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Adidas, Nike Set To Battle For Global Football Market In World Cup Year

Adidas and Nike "are squaring up for a marketing battle" at this summer's World Cup "to match the fierce on-field rivalry of nations like Brazil and Argentina," according to Weir & Thomasson of REUTERS. The sportswear companies "dominate" a football kit industry worth more than $5B annually. They "vie for the title of market leader" in the supply of boots and jerseys to fans inspired by Argentine Lionel Messi, who wears adidas, or Brazilian Neymar, who is in the Nike camp. Adidas regards football "as its territory and wants to avoid being overtaken by younger but larger American rival Nike, as has happened in other sports." Adidas CEO Herbert Hainer: "Forget all you may have heard or written about a weak adidas performance in football in 2013. We are leading this category that is so close to the adidas DNA." However, Hainer conceded that "competition is fierce, with the top two brands sharing upwards of 80 percent of the market" for many football products. Nike "has built its business swiftly," having got heavily involved in football only 20 years ago when the World Cup was played in the U.S. It generates revenues of $2B from the sport and "calls itself the leading soccer brand." Nike will provide kit for hosts Brazil and a total of 10 of the 32 finalists this year -- "outscoring Adidas and Puma in that regard" (REUTERS, 3/10).

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