Business
Nike and Adidas square off for Brazil World Cup in ongoing brand battle
FRANKFURT – When soccer teams battle for the World Cup in Brazil next year, another fight for global supremacy will be played out on the pitches – between Adidas and Nike.
In the next round of their tussle to be the world’s biggest sports brand there is everything to play for.
Nike currently owns 14.6 percent of the global sporting goods market to Adidas’ 11.4 percent, and is whittling away at the German brand’s No. 1 position in Europe. Adidas held 13.2 percent of the western European sporting goods market in 2012 to Nike’s 12.4 percent, according to Euromonitor data.
“It’s not easy to evaluate (next year’s) collections. Adidas is definitely putting a lot of effort into winning lost ground, but a company like Nike won’t rest on its laurels,” said Hans Allmendinger, head of marketing for German sporting goods retailer Sport2000.
Adidas (ADSGn.DE) has for more than 40 years decorated soccer kit and shoes with its distinctive parallel lines logo. It has strong partnerships setting it up well for the coming challenge: a close relationship with German club Bayern Munich, of which it owns 9 percent, and with FIFA, soccer’s world governing body, for whom it designs official World Cup kit.
Adidas has forecast record 2014 soccer sales of over 2 billion euros and aims to boost group sales to 17 billion euros ($23 billion) in 2015.
U.S. Nike (NKE.N), meanwhile, only entered the soccer market in 1994. But already it has several major partnerships with clubs, including English champions Manchester United.
The owner of the distinctive ‘swoosh’ or tick logo, does not give forecasts for individual sport categories, but it is predicting group sales of up to $30 billion by 2015 – suggesting it thinks it can put in a sufficiently strong performance during the World Cup to stretch its global lead over the German company – and maybe beat it at home too.
In Nike’s first fiscal quarter of 2013, ended August31, it posted an 8 percent jump in sales in Europe. Over the same period, Adidas’ European sales fell 7 percent.
AMBUSH MARKETING
Adidas is pulling out all the stops to make its presence felt in Brazil, where Nike sponsors the national team.
Brazil have won the World Cup a record five times and the country is a byword for stylish soccer, meaning there is a huge buzz around the tournament – and Nike’s designs.
Adidas is aiming to make its presence felt with players like Lionel Messi and Mesut Ozil, who play for Adidas-sponsored national teams Argentina and Germany – and the launch of the official match ball, the “Brazuca” – on sale for $160 but free to Brazilians born on its launch day.
Given the scale of the battle however it will also be using what is politely known as “ambush marketing.” Soccer watchers cite as an early example in this year’s World Cup campaigns the launch of a new soccer top for the Palmeiras club in the yellow, green and blue worn by the Brazil national team.
“That will be ruffling a few feathers,” said Berenberg Bank analyst John Guy. “They’ve certainly got a few tactical moves up their sleeves to consolidate their position against Nike and that’s good to see.”
Klaus Jost, president of the world’s largest sportswear retailer Intersport, said Nike’s roster of top soccer players like Frenchman Franck Ribery and Portugal’s Cristiano Ronaldo was one of the reasons for Nike’s increasing sales in Europe.
“It’s much more about creating the right image,” he told Reuters. “Stars like Ribery, Ronaldo and (Zlatan) Ibrahimovic have such an attraction that many kids want to copy them.”
BIG STARS
Big name endorsements are also responsible for Nike’s broader success.
Retailers say the U.S. brand has gained market share this year thanks to well designed, comfortable products such as the top-selling Nike Free sneaker – and getting its performance-enhancing shoes on the feet of the biggest sports stars.
Nike’s impressive roster of sponsorship deals includes current names like soccer star Ronaldo, tennis player Roger Federer, golfers Tiger Woods and Rory McIlroy and legendary track and field athletes like Carl Lewis and Michael Johnson.
“Nike has done a really good job of presenting themselves as the true brand for performance,” Tammy Smulder, managing director at marketing consultancy SCB Partners, told Reuters.
“Nike says, ‘We will be associated with the top athletes, whatever the sport’. You can’t dispute that,” she added.
Adidas chief executive Herbert Hainer said this week the group had made some mistakes, but added: “We believe we can grow the business by launching a lot of new innovative products. Our pipeline of new products is full.”
One of the ways Adidas is hoping to grow sales is by using the cushioning technology in its Boost running shoes for other categories such as basketball. That could enable it to increase sales of Boost shoes to 15 million pairs in 2015, after having only introduced the line earlier this year.
