The global sports shoe industry is undergoing a major shakeup in 2024, with giants like Nike and Adidas facing significant challenges, while smaller brands are rapidly gaining momentum. Once unrivaled market leaders, Nike and Adidas are seeing their dominance wane, as emerging brands have swiftly climbed into the third to fifth spots in market value.
According to international media reports, Nike’s struggles stem from a lack of innovation, sluggish marketing, and poorly executed pricing strategies. As a result, the brand’s market value has dropped to $129.2 billion (RM532.8 billion) this year.
Adidas, ranked second, has also faced severe setbacks, largely due to its decision to end its partnership with American musician Kanye West and the discontinuation of the Yeezy line. This led to a stockpile worth NT$42.7 billion (RM5.5 billion), contributing to massive financial losses.
Meanwhile, Deckers, the company behind HOKA shoes, has surged into the third position, followed by On and ASICS, which have secured the fourth and fifth spots, respectively. These three rising brands are gaining ground in the competitive sneaker market. Deckers has seen its market value soar by 398% in just five years, ASICS by 388%, and On by 38% over the past three years.
HOKA, once considered an odd-looking shoe due to its thick soles and bold colors, has gained widespread attention. Endorsements from U.S. President Joe Biden and celebrities like Gwyneth Paltrow have catapulted the brand into the spotlight. Known for its comfort and performance, especially in ultramarathon events, HOKA has rapidly grown in popularity.
Swiss brand On, another up-and-coming player, has capitalized on the rise of running as a global trend. Known for its sleek and stylish designs, On has captured 40% of Switzerland’s running shoe market within just eight years. The brand has also expanded into the luxury sector, partnering with high-end labels and featuring actress Zendaya as a brand ambassador, which has bolstered its appeal in the premium market.
ASICS, with a legacy spanning 75 years, has redefined itself by embracing retro-inspired craftsmanship and bold, colorful designs. The brand has consistently collaborated with renowned designers, keeping its loyal fanbase engaged and securing its place among the top five brands.
