Market cap

* For banks, enterprise value is substituted with market cap. Source: Bloomberg Finance L.P.

Performance of the brand

The Adidas Group represents Europe’s largest and the world’s second biggest sports apparel manufacturer after Nike, offering a broad portfolio of products through its five different brands Adidas, Reebok, TaylorMade – Adidas Gold, Rockport, and CCM-Hockey in virtually every country of the world. All company activities and its 169 subsidiaries are directed from the Group's headquarters in Herzogenaurach, Germany. 

Following the global economic recession in 2009, the Adidas Group results improved significantly in 2010. The group recorded revenues of €11,990 million during the 2010 fiscal year, an increase of 15% over 2009. The operating profit of the group grew 76% to €894 million in 2010 versus €508 million in 2009. The group’s net income was €567 million in 2010, compared to €245 million in 2009.

In 2011, the brand value of Adidas increased by $1,052 million to $6,754 million. At the same time, enterprise value has fallen to $10,631 million compared to $11,232 million in 2010. Nonetheless, Adidas maintains its AAA-  brand rating and even increased its brand ranking from 144 to 139 within The BrandFinance® Global 500 2011 brand valuation.

In November 2010, Adidas Group CEO Herbert Hainer revealed the group’s strategic plan for the next five years known as “Route 2015”. This strategic plan aims at outperforming major competitors and achieving greater than total market growth, as well as at achieving an 11% operating margin in 2015 which might consequently lead to an increasing brand value over the next years. This will be supported by the global media coverage the brand receives during international sporting events such as the 2012 Olympic Games, as well as other sponsoring activities.

 

Positive Aspects

The Adidas Group has assembled a portfolio of promotion and partnerships around the world, including sports associations, events, teams, and individual athletes

Every year, Adidas is the sponsor and outfitter of various renowned sports events such as the 2011 UEFA Super Cup, the UEFA Europe League Final, the NFL Super Bowl, the NBA All-Star Game, the French Open, and will furthermore be an official sponsor of the FIFA World Cup 2014 in Brazil, providing brand exposure to a worldwide audience.

Community involvement plays a vital role for the Adidas Group

The Group’s community involvement programme ranges from conventional community projects and cause-related marketing initiatives to immediate relief efforts and donations for people in need. At this, involving employees in community affairs plays an important role.

One recent example is the corporation’s support of the SOS Children’s Village in Rustenburg, South Africa. SOS Children’s Villages the world’s largest orphan and abandoned children’s charity with child sponsors and donors worldwide providing a new family and home for more than 78,000 children in 518 unique Children’s Villages in 125 countries. As well as financing the construction of a family house, Adidas meets the daily living and education costs of the children who live in the SOS Children’s Village of Rustenburg.

With its Environmental Strategy 2015, Adidas introduced its five-year plan to re-engineer the company’s approach to environmental management by focusing on significant improvements along the entire value chain, helping the Group to become a “green company”

The bold vision of the Group’s Green Company Initiative is to become a zero-emissions company by reaching specific environmental targets until 2015 such as cutting its relative energy use by 20%, making a total relative cut of 30% in carbon emissions, also by sourcing green energy, as well as to reduce paper use by 50% on a per employee basis. As a result, in 2011, the Adidas Group was ranked among the 100 Most Sustainable Corporations in the World for the seventh time in a row and has been selected to join the Dow Jones Sustainability Index (DJSI) for the 11^th consecutive time. The DJSI is the world`s first global sustainability index family tracking the performance of the leading sustainability-driven companies worldwide. It selects companies on the basis of ongoing commitment to environmental sustainability, strong financial performance, a positive relationship with stakeholders and dedication to upholding and supporting human rights.

 

Negative Aspects

Adidas has been repeatedly accused of using sweatshop labour to make their products

Of the Group’s independent manufacturing partners, 75% were located in Asia, 16% in the Americas and 9% in Europe. As a result, over the past decade, Adidas has been repeatedly accused of using sweatshop labour to make their products, especially for footwear and apparel production of which 97% and 82% are produced in Asia. As a response, the Group developed a strict code of conduct for suppliers with regard to social minimum standards, work safety and environmental protection. Adidas insists on exclusively choosing business partners who fulfil the Group’s workplace standards.

 

Adidas agrees to keep sponsoring FIFA despite lingering concerns about the corruption crisis engulfing world football's governing body

Starting in late 2010, three senior FIFA officials, Nicolas Leoz, Issa Hayatou and Ricardo Teixeira, were accused of having been paid huge bribes by FIFA's marketing partner International Sports Leisure (ISL) between 1989 and 1999. Further, several FIFA officials have also been accused of accepting bribes to support Qatar in the vote to host the 2022 World Cup. Due to its long-term partnership with FIFA, Adidas agreed to continue the sponsorship despite all corruption concerns. Adidas will be an official sponsor of the FIFA World Cup 2014 in Brazil.

 

 

Last changed September 2, 2011

League tables

adidas appears in the following brand league tables:

Rank 139 in the Global 500 2011.
Rank 144 in the Global 500 2010.
Rank 141 in the Global 500 2009.
Rank 119 in the Global 500 2008.
Rank 144 in the Global 250 2007.