Adidas is gearing up for the Paris Olympics with a strategic focus on niche sports, including breaking, climbing, skateboarding, and BMX. This shift follows the discontinuation of the Yeezy line after a fallout with artist Ye, formerly Kanye West, as Adidas CEO Bjorn Gulden aims to elevate the brand’s emphasis on sports over celebrity collaborations.
Gulden stresses the importance of diversification, stating, «Focusing only on the four or five biggest sports is too easy and, to be honest, counterproductive.» While Adidas maintains its commitment to mainstream Olympic sports like athletics, venturing into niche disciplines allows the brand to explore innovative designs and tap into emerging markets.
Breaking, rooted in hip-hop culture, holds both athletic and lifestyle appeal. Adidas secured China’s top female breaker, Liu Qingyi, also known as «B-Girl 671,» capitalizing on the sport’s popularity in China. However, fierce competition from rivals like Nike and Puma exists, with sponsorships and signings in the burgeoning breaking scene.
Other Olympic debutants, including climbing, skateboarding, and BMX freestyle, contribute to Adidas’s strategy of attracting a younger audience to the Games. These sports not only showcase elite-level athletic performance but also inspire mainstream products like running shoes.
While quantifying the direct impact of the Olympics on sportswear sales is challenging, the Games play a pivotal role in establishing a brand’s reputation for high-performance products. Adidas aims to showcase technological advancements across various sports, despite existing sponsorship contracts limiting its presence in Paris.
Competitors like Puma also vie for market share, focusing on athletics and track and field disciplines. Adidas, being three times the size of Puma in terms of sales, can afford a more extensive investment in athletes and sports for the Olympics. However, global giant Nike, with a substantial financial advantage, intensifies the competition.
As Adidas navigates this strategic shift, investors hope that CEO Bjorn Gulden’s new approach will position the brand for success in the fiercely competitive sportswear landscape of the Paris Olympics.
