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
Shell will continue to support Nigeria in its efforts to build a secure energy future through investments and efficient delivery of its businesses in Nigeria.
“We continue to invest in Nigeria’s future through our projects, our people, and our enduring confidence in the potential of this nation,” General Manager, Development and Subsurface Shell Nigeria Deepwater, Kun Jiang said today while delivering the sponsor’s remarks at the 49th edition of the Nigeria Annual International Conference and Exhibition of the Society of Petroleum Engineers in Lagos.
Kun highlighted current investments in Bonga North, HI and the advancement of Bonga Southwest as testimonies of Shell’s confidence in Nigeria’s deepwater future. The confidence was further reiterated with the recent launch of a US$3 billion contract financing programme by Shell Nigeria Exploration and Production Company (SNEPCo), which will help Nigerian contractors build capability, create value, and accelerate project delivery.
Shell is a major sponsor of the conference as part of a longstanding support for a professional body which has contributed to the development of the oil and gas industry. Discussing the theme of the conference; “Thriving in the Evolving Global Energy Landscape: Collaborative Growth and Resilience,” Kun said Nigeria had a lot of opportunities despite geopolitical tensions that threaten global supply chains and market volatility and shifting energy dynamics.
“With a population exceeding 240 million people, abundant natural resources, world-class talent, and growing domestic energy needs, Nigeria has all the ingredients to become one of the world’s most attractive energy investment destination,” she pointed out. “But potential alone does not create prosperity. Potential must be converted into progress. Resources must be transformed into value. Opportunity must be matched by action.”
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Nigeria must continue to attract capital, strengthen the business environment, embrace technology to unlock potentials if it will thrive in the global evolving energy landscape. She added: “The future will belong to countries and industries that combine resilience with innovation, ambition with collaboration and investment with execution excellence. Nigeria has the resources. Nigeria has the talent. Nigeria has the opportunity. What is required now is the collective determination to seize it.”
Shell is mounting an exhibition at the SPE conference with SNEPCo’s Senior Production Geologist Abidemi Belgore taking industry leaders and regulators round the stand.
Key areas of interest include technological breakthroughs that have enhanced output at Bonga and facilitated the execution of the Bonga North project. Also highlighted on the stand is the full range of Shell businesses in Nigeria from deepwater oil production and integrated gas to renewables and power solutions as well as social investments across the country.
The Nigerian naira recorded further gains against the United States dollar on Monday, appreciating to N1,408 per dollar in the parallel market, compared to N1,415/$ recorded at the close of trading last weekend.
The local currency also strengthened in the Nigerian Foreign Exchange Market (NFEM), where it appreciated to N1,365 per dollar, up from N1,368/$ at the end of last week.
According to data released by the Central Bank of Nigeria (CBN), the indicative exchange rate improved by N3, reflecting sustained appreciation of the naira in the official market.
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The latest gains also narrowed the gap between the parallel and official exchange rates to N43 per dollar, down from N47 per dollar recorded on Friday, indicating a gradual convergence between both markets.
Meanwhile, activity in the official foreign exchange market increased significantly, with interbank turnover surging by 132.3 per cent to N137.05 million, compared to N58.99 million recorded last weekend.
The improved performance of the naira across both markets comes amid continued efforts by monetary authorities to stabilise the foreign exchange market and enhance liquidity.
With a view to improving operational efficiency, safety, compliance and service delivery across its operations, Pinnacle Oil & Gas Limited has reaffirmed commitment to building stronger relationships with its vendors.
The company made the commitment at its 2026 Vendors’ Forum held in Lagos under the theme, “Partnering for Operational Excellence,” with the sub-theme, “Strengthening Partnerships Through Compliance, Safety, Performance and Innovation.”
The forum brought together more than 100 existing and prospective vendors as well as key stakeholders, both physically and virtually, to strengthen collaboration and align suppliers with the company’s operational standards and growth strategy.
Speaking at the event, Managing Director and Chief Executive Officer of Pinnacle Oil & Gas, Adenike Labinjo, described vendors as strategic partners whose commitment to quality, innovation, safety and compliance is critical to the company’s success.
She said as Pinnacle continues to expand its operations, it has become increasingly important for the company and its vendors to share a common understanding of expectations, responsibilities and performance standards.
Labinjo stressed that safety, regulatory compliance and ethical business practices remain non-negotiable in all engagements with suppliers.
She noted that stronger collaboration with vendors would help the company deliver greater value to customers and other stakeholders while supporting sustainable business growth.
The forum featured technical presentations by senior executives from the company’s Procurement, Engineering, Compliance, Finance, Legal, Health, Safety and Environment (HSE), and Sales and Marketing departments.
Participants received guidance on Pinnacle’s procurement procedures, vendor onboarding and prequalification processes, Know Your Customer (KYC) requirements, tax invoicing, payment processes, contractual obligations, technical specifications, contractor responsibilities, supplier performance expectations and Service Level Agreements.
The company also unveiled improvements to its Purchase Order (PO) process aimed at improving efficiency, transparency and ease of doing business with vendors.
A major highlight of the event was an interactive question-and-answer session where vendors engaged directly with the company’s leadership on procurement procedures, compliance requirements, project execution, HSE standards and areas for continuous improvement.
According to Pinnacle, the session reinforced its commitment to transparency, open communication and stronger collaboration with suppliers.
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The company also recognised outstanding vendors whose contributions have supported its operational performance over the past year. Five companies received Certificates of Recognition for exceptional service delivery, innovation and partnership.
The award recipients were Great Grace Enterprise for Outstanding Delivery Performance, Cevets Nigeria Limited for Excellence in Project Delivery, Ceezik Projekts for Outstanding Quality, Diadco Nigeria Limited for Outstanding Responsiveness, and Sephill Innovative Solutions Limited for Best Commercial Value.
On the significance of the forum, Head of Procurement and Administration, Oluseyi Ogunfowora, said the initiative reflects Pinnacle’s determination to build stronger partnerships through transparency, collaboration and shared accountability.
She explained that the procurement function coordinates the requirements of Engineering, Operations, Marine, Compliance, Legal, Finance, HSE and other business units to ensure a fair, efficient and transparent procurement process.
Ogunfowora urged vendors to submit complete and compliant documentation, communicate proactively and seek clarification whenever necessary.
“The success of our business depends on the strength of our partnerships,” she said. “When vendors clearly understand our expectations and we work together with transparency, compliance and open communication, we create a high-performing vendor ecosystem that benefits everyone.”
She added that the 2026 Vendors’ Forum forms part of Pinnacle’s broader strategy to strengthen supplier engagement, improve operational efficiency and reinforce a culture of compliance, safety, innovation and continuous improvement throughout its value chain.
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