According to the Interbrand Top 100 Global Brand Report for 2017, Nike was number 18 on the list, compared to Adidas at 55. Adidas, Nike, and Under Armour are competitors in the lucrative market for athletic wear. Scale is important for a behemoth like Nike, which now has a market cap of nearly $144 billion; in comparison, Adidas has a market cap of $53 billion while Under Armour’s is at $8.5 billion. consumer connection and affinity for brands and products, developed through Nike has a higher global revenue than its main competitors, Adidas and Puma, put together. Up until 2015, Nike led with a 86.2 billion market share, a far cry from adidas’ 17.1 billion. MARKET SHARE: Nike Inc : NKE: Total : 181.59 %: 172.84 %: 30.18 %: V F Corporation: … Nike's revenues and prestige have rocketed in the past five years. Nike was criticized for not being an Olympic sponsor in 1996, but investing in sponsorships of athletes and a Nike Centre right outside the athletic village, which upset competitors like Adidas who spent over 50 million dollars to become an official sponsor. Nike’s sales force is divided into footwear and apparel and the teams are assigned specifically to accounts. Globally, if Nike is in an emerging market, or a new market, it distributes its product through a third party. Nike also maintains a significant lead in revenue, with $32.4 billion in annual sales in fiscal 2016, compared to about US$20.6 billion for Adidas. Market leader Nike, with 46 percent of the athletic footwear market and a third of the sports apparel sales, far outpaces its competitors with a combined $8.9 billion sales so far this year. Market capitalization is a defining factor when considering who is winning in the market. Meanwhile, competitors Adidas and Under Armour have just $1.8 billion and $283.6 million in … We compete internationally with a significant number of In depth view into Nike Market Cap including historical data from 1980, charts, stats and industry comps. Nike’s latest digital products SNKRS (sneakers) app and Nike Fit app have proved to be beneficial for the company this year as it helped grow their online sales of footwear products across the world. The Asia Pacific is accounting approximately 29% of the total market share, but the region is expected to witness the fastest growth rate over the next five years, contributing about 42% of the global footwear market growth from 2019 to 2022. Two years later, adidas saw a resurgence – some even called it a revival. This is due to rising sales of footwear in countries like China and India. It also includes an industry comparison table to see how your stock compares to its expanded industry, and … The intense Nike has enjoyed strong growth in the greater China market, where sales rose 35% in the fourth quarter year over year. Investing in R&D has helped gain a large market share and the popularity of Nike products has also grown. In the table, you'll find all the components (individual stock symbols) found in that sector, ranking them by their Weighted Alpha (a rating of growth patterns in a one-year period). Copyright © 2007-2020 Infiniti Research Limited. But because international markets provide more than 60% of Nike's revenue -- compared to only 24% for Under Armour -- Nike has weathered the domestic storm better than its smaller rival. With its advanced footwear innovations and well-established global sales network, Nike is expected to continue to hold the largest market share in the global footwear market over the next five years. Nike reported better-than-expected first quarter earnings with net income of $1.52 billion, or 95 cents per share, compared to $1.37 billion, or 86 cents per share, one year ago. Nike also maintains a significant lead in revenue, with $32.4 billion in annual sales in fiscal 2016, compared to about US$20.6 billion for Adidas. While it helped increase the company’s revenues, competitors were tapping on the boom in aerobic exercise, which Nike failed to consider. Nike is regaining market share it lost to rival Adidas, Widlitz said. With revenue growth of 8.98 % within FOOTWEAR segment, Nike Inc achieved improvement in market share, within FOOTWEAR segment to approximate 51.88 %. In-depth market analysis such as Porter’s five force model, and comprehensive competitive landscape including detailed profiles of top companies are also included in the report. According to the latest market analysis from Technavio, the global footwear market size will grow by USD 40.4 billion from 2019 to 2023, accelerating at a CAGR of over 2% during the forecast period. APPAREL segment revenue, grew faster, than total compay revenues, at 4.65 %, but underperformed its competitors within this segment. What sort of marketing strategy has Nike used to achieve and maintain this level of market dominance?. Investing in R&D has helped gain a large market