includes increasing its presence online. While Nike has now belatedly stepped up its efforts to increase direct to consumer sales, whether these measures can bridge the gap remains to be seen.