The sports shoe industry is seeing a major shift in 2024 as former leaders Nike and Adidas struggle, while lesser-known brands are gaining significant traction. Once dominant, Nike and Adidas are now facing fierce competition from brands like HOKA, On, and ASICS, which have claimed the third, fourth, and fifth spots in market value.
According to reports from various media outlets, Nike’s decline stems from issues such as a lack of product innovation, weakened marketing efforts, and poor pricing strategies. This has led to a drop in the company’s market value to $129.2 billion (RM532.8 billion) this year.
Adidas, currently in second place, has also faced setbacks due to the end of its Yeezy collaboration with Kanye West. The termination of the partnership resulted in a surplus of inventory worth NT$42.7 billion (RM5.5 billion), causing financial losses for the company.
In the meantime, Deckers, the parent company of HOKA, has risen to third place in market value, with On and ASICS following closely behind in fourth and fifth places. Deckers has seen its market value increase by 398% over the past five years, ASICS by 388%, and On by 38% in just three years.
HOKA, once seen as a niche brand with its thick soles and vibrant colors, has gained popularity due to endorsements from U.S. President Joe Biden and actress Gwyneth Paltrow. The brand’s highly cushioned and responsive shoes have become a favorite in ultramarathon circles.
Swiss brand On has also experienced rapid growth, fueled by the rise in global running trends. Known for its sleek and modern designs, On has captured 40% of Switzerland’s running shoe market in just eight years. Collaborations with luxury brands and the appointment of actress Zendaya as a spokesperson have helped On enter the premium footwear market.
ASICS, though a brand with a 75-year history, has found new success by embracing vibrant, retro-inspired designs. The brand’s collaborations with designers have attracted fashion-conscious consumers, allowing ASICS to climb into the top five sneaker brands worldwide.