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Adidas AG
Formerly
Gebrüder Dassler Schuhfabrik (1924–1949)
Public (AG)
Traded as FWBADS
DAX component
Industry Textile, footwear
Founded July 1924; 100 years ago (1924-07) in Herzogenaurach, Germany (as Gebrüder Dassler Schuhfabrik)
18 August 1949; 75 years ago (1949-08-18) (as Adidas)
Founder Adolf Dassler
Headquarters
Herzogenaurach, Bavaria
,
Germany
Area served
Worldwide
Key people
Products Apparel, footwear, sportswear, sports equipment, toiletries
Revenue Increase 21.915 billion (2018)
Operating income
Increase €2.368 billion (2018)
Increase €1.702 billion (2018)
Total assets Increase €15.612 billion (2018)
Total equity Increase €6.364 billion (2018)
Number of employees
57,016 (2018)
Subsidiaries
  • Adidas Runtastic
  • Matix

Adidas AG is a German company that makes athletic clothes and shoes. Its main office is in Herzogenaurach, Bavaria, Germany. It is the biggest sportswear maker in Europe. It is also the second largest in the world, right after Nike.

The company was started by Adolf Dassler in his mother's home. His older brother Rudolf joined him in 1924. They called their business Gebrüder Dassler Schuhfabrik, which means "Dassler Brothers Shoe Factory". Adolf helped create special running shoes with spikes. He changed them from heavy metal spikes to lighter ones made with canvas and rubber.

In 1936, Adolf convinced U.S. sprinter Jesse Owens to wear his handmade spiked shoes at the 1936 Summer Olympics. Owens won four gold medals, and the Dassler shoes became famous. In 1949, the brothers had a disagreement. Adolf then started Adidas, and Rudolf started Puma. Puma became Adidas's main business rival.

The three stripes are a famous symbol for Adidas. They have been used on the company's clothes and shoes for marketing. Adidas bought this design in 1952 from a Finnish sports company called Karhu Sports. They paid about €1,600 and two bottles of whiskey for it. The stripes became so well-known that Adolf Dassler called Adidas "The three stripes company".

History

Early years: The Dassler Brothers Shoe Factory

(left): Adolf Dassler, founder of Adidas, around 1915; (right): The 'Dassler Brothers Shoe Factory' near Herzogenaurach train station in 1928.

The company was founded by Adolf "Adi" Dassler. He started making sports shoes in his mother's laundry room in Herzogenaurach, Germany. This was after he came back from World War I. In July 1924, his older brother Rudolf joined the business. They named it "Dassler Brothers Shoe Factory". The electricity in Herzogenaurach was not always working. So, the brothers sometimes used a stationary bicycle to power their machines.

Adolf helped create spiked running shoes for different sports. He improved the quality of these shoes by using canvas and rubber instead of heavy metal spikes. In 1936, Adolf convinced U.S. sprinter Jesse Owens to wear his handmade spikes at the 1936 Summer Olympics. Owens won four gold medals. After this, Dassler shoes became known to athletes and trainers worldwide. The business was doing well, and the Dasslers were selling 200,000 pairs of shoes each year before World War II.

During the war, the company's shoe production stopped. The factory was used to make anti-tank weapons. In 1945, the Dassler factory was almost destroyed by U.S. forces. But Adolf Dassler's wife convinced the American soldiers that the company only made sports shoes. The American forces then became big buyers of the brothers' shoes.

Split and rivalry with Puma

The brothers separated in 1947 because their relationship had become difficult. Adolf started a company called Adidas AG on August 18, 1949. The name Adidas comes from Adi Dassler. Rudolf started a new company called Ruda, from Rudolf Dassler. Later, Ruda was renamed Puma.

Adidas and Puma SE became strong rivals after the split. The town of Herzogenaurach was divided over which company to support. People even called it "the town of bent necks". This was because people would look down to see which shoes strangers were wearing. Even the town's two football clubs were divided. ASV Herzogenaurach was supported by Adidas, while 1 FC Herzogenaurach supported Puma.

The two brothers never made up. Even though they are buried in the same cemetery, their graves are as far apart as possible.

