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.

Outlines

00:00

👟 The Origins and Early Days of Adidas

This paragraph introduces the global reach of Adidas, a brand so pervasive that finding someone who hasn't heard of it is rare. The story of Adidas begins with its founder, Adolf Dassler, born into a poor family in Bavaria. Adolf's early life was marked by assisting his father, a shoemaker, and his mother, a laundress. In 1920, the Dassler family started their own shoemaking business, with Adolf taking over management at just 20 years old. The business grew slowly, producing shoes in a small laundry room. Adolf's innovation led to the creation of the world's first cleats with spiked soles in 1925, which gained popularity after American athlete Jesse Owens won four gold medals wearing Dassler shoes at the 1936 Berlin Olympics. Despite the success, World War II brought challenges, with the factories confiscated and the brothers sent to the front. Post-war, the company had to rebuild using leftover military materials, setting the stage for the Adidas brand we know today.

05:00

👐 The Sibling Rivalry and Rise of Adidas and Puma

After the war, the Dassler brothers' differing views led to a split, with Rudolph taking the new factory and Adolf the old one. They agreed never to use the family business name, leading to the creation of separate brands: Adidas (from ADI Dassler) and Puma. The brothers remained silent about their quarrel and never spoke for the rest of their lives. Adidas, under Adolf's leadership, became a top sports brand known for quality and innovation. In 1949, Adolf patented the Adidas logo with three stripes. The company expanded its product line to include sports bags and tracksuits, which sold exceptionally well. Adidas' popularity soared after the German soccer team won the 1954 FIFA World Cup wearing Adidas shoes with removable cleats. By the end of the 1970s, Adidas had a global presence with 24 factories and was a major player in the sportswear market. However, the company faced a crisis after Adolf's death in 1978, with the emergence of competitors like Nike and Reebok, leading to a significant drop in market share.

10:02

📈 Adidas' Revival and Global Expansion

The narrative continues with the challenges Adidas faced in the 1980s, including a near bankruptcy situation and a change in ownership. Bernard Tappe sold the struggling company to a group of French investors who appointed Robert Louis-Dreyfus as the head of Adidas. Under his leadership, the company underwent a reorganization, increased its marketing budget, and shifted production to Asia to reduce costs. This strategy revitalized the brand, and by 1995, profits had more than doubled. In 1997, Adidas purchased Salomon Sports, becoming the world's second-largest manufacturer of sporting goods. The company continued to expand, opening new headquarters and retail stores globally. In 2005, Adidas sold Salomon and acquired Reebok, significantly increasing its market share in the U.S. Today, Adidas is a global giant with production in 46 countries and a strong presence in the sportswear industry, thanks to the vision and dedication of its founder, Adolf Dassler.

Keywords

💡Adidas

Adidas is a German multinational corporation that designs and manufactures shoes, clothing, and accessories. It is one of the world's leading sportswear brands. In the video, Adidas is the central theme, detailing its history, growth, and impact on the sportswear industry. The script mentions Adidas's beginnings with Adolf Dassler and its evolution into a global brand.

💡Shoemaking

Shoemaking refers to the craft of making shoes. It is a key part of Adidas's origin story, as Adolf Dassler's father was a shoemaker, and Adolf himself became one, eventually setting up his own shoemaking business. The script describes how the Dassler brothers started their business in a small laundry room, producing shoes for athletes.

💡Cleats

Cleats are shoes with spikes on the soles, designed to provide traction in sports like soccer. The script highlights a breakthrough in shoemaking when Adolf created the world's first cleats with spiked soles, which became a signature product for the Dassler brothers' factory and contributed to the brand's fame.

💡Jesse Owens

Jesse Owens was an American athlete who won four gold medals at the 1936 Berlin Olympics. The video script uses Owens as an example of how Adidas shoes gained recognition when he won his medals wearing Dassler shoes, which helped popularize the brand internationally.

💡World War II

World War II is a historical event that had a significant impact on many businesses, including Adidas. The script describes how the Dassler factories were confiscated by the Nazis during the war, and both brothers were sent to the front. After the war, the company had to rebuild almost from scratch.

💡Brand Split

The term 'brand split' refers to the division of a company or brand into separate entities. In the script, it is mentioned that after a dispute, the Dassler brothers split their assets, leading to the creation of Adidas and Puma, two of the world's most recognized sportswear brands.

