LONDON : Nike’s ongoing struggles are giving Adidas a chance to keep taking market share from its larger U.S. rival, but the German brand will have to work harder to keep shoppers interested in its key Samba and Gazelle terrace sneakers.
The shoes have boosted Adidas sales over the past year, and analysts expect it to report third-quarter revenues of 6.4 billion euros, a 10 per cent increase on a year ago in currency-adjusted terms, when it reports earnings on Oct. 29.
But, more than a year into the trend, the Samba won’t remain the “it shoe” for much longer, industry experts say.
“The sneakerheads, the more fashion-forward consumer, they already have the shoes. We’re now looking at them (Adidas) milking the rest of the trend on the way down by introducing lower price points within terrace,” said Aneesha Sherman, analyst at Bernstein.
“They can still get a tonne of growth out of that because there are still laggards who don’t have these shoes yet or maybe didn’t want to pay the $100 price point but are willing to pay a $60 price point,” she added.
In a bid to attract shoppers who want to buy into the trend but still want to feel unique, Adidas has kept churning out new colourways for the Samba, Gazelle and Spezial, with some models featuring tongues like football boots, and contrast stripes in new materials like velvet.
That has kept third-party retailers like JD Sports happy for now. At half-year results on July 31, Adidas CEO Bjorn Gulden said the brand was still “chasing demand” from retailers.
“There’s always this push and pull, the consumer wants more, retailers want more, but the brand has to step back and say we’re going to dial this back to make sure we preserve it for a long time,” said Matt Powell, sneaker industry
