Jul 27 • 3 min read
Adidas was founded in 1949 by Adolf Dassler in Herzogenaurach, Germany. Before that, Dassler had been running a shoe company with his brother Rudolf, but the two had a falling out and split up, with Rudolf founding his own company, Puma.
In the early years, Adidas was a small company, with Adolf Dassler personally handcrafting shoes and selling them out of the trunk of his car. However, the trajectory of the company changed in the 1950s when Adidas ventured into athlete and sports team sponsorships, including the German national soccer team.
The turning point for Adidas came in 1954 when the German team, wearing Adidas shoes, achieved a remarkable victory by winning the World Cup. This triumph on the international stage propelled Adidas into the limelight, firmly establishing the brand as a major player in the world of sports.
As the 1960s and 1970s unfolded, Adidas continued to experience substantial growth and expansion. The company intensified its sponsorship of athletes and teams, further solidifying its presence in the sporting world. In 1971, Adidas introduced one of its most iconic shoes, the Stan Smith, which quickly became a bestseller and a symbol of Adidas' success.
While Adidas' rise to prominence in the sports industry was significant, the company's history is intertwined with a fascinating tale that encompasses sports, politics, and survival. During the Berlin Olympics held amidst Adolf Hitler's pursuit of Aryan supremacy, the Dassler Brothers Shoe Factory emerged as a small business in Germany. Remarkably, the factory provided shoes to African-American track and field athlete Jesse Owens, inadvertently thwarting Hitler's ambitions. Owens' extraordinary achievements shattered Hitler's plans and garnered international recognition for the Dassler Brothers' footwear.
The outbreak of World War II in 1939 led to the repurposing of factories, including the Dassler Brothers Shoe Factory, for military production. The factory contributed to the war effort by manufacturing weapons such as anti-tank devices and panzershreks.
In 1945, as American troops invaded the village of Herzogenaurach, where the Dassler Brothers Shoe Factory was located, the factory faced the imminent threat of destruction. Fortunately, Adolf Dassler's wife, Käthe Dassler, managed to convince the soldiers that the factory exclusively produced sports shoes, saving it from devastation.
Following the war, the Dassler Brothers Shoe Factory had to rebuild from the ruins and navigate the challenging post-war period. Eventually, the company split into two separate entities, with Adolf Dassler founding Adidas and Rudolf Dassler establishing Puma. The enduring rivalry between these two sportswear giants, stemming from the Dassler Brothers' legacy, continues to shape the industry to this day.
In the 1980s, Adidas faced stiff competition from Nike, which was rapidly gaining market share. To compete, Adidas began to focus more on design and marketing, launching new products and campaigns to appeal to a broader audience.
In the 1990s, Adidas continued to grow and expand, acquiring other companies and diversifying its product line. In 1995, the company went public, with its shares listed on the Frankfurt and Paris stock exchanges.
In the 2000s, Adidas made a number of high-profile acquisitions, including Reebok in 2005. The company also continued to invest heavily in marketing, sponsoring major sports events and signing endorsement deals with high-profile athletes.
Today, Adidas is one of the largest sports apparel companies in the world, with a presence in more than 160 countries. The company's products are sold in over 2,500 Adidas-branded stores and more than 13,000 retail outlets worldwide
According to Adidas' 2020 annual report, the company had Adidas had 17 factories at the time of Dassler demise with a net sales revenue of €19.8 billion, which is equivalent to approximately $23.6 billion USD. This represents a decrease of 16% compared to the previous year, largely due to the impact of the COVID-19 pandemic on global retail sales. Despite this decline, Adidas remains one of the largest sports apparel companies in the world, with a strong brand and a significant presence in the global marketplace.
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