Adidas
Adidas AG | |
---|---|
Type | Public |
Founded | 1949[1] |
Headquarters | Herzogenaurach, Germany |
Key people | Adolf Dassler (Founder) Herbert Hainer (CEO) Erich Stamminger (CEO, Adidas Brand) Henri Filho (Chairman of the supervisory board) |
Industry | Sportswear and Sports Goods |
Products | Footwear Accessories Sportswear |
Revenue | €10.084 billion (2006) |
Net income | €483 million (2006) |
Employees | 27,000 (2006) |
Slogan | (German) Weltmarke mit den 3 Streifen (German for The brand with the 3 stripes', (English) Impossible is nothing |
Website | www.adidas.com |
Adidas AG (ISIN: DE0005003404) is a major German sports apparel manufacturer, part of the Adidas Group, consisting of Reebok sportswear company, Taylormade golf company, Maxfli golf balls, and Adidas golf and is the second largest sportswear manufacturer in the world. The company was named after its founder, Adolf (Adi) Dassler, in 1948. Dassler had been producing shoes starting in 1920 in Herzogenaurach, near Nuremberg, with the help of his brother, Rudolf Dassler, who later formed the other shoe company Puma. The company registered as adidas AG (with lower-case lettering) on 18 August 1949. The company's clothing and shoe designs typically feature three parallel stripes, and this same motif is incorporated into Adidas's current official logo. The company revenue for 2005 was listed at 6.6 billion euro, or about 8.4 billion U.S. dollars. Adidas revenue for 2006 was listed at 10.084 billion euro, or about 13.625 billion U.S. dollars. Adidas perfumery and personal care products are manufactured by Coty, Inc. under license worldwide.
Financial data
Year | 2002 | 2003 | 2004 | 2005 | 2006 |
---|---|---|---|---|---|
Sales | 6 523 | 6 266 | 6 478 | 6 636 | 10 084 |
EBITDA | 532 | 627 | 725 | 818 | 1 098 |
208 | 260 | 314 | 382 | 483 | |
1 498 | 946 | 594 | -551 | 2 231 |
-
-
-
-
-
- Source :'OpesC'
-
-
-
-
The Tapie affair
The history of the company as presented by its official website is incomplete,
After a period of serious trouble following the death of Adolf Dassler's son Horst Dassler in 1987, the company was bought in 1990 by French industrialist Bernard Tapie, for 1.6 billion French francs (now €243.918 million), which Tapie borrowed. Tapie was at the time a famous specialist of rescuing bankrupt companies, a business on which he built his fortune.
Tapie decided to move production offshore to Asia. He also hired Madonna for promotion. He sent Walter Head, from Christchurch, New Zealand, a shoe sales representative, to Germany and met Adolf Dassler's descendants (Amelia Randall Dassler and Bella Beck Dassler) and was sent back with a few items to promote the company there.
In 1992, Tapie was unable to pay the interest from his loan. He mandated the Crédit Lyonnais bank to sell Adidas, and the bank subsequently converted the outstanding debt owed into equity of the enterprise, which was unusual for then-current French banking practice. Apparently, the state-owned bank had tried to get Tapie out of dire financial straits as a personal favour to Tapie, reportedly because Tapie was a minister of Urban Affairs (ministre de la Ville) in the French government at the time.
In February 1993, Crédit Lyonnais sold Adidas to Robert Louis-Dreyfus, a friend of Bernard Tapie (and cousin of Julia Louis-Dreyfus from the Seinfeld TV series), for a much higher amount of money than what Tapie owed, 4.485 billion (€683.514 million) francs rather than 2.85 billion (€434.479 million). Tapie later sued the bank, because he felt "spoiled" by the indirect sale.
Robert Louis-Dreyfus became the new CEO of the company. He is also the president of the Olympique de Marseille football team, a team Tapie owned until 1993. Tapie filed for personal bankruptcy in 1994. He was the object of several lawsuits, notably related to match fixing at the soccer club. He spent 6 months in La Santé prison in Paris in 1997 after being sentenced to 18.
In 2005, French courts awarded Tapie a €135 million compensation (about 886 million francs).
Post-Tapie era
In 1997, Adidas AG acquired the Salomon Group who specialised in ski wear, and its official corporate name was changed to Adidas-Salomon AG. With this acquisition Adidas also acquired the Taylormade Golf company and Maxfli which allowed them to compete with Nike Golf.
