Nike and Adidas Stumble as HOKA, On, and ASICS Gain Ground
The global sneaker industry in 2024 is witnessing a shift in power, with once-dominant brands Nike and Adidas facing challenges
Nike and Adidas Stumble as HOKA, On, and ASICS Gain Ground
The global sneaker industry in 2024 is witnessing a shift in power, with once-dominant brands Nike and Adidas facing challenges, while smaller, emerging brands are making significant strides. Nike and Adidas, long considered industry leaders, are now losing ground as brands like HOKA, On, and ASICS rise to prominence, occupying the third, fourth, and fifth spots in the market.
According to various media reports, Nike’s difficulties are largely due to a lack of innovation, declining brand appeal, and misguided pricing strategies. These issues have caused the company’s market value to fall to $129.2 billion (RM532.8 billion) this year.
Adidas, holding the second spot, has suffered significant losses due to the discontinuation of its Yeezy collaboration with Kanye West. The resulting inventory surplus, worth NT$42.7 billion (RM5.5 billion), has created a financial strain on the brand.
Meanwhile, Deckers, the company behind HOKA, has surged to third place, with On and ASICS following closely behind in fourth and fifth positions. Deckers has seen a remarkable 398% increase in its market value over the past five years, while ASICS and On have grown by 388% and 38%, respectively, in recent years.
HOKA, once mocked for its chunky, brightly colored designs, has gained popularity thanks to endorsements from U.S. President Joe Biden and actress Gwyneth Paltrow. Known for its comfort and support, particularly in endurance events like ultramarathons, HOKA has become a favorite among serious runners.
Swiss brand On has also risen quickly, leveraging the global running boom and its sleek, minimalist designs. Within eight years, On has captured 40% of the Swiss running shoe market and expanded its reach by collaborating with luxury brands and appointing actress Zendaya as a brand ambassador.
ASICS, despite its 75-year history, has reinvented itself with bold, colorful designs and a renewed focus on craftsmanship. The brand’s collaborations with designers have helped it attract a younger, fashion-conscious audience, securing its spot among the top sneaker brands.
