In a dramatic turn of events in 2024, Nike and Adidas, once the giants of the global sneaker industry, are losing ground as smaller brands surge ahead. New competitors, including HOKA, On, and ASICS, have risen rapidly and now hold the third, fourth, and fifth spots in terms of market value.
According to global media reports, Nike’s current troubles are the result of multiple factors, including a lack of innovation, declining brand appeal, and pricing missteps. These issues have contributed to a decrease in the brand’s market value, which has now dropped to $129.2 billion (RM532.8 billion).
Meanwhile, Adidas, ranked second, has faced challenges after ending its partnership with Kanye West, which resulted in an excess of Yeezy products. This inventory surplus, worth NT$42.7 billion (RM5.5 billion), has placed a significant financial burden on the company.
In contrast, brands like Deckers, On, and ASICS have seized the opportunity to rise in the rankings. Deckers, the parent company of HOKA, has seen its market value soar by 398% over the past five years, while ASICS has increased by 388%, and On by 38% in just three years.
HOKA, once dismissed for its chunky, brightly colored designs, has grown in popularity thanks to endorsements from high-profile figures like U.S. President Joe Biden and actress Gwyneth Paltrow. The brand’s shoes, known for their high cushioning and responsiveness, have become a favorite among ultramarathon runners.
On, a Swiss brand, has also seen rapid growth by capitalizing on the global running trend. With sleek, stylish designs, On has captured a significant portion of the running shoe market in Switzerland. Collaborations with luxury brands and the signing of actress Zendaya as a brand ambassador have helped On expand into the high-end footwear market.
ASICS, despite being a 75-year-old company, has revitalized its image with bold, colorful designs and a renewed focus on craftsmanship. The brand’s partnerships with designers have helped attract a younger audience, securing ASICS’ position among the top five global sneaker brands.