share and the popularity of Nike products has also grown. She added she has seen markdowns during the holiday season on competitors' shoes — but not Nike's. The Competitors page allows you to view information for other symbols found in the same sector. Nike’s sales force is the most professional and has the greatest knowledge of the products compared to its competitors. Rising competition is hampering Nike’s market share It has trailing 12-month sales of $32.3 billion. Nike's main competitors include Anta, lululemon athletica, VF Corporation, Adidas, Reebok, ASICS, FILA, Puma, Under Armour, Skechers and New Balance. We also compete with a The Competitors page allows you to view information for other symbols found in the same sector. Nike Inc Market Share in overall company 47.14 Competitors Market Share 52.86. events and clinics; and The U.S. is the key revenue contributor to the regional market, which can be attributed to high enthusiasm among the citizens for sports, fitness, and adventure activities, such as aerobics, hiking, training, and trail running. In terms of market share, Nike's biggest competitors are Adidas and Under Armour. Although Nike stock didn't suffer huge declines, it failed to play the leadership role it had earlier in the bull market. There is an evident gap in growth rate between adi-armour and Nike, a clear sign that Nike is losing some market share to these competitors. Nike currently has $4.2 billion in cash. 23. In the table, you'll find all the components (individual stock symbols) found in that sector, ranking them by their Weighted Alpha (a rating of growth patterns in a one-year period). number of vertical retailers such as lululemon athletica and Uniqlo. It is why innovation is a core focus for Nike and its rivals like Adidas and Under Armour. Globally, if Nike is in an emerging market, or a new market, it distributes its product through a third party. Nike’s North American position is about as dominant as they come. Nike reported better-than-expected first quarter earnings with net income of $1.52 billion, or 95 cents per share, compared to $1.37 billion, or 86 cents per share, one year ago. Free Stock Market News Feeds, Competition Segments Revenue Growth Rates, NKE's Stock Perfrormance relative to its Competitors. Nike and Olympics. *Market share is not actual measurement, only performance comparison of companies which report and operate within the same segment. Such increasing demand for athletic and active footwear globally has significantly boosted the market share of several top sports shoe companies, including Nike, Adidas, Asics, and New Balance. Its other major international divisions, Asia P… effective distribution of products, with attractive merchandising and presentation There is an evident gap in growth rate between adi-armour and Nike, a clear sign that Nike is losing some market share to these competitors. As of 2020, Nike is one of the leading brands in the lifestyle and retail sector. Nike vs Adidas: Market Share . • Trends • Nike Revenue by Geographic Region • Company-owned Retail Stores Increase Profit Margin • Nike's Large Size Reduces Advertising Expenses • Movement Towards Low-performance Footwear • Global Market Slowdown • Growth of China and Other Emerging Markets Leads to More Sales Source: NKE 2008 10-K, Item 6, pg. The size of their investment in R&D is much larger. According to the Interbrand Top 100 Global Brand Report for 2017, Nike was number 18 on the list, compared to Adidas at 55. Today, Nike is reinventing itself for the digital era to become a retail tech company and many of its tactics are already appearing to be working. The shoe and athletic apparel market is dominated by three major companies. Nike is the global market leader, but it faces increasing competition in Europe and China. Nike was criticized for not being an Olympic sponsor in 1996, but investing in sponsorships of athletes and a Nike Centre right outside the athletic village, which upset competitors like Adidas who spent over 50 million dollars to become an official sponsor. marketing and promotion; customer support and service; identification with prominent All Rights Reserved. on a worldwide basis. North America is a key market for Nike, as almost half … Click Above to Watch Nike Advertisement - What Will They Say About You Nike Co-brands with Various Sports. How Nike's and Starbucks' Global Strategies Keep Them Ahead of Competitors Both of these companies have seen major growth in international markets, … Rising competition is hampering Nike’s market share Nike is the world’s largest athletic footwear and apparel company. She added she has seen markdowns during the holiday season on competitors' shoes — but not Nike's. In terms of regional market share, North America is expected to continue leading the global footwear market. Nike is the giant of the industry. To