You might be forgiven for thinking its a sporting fashion to have three stripes on parts of your sportswear; it is actually not sporting fashion, its a brand identity, Adidas' identity.
All over the world, the Adidas brand is well known. Its presence in over 170 countries is testament not only to its global acclaim, but also to its reputation as a successful brand by all measures. Actually, one out of three people that read this blog own a product made by Adidas.
Amidst all these however, it is easy to forget that what is today known as Adidas was started by just one creative entrepreneur; who was aged 20 at the time. From those early days in the 1920s he was able to grow the company into a global brand which still exists today, years after Adolf (Adi) Dassler himself passed on. How did he make it through Depression and World War II? In true Adidas fashion, here are three lessons we should learn from Adidas' earliest days.
HAVE A CLEAR VISION, START SMALL
Being a keen runner, Adi's vision was to develop a perfect running shoe. The vision encompassed three guiding principles: produce the best shoes for the requirements of the job, protect the athlete from injury, and ensure the product lasted. Armed with this clearly defined vision, Adi started small but never took his eyes off the vision.
Germany after World War 1 was a tough place to start a business but Adi was relentless. He used whatever he could scavenge to make his shoes including parachutes and army helmets. Working from his mother's kitchen, Adi utilized the "lean startup methodology" to develop his first set of products. He invested "sweat and blood equity" and was able to grow from that point on.
PROTECT YOURSELF
"Business is business, family is family, never mix the two together" is one of the first business lessons I learnt. This lesson is reinforced by the early troubles of Adidas, which was then known as Dassler Brothers Shoe Factory.
Adi loved making shoes but he had no business experience; therefore he brought on his brother who had experience in sales to join the venture in 1924 (which was the right thing to do). This led to the creation of Dassler Brothers Shoe Factory which was registered in the same year. Adi kept designing and innovating while his brother Rudolf, was responsible for marketing and sales. Although these moves grew the company, Adi was left exposed as there were no legal agreements as to the ownership structure of the business.
The growth of the business brought about disputes between the brothers which led to a split in 1948. That split marked the beginning of a bitter rivalry as Rudolf took half of the company's shoe making machines and started a new shoe business of his own. That company eventually became what is known today as "Puma", which is one of Adidas' fiercest rival.
KNOW AND LEVERAGE YOUR MARKET
Right from those early days Adi knew his market, what they wanted, and how to reach them. First, he was his own customer as he tested his products while running to see if it had the proper feel. Then, he made sure he attended all the important sports event to sell, get feedback, and interact with his customers. He initially sold to sport clubs and athletes before expanding to supply footwear to participants at the 1928 and 1932 Olympic games. However, the 1936 Olympics which was held in Berlin was where Adi's growth really began. By this time, most of the German athletes wore Dassler shoes and the brothers realised that the athletes themselves were the best form of advertisement they could use to create a buzz around their product. This led to a new marketing trend as the Dassler brothers became the first company to use sport/celebrity endorsement to advertise their products. Adi went further to persuade US sprinter Jesse Owens to try on Dassler shoes. The gamble paid off as Owens won four gold medals which boosted the reputation of Dassler shoes. That trend is still in force today as sport icons such as David Beckham and Lionel Messi endorse the Adidas brand.
Adi knew his market, and used that knowledge to great effect...you should too.
In 1949, Dassler Brothers Shoe Factory was dissolved when Rudolf went to create Puma. Adi as a result created Adidas and its iconic logo which till today remains the second largest sportswear company in the world behind Nike.
Those efforts of Adi in the 1920s were the foundations of Adidas which now employs over 45,000 people. If that business could survive the economic and political climate at the time, then your business too can survive today. Just learn these lessons and ACT ON THEM.
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