Adidas and Nike all set to churn profits from London 2012 Olympic Games
With the London 2012 Olympic Games fast approaching their starting date on July 27, 2012, both Nike and Adidas gear up to earn a marathon of profits during the time the Olympics remain progress.
The Olympic Games will provide a tremendous amount of exposure to the two giant brands as the number of people viewing the events will be in millions from all over the world. Nike holds the honour of being the official sports kit provider to the United States
Olympic team while Adidas has been able to secure the right to provide the sports kit for the Team GB.
Adidas has the added advantage of being the official sportswear partner of the London 2012 Olympics. It has been a costly venture on part of the German giant but return of which the sportswear company will be getting several exclusive benefits. The key advantage
of being the official sportswear partner of the Games is that thousands of the Olympic volunteers will be wearing outfits provided by Adidas. Not only that, the Olympic officials will also be wearing uniforms provided by the German giant.
This would mean that Adidas would get to market its brand every time a close up of the officials or the volunteers appear on the screen or a spectator comes in direct contact with them at the Olympic venues.
Simon Cartwright, the head of Adidas Olympics, gave the following statement on the matter while talking to Reuters, “We're knitting out 5,000 athletes and 84,000 volunteers with 3 million pieces of apparel.”
The American market leader Nike as well as its German counterpart Adidas stands to gain the maximum advantage as sporting kits and shoes will be the most visible components of the Games. This is because the Olympic Games do not offer its sponsors to advertise
their brands on the perimeter of the Olympic venues, which is the norm in many sporting events such as Wimbledon. As a result, the most prised spots to advertise a brand will be sporting kits and shoes, products that both Nike and Adidas make.
Adidas has made plans to utilize the London 2012 Olympic Games for getting the upper hand in the market of Great Britain. Currently, Nike holds the top position as the market leader in the UK market but Adidas plans to change things by generating maximum
sales during the Olympics.
A manager from a firm in the sporting industry expressed himself on the matter by giving the following statements, “Adidas has got its foot on the accelerator. They've thrown down the gauntlet to Nike because they want to take market leadership in the UK.
Nike is more focused on Rio (2016).”
Whether Adidas will take over Nike as the market leader remains to be seen but the fact remains that the two sporting giants stand to gain a lot from the upcoming Games.
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