regain its market share, it introduced Air Max in 1987, a new model of athletic shoes where two interdependent compressed air-filled bags that act as shock absorbers could be inserted. Also, growing fashion consciousness and innovation in product designs are some other factors driving the growth of the market. In terms of market share, Nike's biggest competitors are Adidas and Under Armour. View the report featured in this article. Other competitors include Puma, Skechers, Anta and Li Ning. athletic and leisure footwear, apparel, and equipment, including adidas, V.F. Other factors such as the variety of products, rising population, and increase in disposable income are contributing to the growth of the footwear market over the recent years. EQUIPMENT & OTHER segment, revenue fell by. Nike’s sales force is the most professional and has the greatest knowledge of the products compared to its competitors. Nike has a higher global revenue than its main competitors, Adidas and Puma, put together. competition and the rapid changes in technology and consumer preferences in Market Share. A Project Report on A COMPARATIVE MARKET STUDY: NIKE VS ADIDAS. Submitted By Nike is not used to playing catchup, but Adidas is beating it in technology, innovation and style. and consumer price/value; The report contains detailed market trends, market drivers, market challenges and key opportunities. ... it would make sense to compare companies that have a similar market capitalization because factors like market share, economies of scale, and business models would also be similar. • Trends • Nike Revenue by Geographic Region • Company-owned Retail Stores Increase Profit Margin • Nike's Large Size Reduces Advertising Expenses • Movement Towards Low-performance Footwear • Global Market Slowdown • Growth of China and Other Emerging Markets Leads to More Sales Source: NKE 2008 10-K, Item 6, pg. Other competitors include Puma, Skechers, Anta and Li Ning. Up until 2015, Nike led with a 86.2 billion market share, a far cry from adidas’ 17.1 billion. Thanks to the iconic Superstar and NMD line, paired with buzzworthy endorsements with the likes of Kanye West, the … Nike is regaining market share it lost to rival Adidas, Widlitz said. Nike is the global market leader, but it faces increasing competition in Europe and China. SWOT Analysis is a proven management framework which enables a brand like Nike to benchmark its business & performance as compared to the competitors and industry. This is the primary factor which has been driving the growth of the global footwear market. Learn more about their battle for both supremacy and market share. Nike’s market share stands at about 27.4% in 2019, ahead of its industry rivals Adidas and ASICS, making Nike the world’s largest company in the global footwear market. The athletic footwear, apparel, and equipment industry is highly competitive With all the strong competitors, Nike has managed to hold the position as the leading brand however this does not mean that Nike does not have constant competitive pressures to face and other businesses to look out for. Both Nike and Under Armour have recently seen their sales dented by the bankruptcies of multiple sporting goods and footwear retailers in the United States. The company’s revenue has grown from $28 billion to $39 billion over the past five years, and its market share in the athletic footwear market has grown from 22% to 27% over the same period. constitute significant risk factors in our operations. ... which will turn up the heat on the competition with Nike. The region is projected to continue to lead the market over the forecast period. Data . Adidas brand sales in North America were up 25% in 2017, compared with 3% for Nike (). That number puts Adidas at number two behind Nike, which holds about 44% market share in the region, down from 60% in 2014. There is a strong increase in the demand of sports and active shoes in the global market, mainly driven by the changing lifestyles and rising awareness about health concerns. In 2016, it held 50.8 per cent of the U.S. retail brand footwear market, while Adidas improved its share to 7.4 per cent. Both Nike and Adidas, the two leading sportswear and athleisure brands in the world, have carved out an impressive market share in the increasingly competitive apparel industry. This makes sense, because Nike is the far more profitable business, with an operating margin of 12.2% over the past 12 months, compared to only 3.3% for Under Armour. Sports shoes are increasingly becoming an essential fashion accessory among global consumers and the sports shoes market is witnessing demand for trendy and comfortable footwear among all age groups. Sports shoes are increasingly becoming an essential fashion accessory among global consumers and the sports shoes market is witnessing demand for trendy and