The Three Stripes Saga
A comprehensive exploration of Adidas's journey, from its foundational innovations to its enduring global influence in sports and culture.
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Foundational Origins
The Dassler Brothers' Vision
The genesis of Adidas traces back to Adolf "Adi" Dassler, who began crafting sports shoes in his mother's scullery in Herzogenaurach, Germany, following his return from World War I. In July 1924, his elder brother Rudolf joined the venture, establishing the "Dassler Brothers Shoe Factory" (Gebrüder Dassler Schuhfabrik). Their early operations were marked by resourcefulness, sometimes relying on pedal power from a stationary bicycle to run their equipment due to unreliable electricity supply.
Innovation in Athletic Footwear
Adolf Dassler was instrumental in advancing spiked running shoes. He innovated by transitioning from cumbersome heavy metal spikes to lighter, more flexible designs utilizing canvas and rubber. This commitment to performance led to a pivotal moment in 1936 when Dassler convinced American sprinter Jesse Owens to wear his handmade spikes at the Berlin Summer Olympics. Owens' remarkable achievement of four gold medals propelled the Dassler brand onto the global stage, making their reputation known among athletes and trainers worldwide. By the onset of World War II, the Dasslers were successfully selling 200,000 pairs of shoes annually.
Wartime Operations & Survival
During World War II, both Dassler brothers became members of the Nazi Party in May 1933, with Adolf holding the rank of Sportwart in the Hitler Youth from 1935 until the war's end. The factory, operating as Germany's last sports shoe manufacturer, primarily supplied the Wehrmacht. By 1943, shoe production ceased, and the facilities were repurposed for manufacturing anti-tank weapons. Between 1942 and 1945, at least nine forced laborers were employed at the company's sites. The factory narrowly escaped destruction by US forces in 1945, saved when Adolf Dassler's wife persuaded American soldiers that their sole interest was sports shoe manufacturing, leading the occupying forces to become significant buyers of their footwear.
Corporate Evolution
The Sibling Schism
A profound breakdown in the relationship between Adolf and Rudolf Dassler led to their separation in 1947. This familial rift resulted in the formation of two distinct companies: Adolf established Adidas AG on August 18, 1949, deriving the name from "Adi Dassler," while Rudolf founded Ruda, later rebranded as Puma. This split ignited a fierce and enduring business rivalry that deeply divided their hometown of Herzogenaurach, earning it the moniker "the town of bent necks" as residents would subtly check which brand of shoes strangers wore. The brothers never reconciled, and even in death, their graves in the same cemetery are spaced as far apart as possible.
Iconic Branding & Logos
Adidas's distinctive "three stripes" became its identity mark, a branding element so successful that Adolf Dassler referred to Adidas as "The three stripes company." This iconic motif was acquired in 1952 from the Finnish sports company Karhu Sports for the equivalent of €1,600 and two bottles of whiskey. The Trefoil logo, designed in 1971 and launched for the 1972 Munich Summer Olympics, served as the primary corporate emblem until 1997. That year, the company introduced the "three bars" logo, initially for its Equipment product range, which subsequently became the corporate emblem and is now prominently featured on the Adidas Originals heritage line.
Ownership Transitions
Following the passing of Adolf Dassler's son, Horst Dassler, in 1987, Adidas faced a period of corporate instability. In 1990, French industrialist Bernard Tapie acquired the company for ₣1.6 billion, a sum he largely borrowed. Tapie initiated significant changes, including relocating production offshore to Asia and engaging Madonna for promotional activities. However, by 1992, Tapie's inability to service his loan interest led Crèdit Lyonnais bank to sell Adidas. Robert Louis-Dreyfus, a friend of Tapie, assumed the role of CEO in 1994. Under Louis-Dreyfus's leadership, Adidas's revenue quadrupled from 1993 to 2000, reaching €5.84 billion ($7.5 billion).
Product Portfolio
Apparel & Sportswear
Adidas offers an extensive range of clothing, including t-shirts, jackets, hoodies, pants, and leggings for both men and women. The company's first apparel item, the Franz Beckenbauer tracksuit, was introduced in 1967. Adidas is recognized as the largest manufacturer of sports bras in Europe and the second largest globally. Beyond general apparel, Adidas maintains a significant presence in specialized sportswear across numerous disciplines.
