Adidas is a world-renowned German multinational sportswear, footwear and accessories company. Adidas is deservedly considered the largest and most famous sportswear manufacturer in Europe and the second largest in the world. This company is only second to Nike.
What it all began with
In 1900, the Dassler family lived in the German town of Herzogenaurach. The father worked at a shoe factory, while the mother did laundry. They had four children, the youngest of whom was named Adolf.
In the early 1920s, the Dasslers decided to start a family business – making shoes. At first, they produced home slippers and orthopedic shoes for disabled athletes. Discarded military uniforms were used as material for making such shoes, and soles were made from old car tires.
The younger brothers Rudolf and Adolf were the main figures in this business. With opposite personalities, they complemented each other harmoniously. In 1924, the “Dassler Brothers Shoe Factory” was officially registered. Calm and balanced Adolf was in charge of shoe production, while active and communicative Rudolf sold the shoes.
In 1925, thanks to Adolf, who invented and sewed them, the world’s first football boots with spikes appeared. This comfortable model, along with gymnastic slippers, became the main product of the Dasslers. The demand for these products grew so much that in 1926, a factory was opened, which employed 25 people and produced over a hundred pairs of shoes every day. In 1928, the brothers received a patent from the German office for spiked shoes developed in collaboration with Joseph Waitzer. As a result, at the 1928 Summer Olympics in Amsterdam, the brothers’ shoes appeared for the first time at major sporting events.
In the mid-1930s, the “Dassler” company gained fame as the standard for German sports shoes.
The emergence of Adidas
In 1947, as a result of a dispute between the Dassler brothers, their company “Dassler” ceased to exist, and the brothers split the business, forming two competing companies: Rudolf started Puma, while Adi started Adidas (short for Adi Dassler). Adi’s goal was always to create the perfect shoes for every type of sport, and his life motto became the brand’s motto, “Impossible is Nothing”. This phrase clearly conveys the company’s purpose and strategy.
In 1949, Adi added a third stripe to the “Dassler” symbol, creating the logo for the legendary Adidas brand, which became a symbol of Sport Performance.
In 1971, the Adidas trefoil logo was introduced, which is now a symbol of Sport Heritage, while the circle with three stripes is the symbol for the third direction, Sport Style.
By the late 1970s, the company owned 24 factories in 17 countries around the world, producing over 200,000 pairs of shoes every day, as well as clothing, balls, and bags.
Adolf Dassler passed away in 1978, and his business passed to his widow, and then to his son, who died in 1987. This marked a difficult period for the company, as Nike and Reebok had taken 50% of the world market for sports shoes. Adidas was left with just 3% of the market.
In 1989, the Dassler family sold 80% of the company’s shares to French politician and entrepreneur Bernard Tapie, but he was unable to improve the company’s situation. In 1993, he sold the company to a group of French investors, with Robert Louis-Dreyfus becoming the CEO. The company underwent an active reorganization, with the marketing budget increasing from 6% to 11%. Production began in Indonesia, China, and Thailand. As a result of the cost savings from cheap labor in developing countries, Adidas products became competitive on the global market again, and profits more than doubled by 1995 compared to 1994.
The revenue of Adidas for the year 2019 amounted to over 23 billion euros.
The company Adidas nowadays
The modern company Adidas sponsors many sports competitions, including the Olympics. To conduct advertising campaigns, it invites the most famous personalities, successfully collaborates with young celebrities to create collections, occupies avant-garde positions in the global market for years, and is a favorite brand among professionals and beginners. Adi would be extremely satisfied.