💡Sponsorship

Sponsorship is the support of a company or individual for an event, organization, or individual, usually in return for some form of advertising. The video discusses Adidas's role as a major sponsor of sports teams and athletes, which has been instrumental in promoting the brand and its products.

💡Innovation

Innovation refers to the introduction of new methods, ideas, or products. The script emphasizes Adidas's commitment to innovation, such as the development of shoes with interchangeable cleats and the Telstar ball, which was used in the 1970 FIFA World Cup.

💡Market Share

Market share is the portion of the total market for a particular product or service that a company controls. The video script mentions the competition between Adidas and brands like Nike and Reebok, highlighting the importance of market share in the sportswear industry.

💡Globalization

Globalization is the process of increasing global connectivity and interdependence. The script discusses Adidas's expansion into international markets, including the U.S., and the company's strategy to outsource production to countries with lower labor costs, which is a common aspect of globalization.

💡Reorganization

Reorganization refers to the act of restructuring or reorganizing a company to improve its performance. The video describes how Adidas underwent a reorganization under the leadership of Robert Louis-Dreyfus, which included increasing the marketing budget and shifting production to Asia.

Highlights

Adidas is one of the most recognizable brands in the sportswear industry.

Adolf Dassler, the founder of Adidas, was born into a poor family and started as a shoemaker with his brother Rudolph.

Adidas was officially founded in 1949, but its roots go back to the 1920s when the Dassler brothers started their shoemaking business.

Adolf created the world's first cleats with spiked soles in 1925, which became the factory's main product.

Jesse Owens won four gold medals at the 1936 Berlin Olympics wearing Dassler shoes.

Adolf Dassler's innovative solutions, such as bolt spikes to the soul, made the brand famous worldwide.

During World War II, the Dassler factories were confiscated by the Nazis, and the brothers were sent to the front.

After the war, the brothers separated and created two new brands, Adidas and Puma.

Adidas became popular for its high quality and innovation, making it one of the top sports brands.

Adidas introduced the three stripes logo in 1952, which became a significant part of the brand identity.

The German soccer team won the 1954 FIFA World Cup wearing Adidas shoes with removable cleats.

Adidas expanded its production to the U.S. market in the late 1950s, capitalizing on the growing popularity of sports.

Adidas faced a severe crisis in the 1980s due to the emergence of competitors like Nike and Reebok.

After being sold to French entrepreneur Bernard Tappe, Adidas was eventually bought by a group of French investors.

Robert Louise Dreyfus's leadership led to a reorganization of Adidas, increasing the marketing budget and shifting production to Asia.

Adidas acquired Reebok in 2005, increasing its share in the American market and approaching the market leader Nike.

Adidas is now the biggest sponsor of sports teams and famous athletes worldwide.

Adolf Dassler's love for sports and his inventions, such as soccer boots with interchangeable cleats, contributed to the brand's success.