Accessories & Lifestyle
The Adidas product range extends to various accessories, including slide-style sandals, mobile accessories, watches, eyewear, bags, baseball caps, and socks. The brand also offers a line of male and female deodorants, perfumes, aftershaves, and lotions. In 2014, Adidas introduced the Fit Smart wristband, a fitness tracker designed to pair with its miCoach app, functioning as a personal trainer.
Iconic Footwear: Sandals
Adidas has a strong legacy in casual footwear, particularly with its slide sandals:
- Adilette: Developed in 1963 at the request of athletes for a locker room shoe, the Adilette was the first Adidas sandal and remains a best-seller. It features a contoured orthopedic rubber sole and a synthetic upper, available in various colors, often with the signature three stripes in a contrasting hue.
- Adissage: This slide sandal incorporates tiny black massage nubs throughout the footbed, designed to alleviate foot aches after sports. It features the three stripes on a Velcro strap and is popular both among athletes and as a casual sandal.
- Santiossage: Similar to the Adissage, the Santiossage also includes massage nubs, but these are clear, allowing Adidas's three stripes to be visible underneath. It is available in black, navy, or red and is worn for both post-sport recovery and casual comfort.
Corporate Business
Financial Performance
Adidas AG is a publicly traded company, listed on the Frankfurt Stock Exchange (FWB: ADS) and a component of the DAX index. The company consistently reports significant revenues, with 2024 figures reaching €23.683 billion. Its global operations are supported by a substantial workforce, numbering 62,035 employees in 2024. Adidas also holds an 8.33% stake in the football club Bayern Munich and owns Runtastic, an Austrian fitness technology company.
Global Presence & Structure
Headquartered in Herzogenaurach, Germany, Adidas maintains a worldwide operational footprint with key business locations in major cities such as London, Portland, Toronto, Tokyo, and offices across Australia, Taiwan, and Spain. The company's strategic acquisitions and divestitures have shaped its market position. Notable moves include the acquisition of the Salomon Group in 1997 (later sold in 2005) and the significant purchase of Reebok for $3.8 billion in 2005, which aimed to bolster its competitive standing against Nike, particularly in North America. Reebok was subsequently sold to Authentic Brands Group in 2022 for approximately $2.5 billion.
Leadership & Governance
The executive leadership of Adidas plays a crucial role in steering its global strategy. The current CEO is Bjørn Gulden, supported by a board including Harm Ohlmeyer as Chief Financial Officer, Eric Liedtke overseeing Global Brands, Gil Steyaert managing Global Operations, and Roland Auschel leading Global Sales. Past leadership includes Robert Louis-Dreyfus (CEO 1993–2002) and Herbert Hainer (CEO 2002–2016), who both contributed significantly to the company's growth and market expansion.
Adidas Key Business Trends (2006-2024)
Year | Revenue (€b) | Net Income (€m) | Effective Tax Rate (%) | Number of Employees | Number of Stores |
---|---|---|---|---|---|
2006 | 10.0 | 483 | 31.4 | 26,376 | |
2007 | 10.2 | 551 | 31.8 | 31,344 | |
2008 | 10.7 | 642 | 28.8 | 38,982 | 1,884 |
2009 | 10.3 | 245 | 31.5 | 39,596 | 2,212 |
2010 | 11.9 | 567 | 29.5 | 42,541 | 2,270 |
2011 | 13.3 | 613 | 30.0 | 46,824 | 2,384 |
2012 | 14.8 | 791 | 29.3 | 46,306 | 2,446 |
2013 | 14.4 | 787 | 29.2 | 49,808 | 2,740 |
2014 | 15.5 | 490 | 29.7 | 53,731 | 2,913 |
2015 | 16.9 | 634 | 32.9 | 55,555 | 2,722 |
2016 | 19.2 | 1,017 | 29.5 | 60,617 | 2,811 |
2017 | 21.2 | 1,097 | 29.3 | 56,888 | 2,588 |
2018 | 21.9 | 1,702 | 28.1 | 57,016 | 2,395 |
2019 | 23.6 | 1,976 | 25.0 | 65,194 | 2,533 |
2020 | 19.8 | 432 | 25.4 | 62,285 | 2,456 |
2021 | 21.2 | 2,116 | 19.4 | 59,258 | 2,184 |
2022 | 22.5 | 612 | 34.5 | 61,401 | 1,990 |
2023 | 21.4 | (119) ↓ | 59,030 | 1,863 | |
2024 | 23.7 ↑ | 756 ↑ | 62,035 ↑ |
Note: Revenue figures are "Net sales" and Net income figures are "Net income/(loss) attributable to shareholders".