In 1998, Adidas sued the NCAA over their rules limiting the size and number of commercial logos on team uniforms and apparel. Adidas withdrew the suit, and the two groups established guidelines as to what three-stripe designs would be considered uses of the Adidas trademark. [1]
In 2003, Adidas filed a lawsuit in British court challenging Fitness World Trading's use of a two-stripe motif similar to Adidas's three stripes. The court ruled that despite the simplicity of the mark, Fitness World's use was infringing because the public could establish a link between that use and Adidas's mark. [2]
In September 2004, top English fashion designer Stella McCartney launched a joint-venture line with Adidas, establishing a long-term partnership with the corporation. This line is a sports performance collection for women called "Adidas by Stella McCartney" [3], and it has been critically acclaimed. [4]
Also in 2005, on May 3, Adidas told the public that they sold their partner company Salomon Group for €485m to Amer Sports of Finland.
In August 2005, Adidas declared its intention to buy Anglo-American rival Reebok for $3.8 billion (US). This takeover was completed in January 2006[2][3] and meant that the company will have business sales closer to those of Nike in North America. The acquisition of Reebok will also allow Adidas to compete with Nike worldwide as the number two athletic shoemaker in the world. [5]
In 2005, Adidas introduced the Adidas 1, the first ever production shoe to utilize a microprocessor. Dubbed by the company "The World's First Intelligent Shoe" it features a microprocessor capable of performing 5 million calculations per second that automatically adjusts the shoe's level of cushioning to suit its environment. The shoe requires a small, user replaceable battery that lasts for approximately 100 hours of running. It currently retails for $250 (USD). On November 25, 2005, Adidas released a new version of the Adidas 1. There is an increased range of cushioning, meaning the shoe can become even softer or firmer and a new motor with 153 percent more torque.
On April 11, 2006, Adidas announced an 11-year deal to become the official NBA apparel provider. They will make NBA, NBDL, and WNBA jerseys and products as well as team-colored versions of the "Superstar" basketball shoe. This deal (worth over $400 million) takes the place of the previous 10-year Reebok deal that was put in place in 2001. When Reebok was acquired by Adidas, the NBA was allowed to find a new apparel provider, which turned out to be Adidas.
Production policies
According to the Adidas website as of May 2007:
Facility locations
"At May 1st, 2007, we worked with more than 1080 factories are operated by independent business partners (excluding factories of our licensees)...67% of our factories are located in Asia, 19% in the Americas and 14% in Europe and Africa. 22% of all these factories are in China."
Enforcement guidelines
"In 2010, we issued the enforcement guidelines to our suppliers. The guidelines cover the principles of enforcement of the "Workplace Standards", and those sanctions or remedies we will apply where the supply chain code of conduct is breached...We strongly believe in a partnership approach, and where a supplier is performing poorly in terms of "Workplace Standards" compliance we will work closely with them to find solutions. However, where we find ongoing and serious non-compliances and a lack of commitment on the part of management to address the issues, we will when appropriate, issue a formal warning letter...On any given issue, three warning letters will usually result in an immediate recommendation to terminate. In very serious cases, a single letter will be issued advising our suppliers that SEA is recommending to our Sourcing department that the business relationship be terminated. Our Legal department would then follow-up with a formal notification of the end of the business relationship.
In total, in 2005, 10 warning letters were issued, all to suppliers in Asia. This is 19 fewer than in 2004."
Environmental requirements
"Business partners must make progressive improvement in environmental performance in their own operations and require the same of their partners, suppliers and subcontractors. This includes: integrating principles of sustainability into business decisions; responsible use of natural resources; adoption of cleaner production and pollution prevention measures; and designing and developing products, materials and technologies according to the principles of sustainability."
Sponsorship
FIFA World Cup 1954
When West Germany won the 1954 FIFA World Cup, their footwear was supplied by Adidas. These shoes introduced a technological breakthrough: studs with screws. When the weather was good and the pitch was hard, the shoes were equipped with short studs; when it rained, longer studs were screwed on the bottom of the shoes. As the final game against the highly-favoured team from Hungary was played in heavy rain, this gave the German players a firmer hold on the slippery pitch. This anecdote was a plot device used in the successful German film, The Miracle of Bern, which was a movie version of the 1954 World Cup.