Transcripts

today you can meet people who have never

used the internet or a cell phone you

can even find people who can't read or

write this is rare but it's true at the

same time it's difficult to find someone

who has never worn Adidas clothing or

shoes and even more so who has never

heard of this brand no wonder the German

brand is now one of the leaders in the

sportswear industry the company is

engaged in the production of clothing

shoes and accessories not only for

sports but also for everyday life

currently Adidas owns such companies as

Reebok Rockport CCM and TaylorMade golf

how did this company emerge who invented

it how did it all begin and how could it

become one of the most recognizable

brands in the world but before we begin

make sure you've subscribed to the

channel and hit the Bell icon to stay

updated with future content

foreign

Adidas was officially founded in 1949

but its story goes back long before that

Adolf dassler was born into a poor

family on November 3rd 1900 in a small

town in Bavaria his father was an

ordinary Shoemaker and his mother was a

laundress in the local laundry as there

were no great opportunities Adolf

assisted his father from a young age and

soon became a Shoemaker the family lived

in extreme poverty hardly making ends

meet so in 1920 the dassler family

decided to set up their own shoemaking

business Adolf dassler who was only 20

years old at the time assumed the

company's management and was soon joined

by his brother Rudolph their friends

called them ADI and Rudy the dassler

brothers small shoe factory if it could

be called The Factory was engaged in the

production of orthopedic shoes for

athletes and house slippers and was

located in a small laundry room where

their mother worked the business slowly

grew the slippers were in demand but it

was just another small shoemaking shop

at the time several hundred where in

Germany alone perhaps some would have

been satisfied with what they had but

Adolf was obsessed with the company's

development after many experiments that

often failed he managed to create a

breakthrough product in the shoe

industry in 1925 Adolf created the

world's first cleats with spiked Souls

which a year later became the Factory's

main product his Partners were ordinary

blacksmiths zelgian brothers who made

the spikes for the souls in their

workshop the demand for the dassler

Brothers Shoes increased daily resulting

in the purchase of their Factory

building in 1928 together with Joseph

weitzer the dazzlers developed and

patented a new model of studded shoes

that truly made the factory famous but

what's the best way to get your shoes

worn that's right you just have to

present them to the athletes at the

Berlin 1936 summer olympics American

runner Jesse Owens won as many as four

gold medals and set five World Records

in dassler shoes owens's shoes first

featured the dassler trademark two

stripes following this event many

athletes chose the Brand's boots for

their Olympic appearances all thanks to

innovative solutions who would have

thought that all you have to do is Bolt

spikes to the soul which will be enough

to make you famous worldwide in the late

1930s sales of the dassler brothers

Factory exceeded 400 000 German marks or

one hundred thousand dollars and in 1938

a second dessler Factory opened in total

their Factory produced 1 000 pairs of

shoes daily sales grew extremely fast

until World War II even though both

dazzler brothers were staunch members of

the Nazi party the dazzler factories

were confiscated by the Nazis and the

brothers were sent to the front in one

of the factories the Nazis even tried to

set up production of handheld anti-tank

grenade launchers but the factory

equipment was not adapted to such

production so Adolf returned from the

Army after a year to produce training

shoes for German soldiers at the end of

world war 2. the Bavarian town of

Heritage in Iraq where the brother's

second Factory was located became part

of the American occupation Zone The

Elder Rudolph was accused of being a

member of the elite Nazi SS forces and

sent to a prisoner of war camp Adolf was

also a member of the Nazi party but he

sewed hockey skates for shipment to the

United States as a contribution which

saved his standing in business in

general as compensation for his skates

dassler receives decommissioned U.S Army

ammunition tents old baseball gloves Etc

the family business needed to be rebuilt

almost from scratch in 1946 after the

occupation Rudolph returned to the

family business the brothers started to

make shoes again but given the post-war

situation in Germany the lack of raw

materials and problems with the

international market and isolation they

made a rather controversial but at the

same time the only right decision they

proceeded with producing shoes from

leftover military uniforms using

absolutely everything they could get

their hands zone for example they made

souls for shoes from old tires of

military vehicles while 47 hired workers

were paid in Goods firewood yarn Etc

however the two brothers as Different

World Views and Visions for the

company's further development

increasingly led to a quarrel they could

no longer work together as before

prompting them to divide up all their

assets soon after their father's death

the brothers separated Rudolph took the

new Factory and ate off the old one they

agreed never to use the name and symbols

of the family business ADI named this

company Otis while Rudy named his

company Ruda but after a few months

Audis became Adidas shorthand for ADI

dasler and Ruda became Puma so the World

Famous Brand at the time dassler ceased

to exist and new brands were born Adidas

and Puma which we all now know the

brothers stayed silent about the reasons

for their quarrel for the rest of their

lives but what is most surprising is

that after the collapse of the family

business the brothers did not speak to

each other for the rest of their lives

and Puma and Adidas became the fiercest

competitors

adolf's company was rapidly gaining

popularity high quality and innovation

made Adidas one of the top sports brands

on August 18 1949 Adolf took two stripes

from the dassler emblem added a third