In 1948, after World War II, some players of the West Germany national football team wore Puma shoes. This included Herbert Burdenski, who scored West Germany's first goal after the war. Four years later, at the 1952 Summer Olympics, Josy Barthel from Luxembourg won Puma's first Olympic gold medal.

At the 1960 Summer Olympics, Puma paid German sprinter Armin Hary to wear Puma shoes in the 100-meter sprint final. Hary had worn Adidas before. He asked Adolf for money, but Adidas said no. Hary won gold wearing Pumas. But then he put on Adidas shoes for the medals ceremony. This shocked both Dassler brothers. Hary hoped to get money from both companies. But Adolf was so angry that he banned the Olympic champion.

A famous event in the brothers' rivalry was the "Pelé Pact". Both Adidas and Puma agreed not to sign a sponsorship deal with Pelé for the 1970 FIFA World Cup. They thought a bidding war for the world's most famous athlete would be too expensive. But Puma broke the pact and signed him. Many experts say that the brothers' rivalry helped turn sports clothing into a huge industry.

Corporate image

(left): The original trefoil Adidas logo until 1997. It is now used on the Adidas Originals heritage line; (right): the 1990–2023 logo, originally designed for the Equipment line, then adopted as the corporate emblem.

In 1952, after the 1952 Summer Olympics, Adidas bought its famous 3-stripe logo. They got it from the Finnish sports shoe brand Karhu Sports. They paid two bottles of whiskey and about €1600 for it.

The Trefoil logo was designed in 1971 and launched in 1972. This was just in time for the 1972 Summer Olympics in Munich. This logo was used until 1997. Then, the company introduced the "three bars" logo. This new logo was first used on the Equipment line of products.

Post-Tapie era

Bernard Tapie 2012
Bernard Tapie, a French businessman, owned Adidas from 1990 to 1992.

After some difficulties in the late 1980s, a French businessman named Bernard Tapie bought Adidas in 1990. He decided to move the production of Adidas products to Asia. He also hired famous singer Madonna to help promote the brand.

In 1992, Tapie had trouble paying back his loans. A bank then sold Adidas. Robert Louis-Dreyfus, a friend of Tapie, became the new CEO of the company in 1994. In 2000, the bank sold Adidas to Louis-Dreyfus for a much higher price.

An Adidas shoe
An Adidas shoe, with the company's three parallel bars

In 1997, Adidas AG bought the Salomon Group, which made ski wear. The company's official name changed to Adidas-Salomon AG. With this, Adidas also got the TaylorMade golf company. This helped them compete with Nike Golf.

In September 2004, English fashion designer Stella McCartney started a joint clothing line with Adidas. This was a long-term partnership for women's sports clothes called "Adidas by Stella McCartney".

On May 3, 2005, Adidas announced they had sold the Salomon Group for €485 million to Amer Sports from Finland.

Adidas Astro Turfs
Adidas has long been a popular maker of astro turf football shoes.

In August 2005, Adidas said they wanted to buy Reebok for $3.8 billion. This deal was completed in January 2006. This meant Adidas's sales were closer to Nike's in North America. Buying Reebok also helped Adidas compete with Nike worldwide as the second biggest sports shoe maker.

In 2005, Adidas introduced the Adidas 1. This was the first shoe ever made with a microprocessor. The company called it "The World's First Intelligent Shoe". It had a tiny computer that could do 5 million calculations per second. This computer automatically changed how soft or firm the shoe was to fit its surroundings. The shoe needed a small, replaceable battery that lasted about 100 hours of running.

In April 2006, Adidas announced an 11-year deal. They became the official clothing provider for the NBA. The company made jerseys and products for the NBA, NBDL, and WNBA. This deal was worth over $400 million.

In November 2011, Adidas announced it would buy the outdoor sports brand Five Ten. The price was $25 million in cash.

Recent years

Adidas North America headquarters round - Portland, Oregon
Adidas North America headquarters in Portland, Oregon

By the end of 2012, Adidas reported its highest sales ever. The company's CEO was hopeful for the future. Adidas now has its main headquarters in Herzogenaurach, Germany. It also has many other offices around the world. These include London, Portland, Toronto, Tokyo, Australia, Taiwan, and Spain.

