Adidas has an opportunity to continue gaining market share from its bigger American competitor because of Nike’s persistent problems, but the German company will need to put in more effort to maintain consumers’ enthusiasm for its popular Samba and Gazelle terrace trainers.
Adidas has seen a rise in sales over the past year thanks to the shoes, and experts predict that when it reports profits on 29th October, it will record third-quarter revenues of US $ 7.02 billion, or 10 per cent more than a year earlier in currency-adjusted terms. However, industry analysts predict that the Samba won’t stay the “it shoe” for very long after the trend began more than a year ago.
Adidas has been releasing new colourways for the Samba, Gazelle, and Spezial often in an effort to draw in customers who want to follow the trend but still feel different. Some of the models include contrast stripes made of novel materials, such velvet, and tongues reminiscent of football boots. For the time being, that has satisfied independent shops like JD Sports. Adidas CEO Bjorn Gulden stated during the company’s half-year results on July 31 that the company was still “chasing demand” from retailers.
There are evidence the brand’s focus is turning onto other shoes like the Campus and the SL72 “retro running” sneaker, while Stella McCartney’s Paris Fashion Week show featured a new Adidas shoe patterned on motorsport racing shoes, tapping into the burgeoning popularity around Formula 1.
Adidas is no longer able to depend on the high sales and earnings from its leftover inventory of Yeezy trainers, as consumer interest in the footwear created by the disgraced musician Kanye West has decreased.
Even still, Adidas has a rare chance to expand, particularly in the US where Nike is particularly powerful and Adidas was heavily dependent on its Yeezy line. Nike withdrew its annual guidance and signalled a dismal holiday selling season as a new CEO took over.
Direct to consumer sales data from Consumer Edge indicates that Adidas has gained market share in Europe over the past year while Nike’s share has decreased. On Running, Puma, and Hoka have also seen notable gains in market share.
