History of Adidas

Adidas is a German sports apparel and athletic shoe brand that started humbly when founder Adi Dassler began producing athletic shoes in his mother’s 20 square meter washroom in 1920. These first shoes, created for running and training, were made by hand without the aid of electricity. In 1924, Adi with the help of his brother and twelve other people, some of them family members, produced approximately 50 pairs of these handmade shoes per day. The Dassler brothers, Adi and Rudolf, registered their shoe company under the name “Dassler OHG”. Adi and Rudi leased their first production facility in 1927, calling it “Dassler Brothers Sports Shoe Factory” where 25 people produce 100 pairs of shoes each day. Three years later, Adi Dassler bought the factory with a house on the adjoining plot of land. Dassler tennis shoes are introduced to the market in 1931, and in 1936, Dassler shoes begin their domination of Olympic sports when Jesse Owens wins four gold medals for track and field events at the Berlin Olympics while wearing Dassler shoes. As the most successful athlete in Berlin, he set new world records in all 12 of the events in which he competes. Also in 1936, Adi Dassler’s son Horst was born. The death of Horst Dassler would later play a huge role in the course of the Adidas company and brand. Somehow, Adi Dassler’s company and brand survived the Great Depression and World War II, factory seizures by the Nazis, financial crises and more to become on of the longest-lived brands in the world. In the early years of the Adidas brand:

• 1938Adi bought a second production facility in the center of Herzogenaurach
• 1948Adi and Rudolf decided to part ways. Rudolf Dassler founded Puma while Adi went on to found the company now known as Adidas. Soon after the brothers’ separation, Adi Dassler registered the famous Three Stripes as his company’s trademark and Adidas became the official company name. The three stripes were originally developed as a way to stabilize the midfoot, but soon became synonymous with the Adidas brand.
• 1952Adidas was the most widely worn sports shoes brand at the Olympic Games in Helsinki, Finland. Emil Zatopek won three gold medals in one week while wearing Adidas shoes while his wife won the javelin competition. Zatopek won the 5,000m, the 10,000m, and the marathon. This achievement has never been repeated in or out of Adidas shoes.
• 1954 The German Nation Team won the Football (Soccer) World Cup for the first time, wearing Adidas shoes with revolutionary screw-in studs. In total, 450,000 pairs of shoes were produced in that year.

In 1956 Horst Dassler, son of Adi Dassler, stepped forward into a more prominent role in promoting his family’s brand of athletic shoes. Horst traveled to Australia to promote Adidas at the Melbourne Olympic Games, marking the beginning of modern sports promotion while Adi signed his first licensee agreement with the Norwegian shoes factory Onsrud in Gjovik.

• 1960 Adidas is once again the dominating brand at the Olympic Games, this time in Rome. 75 percent of all track & field athletes have chose to compete in Adidas shoes. Wilma Rudolph, who suffered from polio as a child, won three gold medals.  
• 1962 The first Adidas track suits with the Three Stripes were produced.
• 1964 Adidas brand dominated the Tokyo Olympic Games with 80% of all athletes wearing the famous Three Stripes.
• 1968At the Olympic Games in Mexico, athletes wearing Adidas products continued to be medal winners and leaders. In total, they won 37 gold medals, 35 silver medals, and 35 bronze medals. Also in 1968, “Achille” was introduced to the market as the first real jogging shoe.
• 1971Muhammad Ali and Joe Frazier faced each other in the “Fight of the Century”, both wearing special boxing shoes designed by Adi Dassler and Adidas.
• 1972 The “Trefoil Logo” is introduced. The 3 leaves symbolize the Olympic spirit, linked to the three continental plates. Adidas became the official supplier of the Munich Olympics, and the German National Team won the European Football Championship while wearing Adidas shoes.
• 1974 German once again became the World Cup Champion while wearing Adidas while 80% of all players at the competition held in Germany wore Adidas shoes and apparel.
• 1976Adidas was worn by 83% of athletes at the Montreal Olympic Games. They won 75 gold medals, 86 silver, and 88 bronze. Alberto Juantorena, nicknamed “The Horse” won two gold medals using Adidas newly introduces “adjustable spike system”
• 1978Adi Dassler died at the age of 78 due to heart failure. His wife, Kathe continued to run the company. Adidas was now producing 45 million pairs of shoes per year.
• 1987Horst Dassler died suddenly at the age of 51. He was unable to finish the global restructuring of the company that he started and the company was left without a leader.

Unfortunately, the death of Horst Dassler in 1987 marked the beginning of a period of serious instability and financial trouble for Adidas. The company incorporated in 1990 (”Aktiengesellschaft”) but retained its family ownership. Later the same year Bernard Tapie borrowed money from Credit Lyonnais bank and purchased 80% of Adidas stock for 1.6 billion francs (approximately $360 million) in an attempt to rescue the troubled company, marking the end of Adidas as a family owned company. Tapie was a then famous specialist in rescuing and revitalizing bankrupt companies and had made his fortune this way. He moved production to Asia, perhaps in an effort to save money, and popular artist Madonna was hired for promotion by wearing classic shoes and apparel of the 1970’s.