In January 2015, Adidas launched the first mobile app for reserving shoes in the footwear industry. The Adidas Confirmed app lets customers get and reserve the brand's limited edition sneakers. It uses technology that knows where you are.

In August 2015, Adidas bought the fitness technology company Runtastic for about $240 million.

In May 2017, Adidas sold the TaylorMade golf company to KPS Capital Partners for $425 million.

In March 2022, Adidas sold Reebok to the Authentic Brands Group for about $2.5 billion.

In August 2022, the company said that CEO Kasper Rørsted would leave in 2023. Bjørn Gulden became the new CEO in January 2023.

Corporate affairs

Business trends

Here are some key facts about Adidas's business over the years:

Year Revenue(€b) Net income (€m) Number of employees Number of stores
2006 10.0 483 26,376
2007 10.2 551 31,344
2008 10.7 642 38,982 1,884
2009 10.3 245 39,596 2,212
2010 11.9 567 42,541 2,270
2011 13.3 613 46,824 2,384
2012 14.8 791 46,306 2,446
2013 14.4 787 49,808 2,740
2014 15.5 490 53,731 2,913
2015 16.9 634 55,555 2,722
2016 19.2 1,017 60,617 2,811
2017 21.2 1,097 56,888 2,588
2018 21.9 1,702 57,016 2,395
2019 23.6 1,976 65,194 2,533
2020 19.8 432 62,285 2,456
2021 21.2 2,116 59,258 2,184
2022 22.5 612 61,401 1,990

Current leaders

  • CEO: Bjørn Gulden
  • Chief Financial Officer: Harm Ohlmeyer
  • Global Brands: Eric Liedtke
  • Global Operations: Gil Steyaert
  • Global Sales: Roland Auschel

Products

Apparel

Adidas makes many different clothing items. These include men's and women's t-shirts, jackets, hoodies, pants, and leggings.

The first Adidas clothing item was the Franz Beckenbauer tracksuit, made in 1967. Adidas AG is the biggest maker of sports bras in Europe. It is the second largest in the world.

Sportswear

Association football

One of Adidas's main focuses has always been football kits and equipment. Adidas is a major company that supplies team kits for international football teams and clubs.

Adidas makes referee kits used in international games and by many countries and leagues. The company has created new types of shoes for the sport. A good example is the Copa Mundial boot from 1979. It is used for matches on firm, dry fields. It is the best-selling boot of all time. The version for soft ground is called World Cup and is still sold today.

Beau Jeu, meaning "Beautiful Game", was an official match ball of UEFA Euro 2016.
Telstar 18, official ball for the 2018 FIFA World Cup

Since 1970, FIFA, the world's football governing body, has asked Adidas to design footballs for its World Cup tournaments. The Adidas Telstar was the first ball made for the World Cup in 1970. The balls for the 2006 World Cup, called the "Teamgeist", were special. They could travel further when kicked, leading to more long-range goals. Goalkeepers often said they didn't like the ball's design. They claimed it moved a lot and in unexpected ways.

Adidas Finale 20
The Adidas Finale (ball from the 2020–21 season shown) is the official match ball of the UEFA Champions League.

Adidas introduced the Jabulani for the 2010 World Cup. The ball was designed with Loughborough University and Bayern München. The Adidas Brazuca for the 2014 World Cup was the first World Cup ball named by fans. In 2022, for the 14th time, Adidas created the 2022 World Cup ball, called Al Rihla.

Adidas is one of the official sponsors of the UEFA Champions League. The Adidas Finale is the official match ball for this competition. Besides the Adidas Predator boot, Adidas also makes the adiPure line of football boots. Adidas named an official match ball of the UEFA Euro 2016 tournament the Adidas Beau Jeu, which means "The Beautiful Game" in English. Adidas provides clothing and equipment for all teams in Major League Soccer.

Baseball

Adidas has also made baseball equipment. They sponsor many players in Major League Baseball and Nippon Professional Baseball in Japan.

From 1997 to 2008, Adidas sponsored the New York Yankees.

