Adidas
 | |
| Company type | Limited |
|---|---|
| Industry | Sportswear and Sports Goods |
| Founded | 1949[1] |
| Headquarters |  Herzogenaurach, Germany |
Key people | Adolf Dassler (Founder) Herbert Hainer (CEO) Erich Stamminger (CEO, Adidas Brand) Henri Filho (Chairman of the supervisory board)Antonio Zea Director of Adidas USA |
| Products | Footwear Accessories Sportswear |
| Revenue |  €10.299 billion ($15.6 billion) (2007) |
313,000,000 Euro (2023)  | |
| €551 million (2007) | |
| Total assets | 18,020,000,000 Euro (2023) |
Number of employees | 27,000 (2006) |
| Website | www.adidas.com |
Adidas Ltd. AG (ISIN: DE0005003404) (pronounced [AH-dee-dass]) is a major German sports apparel manufacturer and part of the Adidas Group, which consists of Reebok sportswear company, Taylormade golf company, and Rockport. The company is the second largest sportswear manufacturer in the world[2].
The company's clothing and shoe designs typically feature three parallel stripes, and this same motif is incorporated into Adidas's current official logo. The company revenue for 2006 was listed at €10.084 billion, or about US $13.625 billion and the 2007 figure was listed at €10.299 billion, or about $15.6 billion.
| Year | 2002 | 2003 | 2004 | 2005 | 2006 |
|---|---|---|---|---|---|
| Sales | 6 523 | 6 266 | 6 478 | 6 636 | 10 084 |
| EBITDA | 532 | 627 | 725 | 818 | 1 098 |
| Net Results | 208 | 260 | 314 | 382 | 483 |
| Net Debt | 1 498 | 946 | 594 | 551 | 2 231 |
- Source :'OpesC'
History
Beginnings
Adolf ("Adi") Dassler started to produce his own sports shoes in his mother's wash kitchen after his return from World War I. In 1924, his brother Rudolf Dassler joined the business which became Gebrüder Dassler Schuhfabrik (Dassler Brothers Shoe Factory) and did well - selling 200,000 pairs of shoes each year before World War Two.
However the brothers did not get on well, and in 1948 they split up [3], with Rudi forming Puma, and Adi forming Adidas.
The company formally registered as adidas AG (with lower case lettering) on August 18 1949. The phrase All Day I Dream About Sports is used as if Adidas were an acronym.[4]
The Tapie affair
After a period of trouble following the death of Adolf Dassler's son Horst Dassler in 1987, the company was bought in 1989 by French industrialist Bernard Tapie, for 1.6 billion French francs (now €243.918 million), which Tapie borrowed. Tapie was at the time a famous specialist of rescuing bankrupt companies, an expertise on which he built his fortune.
Tapie decided to move production offshore to Asia. He also hired Madonna for promotion. He sent Walter Head, from Christchurch, New Zealand, a shoe sales representative, to Germany and met Adolf Dassler's descendants (Amelia Randall Dassler and Bella Beck Dassler) and was sent back with a few items to promote the company there.
In 1992, Tapie was unable to pay the interest from his loan. He mandated the Crédit Lyonnais bank to sell Adidas, and the bank subsequently converted the outstanding debt owed into equity of the enterprise, which was unusual as per the prevalent French banking practice. Apparently, the state-owned bank had tried to get Tapie out of dire financial straits as a personal favour to Tapie, reportedly because Tapie was a minister of Urban Affairs (ministre de la Ville) in the French government at the time.
In February 1993, Crédit Lyonnais sold Adidas to Robert Louis-Dreyfus, a friend of Bernard Tapie for a much higher amount of money than what Tapie owed, 4.485 billion (€683.514 million) francs rather than 2.85 billion (€434.479 million). Tapie later sued the bank, because he felt "spoiled" by the indirect sale.
Robert Louis-Dreyfus became the new CEO of the company. He is also the president of the Olympique de Marseille football team, a team Tapie owned until 1993.
Tapie filed for personal bankruptcy in 1994. He was the object of several lawsuits, notably related to match fixing at the soccer club. He spent 6 months in La Santé prison in Paris in 1997 after being sentenced to 18.
In 2005, French courts awarded Tapie a €135 million compensation (about 886 million francs).
Post-Tapie era
In 1997, Adidas AG acquired the Salomon Group who specialised in ski wear, and its official corporate name was changed to Adidas-Salomon AG. With this acquisition Adidas also acquired the Taylormade Golf company and Maxfli which allowed them to compete with Nike Golf.