comfortable footwear among all age groups. One of the biggest competitive pressures that Nike faces is the placement of their stores. at retail, both in store and online. Nike’s market share stands at about 27.4% in 2019, ahead of its industry rivals Adidas and ASICS, making Nike the world’s largest company in the global footwear market. Nike has always been at the leading edge of innovation, technology development and cutting-edge marketing campaigns that help them surpass all the other footwear brands in the world in terms of popularity and sales. However, compared to Under Armour, both Nike and Adidas are more aggressive for growth and expansion. Nike owns over 80% of the U.S.'s $2.6 Billion basketball market and its share is also growing year over year Adidas’ share of the market is only about 14% Adidas has a growing market share, but it remains to be seen whether it will grow at the cost of Nike, or other lesser brands. Consumers like Nike’s innovative new products and are willing to pay a higher price than its competitors. Learn more about their battle for both supremacy and market share. Not only does it own 48% of the American athletic footwear market, but its share of the basketball footwear market is at a staggering 96%! However, compared to Under Armour, both Nike and Adidas are more aggressive for growth and expansion. sports equipment companies, and large companies having diversified lines of In comparison, Puma’s 2018 sales were 4.6 million euros ($5.1 billion), Adidas’s were 19.9 billion euros ($22 billion) and Nike’s reached more than $30 billion. Nike, Reebok and Adidas feature premium athletic apparel designed to enhance the performance of athletes in all the major sports. A rising demand for active footwear is the main factor driving the growth of the footwear market in this region. Nike is the market leader in the athletic footwear industry with a 31 percent market share. NIKE is the largest seller of athletic footwear, apparel, and equipment in It is why innovation is a core focus for Nike and its rivals like Adidas and Under Armour. Corp., Puma, Li Ning, and Under Armour, among others. With annual footwear sales of about USD 23 billion, Nike is still the world’s largest footwear manufacturer, and its leading position in the global footwear market is expected to continue through 2022. Nonetheless, the gap is narrowing and Nike … It has trailing 12-month sales of $32.3 billion. Compare Nike to its competitors by revenue, employee growth and other metrics at Craft. While Nike is still the industry leader in terms of sales, Adidas is the most profitable, with a gross profit margin close to 52.08%, compared to 44.70% for Nike. our brands and use our products; and active engagement through sponsored sporting The companies battle each year for consumers and market share, as well as spend millions in research and development to better their products. The size of their investment in R&D is much larger. Nike has an increasing stronghold over the global sports apparel market, beating its closest competitor Adidas by a wide margin in market share.. Euromonitor . Nike's main competitors include Anta, lululemon athletica, VF Corporation, Adidas, Reebok, ASICS, FILA, Puma, Under Armour, Skechers and New Balance. the world. Nike's revenues and prestige have rocketed in the past five years. That blows its competition out of the water. As of Thursday's market close, Nike shares are up more than 30 percent over the past 12 months. *Market share is not actual measurement, only performance comparison of companies which report and operate within the same segment. Watch your inbox for an email from us with more information. product quality; performance and reliability; new product innovation and development; This shows that Nike has a strong grip on its market share. While Nike is still the industry leader in terms of sales, Adidas is the most profitable, with a gross profit margin close to 52.08%, compared to 44.70% for Nike. Suggested Read: Top 10 Shoe Companies in the World 2019. This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply. Thanks to the iconic Superstar and NMD line, paired with buzzworthy endorsements with the likes of … Take a look at Technavio’s Footwear Market Research Library and download your free sample report today. Compare Nike to its competitors by revenue, employee growth and other metrics at Craft. athletic and leisure footwear companies, athletic and leisure apparel companies, Click Above to Watch Nike Advertisement - What Will They Say About You Nike Co-brands with Various Sports. Check Technavio’s Global Footwear Market Report 2019-2023 for more market insights related to the Nike market share. Notably, the growing share of the higher-priced direct-to-consumer business and innovation supports Nike’s pricing power. 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