Adidas(named "adidas" since 1949) is a well-known German manufacturer of sneakers and sportswear, known for its three-striped trademark. The company is also known for its high-profile endorsement deals, one of the most notable of which is football star Leon Messi, who signed a lifetime deal with Adidas in 2017. Adidas' Yeezy brand, known for its collaboration with rapper Kanye West, has been both a success and a source of controversy.
As of 2023, the company's primary revenue** is athletic footwear (55%), followed by sportswear and fashion apparel (38%). The remaining 7% of sales come from bags, hats and other accessories.
1920s-1930s: Early and Olympic fame
The origins of Adidas can be traced back to after the First World War. Led by the family of founders, Adolf ("Adi") Dassler, they ventured into the shoemaking business in their mother's home. The brand's turning point came at the 1936 Berlin Olympics, when American track and field star Jesse Owens garnered international attention wearing shoes that were said to have been given by Adidas Dasler, earning Adidas global recognition.
1940s: Confrontation with brothers after World War II
The turmoil of World War II presented a challenge for Adidas as Adidas and his brother Rudolph worked to rebuild Dassler. By 1948, personal disagreements between the brothers had become irreparable, leading to business **. Rudy's company eventually became Puma, and Adi's career retained the name Adidas.
1950s-1960s: Growth and innovation
Adidas experienced steady growth in the 1950s, as footballers adopted the company's lightweight and spiked shoes. The company expanded its product line, launching soccer in 1963 and expanding into apparel four years later.
1970s-1980s: Challenges and Competition
Adidas unveiled a new logo, the shamrock, ahead of the 1972 Munich Olympics.
Adidas dominated the sneaker space for a long time, but faced increased competition in the 1970s, especially from emerging brands such as Nike. Despite 1986 with the rap group Run-Dm.c.An endorsement deal was signed, but market share declined in the 1980s. Adi Dassler's death in 1978 began a period of ending ownership by the founder's family. Adidas became a publicly traded company in 1989.
1990s-2000s: Change of ownership and acquisitions
Between 1990 and 1993, Adidas faced ownership challenges under scandal-ridden French CEO Bernal Tapi. With the arrival of Robert Louis-Dreyfus, the company has once again undergone a change in leadership. In 1997, Adidas acquired the Salomon Group, entering the field of winter sports products and golf with the Taylormade brand. The company changed its name to Adidas Salomon AG in 2001.
2000s: Contemporary business change and collaboration
In the early 2000s, Adidas acquired and acquired several business units:
Salomon : in 2005**, while the Taylormade brand remained until 2017.
Reebok: Acquired in 2006 and in 2021**, while the Rockport brand was acquired in 2015**.
Five Ten: Acquired in 2011.
2010s to2020sScientific and technological innovation,Co-branded, yeezys and looking to the future
Some innovations in the sporting goods industry are so unique and successful that they become part of the brand identity. In the case of Adidas shoes, this innovation is the energy-returning cushioned midsole called BOOST. It was developed by adidas in collaboration with the German chemical company BASF (BASF) and was first launched in 2013.
2015 began, with the new five-year strategy --"creating the new"With the launch of the company, Adidas became an open-source company where athletes, consumers, and partners were all part of the brand. Adidas with Pharrell Williams, and Lego...and so on, and the list goes on.
Adidas also began working with rapper Kanye West in 2013, but ended the collaboration in 2022 due to his anti-Semitic and other "offensive" public remarks. An investigation by The New York Times found that the artist had been making such statements for years working with Adidas.
In an April 2023 class action lawsuit, shareholders said Adidas executives should disclose the risks of this harmful collaboration. In an effort to regain a good public**, a portion of the proceeds from the sale of Kanye West's remaining shoes (Yeezys) will support organizations fighting anti-Semitism and racism.
Adidas' partnership with Kanye West was a lucrative deal for both parties, and the abrupt end of the partnership leaves Adidas with hundreds of millions of dollars in unsold inventory. As the Yeezy brand focuses more on fashion expression than pure sneakers, this "breakup" has left a gap in Adidas' casual sports equipment product line that is hard to ignore.
All in all, Adidas has endured many turmoils in its 75-year history, including World War II, family conflicts that tore the company apart, and declining market share at the end of the 20th century, but has managed to recover each time. Through its commitment to innovation and strategic partnerships, adidas has cemented its position as an important player in the athletic footwear and apparel industry.