However, by 1992, it looked like Adidas was in trouble again. Tapie was unable to pay the interest on the loan and asked Credit Lyonnais to sell Adidas. The bank subsequently converted the outstanding debt into equity for the company, an unusual decision given the then-current French banking practices. According to rumors, the state-owned bank tried to get Tapie out of financial trouble as a personal favor because he was, at the time, the French Minister of Urban Affairs. Tapie later sued the bank because he felt spoiled by the sale. Tapie was eventually declared bankrupt after being embroiled in several lawsuits and a soccer-fixing scandal for which he spent six months out of a sentenced eighteen months in the La Sante prison in Paris.

Adidas then acquired the French Salomon group in 1997. The newly formed group is named adidas-Salomon AG. A new generation of athletes, including basketball superstar Kobe Bryant, tennis player Anna Kournikova and soccer legend David Beckham, entered the future with Adidas at their side This new generation symbolized innovation, technology, performance, and contemporary design.

Adidas became the official supplier and licensee of the 2000 European Soccer Championship in Holland and Belgium and outfitted the European Champion France. The same year, in Sydney, Adidas was represented in 26 of 28 sports and outfits more than 3,000 athletes. Ian Thorpe, a swimmer from Australia, won three gold medals and sets four world records to become the star of the Sydney Olympics while wearing the Full Body Suit (resembles a wetsuit).

Herbert Hainer stepped up to pilot the Adidas team when he was officially appointed CEO and Chairman of the Executive Board on March 8th, 2001. This appointment marked the beginning of a new era for Adidas. In 2002, Adidas signed a deal with popular hip-hop artist Missy Elliot. The custom clothes and shoes worn by the artist and her dancers in music videos and other performances gained ground for Adidas in the urban markets of the U.S. and Europe. Missy Elliot and Adidas later collaborated to release her own line of sport inspired footwear, apparel, and accessories that reflected her personal style, flare, and personality. The collection, called the RESPECT ME collection, was designed to generate the message of “positivity and empowerment.” From the official Adidas press release:

The RESPECT ME collection looks back at adidas’ old school street credibility while simultaneously contemporizing the Trefoil for hip hop’s newer generation. The collection will have 3 competitive components: Bass, Rhythm and Remix – targeting different looks and distribution channels. Sizes will range from XS to 2XL, for women of all sizes, with select items available as unisex pieces. RESPECT ME is a concept that connects adidas to the street in an authentic and unique way via a strong, positive female artist. Missy Elliott’s personality and her love for adidas, her music and her fans drive every aspect of the collection.A percentage of sales from the RESPECT ME line will benefit Break the Cycle, an innovative non-profit organization whose mission is to end domestic violence by working proactively with youth. Missy Elliott is a national spokesperson for Break the Cycle and has pledged to raise $ 5 million for the organization via industry contacts and cause related marketing initiatives. Missy’s determination to put hip hop back on the positive path is undisputable: “I do believe when you reach a certain status in this business, you got to be positive. You have to remember you are a role model.” adidas is proud to join Missy Elliott in these efforts. RESPECT ME is a platform for positivity, empowerment, style, skills, friendship and above all, respect.

The line launched globally in November of 2004 and was successful not only with Missy’s fan-base, but in the larger urban women’s market. This new method of endorsement and marketing was perhaps inspired by Reebok’s Sound and Rhythm Collection, a fusion between sports and music and popular culture at large. Adidas took another giant leap into the future when, in 2005, they introduced the “World’s First Intelligent Shoe”; a running shoe, called the Adidas_1, containing a microprocessor able to perform 5 million calculations per second. The processor automatically adjusts the level of cushioning to suit demand and environment, providing personalized impact protection for the wearer. The shoes require a small battery that last for approximately 100 hours. The Adidas_1 retails for about $250 and certainly can be called the most advanced running shoes available to date.

When the Dassler Brothers went their separate ways in 1949, it would have been hard to predict that their companies would become two of the most globally recognized name brand sneakers, Puma and Adidas. Adidas grew through the 60’s and 70’s, dominating the market and making the brand well known through sponsorships of football teams, Olympians and famous athletes such as Mohammad Ali. Youth culture has been a significant part of the success of Adidas shoes. Hip Hop has been a significant influence with Run DMC leading the way in their Adidas Superstars and releasing a single called My Adidas.

The brand has been through several logo changes and still remains instantly recognizable despite its replacement of the beloved Trefoil logo with new performance oriented logo. This new logo adorns all the new performance styles such as the A3 and Clima Cool ranges. While not currently a dominating force in the market, Adidas has retained a respectable share and an authenticity of purpose by sponsoring club soccer teams as well as being the preferred footwear of many national teams at the FIFA World Cup. Adidas stands poised to once again become a leader in the world athletic and lifestyle shoe market.