Basketball

Adidas's Superstar and Pro Model shoes were very popular. They were known as "shelltoes" because of their hard rubber toe box. Coaches like UCLA's John Wooden helped make them famous. By the mid-1970s, Adidas was almost as popular as Converse in basketball. Both then started to fall behind Nike in the early 1980s. Later, Adidas Superstar shoes became very popular in 1980s hip hop streetwear.

From 2006 to 2017, Adidas supplied uniforms for all 30 teams in the National Basketball Association. They took over from the Reebok brand after Adidas bought Reebok. Nike replaced Adidas as the official uniform supplier after the 2016–17 season.

Cricket

Tendulkar batting against Australia, October 2010 (1), cropped
Indian cricketer Sachin Tendulkar, batting with his personalized Adidas cricket bat

Adidas started making cricket shoes in the mid-1970s. Their first market was Australia. Their shoes were very different from old leather cricket boots. They were lighter and more flexible. But they offered less toe protection. So, batsmen hit by the ball on the foot would often hop around in pain.

Adidas kept making cricket shoes for many years. In 2006, the company started making cricket bats. Their bat range now includes models like the Pellara, Incurza, Libro, and M-Blaster.

In the 1990s, Adidas signed the famous Indian batsman Sachin Tendulkar and made shoes for him. From 2008 until he retired, Adidas sponsored the cricket bat Tendulkar used. They created a new bat, 'Adidas MasterBlaster Elite', just for him.

In the Indian Premier League (IPL), Adidas sponsored the Mumbai Indians team from 2008 to 2014. They also sponsored Delhi Daredevils from 2008 to 2013. In the 2015 Season, Adidas sponsored Royal Challengers Bangalore.

Golf

Adidas Golf makes golf clothing, shoes, and accessories. They offer footwear, shirts, shorts, pants, jackets, and eyewear for men and women.

Gymnastics

From 2000 to 2012, Adidas provided gymnastics wear for Team USA. This was through USA Gymnastics. In 2006, Adidas gymnastics leotards for women and men's competition shirts, pants, and shorts became available in the United States. Since Spring 2013, Adidas gymnastics products have been available worldwide through Elegant Sports. USA Olympic team members McKayla Maroney, Jordyn Wieber, Jake Dalton, and Danell Leyva are all sponsored by Adidas gymnastics.

Ice hockey

Adidas has been providing uniforms for the National Hockey League since the 2017–18 season. They replaced Reebok. Adidas will no longer provide on-ice jerseys for the NHL after the 2023–24 season.

Lacrosse

In 2007, Adidas announced it was entering the lacrosse equipment market. They also sponsored the Adidas National Lacrosse Classic in July 2008. This event was for the top 600 high school players in the United States. The company created its own brand called "Adidas Lacrosse". They offer jerseys, shorts, shoes, sticks, heads, gloves, and protective gear.

Running

Adidas Running Shoe Demo
Adidas running shoe demo in Boston

Adidas makes several running and everyday shoes. These include the Energy-boost and the spring-blade trainers. The brand has built a strong network of runners in big European cities, like Paris' "Boost Energy League". In 2016, the third season started. In Paris, the Boost Energy League has 11 teams representing different areas of the city.

Adidas launched two new colors of the NMD R1 and one new color of the NMD XR1 in September 2016.

In November 2016, Adidas showed off a sneaker made from ocean plastic. The shoe was made from a fabric called "Biosteel". The shoe was called the "Adidas Futurecraft Biofabric." The material used is 15% lighter than regular silk fibers. It is also 100% biodegradable. The shoe only starts to break down when it touches a high amount of a natural enzyme. Once this happens, the shoes can decompose within 36 hours. This shoe was never released to the public.

Adidas EQT is a style of sneakers from Adidas. It started in the early 1990s and was brought back in 2017.

Skateboarding

Adidas Skateboarding makes shoes specifically for skateboarding. This includes redesigning older models for skateboarding. The brand also releases special models designed by its team riders.

Tennis

Adidas has been involved with tennis equipment since the mid-1960s. They have sponsored many top tennis players. This started with Stan Smith and Ilie Nastase in the late 1960s. In the 1980s and 1990s, they sponsored world number one players like Ivan Lendl, Stefan Edberg, and Steffi Graf. Each player had their own special styles designed for them. These styles were also sold to the public.

