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Adidas generates revenue through licensing

Posted: Sat Dec 28, 2024 4:54 am
by sumaiyakhatun29
Comparison Item Adidas Nike Business Model Multi-channel distribution with a strong emphasis on sustainability and innovation A leading athletic brand with a focus on innovation, technology, and direct-to-consumer sales. Revenue Streams Product sales (apparel, footwear, accessories), licensing, and e-commerce. Product sales (footwear, apparel, equipment), brand licensing, and direct-to-consumer sales. Customer Segments Athletes, sports enthusiasts, fashion-conscious consumers, and younger demographics. Athletes, sports enthusiasts, fitness-focused individuals, and lifestyle-oriented consumers.


Value Proposition Quality, performance, sustainability, and a mix bahrain whatsapp fan of heritage and modernity in design. Innovation, performance-enhancing technology, trendsetting designs, and brand prestige. Revenue Streams Adidas Product Sales: The primary source of revenue for Adidas comes from the sale of its wide range of products, including footwear, apparel, and sports accessories. The brand’s footwear lines, particularly performance sneakers like the Ultraboost and Yeezy collaborations, significantly contribute to its overall sales.


Licensing:agreements with companies that produce shoes and clothing under the Adidas name. This licensing allows Adidas to expand its product offerings without directly manufacturing every item. E-commerce: The rise of online shopping has enabled Adidas to tap into direct-to-consumer sales through its website and mobile application, enhancing its overall revenue stream while reducing reliance on third-party retailers. Nike Product Sales: Nike’s revenue is primarily derived from the sales of footwear, apparel, and sports-related equipment.