Monday, June 2, 2014

Corporate Sponsorship: Clash of the Titans

Besides the obvious competition between national teams on the pitches of Brazil this summer, two titans of the sports apparel industry -- Nike and Adidas -- are battling for brand supremacy and market share against the backdrop of the FIFA World Cup, even though only one, Adidas, is the event's official sponsor.  Adidas has sponsored FIFA since 1970 and its relationship will run to at least 2030, when its current contract expires.  According to Bloomberg Businessweek, Nike is the largest sportswear company in the world, with $25 billion in revenue and a 17% market share, while No. 2 Adidas has $20 billion in revenue and a 12% market share.  When it comes to soccer gear sales, however, Adidas leads Nike by around $500 million, with these two rival companies sharing a combined 70% of the market.  While not having any sponsor relationship to FIFA or the World Cup itself, Nike will sponsor ten national teams -- including host Brazil
-- and outfit their players in its emblematic swoosh on home and away kits.  Meanwhile, Adidas will sponsor nine teams, but from an event optics perspective, Adidas has the advantage of in-stadium signage and the omnipresence of its commemorative Brazuca game ball.  Still, Nike is most effective at insinuating its brand on its competitors' turf (no pun intended!) time and time again.  For the commercially inattentive fan, it might be difficult to say for certain which company is the official sponsor.  Coke or Pepsi?  Visa or MasterCard?  Emirates or Lufthansa?  Hyundai or BMW?  Sony or Samsung?  http://www.businessweek.com/articles/2014-05-15/2014-world-cup-nike-adidas-gear-up-for-soccer-duels-next-round

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