Adidas Faces Intense Competition in the Sports Apparel Market
In recent months, Adidas AG has been grappling with the rise of a new competitor in the sports apparel market. On, a Swiss running brand, has been making waves with its significant growth and impressive market share gains. The company’s success has not only caught the attention of industry observers but has also raised concerns about the market share of Adidas and its long-time rival, Nike.
A New Challenger Emerges
On’s rapid ascent has put pressure on Adidas to adapt and innovate in the market. The company’s stock price has been affected by these developments, with some analysts expressing concerns about Adidas’ ability to compete in the market. As On continues to gain traction, Adidas must find ways to stay ahead of the competition and maintain its position as a leader in the sports apparel industry.
Advertising Controversy and Regulatory Scrutiny
In addition to the competitive pressures, Adidas has also faced criticism for an advertising campaign that featured the Acropolis in a promotional video. The Greek government has taken legal action against the company, citing a lack of permission for filming. This development has added to the company’s woes and raised questions about its marketing strategies.
Dividend Payment and Shareholder Approval
Despite the challenges facing Adidas, the company has announced a dividend payment of 2.00 EUR per share, a significant increase from the previous year. The company’s shareholders will receive a total of 125 million EUR in dividends, a welcome boost to their investments. Additionally, the company’s chair has been reelected for 2026, despite a shareholder revolt.
Adapting to Change
As the sports apparel market continues to evolve, Adidas must find ways to stay ahead of the competition. The company’s ability to adapt and innovate will be crucial in determining its future success. With the rise of On and other competitors, Adidas must be prepared to make significant changes in order to remain a leader in the market.