In 1998, Adidas sued the NCAA over their rules limiting the size and number of commercial logos on team uniforms and apparel. Adidas withdrew the suit, and the two groups established guidelines as to what three-stripe designs would be considered uses of the Adidas trademark. [5]
In 2003, Adidas filed a lawsuit in British court challenging Fitness World Trading's use of a two-stripe motif similar to Adidas's three stripes. The court ruled that despite the simplicity of the mark, Fitness World's use was infringing because the public could establish a link between that use and Adidas's mark. [6]
In September 2004, top English fashion designer Stella McCartney launched a joint-venture line with Adidas, establishing a long-term partnership with the corporation. This line is a sports performance collection for women called "Adidas by Stella McCartney" [1], and it has been critically acclaimed. [2]
Also in 2005, on May 3, Adidas told the public that they sold their partner company Salomon Group for €485m to Amer Sports of Finland.
In August 2005, Adidas declared its intention to buy British rival Reebok for $3.8 billion (US). This takeover was completed in January 2006[7][8] and meant that the company will have business sales closer to those of Nike in North America. The acquisition of Reebok will also allow Adidas to compete with Nike worldwide as the number two athletic shoemaker in the world. [3]
In 2005, Adidas introduced the Adidas 1, the first ever production shoe to utilize a microprocessor. Dubbed by the company "The World's First Intelligent Shoe" it features a microprocessor capable of performing 5 million calculations per second that automatically adjusts the shoe's level of cushioning to suit its environment. The shoe requires a small, user replaceable battery that lasts for approximately 100 hours of running. It currently retails for $250 (USD). On November 25 2005, Adidas released a new version of the Adidas 1. There is an increased range of cushioning, meaning the shoe can become even softer or firmer and a new motor with 153 percent more torque.
On April 11 2006, Adidas announced an 11-year deal to become the official NBA apparel provider. They will make NBA, NBDL, and WNBA jerseys and products as well as team-coloured versions of the "Superstar" basketball shoe. This deal (worth over $400 million) takes the place of the previous 10-year Reebok deal that was put in place in 2001. When Reebok was acquired by Adidas, the NBA was allowed to find a new apparel provider, which is Adidas.
Production policies
According to the Adidas website as of May 2007:
Facility locations
"At May 1st, 2007, we worked with more than 1080 factories are operated by independent business partners (excluding factories of our licensees)...67% of our factories are located in Asia, 19% in the Americas and 14% in Europe and Africa. 22% of all these factories are in China."
Enforcement guidelines
"In 2004, we issued the enforcement guidelines to our suppliers. The guidelines cover the principles of enforcement of the "Workplace Standards", and those sanctions or remedies we will apply where the supply chain code of conduct is breached...We strongly believe in a partnership approach, and where a supplier is performing poorly in terms of "Workplace Standards" compliance we will work closely with them to find solutions. However, where we find ongoing and serious non-compliances and a lack of commitment on the part of management to address the issues, we will when appropriate, issue a formal warning letter...On any given issue, three warning letters will usually result in an immediate recommendation to terminate. In very serious cases, a single letter will be issued advising our suppliers that SEA is recommending to our Sourcing department that the business relationship be terminated. Our Legal department would then follow-up with a formal notification of the end of the business relationship.
In total, in 2005, 10 warning letters were issued, all to suppliers in Asia. This is 19 fewer than in 2004."
Adidas's Official Code Of Conduct:
Forced Labour Business partners must not use forced labour, whether in the form of prison labour, indentured labour, bonded labour or otherwise. No employee may be compelled to work through force or intimidation of any form, or as a means of political coercion or as punishment for holding or expressing political views.
Child Labour Business partners must not employ children who are less than 15 years old, or less than the age for completing compulsory education in the country of manufacture where such age is higher than 15.
Discrimination Business partners must not discriminate in recruitment and employment practices. Decisions about hiring, salary, benefits, training opportunities, work assignments, advancement, discipline and termination must be based solely on ability to perform the job, rather than on the basis of personal characteristics or beliefs, such as race, national origin, gender, religion, age, disability, marital status, parental status, association membership, sexual orientation or political opinion. Additionally, business partners must implement effective measures to protect migrant employees against any form of discrimination and to provide appropriate support services that reflect their special status.
