The news came as a complete surprise that Adidas has surpassed Nike-owned Jordan Brand as the second top sneaker brand in the United States by market share. Over the eight months of the year, Adidas possessed 11.3 percent of the U.S. market share (by dollar), which has risen up from 6.6 percent in the same period last year, according to market tracking company NPD Group.
"This is an achievement I never thought I would see in my lifetime," NPD's sports industry analyst Mike Powell said.
NPD Group, which tracks footwear data, noted Monday that the Jordan Brand went up from 9.4 percent to 9.5 percent, while Nike fell from 39 percent to 37 percent. Despite the decline, Nike remains the dominant leader in the apparel and footwear market. NPD Group posted Adidas' overall sales growth of 41 percent and 45 percent over the past two-quarters respectively.
Total athletic footwear sales reached $1.86 billion in August, up slightly from $1.85 billion last year.
Adidas' brands' impact on sales
Analysis indicates that the Adidas' success is the result of the company's fashionable and classic products, including "Boost" running sneakers that are designed to wear for everyday fashion, and "Originals" shoes that feature Stan Smiths and Superstars.
"UltraBoost is the greatest example of it," Adidas U.S. CEO Mark King said, according to Yahoo Finance. "It was going to be the ultimate running shoe, which it is, and now it's the ultimate fashion shoe. These products can play both, and that's not easy to do."
The German-based brand previously utilized a domestic-market strategy that would acquire U.S.-based professional athletes for marketing deals in order to drive sales in North America. Adidas made a major and successful shift in an endorsement strategy by inking deals with athletes, including Houston Rockets star James Harden and Denver Broncos star Von Miller and others.
Does Kayne West's product impact on Adidas' sales?
Kanye West, a rapper and a fashion designer, has dedicated to the Adidas team as a part of the product development.
The question is whether his products, like Yeezy shoes, had an effect on Adidas sales. In 2016, West extended a new collaboration agreement with Adidas to promote its athletic and non-athlete brand with the goal of increasing the company's market share.
Numerous sneaker enthusiasts assumed that West deserved the credit for his role in boosting Yeezy shoe sales in North America. Powell remarked on Twitter that he did not find evidence to support the notion that West's product made a huge impact on Adidas, however. Additionally, he told ESPN that West's product offering is small.
Basketball sneakers sales saw a downturn
Nike established a brand of basketball sneaker line called "Jordan Brand" for Michael Jordan, best known as the greatest basketball player of all times.
The company has NBA stars as shoe endorsers, including LeBron James, Kevin Durant, and Kyrie Irving. Despite these endorsements, basketball sneakers are seen a decline in sales by 22 percent, according to the report.
Customers buy and wear athletic sneakers as daily fashion, compared to those that buy and wear basketball sneakers for sports. The shares of Adidas rose up by 31 percent in 2016, while the shares of Nike dropped by three percent.