Earlier this month, we published an article surrounding the issues Jordan Brand is facing as a result of their decision to saturate the market with releases, opting to make more units of nearly every shoe they put out in order to increase revenue. While this has undoubtedly made the brand more money, it has helped to take some of the luster off of the Jordan Brand name. As a result, competitors have been inching closer and closer in the market share race. But despite those concerns, almost nobody thought that another shoe company could actually take over Jordan Brand's spot in the shoe market; until now.
According to NPD Group, Adidas now trails only Nike in the race for market share supremacy in the United States, capturing 11.3 percent of the market share from Jan 2017 through Aug 2017, a considerable jump from last year (Adidas held a 6.6 percent of the market share in the same span last year). In contrast, Jordan Brand held 9.5 percent of the market share from Jan 2017 through Aug 2017, just a 0.01 percent increase from 2016.
According to ESPN's Darren Rovell, NPD analyst Matt Powell said that he has "never seen a brand in the sneaker industry grow this fast."
(Jonathan Leibson/Getty Images for ADIDAS)
Adidas has grown its overall sales in the United States at an extremely fast rate. According to Rovell, the German brand's sales have grown by 41 and 45 percent in the last two reported quarters. In contrast, Nike's last two reported quarters have seen a growth of three percent and zero percent, respectively.
Adidas still trails Nike in the race for market share supremacy. Nike currently has 37 percent of the market share in the U.S., a decrease from last year, when it captured 39 percent in the first 8 months of the year.
It should also be noted that Adidas success isn't indicative of success across the shoe industry. While Adidas has experienced a rise in market share, Nike, Jordan Brand, and Under Armour have all experienced a decline in sales over the same time period.
The success of the Three Stripes brand can be attributed to, at least in part, the brand's fresh styles, celebrity endorsers, such as Kanye West and Pharrell WIlliams, and the company's Boost technology. While it remains to be seen if Adidas can maintain its hold on the market share, this is definitely a major milestone for the company.
