When Adidas came to India, they brought along a world of sneakers from a whole new level. They started a movement to promote sustainable sneakers and are now the largest manufacturer of such footwear globally. However, the story of how they arrived in India isn’t over yet. This article will look at some of the significant events and festivals that the company has organized since they first set up shop here.
Adi Dassler
When Adidas came to India, it brought a long history of collaboration and innovation. Founded in Herzogenaurach, Bavaria, in 1900, the company has been at the forefront of sportswear for more than a century. It is one of the world’s largest sports brands. The company began in the humble home of Adolf Dassler. Initially, Dassler worked in his family bakery and completed a short apprenticeship before deciding against it in the long run. This allowed him to learn the craft of shoemaking, and he opened a small repair shop in the back of his home.
After a few years, the company acquired Reebok to expand its footprint in the country. In India, Reebok was the biggest sportswear brand with a revenue of over Rs 700 crore and more than 1,500 retail stores. Prem aggressively built up the Reebok franchise network and negotiated a minimum revenue guarantee for its franchisees. The parent company did not approve of this strategy. The company restated its 2011 results, reducing its profit by EUR58 million and taking a EUR153 million hit to shareholders’ equity.
The German multi-sportswear giant hired logistics company DHL Supply Chain to consolidate its supply network nationwide in February. The company also consolidated five facilities into one near Delhi. Getting the supply chain right is crucial to the success of an international brand like Adidas in the country. The new strategy includes integrating technology in its stores to help customers find the perfect fit. Although its strategy is still a work in progress, the company is making a big splash in India.
Reebok
What happened to Reebok when Adidas came into India? Reebok has been struggling in India ever since Adidas bought it. While Reebok was once considered a high-end fashion brand, it never quite managed to break out. The company tried diversifying into women’s fitness shoes, but that failed, and it was viewed as a cheap brand by most women. The company never quite got its act together post-acquisition.
While Adidas had no problem with the Reebok name, it struggled to compete with Adidas, present in India for over 30 years. The two brands have different executive teams and managers in other countries. The company had to purchase the entire Reebok brand globally for $3.8 billion in 2005. During this time, the former management team of Reebok India admitted to financial irregularities that led to a 93% drop in net profit for 2020-21.
Reebok was the bigger brother in 2006, with sales of Rs354 crore, almost double the revenue of Adidas. Nike came in third with Rs99 crore. Puma entered India nearly a decade later than Adidas and Reebok. Reebok and Adidas had dominated the market. Puma was the youngest competitor, entering the market almost a decade later. Both brands aim at the premium Indian consumer; they are now the second and third most popular sportswear brands in India.
Puma
When Puma came to India in 1998, it was a course correction from the initial success of the Carona tie-up. The brand licensed Planet Sports to produce and distribute its apparel, footwear, and eyewear. Soon after, quality issues were identified. But in the end, the company turned its efforts into a success. Virat Kohli has become the brand’s ambassador, and the cricketing phenom has been an excellent fit for Puma.
When Puma first entered the Indian sportswear market, it was able to gain a foothold with a modest turnover of Rs22 crores. Other leading sportswear brands like Nike, Adidas, and Reebok already had substantial market clout in India. As a result, Puma had to compete with such strong brands to make inroads in the country. Puma’s market cap was less than half that of Nike and Adidas.
The company’s headquarters is based in Bengaluru and features a poster featuring MC Mary Kom and Usain Bolt, the eight-time Olympic gold medalist and 100-meter world record holder. Virat Kohli is the best cricketer, and Puma has just made him its face. The global chief executive officer credits the local leadership with bringing Puma to India.
TELSTAR
When Adidas came to India, TELSTAR teamed up with Dentsu Aegis Network’s flagship media agency Carat to create an OOH campaign for the World Cup. Designed to build brand awareness among football enthusiasts, the campaign saw a 3D ball placed inside goalposts. It also had an interactive billboard that tracked the score of games in the capital. The campaign’s goal was to build buzz around the World Cup and Telstar football and create an affinity amongst football fans of all age groups.