It has signed big names in sports other than soccer in a bid to gain market share from Nike. But its partnership with U.S. basketball star Derrick Rose has run into difficulties as a result of Rose suffering several injuries that have kept him off the court for months.
HOW TO MEASURE COOL?
The biggest challenge in the battle of the brands is to win the crown of cool – something far more difficult than simply designing a new product.
At the moment, say market watchers and consultants, Nike seems to be stealing a march on Adidas thanks to early adoption of new technologies which it is then harnessing to a bigger social media presence.
“They have a good hunch for the next wave that will define a generation,” Lea Simpson, strategy director at digital strategy agency TH_NK, told Reuters.
“In the 1980s, it was fitness, now it’s tech and sustainability.”
Nike has almost 2.5 million Twitter followers to just over 570,000 for Adidas. It also has higher Facebook engagement rates, showing its fans interact better than Adidas fans with posted content.
Its Nike+ Fuelband and other apps track training and can then post results on social media sites – a far more powerful demonstration of brand involvement than a Facebook ‘like’, Simpson said.
Adidas CEO Hainer said this week that the company would shift “much more money” into digital and social media.
Garth Farrar, global head of digital at Repucom, noted Adidas had already been producing more Vine clips, Facebook posts and tweets over the last months.
He said Adidas’ social media campaign looked geared to “give the brand more cultural relevance beyond Europe .. and help protect the brand from any ambush stunts from Nike around the World Cup.”
– REUTERS
Nigerian comedian and popular skit maker, Chibuike Josh Alfred, known by his stage name Josh2Funny, has shed light on the profitability of the content-creating industry.
In a recent interview with Echo Room, Josh2Funny highlighted the impressive financial potential that content creators can achieve, noting that it is possible for them to comfortably afford multiple luxury cars, including up to four Lamborghini vehicles.
Speaking candidly, Josh2Funny emphasised that content creation has become an extremely lucrative field due to the constant demand for fresh and engaging material. “If you want to buy four Lamborghini from content creation, you can buy it,” he said.
His remarks underscore the significant revenue opportunities available in the digital content landscape.
Josh2Funny explained that the continuous consumption of online content is what drives its profitability. “What do you think we are doing in the content-creating industry? Are we joking? You all are with your phones, when you’re in the bathroom, when you’re [using the restroom], you’re consuming our stuff. It’s like pure water,” he stated.
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The comedian further elaborated that businesses or industries that deliver products consumed on a daily basis often see the most substantial financial returns. Content creation, with its high rate of daily consumption by audiences worldwide, aligns perfectly with this model.
“People are out there, consuming our content every time,” he said, reinforcing the idea that the reach and influence of content creators have never been more extensive.
Josh2Funny’s insights reveal why the content-creating industry has become a lucrative career path for many in Nigeria and around the world. With the continuous growth of social media platforms and the public’s insatiable appetite for entertainment and relatable content, creators are finding new and innovative ways to monetize their craft.
This shift not only highlights the potential for significant financial gain but also showcases the evolving landscape of digital media, where influencers, comedians, and skit makers can turn creativity into a sustainable and highly rewarding business.
A safety alert notification by the National Agency for Food and Drug Administration and Control (NAFDAC) in Nigeria issued on October 31, 2024, regarding NIVEA BLACK & WHITE Invisible Roll-on deodorant (50 ml) batch number 93529610, in relation to the general European Union (EU) Rapid Alert System for Dangerous Non-Food Products (RAPEX), has come to our attention.
The batch is said to contain 2-(4-tert-Butylbenzyl propionaldehyde (BMHCA).
In a statement on Saturday, in Lagos, Beiersdorf, the owner of NIVEA brand, assured that the “the Batch No. 93529610 in question has not been marketed in Nigeria and thus never recalled”.
According to the statement, Beiersdorf was well informed that “Based on current European legislation, the use of ingredient 2-(4-tert-Butylbenzyl propionaldehyde (LilialTM) in cosmetic products has been banned from the European markets as of March 1, 2022.”
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It acknowledged that “The batch in question, in fact, expired in January 2022 and was hence at the time fully compliant with the then valid European cosmetic regulation.
“As a responsible corporate citizen, Beiersdorf is working collaboratively with NAFDAC to safeguard the interest of the Nigerian consumers by ensuring that our locally manufactured product meets the global quality standards.”
It maintained that “The safety of our consumers remains our highest priority, consistent with our ethical philosophy as a business.”
