Nike and Adidas Falter as HOKA, On, and ASICS Rise in the Sneaker Market
Nike and Adidas, once the leaders in the market, have now been overtaken by emerging brands like HOKA, On,
The global sneaker industry is experiencing a significant transformation in 2024, with industry giants Nike and Adidas facing challenges, while smaller, lesser-known brands are rapidly gaining market share. Nike and Adidas, once the leaders in the market, have now been overtaken by emerging brands like HOKA, On, and ASICS, which have secured the third, fourth, and fifth spots in market value.
International reports indicate that Nike’s struggles are largely due to a lack of product innovation, ineffective marketing strategies, and misguided pricing decisions. This has resulted in a decline in Nike’s market value, which now stands at $129.2 billion (RM532.8 billion).
Adidas, currently in second place, has also experienced difficulties after ending its partnership with Kanye West, leading to an excess of Yeezy products. This surplus inventory, worth NT$42.7 billion (RM5.5 billion), has caused significant financial losses for the company.
On the other hand, Deckers, the parent company of HOKA, has climbed to third place in market value, followed closely by On and ASICS. Deckers has seen a 398% increase in market value over the past five years, while ASICS and On have grown by 388% and 38%, respectively.
HOKA, once known for its thick-soled, brightly colored designs, has gained popularity with endorsements from U.S. President Joe Biden and actress Gwyneth Paltrow. Its shoes, designed for comfort and durability, have become particularly popular in ultramarathon events.
Swiss brand On has also capitalized on the global rise in running, with its sleek designs capturing 40% of the Swiss running shoe market in just eight years. Collaborations with luxury brands and the appointment of actress Zendaya as a spokesperson have helped On gain traction in the premium market.
ASICS, despite its 75-year history, has managed to reinvent itself with bold colors and retro-inspired designs. The brand’s partnerships with designers have kept it relevant in the fast-paced sneaker market, securing its place among the top five global brands.
