The History of Adidas

Summary

Adidas, a global sportswear giant, began with humble roots in a small Bavarian town by Adolf Dassler, who transformed his family's shoemaking business into a pioneering brand. From its first spiked cleats in 1925 to the iconic three stripes, Adidas has a rich history of innovation and sports sponsorships. Despite family feuds and fierce competition, the brand has endured, expanding its reach and product lines, and remains a top choice for athletes and consumers worldwide.

Takeaways

• 🌐 The ubiquity of Adidas: It's rare to find someone who hasn't heard of Adidas, making it a leader in the sportswear industry.
• 👟 Diversified Product Line: Adidas produces not only sportswear but also everyday clothing, shoes, and accessories.
• 🏅 Acquisitions and Expansion: Adidas owns companies like Reebok, Rockport, CCM, and TaylorMade golf, expanding its market presence.
• 📚 Historical Roots: Founded in 1949, Adidas' history traces back to the early 20th century with Adolf Dassler's family shoemaking business.
• 🛠️ Innovation and Invention: Adolf Dassler's passion for innovation led to the creation of the world's first cleats with spiked soles in 1925.
• 🏅 Olympic Endorsements: Adidas gained fame when Jesse Owens won four gold medals wearing Dassler shoes at the 1936 Berlin Olympics.
• 🔄 World War II Impact: Both Dassler brothers were members of the Nazi party, and their factories were confiscated during WWII.
• 👠 Post-War Reconstruction: After WWII, Adidas had to rebuild using materials like old tires for shoe soles due to scarcity of resources.
• 👬 Sibling Rivalry: Adolf and Rudolph Dassler's disagreements led to the creation of Adidas and Puma, now fierce competitors.
• 📈 Global Growth: By the end of the 1970s, Adidas had a global presence with 24 factories and a significant daily production of sportswear.
• 🏆 Sponsorships and Success: Adidas has been a significant sponsor of sports teams and athletes, contributing to its brand recognition.
• 📊 Market Dynamics: The company faced a crisis in the 1980s with competitors like Nike and Reebok but rebounded under new leadership.
• 💼 Business Evolution: Adidas has transitioned from a family business to a global corporation with a focus on innovation and quality.

Q & A

What is the significance of the Adidas brand in the sportswear industry?

Adidas is one of the leaders in the sportswear industry, known for its production of clothing, shoes, and accessories for both sports and everyday life, making it a globally recognizable brand.

When was Adidas officially founded and what was its original focus?

Adidas was officially founded in 1949, with its story tracing back to the early 1920s. Initially, it focused on the production of orthopedic shoes for athletes and house slippers.

Who were the founders of Adidas and what was their initial business setup?

Adolf Dassler and his brother Rudolph founded Adidas. They started their shoemaking business in a small laundry room where their mother worked, producing shoes for athletes and house slippers.

What was the breakthrough product created by Adolf Dassler in 1925?

Adolf Dassler created the world's first cleats with spiked soles in 1925, which became the factory's main product and significantly increased its demand.

How did Adidas shoes gain international recognition at the Berlin 1936 Olympics?

Adidas gained international recognition when American runner Jesse Owens won four gold medals and set five world records wearing Dassler shoes, which featured the company's trademark two stripes.

What challenges did the Dassler brothers face during World War II?

During World War II, the Dassler factories were confiscated by the Nazis, and the brothers were sent to the front. Adolf returned to produce training shoes for German soldiers, while Rudolph was accused of being an SS member and sent to a POW camp.

Why did the Dassler brothers split their business after the war?

The Dassler brothers had different world views and visions for the company's future, leading to disagreements that resulted in the division of their assets. Rudolph took the new factory, and Adolf took the old one, leading to the creation of separate brands, Adidas and Puma.

What was the significance of the three stripes in the Adidas logo and when was it patented?

The three stripes in the Adidas logo, added by Adolf Dassler on August 18, 1949, became a distinctive brand mark and were patented to represent the company's innovative spirit.

How did Adidas expand its product line and global presence in the 1950s and 1960s?

Adidas expanded its product line by introducing sports bags and tracksuits with three stripes along the sleeves. It also entered the U.S. market in the late 1950s and gained momentum with the German soccer team winning the 1954 FIFA World Cup in Adidas shoes.

What was the impact of the 1970 FIFA World Cup on Adidas and its products?

The 1970 FIFA World Cup held in Mexico saw the introduction of the Adidas Telstar ball, which became the official ball of the tournament, further enhancing the brand's visibility and association with football.

How did Adidas navigate the crisis following the death of its founder, Adolf Dassler?

Following the death of Adolf Dassler, the company faced a severe crisis due to the emergence of competitors like Nike and Reebok. It was eventually sold to French entrepreneur Bernard Tappe in 1989, who struggled to improve the company's situation until it was sold again to a group of French investors.

What strategic moves did Adidas make under the leadership of Robert Louis-Dreyfus to regain its market position?

Under Robert Louis-Dreyfus, Adidas increased its marketing budget, shifted production to countries with cheap labor costs like Indonesia, China, and Thailand, and reorganized the company, leading to a significant increase in profits by 1995.

What was the significance of Adidas's acquisition of Reebok in 2005?

The acquisition of Reebok allowed Adidas to increase its share of the American sporting goods market to 20 percent, positioning it closer to market leader Nike, which controlled 35 percent of the market.

How does Adidas maintain its global presence and production today?

Adidas has outsourced most of its production, working with over 500 independent factories worldwide, with the majority of production taking place in Asia. It sells products under two main brand names, Adidas and Reebok.