Adidas Pins Hopes on World Cup
Adidas is the second biggest sports goods company in the world, and the brand is aiming to keep in the running with hopes of World Cup glory.
Britain has emerged from one of the coldest, longest winters. It’s not surprising that so many of us have itchy feet. Adidas may have had a difficult time with pre tax profits falling in 2009 thanks to the global recession, but everyone now seems to be putting their running shoes on with a spring in their step. And as well as the UK pounding the pavements, 2010 sees a plethora of sporting events, including the World Cup which Adidas has pinned its sale recovery hopes on.Adidas and the World Cup
Adidas manufactures the official World Cup 2010 ball as well as producing football kits for 12 teams. Adidas know the World Cup is the summer’s headline sporting event with global interest providing an invaluable promotional platform for the brand. There’s no doubt Adidas are hoping 2010 is the year for the sports brand after pre-tax profits fell by 60% to £325m last year. Adidas however is one of the strongest and biggest brands around and is expected to come out of the recession fighting fit. Adidas is expecting growth of its Reebok brand and a boost in sales from the World Cup in 2010 which will help offset the weak consumer confidence of last year.Football Frenzy
The brand has forecast a growth in sales after the difficulty of the recession. Chief executive of Adidas, Herbert Hainer told the press: “Without question, 2009 was the most difficult year since I became CEO.” The problem wasn’t just a drop in consumer confidence but the rising costs of manufacturing. But the World Cup always offers hope – the last World Cup saw sales for Adidas boom by over a billion Euros as Adidas football kits and balls were snapped up amid the football frenzy.
Adidas feel confident that with its acquisition of Reebook in 2005 they could give the world’s number one sport brand, Nike, a run for its money. Adidas have predicted net profits to rise in 2010 to between €400 million (£363.6 million) and €450 million (£409 million). Adidas has long had a place in the hearts of sport and fashion fans alike, and its this wide appeal that ensures they stay ahead of the game; its profit forecast beat rivals such as Puma that has said it expects 2010 sales to remain flat.
Adidas is kitting out 12 teams – more than ever before – including the host nation South Africa, European champions Spain and Germany. Nike has sponsored 10 teams and Puma, seven.