Global Marketing
Strategic Brand Segmentation
In the mid to late 1990s, Adidas strategically segmented its brand into three distinct groups to cater to diverse consumer interests:
- Adidas Performance: Dedicated to maintaining the brand's commitment to athletes and high-performance sportswear.
- Adidas Originals: Focused on leveraging the brand's rich heritage and earlier designs, which had evolved into popular lifestyle icons.
- Style Essentials: Targeted the fashion market, notably including the Y-3 collaboration with renowned Japanese fashion designer Yohji Yamamoto, where 'Y' represents Yamamoto and '3' signifies Adidas's iconic three stripes.
These divisions allowed Adidas to address different market segments while maintaining a cohesive brand identity.
Memorable Campaigns & Slogans
Adidas has launched several impactful marketing campaigns throughout its history:
- "Impossible is Nothing" (2004): One of the company's most memorable global campaigns, developed by 180/TBWA and TBWA\Chiat\Day, emphasizing aspiration and overcoming challenges.
- "Believe in 5ive" (2006-2007): A basketball-specific campaign for the NBA season.
- "Adidas is all in" (2011): This became the global marketing strategy slogan, aiming to unify all Adidas brands and labels under a single image, appealing to consumers across sports, fashion, street culture, music, and pop culture.
- "Creating the New" (2015): Introduced as the strategic business plan until 2020, focusing on innovation and future growth.
Collaborations & Regional Focus
Adidas has engaged in numerous high-profile collaborations with designers such as Alexander Wang, Jeremy Scott, Raf Simons, and Stella McCartney. The brand has also partnered with celebrities like Beyoncé, Jonah Hill, Karlie Kloss, Ninja, Bad Bunny, and Pharrell Williams to create highly sought-after collections. A 2025 collaboration with the Britpop band Oasis, "Original Forever," commemorated the band's long-standing association with the brand.
Regionally, Adidas has tailored its marketing efforts. In India, despite a speculative market, the company aimed to double its revenue by 2020, signing Bollywood actor Ranveer Singh as a brand ambassador and launching cricket campaigns with figures like Virat Kohli. In Russia, Adidas provided outfits for the Soviet Union's team at the 1980 Summer Olympics, becoming one of the first global brands to enter the territory. The brand's three stripes, initially modified by the Communist Party, later became a staple of the Gopnik subculture.
Athlete Sponsorship
Football Partnerships
Adidas maintains extensive sponsorship agreements with football clubs and national teams worldwide. Its primary sponsor is FC Bayern Munich, and it outfits national teams including Germany, Spain, Mexico, Argentina, Sweden, Japan, Hungary, Belgium, Colombia, Wales, Chile, and Italy. The company is also an official sponsor of the UEFA Champions League, providing the Adidas Finale as the official match ball, and supplies clothing and equipment for all teams in Major League Soccer (MLS).
Individual player endorsements are a cornerstone of Adidas's football marketing, featuring global icons such as Lionel Messi, Zinedine Zidane, Kaká, David Beckham, Steven Gerrard, Gareth Bale, Thomas Müller, Xavi, James Rodríguez, Iker Casillas, Arjen Robben, Paul Pogba, Luis Suárez, George Weah, Alessandro Del Piero, Son Heung-min, Mohamed Salah, and Jude Bellingham. In a landmark deal in July 2014, Adidas signed a ten-year kit deal with Manchester United, valued at a guaranteed minimum of £750 million (US$1.29 billion), making it one of the most valuable kit deals in sports history.