Wages & Benefits Wages must equal or exceed the minimum wage required by law or the prevailing industry wage, whichever is higher, and legally mandated benefits must be provided. In addition to compensation for regular working hours, employees must be compensated for overtime hours at the rate legally required in the country of manufacture or, in those countries where such laws do not exist, at a rate exceeding the regular hourly compensation rate. Wages are essential for meeting the basic needs of employees and reasonable savings and expenditure. We seek business partners who progressively raise employee living standards through improved wage systems, benefits, welfare programmes and other services, which enhance quality of life.
Working Hours Employees must not be required, except in extraordinary circumstances, to work more than 60 hours per week including overtime or the local legal requirement, whichever is less. Employees must be allowed at least 24 consecutive hours rest within every seven-day period, and must receive paid annual leave.
Freedom of Association & Collective Bargaining Business partners must recognise and respect the right of employees to join and organise associations of their own choosing and to bargain collectively. Business partners must develop and fully implement mechanisms for resolving industrial disputes, including employee grievances, and ensure effective communication with employees and their representatives.
Disciplinary Practices Employees must be treated with respect and dignity. No employee may be subjected to any physical, sexual, psychological or verbal harassment or abuse, or to fines or penalties as a disciplinary measure. Business partners must publicise and enforce a non-retaliation policy that permits factory employees to express their concerns about workplace conditions directly to factory management or to us without fear of retribution or losing their jobs.
Mi Adidas
Mi Adidas is the customization program of the sporting goods manufacturer Adidas using the concept of mass customization. Adidas offers various shoes of different sport categories in this customization program. The customizable footwear models are defined by Adidas. The option to customize a shoe model is always an additional option of an existing shoe model, the customer is not able to fully create a new shoe but instead has the choice of (for example) choosing between different types of outsoles or different softness of cushioning for a running shoe. The shoe model can be adjusted in different length and width for both left and right foot, in different technologies and in design. The customization for the length and width is based on a static (length and width) and dynamic (impact on foot when hitting the ground) measurement. These measurements require specific measurement devices that only can be found in particular retail stores so far. Other sporting good manufacturers, such as Converse (Converse One), Nike (NikeID), Reebok (Rbk Custom), Puma and K-Swiss (my K-Swiss), also offer customization programs. These programs very often can be found online as they focus on design customization. In the United States, Mi Adidas can only be found at the San Francisco Sport Performance Store or the New York SOHO Sport Performance Store.
Lacrosse
In 2007, Adidas announced, through advertising, the future production of lacrosse equipment to include shafts, heads and possibly protective gear.
Adidas Lacrosse will present the Adidas National Lacrosse Classic, July 18-20, 2008 featuring the top 600 high school underclassmen lacrosse players in the United States. 8 regionals. 24 regional teams. 1 National Champion. Adidas National Lacrosse Classic
Sponsorship
Adidas is the longstanding kit provider to the Germany national football team, a sponsorship that began in 1954 and is contracted to continue until at least 2018.
Adidas are very active at sponsoring top football clubs such as A.C. Milan, Ajax Amsterdam, Bayern Munich, Chelsea F.C., Liverpool F.C., Real Madrid and Fluminense F.C.. Adidas also sponsor every team's shirt in the MLS. Adidas even sponsors events such as The London Marathon.
Former management
- CEO (1993-2001): Robert Louis-Dreyfus.
Current executive board
- CEO Adidas-group: Herbert Hainer
- Finance Adidas-group: Robin J. Stalker
- CEO Adidas brand: Erich Stamminger
- Global Operations Adidas-group: Glenn S. Bennett
"Impossible is Nothing"
"Impossible is Nothing" is the current mainstream marketing slogan for Adidas. This campaign was developed by 180\TBWA based in Amsterdam but also with significant work being done by TBWA\Chiat\Day in San Francisco - particularly for its basketball campaign "Believe In Five".
References
- ^ History @ Adidas-Group.com
- ^ "Adidas, Deutsche Telekom, Infineon: German Equity Preview". Bloomberg. 16th January 2008. Retrieved 2008-01-26.
{{cite web}}: Check date values in:|date=(help) - ^ Review of "Sneaker Wars: The Enemy Brothers Who Founded Adidas and Puma and the Family Feud That Forever Changed the Business of Sport", Barbara Smit, March 2008, ISBN 9780061246579
- ^ Brunner, Conrad (2007-07-30). Great Brand Stories: Adidas All Day I Dream About Sport: The Story of the Adidas Brand. Cyan Books. p. 192. ISBN 1904879128.
- ^ Adidas lawsuit resolved @ ncaa.org
- ^ Adidas told its three stripes don't constitute a trademark @ guardian.co.uk
- ^ History @ Adidas.com
- ^ Reebok History 2000-
External links