Finance

The Saga Of Adidas: Growing An Empire

Posted on Wednesday, June 14th, 2017 at 10:08 am

In 2009, Superman flew across the net in the Joe Louis Arena to save the Pittsburgh Penguins from certain doom – he stopped Nicolas Lindstrom from scoring the tying goal in game 7 of the Stanley Cup Finals. But he wasn’t in his usual iconic blue and red attire; instead, he was wearing white, yellow and black Reebok protective goalie equipment. The Superman I’m talking about isn’t Clark Kent; It’s Marc-Andre Fleury!

A year later, Fleury no longer appeared unique because all goalies began to look superhuman with their Reebok gear. Every game watched, we had Reebok glaring in our face. They were unavoidable! But in 2016, Reebok disappeared from the world of Hockey, and it seems to be gone forever!

The mastermind behind this disappearance was Adidas.

They were building an empire, and Reebok was a victim. Like Mystique from x-men who can precisely change her appearance and voice to mimic her enemies, Adidas took the form of Reebok and forced them to step down from the line of hockey.

The Rise of CCM (Canada Cycle & Motor Company)

CCM replaced Reebok in the ice rinks in 2016. It was the new armor of ice hockey superhumans: Carey Price, Connor McDavid, and Sydney Crosby.  But how did CCM take over the arena, and what does that have to do with Adidas?

In 2004, Reebok bought ownership of their competitor, CCM. With this purchase, Reebok started to retire CCM and began branding their line of hockey product. But a year later Adidas, who had a different plan in mind, acquired ownership of Reebok. They decided to keep both brands in the sport but found that they were in direct competition with each other. Thus, they phased out Reebok and put a CCM logo on every hockey product.

Where Reebok is Now

Adidas logic was simple: CCM is exclusive to hockey where Reebok had a footwear and apparel line. So, they didn’t leave Reebok out to dry. The same year Adidas was turning CCM into the powerhouse of hockey,  they made Reebok overpower Tapout, sport clothing brand, and become the official sponsor of UFC (Ultimate Fighting Championship). Now, Ronda Rousey and superhuman Conor McGregor wear Reebok gear when they enter “the octagon.”

The Rise TaylorMade

In 1985, Lee Trevino showed off his superhuman strength after winning a PGA tournament in 1985. Using TaylorMade’s newly metal-headed driver design, he was able to drive the ball 30 to 50 yards further than normal. His strength displayed in that tournament put TaylorMade on the map and would eventually take over the world of Golf.  By 1997, you guessed it, Adidas purchased Taylormade. Now, they make sure that their brand is endorsed by all the great golfers. Justin Rose, who is our current superhero in golf, now sports TaylorMade.

Nike, YOU’RE NEXT!

Adidas’ biggest nemesis is Nike. But they don’t want to buy them out. They want to drown them out of the market.

Adidas began its war with Nike when they made themselves the official sponsor of the FIFA World Cup in 2014. Unfortunately, Nike won this battle by sponsoring individual superhuman players and their teams. Now, Nike is overpowering the athletic footwear market and ahead of Adidas by 45 percent in share prices.

But if history taught us one thing, it is that Adidas will rise over Nike! They will find a way to be the armor of the superheroes in FIFA, NBA, and NFL. It is only a matter of time until Adidas will take that Nike Checkmark off Tom Brady’s shoulder and replace it with their trefoil! Or when they intrigue Lebron James to stop wearing those Nike shoes and put on a fresh pair of Adidas? They are even considering selling CCM to powerover NIKE! But only the future can tell. Beware of Adidas’ empire!

Currently, According to Forbes, Nike’s Brand value is at $27.5 billion and has made $32.1 billion in sales; Adidas’ value is at $7 billion and has made $18.76 billion in sale.


 

 

Michael Policicchio | The Edge Blog

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