Losing Ground (Sports Apparel Brands)

Sports Apparel Stats, Courtesy of Market Watch

Ask yourself something...What do you really know about Germany? Most people only know that the country sits in Europe and barely that. Germany is a location in Europe that has 80 million people strong. This country has a large history that involves some ups and downs but has always been a country that involves the world. This country is the 4th largest amongst economies via nominal GDP and the 5th amongst purchasing power parity. Germany is the 3rd largest importer and exporter of goods but lately, the goods have not shown on the state line.
According to The Economist (http://www.economist.com/news/leaders/21625784-german-government-should-invest-money-infrastructure-not-worry-about-balancing-its), Germany is losing ground on the industrial world for production. I'm not sure if they are factoring Adidas, but Adidas is following the trend with the rest of Germany. Yes, the German based large company, Adidas, known for it's ability to penetrate America and draw attention to running and soccer is losing ground and fast.

Adidas has always been known for it's ability to create opportunities for the world internationally but has not been able to impress America lately. In the latest power for power sports brands, Under Armour has taken over the spot of Adidas at number 2. Adidas based on research has been losing ground because of many different factors. Why? you might ask. Adidas being an international experience is something that you can never take away from the brand and that made the brand a success, but it just doesn't work anymore in modern technology. Adidas has not been able to sale shoes in the basketball experience and it didn't make it any better with them sponsoring the World Cup and not getting the refund on the back end.

Nike was able to attack Adidas which helped Under Armour in a large way. Nike was able to have the most players (a large %) wear their product during the time of the world cup. Nike has been able to make their power moves with product innovation, selection and marketing.

These are the 3 things that Adidas seem to be missing out on, which contributes to the decline. As far as the innovation part, Nike has been able to grab technology in their product to set themselves apart from others. They release the highest percent of technology in products with some of the highest products in the world, including their join venture with Apple with Nike+. Selection is a struggle because the people that they have working with their product are mainly German based and everybody knows that, even with the debt of America, the world loves a good old fashion American based invention. Adidas decided to take on Reebok, who has done nothing but lose market shares every year since they came under Adidas. A product cleared by American hands with the support of international ideas can and will always be a good selection. This seems to be a selection that Adidas has stepped back from. The products of Adidas are too slow and have too much of traditional focus, rather than focusing on attracting the modern world. Last but not least, marketing. Nike spends a large majority of their time focusing on getting their players, product and teams, the right marketing at the right time. They don't waste opportunities to strike at a mastermind and Under Armour has been doing the same with the football experience and advanced fitness training.

Adidas seems to have taken their foot off the largest element of the international experience with a sports apparel brand. Adidas definitely has some things that they could use on their side and one of the biggest moves they have made recently was going over some Nike designers and getting them to work for them. Also they ware opening a creative design studio in Brooklyn. The accessibility of the headquarters might not seem like much but with the opportunity being so large in America, there really isn't much that stops Under Amour and Nike from increasing their margin from Adidas if they don't pick up the pace.