Adidas Brand Strategy: A Blueprint for Global Success

Known for its iconic three-stripe logo and a diverse product line that spans footwear, apparel, and accessories, Adidas is one of the most recognizable sportswear brands in the world. Some would say it that now its in a dominant position globally because of a exceptionally executed strategy that blends innovation, cultural relevance, and a commitment to sustainability. Its been a while since I wrote about a brand that I admire, so here are my thoughts on the Adidas brand in a longer read blog! Here it goes:??

Founded in 1949 by Adi Dassler its strategy is built on balancing its rich heritage with a strong focus on innovation. It all began with functional footwear that would give the wearer peak performance. However in the 1980s and 1990s Adidas did struggle with increased compeition from the likes on Nike particuraly in the US market. The brand had diluted with too broad a range of products, and a shift in buying behaviour towards street wear, and finally the inability to know what to do with the internet! But this was all to change. To overcome these challenges, Adidas embarked on a strategic overhaul to redefine its brand, increase consumer engagement, and capture new growth opportunities.

Since inception, Addidas has embraced cutting-edge technology and design to maintain this commitment to performance. Key to the success has been 2 particular product innovations.??

1. Boost technology which revolutionized the running shoe market with cushioning Boost technology which proveides enhanced comfort and energy. Interestingly back in my early running days I was an avid wearer of these soles and believe it was key to my recovery from multiple achilles injuries.??

1. 4D printing: By leveraging 3D printing and design technology, Adidas has developed 4D midsoles, offering a new level of customization and performance for athletes.?

These innovations had blended tradition and modernity and appeal both to the athletes and wider consumer market, creating fandom and ultimately customer loyalty.?

Like many many successful brands, Adidas started with a niche, or core customer group i.e. Athletes. Those folks with a performance mind set, and build this as a key pillar of their overall brand strategy. By closely working with elite athletes, they maximized produce enhancement, which strengthened their credibility. Talking about credibility, how has this brand built on that core pillar for future growth. First up, Adidas build partnerships with the world's biggest sports organizations, such as FIFA World Cup, the NBA and various national teams, clubs and athletes. This allows Adidas to reinforce their association with performance and excellence. Secondly, Adidas endorses athletes such as Lionel Messi to give Adidas the credibility and visibility to promote its performance-driven products.?

Moving away from elite athletes and to target a wider customer demographic. This is achieved by leveraging the heritage and collaborations to resonate with a fashion first consumer. Because of this Adidas has successfully expanded into the lifestyle and streetwear segments and target consumers who seek a fusion of sportswear and casual fashion.?

Based on the heritage side, Adidas play hard with the Adidas Originals brand, re releasing classics with a modern twist. This nostaligic approach tapps into retro trends, making it popular in young and older consumer groups. A win win for Adidas! Adidas has worked with top designers like Stella McCartney and Raf Simons, and even brands like Prada, to create limited-edition collections that elevate its status in the streetwear market.?

An area that was highly successful, but then not so “Woke” anymore was the collaboration with Kanye West. It was highly successful as they launched the Yeezy line, it blends high fashion with Adidas’ athletic ethos, attracting both sneaker enthusiasts and mainstream consumers.?Adidas' partnership with Kanye West ended in 2022. This was due to anti-Semitic remarks made by the rapper, which led to a split between the two entities. Following the split, Adidas was left with a massive inventory of Yeezy shoes and was grappling with how to deal with it. More on this to follow in later posts (watch this space.)

In recent years, Adidas like many other brands, has made sustainability a core part of its brand strategy. This move is a reflection of growing consumer demand for responsible and ethical business practices. Its efforts go beyond mere marketing and are woven into its product development, supply chain, and corporate vision. What like about Adidas strategy is that look to plastic produced already, and how they reuse it. They have three key programs to work this through: ?

1. Parley for the Oceans: Adidas has partnered with Parley for the Oceans to create products made from recycled ocean plastic, it sounds great, but I believe they are the first brand to activily create products from ocean waste. ?

• Sustainable Products: The company aims to use recycled polyester in all products by the end of this year, manufacturing the “Futurecraft Loop” shoe project, which emphasizes the circular economy. Clever in my opinion! ?

• End Plastic Waste: Adidas’ strategic vision is to help "end plastic waste" by transforming how it designs, manufactures, and distributes products. This resonates strongly with the environmentally-conscious consumers, but particularly younger generations.?

As talked about above, Adidas initially focused with eCommerce. But in recent years, has capitalized on the digital revolution, integrating technology into its brand experience through omnichannel strategies, innovative marketing campaigns, and direct-to-consumer initiatives. They have grown through eCommerce in 3 key areas. ??

• Direct to Consumer: Like many retailers, once they embraced e-commerce, Adidas drove significant sales through its own platforms. This allows the brand to have a direct connection with consumers, gather insights, and deliver personalized experiences. This data lake of information has been hugely beneficial in shaping their product strategies and marketing plans. ?

• Digital Marketing: Like us all, Adidas uses targeted digital marketing campaigns across social media, leveraging influencers, athletes, and content creators to drive engagement. Adidas Originals, for example, uses Instagram as a primary platform to promote its products and collaborations with fashion influencers.?

• Mobile-First Strategy: The company has invested heavily in mobile commerce, making it easy for consumers to shop and engage with the brand through their smartphones. Adidas apps offer personalized experiences, exclusive releases, and even fitness tracking, blending commerce with lifestyle.?

All this is great, but central to each successful piece of this pie Adidas has placed significant emphasis on building a customer-centric brand. Each touch point adds value and focused delivery for their customers. The consistency of brand experience is exceptional whether it’s an in-store experience, e-commerce, or social media interaction, Data is central to this piece, as Adidas aims to create an emotional connection with its consumers. Tailored personalized content especially on their app creates stronger connection with its audience.?

Adidas build on their communities through fitness, sport, their running platform so that fans and enthusiasts can connect, train together and participate in mass events. This is a huge driver of brand stickiness, engagement and ultimately fandom! ?

• Now if you think of it, Adidas has global reach. It maintains a consistent identity whilst adapting to local markets and cultures, by tailoring its marketing and product offerings to different markets. In China, where Adidas have significant interest, the release of limited edition releases that resonate with Asian consumers. Whereas in Euope, the focus is primarily football, collaborting with top clubs such as Real Madrid, Man Utd, Bayern Munich and Juventus, country team and key players like Karam Benzema, Lionel Messi and Jude Bellingham. This global and local strategy ensures Adidas remains culturally relevant while maintaining its global brand identity. A win win for all us Marketeers looking for inspiration. ?

So for me, Adidas’ brand strategy is a masterclass in how a company can balance heritage with innovation, performance with lifestyle, and global reach with local relevance. They continuously adapt to market trends, focusing on sustainability, and embracing digital transformation, Adidas has positioned itself as not just a sportswear company but a cultural force.?

With its relentless focus on innovation, strategic partnerships, and commitment to environmental and social responsibility, Adidas has solidified its place as a global leader in the sportswear industry. Its ability to stay ahead of consumer trends while staying true to its core values ensures that Adidas will continue to thrive in an increasingly competitive market.?