The FIFA World Cup is set for a grand kickoff in North America this coming June, but that trophy is just the tip of the iceberg. Nike Inc. and Adidas AG are gearing up for an intense rivalry, aiming to seize market share while simultaneously elevating their brand identities on the global stage. With the tournament being hosted in regions crucial to Nike’s operations, it becomes a pivotal moment for them to assert dominance, especially with Elliot Hill leading the charge as CEO.
However, Hill faces a formidable challenger in Adidas, led by Bjoern Gulden, who is set to bolster the German brand’s status in the sports fashion sphere and capture more market share through innovative products aimed at enhancing athletic performance.
With the World Cup spanning the US, Canada, and Mexico, Nike naturally has the upper hand. North America is its largest market, contributing over 40% of sales in the last fiscal year. Though China poses challenges, sales in North America are on the upswing. Nike has also secured sponsorship deals with the national teams from the US and Canada. However, it’s not only the sporting teams that play a role in this dynamic landscape.
Today’s sporting culture has transformed into a showcase of individual brilliance, a phenomenon it’s been dubbed as “Kardashianisation.” Nike boasts a roster of star athletes that enhances its brand power.
Hill took the reins at Nike in October 2024. New product development typically spans about 18 months, making this the ideal moment for launching fresh gear. For instance, Nike’s athletes will debut its Aero-Fit cooling fabric, likened to “air conditioning for the body,” designed to mitigate the challenges of potentially extreme weather conditions. The latest Tiempo football boots will also feature, showcased on the feet of Brazil’s Estevao Willian.
As a direct volley towards Gulden, Nike has increased its focus on functional yet stylish football apparel. The recently released Hollywood Keepers streetwear collection draws inspiration from the trendy aesthetics of 1990s and early 2000s goalkeepers. The reveal of goalkeeper jerseys closer to the World Cup will foreshadow Nike’s team uniforms.
Although Hill isn’t as product-focused as Adidas’s Gulden, insiders describe him as someone deeply intertwined with the Nike ethos, invigorating the workforce, including footwear designers. Retailers are responding positively, with commitments to carrying 40% more football products than during the last World Cup, according to Hill’s recent second-quarter announcement. Analysts at RBC Capital Markets project that the tournament could yield an extra $1.3 billion in revenue for Nike.
Backing these fresh releases is Nike’s substantial marketing budget, approximately $5 billion annually as estimated by RBC. With a home field advantage and an opportunity to capitalize on high-profile athletic events, Hill’s strategy is expected to unfold aggressively come June. They have already initiated a youth-driven street football tournament titled Toma el Juego, meaning Take the Game, first held in Los Angeles and Miami, and set to expand to 20 more locations globally in 2026.
Nonetheless, Nike isn’t guaranteed an easy ride. Fertile ground for Adidas to outshine with its deep-rooted heritage in football exists, especially as it provides the tournament’s official ball.
Gulden aims to leverage Adidas’s footwear and apparel success into high-performance sportswear, where Hill also sees potential. He is broadening the Adidas Originals line, which is generally more leisure-oriented, to now include athletic performance. Expect to see the trefoil logo and their iconic three stripes prominently displayed during the World Cup.
Gulden also embraces Adidas’s style reputation. While some consumers will seek replica shirts, others might opt for stylish sneakers in their team’s colors. Jamaica, sponsored by Adidas, is a prime candidate for such a collection. Gulden has previously mentioned a desire to enhance the aesthetic appeal of athletic wear, so that players can feel confident in sporting their brand.
He believes the event could bring in €1 billion ($1.2 billion) in sales and has a broader vision to elevate the Adidas brand in the US, with aspirations that extend beyond soccer to encompass baseball, basketball, and American football.
Rival brands also add extra layers of competition. Puma SE sponsors Portugal, and new CEO Arthur Hoeld is keen on positioning Puma among the top three global sports brands, with a focus on football. Skechers USA Inc. has entered the fray, sponsoring Bayern Munich’s Harry Kane, while New Balance is eyeing an increase in annual sales from $7.8 billion to $10 billion within the next few years, boasting a strong football presence through England’s Bukayo Saka. Authentic Brands Group Inc.’s Reebok is also set to stage a revival.
Upwardly mobile running brands like On AG have yet to tap into football, but the World Cup could serve as a springboard for wider fitness promotion, leaving ample room for unexpected players in the game. Athleisure label Vuori has already snagged tennis prodigy Jack Draper from Nike, indicating the shifting currents.
To leverage the World Cup, Hill must counter the challenges posed by Adidas and emerging brands while remaining vigilant against self-inflicted setbacks, such as criticism over Nike’s women’s track-and-field kit prior to the upcoming 2024 Olympics. The unpredictable nature of individually branded athletes poses additional risks. Remember Cristiano Ronaldo in 2021, who turned his back on Coca-Cola during the UEFA Euro 2020?
If Hill manages to roll out standout footwear without blunders, the summer tournament could present extraordinary opportunities for Nike.