Ivan Lendl even used several different models of Adidas tennis racquets for most of his career. In 2009, the company introduced a new line of tennis racquets.

Kabaddi

Adidas entered the sport of Kabaddi. This sport is very popular in India and other Asian countries. In 2014, the Pro Kabaddi League started in India. In 2015, Adidas partnered with the Mumbai-based team U Mumba.

Accessories

FreshImpactLimited
Adidas "Fresh Impact – Limited Edition" bottle

Adidas also designs and makes slide-style sandals. They also make mobile accessories, watches, eyewear, bags, baseball caps, and socks. Adidas also has its own line of male and female deodorants, perfumes, aftershave, and lotions.

Adidas announced they would launch a new $199 Fit Smart wristband in mid-August 2014. The wristband works with Adidas's miCoach app, which acts like a personal trainer.

Adilette

Adilette sandals 2004
Adilette sandals

The Adilette was the first pair of sandals ever made by Adidas. It was first developed in 1963. Adidas says that a group of athletes asked Adi Dassler to make a shoe for the locker room. Even today, these sandals are a best-seller. The first Adilette sandals were navy blue and white. Since then, many more colors have been made, like black, red, green, and yellow.

Usually, the three stripes are in a different color on the strap of the classic models. The most common Adilette colors are navy blue or black, mixed with white. The Woodilette and Trefoil models also look similar but do not have stripes on the strap.

The sandal has a shaped rubber sole that supports the foot. It was designed as an after-sport slide sandal. But the Adilette quickly became popular outside of sports too.

Adissage

Adissage
A pair of Adissage

The Adissage is also a slide sandal. It comes in black, navy, light blue, black with pink, and other colors. The sandal has the famous three stripes on a velcro strap at the front. The company's name appears on the side of the shoe, near the heel. It also appears on a round symbol in the heel of the footbed. The Adissage has tiny black massage bumps all over the footbed. These are meant to massage tired feet after sports. But they are also popular as casual sandals for people who are not athletes.

Santiossage

The Santiossage is a slide-style sandal. It has the three stripes on a velcro strap at the front of the shoe. Santiossage comes in black, navy, or red. The company's name appears on the side of the shoe, near the heel. It also appears on a round symbol in the heel of the footbed. Like the Adissage, it has tiny clear massage bumps all over the footbed. These are for massaging feet after sports. But the sandals are also worn casually by people who are not athletes. You can see Adidas's three stripes through these clear bumps.

Marketing

In the mid to late 1990s, Adidas divided its brand into three main groups:

  • Adidas Performance focused on athletes.
  • Adidas Originals focused on the brand's older designs, which were popular for everyday style.
  • Style Essentials focused on fashion. The main group here was Y-3, a partnership between Adidas and Japanese fashion designer Yohji Yamamoto. The Y stands for Yamamoto, and the 3 stands for Adidas's three stripes.

Launched in 2004, "Impossible is Nothing" was one of the company's most famous campaigns. A few years later, Adidas launched a basketball campaign called "Believe in 5ive" for the 2006-2007 NBA season.

In 2011, "Adidas is all in" became the global marketing slogan for Adidas. This slogan aimed to connect all Adidas brands and labels. It showed a single image to customers interested in sports, fashion, street style, music, and pop culture.

In 2015, Adidas launched "Creating the New" as its business plan until 2020.

Collaborations

Adidas has worked with many well-known designers. These include Alexander Wang, Jeremy Scott, Raf Simons, and Stella McCartney. They have also teamed up with celebrities like Beyoncé, Jonah Hill, Karlie Kloss, Ninja, and Pharrell Williams. Together, they have created some of the company's most famous and desired products.

Game advertisement

The Adidas brand is featured in several video games. These include Daley Thompson's Olympic Challenge and Adidas power soccer.

