Kasper RørstedGETTY IMAGES
Adidas CEO Kasper Rorsted admitted there is "no doubt" the World Cup, which kicks off in Russia in a little over a month, offers "less of a sales opportunity for the brand compared to the same event in Brazil four years ago," according to Erin Lyons of MARKETING WEEK. In '14, adidas sold more than €2B in football gear, as it was helped by Germany (one of the teams it kits out) winning the World Cup. Rorsted acknowledged Russia does not "offer the same opportunity." However, he did describe the World Cup as a “tremendous” platform to showcase the brand. Twelve teams will wear adidas clothing or equipment for the event and the company "will be looking to drive global desirability around the brand." Rorsted: "We see this as a brand-building event. The direct financing impact is limited and the football has, over time relative to the size of the company, become a small event from a financial standpoint, but not from a brand standpoint." To make the most of the brand opportunity, adidas will invest 12% more in marketing this quarter, taking its budget up to about €80M ($96M). Rorsted's comments come "amid FIFA's struggle" to sign sponsors ahead of the World Cup, with many brands "reluctant to jump on board or give their campaigns the tick of approval." Ahead of the World Cup in Brazil in '14, sponsors were "touting their campaigns months in advance." But this year, just a little over five weeks from the start, "few sponsors have started talking about their plans" (MARKETING WEEK, 5/4).