FIFA World Cup 2006
More recently, some players on the German national team who have contracts with rival sportswear companies (most notably Nike endorsers Jens Lehmann and Miroslav Klose) have complained about the clause on Adidas' contract with the national side requiring them to wear Adidas kit, including footwear. Lehmann cited foot pain from the boots that bothered him during the 2006 FIFA World Cup. Several players threatened to boycott an international friendly against Sweden in protest against the rule. However, the German Football Association was able to reach a new agreement with Adidas in September 2006 to allow the players to wear their own brand of boots, and in the goalkeepers' case, their own gloves.
Official FIFA World Cup supplier
Tournament | Name of the match ball design |
---|---|
1970 | Telstar Durlast |
1974 | |
1978 | Tango |
1982 | Tango España |
1986 | Azteca México |
1990 | Etrusco Unico |
1994 | Questra |
1998 | Tricolore |
2002 | Fevernova |
2006 | Teamgeist |
Official UEFA Supplier
Adidas also designs special balls for UEFA competitions. The company has supplied the ball for the UEFA European Championship ever since 1984, starting with the , and also produces the ball for use in the UEFA Champions League.
Team and player sponsorships
Adidas sponsors and provides kits, gear and accessories to several professional and collegiate teams all over the world, the most notable perhaps being the Germany national football team, the association running back to at least the West German World Cup winning team of 1954.
Football (soccer) teams with kits manufactured by Adidas
Africa
- El Zamalek
- Ismaily SC
- FUS Rabat
- Hassania Agadir
- IZK Khemisset
- Jeunesse Massira
- Kawkab Marrakech
- Wydad
- Orlando Pirates FC
Asia
- Beijing Guoan
- Dalian Shide
- South China AA
- Albirex Niigata
- FC Tokyo
- Yokohama Marinos
- Selangor FC
- Pahang FC
- FC Seoul
- Suwon Samsung Bluewings
- Ulsan Hyundai Horang-i
- Al Hilal Al Saudi Club
- Al-Sadd Sports Club
- Al-Wakra
- Al-Khor
- Qatar Sports Club
- Al-Jazeera Club
- Al Wasl FC
Europe
North America
- All Major League Soccer teams, plus MLS All-Star Teams.
- UANL Tigres
- Harbour View FC
- Club Deportivo Victoria
South America
National
CONCACAF - North America, Central America & the Caribbean
CONMEBOL - South America
UEFA- Europe
CAF - Africa
AFC - Asia
Players
Tennis PlayersMale Players:
Female Players: Other Adidas sponsorshipsAdidas sponsor the Gumball 3000 car rally, organised by the global jet-set. Two British participants of the 2007 rally, driving a Porsche, were arrested and detained for their part in a reported 200km/h car crash on 3rd May that resulted in the death of two people.[6]. Adidas produce the kits of some of the biggest domestic and international football teams including Real Madrid, AC Milan, Chelsea, Liverpool, Bayern Munich, as well as the national teams of Mexico, Germany, France, Argentina, and Spain. They produce the balls used in the UEFA Champions League matches and FIFA World Cup tournaments since 1970, and also produced the kit for the Europe XI in the Celebration Match on 13 March 2007 versus Manchester United at Old Trafford. Adidas are the apparel sponsors for two clubs in the Australian Football League - the Adelaide Football Club and the Collingwood Football Club. The guernsey design for both of these clubs is rather technologically advanced for AFL clubs, with the material designed to reduce sweat. The guernseys do not feature the three-stripe design as such, although Adelaide's jumper design features three colors in repeated horizontal stripes, and Collingwood's design features three white verticle stripes on a black background. The Australian cricket team is also sponsored by Adidas, as is each of the state teams in the local KFC Twenty20 Big Bash, Ford Ranger One Day Cup and Pura Cup Test competitions. Adidas is also a sponsor of the New Zealand Rugby Union, including the All Blacks team and the teams who represent New Zealand in the Super 14: the Blues, Chiefs, Crusaders, Highlanders and Hurricanes. Adidas also sponsors the Argentine Rugby Union, outfitting Los Pumas, that country's national team. They also sponsor both the San Beda Red Lions and the , a collegiate team in the Philippines and their High School counterpart respectively. Ateneo de Manila University is fully sponsored by Adidas from the Blue Eagle Gym to all the varsity teams in the grade school and high school. The