Marketing in India

India has been an interesting market for Adidas. Dave Thomas, the managing director of Adidas in India, is hopeful about the country's potential. The company hoped to double its sales by 2020. In 2015, the company signed Ranveer Singh, a Bollywood actor, as a brand ambassador. The company later decided to use Indians' love for cricket to promote their brand. They launched a new cricket campaign called FeelLoveUseHate with Indian cricketer Virat Kohli. However, in 2017, Virat Kohli was no longer a brand ambassador for the company. He later signed a big deal with Puma India. Adidas also sells its products online through websites like Myntra, Snapdeal, Jabong, and Amazon. Adidas also has a website just for the Indian audience.

Sponsorship

Germany and Argentina face off in the final of the World Cup 2014 04 crop
Lionel Messi, who is sponsored by Adidas, prepares to shoot during the final of the 2014 FIFA World Cup.

Adidas has many big deals to supply kits for football clubs worldwide. Their main sponsored club is Bayern Munich. Also, their sponsored national teams include Germany, Spain, Mexico, Argentina, Sweden, Japan, Hungary, Belgium, Colombia, Wales, and Italy.

Chaussures de Juninho Pernambucano avec les prénoms de ses filles inscrits dessus
Juninho's Adidas boots in a museum. He was known for his "knuckle ball" free-kick technique.

Adidas has sponsored many famous players. These include Lionel Messi, Zinedine Zidane, Kaká, David Beckham, Steven Gerrard, Gareth Bale, Thomas Müller, Xavi, James Rodríguez, Iker Casillas, Arjen Robben, Paul Pogba, Luis Suárez, George Weah, Alessandro Del Piero, Son Heung-min, Mohamed Salah, and Jude Bellingham.

Adidas is one of the official sponsors of the UEFA Champions League. The Adidas Finale is the official match ball for this competition. Along with the Adidas Predator boot, Adidas makes the adiPure range of football boots. Adidas provides clothing and equipment for all teams in Major League Soccer (MLS).

In July 2014, Adidas and Manchester United agreed to a ten-year kit deal. This started with the 2015–16 Premier League season. This deal was worth at least £750 million (US$1.29 billion). This made it the most valuable kit deal in sports history. It replaced Nike as the club's global equipment partner.

Andy murray crop
Andy Murray endorsed Adidas from 2010 to 2014, earning US$4.9 million per year.

In November 2009, tennis player Andy Murray signed a five-year contract with Adidas. It was reportedly worth US$24.5 million, making him Adidas's highest-paid tennis star. Adidas also sponsors the ball-boy and ball-girl uniforms at the ATP Tennis Tournament in Mason, Cincinnati.

Adidas has sponsored many basketball players. These include Kareem Abdul-Jabbar, Chauncey Billups, Tim Duncan, Brandon Knight, Jeremy Lin, Tracy McGrady, Iman Shumpert. Current players include James Harden, Damian Lillard, Donovan Mitchell, Candace Parker, Derrick Rose, John Wall, and Trae Young. Adidas also supported Kobe Bryant with the Adidas Equipment KB8 as his first special shoe until July 2002. In August 2015, James Harden left Nike for Adidas. He signed a 13-year contract reportedly worth US$200 million.

In rugby union, Adidas is the current kit supplier for the All Blacks, the France national team, the Italian national rugby team, and the South African Stormers and Western Province rugby teams. Adidas also sponsors the New Zealand Rugby Union and supplies clothing to all Super Rugby teams. Adidas is also the official match ball supplier for the Heineken Cup.

Adidas has provided field hockey equipment and sponsors many players from Germany, England, Netherlands, Australia, Spain, and Belgium. The company has been the kit provider for the Argentine women's and men's teams for over 15 years.

Adidas also sponsors professional golfers. These include Collin Morikawa, Ludvig Åberg, Tyrrell Hatton, Daniel Berger, and Nick Taylor. Since Adidas does not make golf equipment, their sponsorship is mostly for clothing and shoes.

In ice hockey, Adidas signed a deal with the National Hockey League (NHL). They became the official uniform and licensed clothing provider starting in the 2017–18 season.

Adidas's cricket sponsorships include cricketers Lasith Malinga, Kieron Pollard, Dwayne Bravo, and K. L. Rahul. Adidas's volleyball sponsorships include Ivan Zaytsev and Earvin N'Gapeth.

See Also

Kids robot.svg In Spanish: Adidas para niños

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