Monday, June 30, 2014

Nike and Adidas are the biggest battle off the field

The game of Germany versus the United States in the World Cup on Thursday, served as a sample of the largest commercial football-related battle being waged this summer in the northern hemisphere-the relentless struggle of the Adidas with Nike for the hearts and minds (and pockets) of fans.
The Germany won 1 to 0, but the two teams went on to the next phase of the tournament.
Nike, based in the USA, excellent earnings released on Thursday, despite the large expenses related to the tournament. Sales of Nike products geared for football grew 21% in fiscal year 2014 (terminated on 31 May), for $ 2.3 billion, and the Group believes that a large part of this push is due to large selections and featured players that he sponsors.
"More players are using World Cup Nike than all other brands combined," said last week Trevor Edwards, Nike's President.
The German Adidas, a sponsor of Fifa, is predicting sales of € 2 billion related to football in 2014. The turnover was € 1.5 billion in 2010, when South Africa Cup was held.
Herbert Hainer, the Chief Executive of Adidas, provides for the sale of 8 million shirts, compared to 6.5 million sold in 2010. Sales of the official ball of the tournament, the Brazilian, led to 14 million units, compared to 13 million Jabulanis sold in 2010.
But this is not a friendly football competition. Nike is determined to put one over on German rival to become the biggest football brand in the world, and Hainer is under shareholder pressure to stop the advance of Nike.
Adidas, which will update investors in July, emphasized the strength of sales in Latin America and the success of your business on Twitter, which is Brazilian with 2.4 million followers. Meanwhile, smaller competitors like Puma have been attracting attention with their cleats of contrasting colors.
But Nike is also in the game, taking the side of the Brazilian national team, with the golden boy Neymar. She has been registering high growth in their football platforms in social media and has already registered 380 million hits to their three video promotions.
Revenue in the quarter ended May 31 grew 11% to $ 7.4 billion, fueled by strong sales of clothing and footwear in North America and Western Europe. The operating profit grew 3 percent to $ 698 million.
The battle of Nike with Adidas is favoring American company, according to Tim Crow of brand consultancy Synergy. "Nike's ' the terrace ' prancing around the Adidas worldwide for a long time," he says. "Apparently, Nike will surpass Adidas as a brand dedicated to football in the not too distant future. It's just a matter of when, not if. "
Geographically, the greater gains continue to be obtained in mature markets like North America, responsible for 40% of Nike's sales, despite an increasingly competitive environment, and Western Europe, where the fourth quarter revenue grew 18%.
Nike said that the "further orders" for the period between July and November grew 11%, suggesting that the momentum provided by Copa can endure for a long time after the tournament. This measure is closely watched because investors see as a signal of future sales.
"For too long the Nike did not heed to football, and cared about it," says Crow. "So, they realized that boy of 15, 16 or 17 years old that were at the epicenter of the marketing department at Nike wanted the fun of football."
Nike began the Cup with 10 selections. Adidas, which extended its sponsorship of the Fifa to 2030, with nine. With the first round completed, each got five selections and players Neymar (Nike) and Messi (Adidas) remain in the tournament. A final between Brazil and Argentina would be the ideal outcome in lawns and in business.
Valor
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