In pursuit of this commitment, Beiersdorf’s entire NIVEA product portfolio formulations have been reformulated to be Lilial-free formulas in full compliance with the EU Regulation on cosmetic products well ahead of its Lilial ban coming into effect as far back as March 1, 2022. For instance, the formulation of NIVEA BLACK & WHITE Invisible Roll-on deodorant has been Lilial-free since at least 2020 across the globe, including Nigeria.
“Our trade partners were informed ahead of time and reminded of their responsibility to remove the outdated Lilial-containing products within the legal timeframe to fulfill their obligations with the European Cosmetic Product Regulation,” it added.
The Shell companies in Nigeria teamed up with the Nigerian National Petroleum Company Limited (NNPC Ltd) and other stakeholders to build Information Communication Technology (ICT) centres and a digital library in Nigerian universities in 2024.
Biztellers reports that it initiative is part of their continuing support for education.
Some of the corporate bodies that executed the projects include the Shell Nigeria Exploration Production Company Limited (SNEPCo) and NNPC Ltd, and the Nigerian Content Monitoring and Development Board (NCDMB).
The benefiting institutions were, the Niger Delta University, Amassoma, Bayelsa State, which got a digital library in April, the Sa’adu Zungur University (formerly Bauchi State University), Gadau in Bauchi State, where an ICT Centre was commissioned in July, by The Shell Petroleum Development Company of Nigeria Ltd (SPDC) as part of the Joint Venture with NNPC, TotalEnergies and NAOC.
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In what would sound like singing-off on the educational intervention initiative for 2024, the Federal University of Technology, Owerri (FUTO), overflew with joy at the unveil of a world-class engineering design studios and ICT hub, courtesy of the SPDC, NNPC Ltd and other Joint Venture partners collaborated with NCDMB.
Reflecting on the three facilities, Country Chair, Shell Companies in Nigeria, and Managing Director, SPDC, Osagie Okunbor, said, “This is Shell working to power lives in Nigeria. The projects have changed the academic and physical landscapes in the three universities and linked the students and lecturers to the global learning arena.”
The facilities at FUTO include two state-of-the-art engineering design studios and a fully furnished 100-seater ICT lecture hall, equipped with computers and smartboards with dedicated power and water supplies. FUTO was selected for the project as part of the “institutional strengthening” in the catchment area of SPDC’s Assa North Ohaji South Gas Development Project. They were launched at a colourful ceremony attended by representatives of the Imo State Government and principal officers of the university.
Imo State Governor, Hope Uzodinma, represented by the Commissioner for Digital Economy and E-Government, Dr. Chimezie Amadi, said, “We deeply appreciate the efforts of our partners in NNPC, SPDC, Total Energies, and NAOC JV, who have invested in the future of Imo State by supporting this critical project. Your commitment to human capacity building aligns perfectly with our goals, and together, we will continue to drive innovation, skills development, and sustainable economic growth for our people.”
Okunbor’s address at the commissioning was read by General Manager, External Relations, Igo Weli, in which he expressed happiness “that the collaboration of SPDC, Joint venture partners, NCDMB, and FUTO has resulted in this successful social investment project that demonstrates our commitment to improving access to quality education for every Nigerian.”
On his part, the Executive Secretary NCDMB, Engr. Felix Omatsola Ogbe, called on Nigerian institutions to domesticate the advancements in AI and other technologies.
“Our AI must understand Igbo, Hausa, Efik, Yoruba, and other local languages,” he said, speaking through Dr. Ama Ikuru, the Director in charge of Capacity Building.
“We must leapfrog the innovations of other nations and become a net exporter of advanced technology to achieve the lofty ideals of Nigerian content development,” he added.
The Chief Upstream Investment Officer, NNPC Upstream Investment Management Services, Bala Wunti, said in his address which was read by the Senior Advisor Stakeholders Relations, Halimat Wilson, “Innovation thrives in an environment where ideas can be freely exchanged and developed. The Engineering Studio and ICT Hub is designed to be such a place where students, researchers, and faculty can collaborate on projects, share knowledge, and push the boundaries of what is possible.
Welcoming guests earlier, FUTO Vice Chancellor, Prof Nnenna Oti, thanked the sponsors of the project “for a landmark donation” to the university.
The Shell Companies in Nigeria have been education since the 1950s through scholarships and other initiatives. These efforts have resulted in the award of thousands of secondary, undergraduate and postgraduate scholarship awards, provision of educational infrastructure and establishment of sabbatical and internship programmes as well as centres of excellence in several universities.
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