In a surprising turn of events, global sports shoe giants Nike and Adidas are experiencing significant setbacks in 2024, while smaller brands are emerging as strong competitors in the market. Nike and Adidas, once unrivaled, now find themselves in a battle with up-and-coming brands, which have claimed spots three through five in the market value rankings.
Reports from international media outlets indicate that Nike has been struggling due to a lack of innovation, outdated marketing strategies, and poorly executed pricing plans. This has caused the company’s market value to dip to $129.2 billion (RM532.8 billion) this year.
Adidas, the second-largest brand, has also been hit hard after ending its collaboration with musician Kanye West, resulting in a significant Yeezy stockpile. This excess inventory, valued at NT$42.7 billion (RM5.5 billion), has caused financial losses for the brand.
In contrast, Deckers, the parent company of HOKA, has rapidly climbed into third place, while brands On and ASICS have moved into fourth and fifth positions, respectively. Deckers’ market value has surged by 398% over the past five years, with ASICS experiencing a 388% increase, and On growing by 38% in just three years.
HOKA, known for its chunky soles and vibrant designs, has evolved from being labeled as “ugly shoes” to becoming a trendy brand, thanks to endorsements from U.S. President Joe Biden and actress Gwyneth Paltrow. The shoes, with their cushioned and responsive design, are now a favorite in the ultramarathon running community.
Swiss brand On has also risen rapidly, capitalizing on the growing popularity of running. Known for its sleek, aerodynamic designs, On has captured 40% of Switzerland’s running shoe market in just eight years. By partnering with luxury brands and having actress Zendaya as its spokesperson, On has successfully expanded into the premium footwear market.
ASICS, a 75-year-old brand, has embraced a fresh marketing approach, incorporating retro aesthetics and bold colors into its designs. Collaborations with designers have helped ASICS appeal to a broader audience, securing its place in the top five global sneaker brands.