College of Saint Benilde Blazers is also among the recipients of the said Adidas Sponsorship. In the United States, Adidas is an official sponsor for the Boston Marathon since 1988. The company also serves as the exclusive uniform supplier to the National Basketball Association and uniform and match ball supplier for Major League Soccer. They are also an official sponsor of the New York Yankees of Major League Baseball. Sachin Tendulkar is a Brand Ambassador for Adidas. From 2001-2005, Adidas was the Official Sponsor for the Hoops In The Sun Summer League, based in New York City, primarily Orchard Beach in the Bronx. It would be the only street ball summer league that Adidas has been a sponsor for in New York City, as well as on the entire East Coast. Representatives of Adidas such as Tracy McGrady and Tim Thomas made appearances at the league during Adidas' sponsorship tenure. Adidas also sponsors the U.S. Fencing Association, and makes some of the most popular fencing shoes (with the most popular Adidas fencing shoes being the Dartagnan II), in the market. Adidas is also a sponsor of the St George-Illawarra Dragons Rugby League team in the NRL in Australia Adidas also co-sponsors the UCI T-Mobile cycling team. Adidas will be a sponsor for Dale Earnhardt Jr in 2008 for the NASCAR Sprint Cup Series. It was announced on 20th September 2007 that Adidas will be the sportswear sponsor of the London 2012 Olympic Games, in a deal worth an estimated $200 million Mi AdidasMi Adidas is the customization program of the sporting goods manufacturer Adidas using the concept of mass customization. Adidas offers various shoes of different sport categories in this customization program. The customizable footwear models are defined by Adidas. The option to customize a shoe model is always an additional option of an existing shoe model, the customer is not able to fully create a new shoe but instead has the choice of (for example) choosing between different types of outsoles or different softness of cushioning for a running shoe. The shoe model can be adjusted in different length and width for both left and right foot, in different technologies and in design. The customization for the length and width is based on a static (length and width) and dynamic (impact on foot when hitting the ground) measurement. These measurements require specific measurement devices that only can be found in particular retail stores so far. Other sporting good manufacturers, such as Converse (Converse One), Nike (NikeID), Reebok (Rbk Custom), Puma (Mongolian Shoe BBQ) and K-Swiss (my K-Swiss), also offer customization programs. These programs very often can be found online as they focus on design customization. LacrosseIn 2007, Adidas announced through advertising, the future production of lacrosse equipment to include shafts, heads and possibly protective gear. Former management
Current Executive board
"Impossible is Nothing""Impossible is Nothing" is the current mainstream marketing slogan for Adidas. This campaign was developed by 180\TBWA based in Amsterdam but also with significant work being done by TBWA\Chiat\Day in San Francisco - particularly for its basketball campaign "Believe In Five". TV commercialsAdidas's worldwide line of commercials showcase events that are truly impossible, such as José + 10 with two boys in a run down lot gathering many world football stars to play a pick-up game. These stars include present players like Steven Gerrard, Djibril Cissé, Juan Román Riquelme, Zinedine Zidane, David Beckham, Jermain Defoe, Oliver Kahn, Frank Lampard, Arjen Robben, Cha Du Ri,Andrés Guardado, Shunsuke Nakamura, Lukas Podolski, Michael Ballack, Alessandro Nesta, Bastian Schweinsteiger,Raúl, Damien Duff, and Kaká. They also include past stars Franz Beckenbauer and Michel Platini. [7] However the commercials do not only focus on soccer: for example, other TV ads feature long-distance runner Haile Gebrselassie and NBA Superstars Tim Duncan, Kevin Garnett, Tracy McGrady, Chauncey Billups, Gilbert Arenas and a few Rugby Union players, like Jonny Wilkinson, Brian O'Driscoll, Ronan O'Gara, Jonah Lomu and Daniel Carter. Commercials in Australia also feature swimmer Ian Thorpe. All are representative of Adidas's involvement in sports. Former football referee, Pierluigi Collina has also appeared in adverts for Adidas, most notably during the 2002 World Cup. Popular culture
See alsoReferencesExternal links
Articles
|