When Adidas came to India, TELSTAR made its mission to provide high-quality sports equipment at a competitive price. The company’s original design, the Tango, was renamed to reflect its new brand. The company had also reworked the ball’s surface, allowing it to become an official partner of FIFA. It was also given a new look, resembling the ball’s iconic twirl pattern.
The brand also revealed the Official Match Ball for the knockout stage of the World Cup: the Telstar Mechta. This version of the ball’s infamous blue patterns will be replaced by a bright red design, which takes its cues from the host nation’s colors. This version also features a new look, resembling the classic Telstar, which debuted in Mexico’s 1970 World Cup.
Adidas’ acquisition of Salomon Group
The merger was announced in February 1998, following the successful acquisition of Reebok by Adidas. The company’s CEO, Paul Fireman, said that he was thrilled to have landed a strategic partner. Adidas’ chairman, Herbert Hainer, hailed the merger as a once-in-a-lifetime opportunity. The companies will combine their sports footwear, apparel, and marketing strengths.
The acquisition of Reebok by Adidas creates a formidable competitor for Nike in the US market. The Sporting Goods Manufacturers Association International pegs Nike’s share at 36%, while the combined company will hold more than 20 percent of the US market. Thanks to its expanded product offering, the new company will have a global reach. Herbert Hainer and Vimmy Sinha discuss the company’s future after the merger.
The two companies will create a 9 billion euro footprint in the global athletic market and complement each other’s strengths. Adidas will benefit from Reebok’s technological edge and mission of enrolling the world’s youth. In addition to being a worldwide leader in athletic gear, the two companies will be able to market their products and gain brand recognition better. In this way, the Adidas brand will have a more significant global presence than ever before.
Launch of Sneakers Day festival
The sneaker culture is growing in India at an unprecedented pace. Sneakers have become a global phenomenon, from streetwear and music to art and culture. As India’s sneaker culture catches up with global trends, it will majorly impact the industry in the coming years. One of the most critical factors that drive the industry’s growth in India is real-time awareness of the latest launches. Here are some of the reasons why sneaker culture is growing in India:
Soledition – a sneaker lovers’ haven! Located in Delhi, VegNonVeg is India’s first multi-brand boutique sneaker store. Founded by Abhineet Singh, Emilia Bergmans, and Anand Ahuja, the store brings sneaker lovers from all over the country. This sneaker-centric space has been designed to reflect the ethos of the sneaker culture and bring the community together to celebrate their mutual love of the sneakers.
Today, teenagers and young entrepreneurs are selling their old sneakers on Instagram for a profit. The country is already the second-largest consumer of footwear in the world. But the concept of buying sneakers as investments is catching on like wildfire. In India, a growing class of entrepreneurs sets up platforms to create sustainable livelihoods from sneakers. The trend is spreading faster than anyone could imagine! So how can a country like India capitalize on the growing demand for sneakers?
Changes in the sneaker landscape
Changes in the sneaker landscape in India started with the arrival of the German sportswear giant, which opened an office building in the city of Herzogenaurach. After moving into this new location, the entire team works together on a single campus. The office has been designed to promote communication and the use of different spaces depending on the needs of other employees. It also features a large video screen that helps employees communicate and collaborate.
While the Indian sneaker industry is not a global leader, it’s clear that it’s on the rise. While it may have taken Indians a while to adopt the culture of sneakers, they’re aware of global trends and collaborations and look to global stars for inspiration. And as the sneaker landscape continues to evolve, the influx of international brands into India is a sign of the changing tastes of Indian consumers. Changes in the sneaker landscape since Adidas came to India have resulted in the company’s recent high-end drop selling out almost immediately. In addition to this, they’re also bringing global stories into India – primarily about the sneaker culture.
When Adidas first arrived in India, the brand struggled with financial issues and reorganized. The new leadership team focused on core business and redesigned the company’s logo and product design. These innovations led to Adidasnew sneaker designs, such as the Torsion (first introduced in 1989) and the Equipment concept (1991). Eventually, the company was run by Adi Dassler’s son Horst, who has since been guiding the company.