Basketball & Tennis Icons
In basketball, Adidas has a storied history of sponsoring legendary players. Kareem Abdul-Jabbar was the first-ever NBA player to sign with Adidas and receive signature shoes. Other notable endorsements include Chauncey Billups, Tim Duncan, Tracy McGrady, Derrick Rose, James Harden, Damian Lillard, Donovan Mitchell, Candace Parker, John Wall, and Trae Young. The company also endorsed Kobe Bryant with his first signature shoe, the Adidas Equipment KB8, until 2002, and Kevin Garnett until 2010. In a significant move in August 2015, James Harden departed Nike to sign a 13-year contract with Adidas, reportedly worth $200 million.
Adidas's involvement in tennis dates back to the mid-1960s, sponsoring dominant players like Stan Smith, Ilie Nastase, Ivan Lendl, Stefan Edberg, and Steffi Graf. These athletes often had exclusive graphic styles designed for their use, which were also marketed to the public. Ivan Lendl notably played with various Adidas tennis racquets throughout his career. In November 2009, Andy Murray became Adidas's highest-paid tennis star with a five-year contract valued at US$24.5 million.
Diverse Sporting Engagements
Adidas extends its sponsorship reach across a wide array of sports:
- Rugby Union: Kit supplier for the All Blacks, France, and Italy national teams, as well as South African clubs like the Stormers and Western Province. Adidas is also the official match ball supplier for the Heineken Cup.
- Field Hockey: Provides equipment and sponsors numerous players from Germany, England, the Netherlands, Australia, Spain, and Belgium, and has been the kit provider for Argentine women's and men's teams for over 15 years.
- Golf: Sponsors professional golfers such as Collin Morikawa, Ludvig Åberg, Nick Dunlap, Tyrrell Hatton, Daniel Berger, and Nick Taylor, primarily for clothing and shoes.
- Ice Hockey: Served as the official outfitter for uniforms and licensed apparel for the National Hockey League (NHL) from the 2017–18 season through the 2023–24 season.
- Cricket: Sponsors cricketers including Lasith Malinga, Kieron Pollard, Dwayne Bravo, and K. L. Rahul.
- Volleyball: Endorses athletes like Ivan Zaytsev and Earvin N'Gapeth as models and brand ambassadors.
Ethical Considerations
Labor Standards & Sweatshops
Adidas has faced significant scrutiny and criticism regarding its business practices and commitment to worker welfare, particularly concerning allegations of operating sweatshops in countries like Indonesia. Between 2006 and 2007, Adidas reportedly shifted away from suppliers that supported unions, favoring subcontractors with less favorable labor rights records. This subcontracting model has made it more challenging for Adidas to ensure its stated labor standards, which include freedom for workers to engage in collective bargaining and a non-retaliation policy, are consistently upheld in practice.
Marketing & Social Controversies
Adidas has also encountered public backlash over certain marketing campaigns and product designs:
- 2012 "Shackle" Sneakers: A Jeremy Scott-designed shoe featuring shackles, intended for release in July, sparked widespread controversy. Civil rights leader Jesse Jackson condemned it as "offensive, appalling and insensitive," leading Adidas to cancel the product.
- 2018 Soviet-Themed Items: A line of Soviet-themed products promoted by Adidas was withdrawn from the market following a social media outcry.
- 2024 SL 72 Sneaker Campaign: An advertising campaign starring Bella Hadid for the SL 72 sneaker, originally created for the 1972 Munich Olympics, was withdrawn and apologized for due to its association with the Munich massacre of 11 Israeli athletes.
Corporate Governance & Diversity
Beyond product and labor, Adidas has faced challenges related to corporate conduct and internal diversity:
- NCAA Corruption Scandal (2017): Adidas executive James Gatto was indicted in the 2017 NCAA Division I men's basketball corruption scandal, highlighting issues of integrity in collegiate sports recruitment.
- Racial Diversity Controversy (2020): Karen Parkin, the head of global human resources, voluntarily stepped down after black employees raised concerns about her failure to address racism and discrimination within the workplace. Parkin had previously referred to racism as "noise" and was criticized for not adequately addressing workforce diversity. She issued an apology upon her resignation, supporting the company's progress towards racial justice.
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