and patented it as the Adidas logo in

1952 the company started to produce

other Goods under the Adidas brand the

first attempt to diversify the

assortment was the production of sports

bags although shoes remained the main

product Adolf was looking for a partner

to manage clothes production the textile

Factory owner Willie zeltenreich became

his partner and ADI commissioned a

thousand tracksuits with three stripes

along the sleeves the goods sold like

hotcakes and the partners became so fond

of each other that soon zeltenreich was

sewing only for Adidas

at the 1954 FIFA World Cup in Byrne the

German soccer team in Adidas shoes won

the world championship for the first

time thanks to another Adidas Innovation

the removable cleats soon after this

Victory sales of Adidas boots Rose from

800 pairs to 2 000 pairs a day in 1956

Adidas even received official approval

for its advertising at the Olympic Games

in Melbourne in the same year Adidas

signed its first licensing agreement

with the Norwegian Factory in jovik

followed soon by Adidas's production in

France in the late 1950s Adidas entered

the U.S market capitalizing on the

growing popularity of sports and the

lack of strong competitors at the time

by the end of the 1970s the company

owned 24 factories in 17 countries and

sold about 200 000 pairs of shoes daily

clothing swords and bags in 1970 the

Adidas Telstar ball became the official

ball of the FIFA World Cup held in

Mexico in 1907 72 Adidas became the

title sponsor of the Olympic Games in

Munich and the German national team won

the European football championship this

is the year when the famous trefoil of

the company appeared the three leaves

signify the company's presence on three

world continents in 1974 German

footballers wearing Adidas boots became

world champions for the second time at

the 1976 Olympic Games athletes

outfitted in Adidas 175 gold 86 silver

and 88 bronze medals by the way this

record has not been broken until now on

September 6 1978 at the age of 77 Adolf

left this world the management of the

company was taken over by his widow

katharina the Founder's death marked the

beginning of the company's most severe

crisis caused primarily by the emergence

of serious competitors Nike and Reebok

in the 1980s launched aggressive

advertising campaigns in North America

and by the end of the decade they

accounted for 50 percent of the athletic

Footwear Market in the United States

while the share of Adidas had fallen to

a critical three percent Adolf dassler's

heirs did not last long heading the

company Katarina died in 1984 and horse

dassler son of Adolf and katharina died

in 1987. the remaining air sold the

scarcely Running Company in 1989 for

only 440 million DM to French

entrepreneur Bernard tappe then owner of

the French soccer club Olympic de

Marseille retaining only 20 percent of

the company's shares at that time Adidas

was close to disaster the interest in

the brand was rapidly fading and the

superiority among Sports companies was

already divided between Nike and Reebok

however the new owner failed to improve

the company's situation in 1993 he sold

Adidas and a few years later he was

declared bankrupt the new buyer of the

company was a group of French investors

who appointed Robert Louise Dreyfus as

head of Adidas his leadership initiated

a reorganization of the company the

marketing budget it was significantly

increased and production shifted to

Indonesia China and Thailand savings on

cheap labor costs in the third world

countries made the products competitive

in the World Market again and in 1995

profits had already more than doubled

compared to 1994. in 1997 Adidas

purchased Salomon sports a leading

French manufacturer of winter sports

goods until 2005 the concern was called

Adidas Solomon this step allow the

company to become the world's second

largest manufacturer of Sporting Goods

after Nike increasing sales by one and a

half times especially in the U.S in 1999

to Mark the company's 50th Anniversary

the construction of new headquarters

began and representative offices were

opened in Japan turkey and the

Netherlands in 2001 the formation of its

own retail chain the first two Adidas

original stores were opened in Berlin

and Tokyo in 2001 followed by the

opening of a new store in New York in

2002.

the company gained momentum again

getting more and more popular every year

in 2005 Adidas sold the Solomon Sports

company and with these proceeds in

August 2005 Adidas bought 100 of the

shares of its competitor Reebok

International Limited for 3.8 billion

dollars

this takeover allowed Adidas to increase

its share of the most important American

market for sporting goods to 20 percent

and get as close as possible to the

market leader Nike which controls 35

percent as of today Adidas has

outsourced most of its production in

total Adidas works with more than 500

independent factories from all over the

world manufacturing products in 46

countries most of the production takes

place in Asia in 2021 alone the company

produced 340 million pairs of Adidas

shoes products are sold under two main

brand names Adidas and Reebok at the end

of 2022 the company employed sixty

thousand people had a turnover of 21

billion dollars in 2021 and a net profit

of 2.5 billion Adidas is the biggest

sponsor of sports teams and the most

famous athletes worldwide several times

the much-loved brand could simply

disappear go bankrupt and become a thing

of the past Adolf dassler always

considered Commercial Success his second

priority the first place was his

irrepressible love for sports since he

was a very active man at the age of 75

he was still playing tennis and swimming

in the pool one of his Hobbies was

designing shoes and he personally made

many inventions in particular soccer

boots with interchangeable cleats he was

involved in the business Affairs of the

company until his death the road to

success was thorny and long but Adolf

dassler and ordinary provincial cobbler

boy was the one who gave life to This

Global giant what is your favorite

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to hear your opinion in the comments at

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