The NHL and Adidas

Expanding Global Markets

Article Overview• NHL.com released a publication announcing a new partnership with

an outfitter.• The National Hockey League and Adidas officially announced a

partnership that will begin in the 2017-18 season and last seven years (through 2024).• Adidas will be the official outfitter of the NHL, including on-ice

uniforms, off-ice training apparel, and gear.• Adidas will be taking place of Reebok, a company owned by Adidas

that has been outfitting the NHL

Article Overview• Adidas will also be the official outfitter for the World Cup of Hockey,

an international tournament being reinstated by the National Hockey League.• While Adidas will be recognized as the official league supplier, Reebok

and CCM, both owned by the parent company, will still be the league’s official on-ice equipment supplier (pads, helmets, gloves, skates, etc.)• This is the second major sport league in North America that Adidas

will be responsible for in regards to licensed apparel (NBA).

Globalization• What It is: “A process of interaction and integration among people,

companies, and governments of different nations,” –Globalization101.org• The NHL and Adidas are two separate organizations that will be expanding

on a global market thanks to their recent partnership.• We’ll take a look at how and why these groups will both impact the

concept of globalization.

Globalization for Adidas• Expands the company’s market across the continent of North America• As laid out in the new deal, Adidas will also be the official outfitter of

the World Cup of Hockey, taking place in Toronto in 2016• The NHL has had a history of playing overseas, mainly in Europe (i.e.

The NHL Premier)• Players from countries all over the world make their way to the US

and Canada to compete in the NHL

Adidas Expanding Across North America

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• 30 teams make up the NHL currently, expanding from the east to west coast (23 US, 7 Canadian)

• All of these NHL teams have some sort of fan base (some larger than others), which leads to:• Retail market for apparel and items• Media coverage, which exposes the

Adidas brand

Adidas Expanding Across North America• While Adidas is also a popular everyday training apparel company and

the official outfitter of the NBA, it will be reaching new areas of the continent where hockey is followed like religion.

• Hockey and the NHL are most popular in the northern United States and Canada, however teams that perform better than other sports in the same city tend to receive more attention.• Example: The NHL’s Detroit Red Wings tend to be more of a crowd favorite year in

and year out because of the club’s consistent tradition of success as supposed to other major sports teams in Detroit. Which means during hockey season, the Red Wings will be more recognized. Ultimately, the Adidas brand will be more profitable in an area like this.

Adidas and The World Cup of Hockey• In 2016, the NHL will reinstate the World Cup of Hockey, an

international tournament that will be played at a new hosting city (ideally in a new country) each time.• Adidas is the official outfitter of this event, including uniforms and training

apparel.

• The United States, Canada, Sweden, Russia, Finland, Switzerland, and a handful of other European countries will be represented by players in this 8-team tournament.• This presents an opportunity each year for Adidas to take product to a

new stage, and also dress athletes from a variety of countries.

Adidas and The World Cup of Hockey• This will also be the first impression Adidas will have on the game of

hockey, and it will be on an international level.• When international hockey fans see the Adidas logo on a hockey

sweater for the first time, it will certainly send a powerful message about how the organization is still on top of their game.• That’s extremely important for a company in a globalized race to be

the best training apparel outfitter with companies like Nike and UnderArmour.

NHLers from Around the Globe• Currently, there are four continents that produce NHL players.• Adidas will be endorsing all of these athletes from multitudes of countries with its

brand, which will directly affect these players’ hometowns and home countries.• Large scale: Fans will be likely to buy jerseys and gear to support their hometown player• Smaller scale: Players can return to their hometowns in the offseason wearing the Adidas

brand team issued clothing.

Globalization for the NHL• The NHL brand will begin to appear in Adidas stores and outlets all

across the world.• The League will be receiving most of (if not all) of its uniforms, gear,

and apparel from overseas Adidas factories.• Jersey advertisements in the near future could make way for new

opportunities to expand the brand of the NHL globally.

NHL Brand in Adidas Stores• Adidas has stores, outlets, employees, etc. in over 160 countries

worldwide.• The brand of the NHL will begin to gradually become more displayed

as the partnership between the two organizations begins.• As the stage expands for the NHL, its brand will be exposed to more

consumers of more locations and different regions.

adidas.com

Map of Adidas locations in parts of North American, Europe, South America, and Africa.

The NHL and Adidas Headquarters

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• With Reebok headquarters being out of Canton, MA, the NHL has been working pretty locally with its current supplier.

• Partnering with Adidas will take communication for the NHL to a much global scale, with the brand’s headquarters being in Herzogenaurach, Germany.

Apparel Production Overseas• As the NHL works with a new apparel supplier, it will be working in

different and or newer areas across the globe when receiving items from overseas.• According to the Adidas Group, 77% of its supplier factories are in

Europe, the Middle East, Africa, and Asia.• While the NHL has been receiving product overseas from Reebok the

past 8 years, the league will still be globalizing by working with new and more places around the world because of how well-establish Adidas is on a global-scale.

Jersey Advertisements• Advertisement exists all over sports venues.• On the field• On walls• In the stadium concourse• In game programs• On scoreboards

• Another more recent strategy is placing ads on teams’ jerseys.• There are several factors that lead many to believe Adidas and the NHL

will be the first major sport in North America to do jersey ads.• Due to rate of growth in Europe and making its way overseas• Due to already global market Adidas exists on

How do Jersey Advertisements Affect Globalization?

• Jersey ads take it to the next level from a marketing standpoint.• When a fan sees their favorite team,

they will automatically connect it with the company sponsoring it on the jersey.

• People love their sports teams and everything associated with them from players to mascots, ultimately, fans will have a positive viewpoint of that corporate sponsor.

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How do Jersey Advertisements Affect Globalization?

eaglenewsonline.com• Bringing jersey ads into the NHL will market companies, some even foreign, all across North America.• Example: The Syracuse Crunch (right) is an

AHL team, the minor-league affiliate team of an NHL team. They wear Toyota ads on all of their jerseys, a foreign country.

• A corporate sponsorship between an NHL team and a well-established globalized market would help build a more globalized fan base for the NHL and even that specific team.

Questions1. If jersey advertisements do find their way into the NHL, how can

Adidas and the league implement them in a way where they can keep the traditional look of a hockey uniform and not upset fans?

2. Will Adidas begin making on-ice equipment hardgoods (helmets, pads, sticks, skates) to completely monopolize the equipment industry in hockey?

3. With now having licensing deals with two of the four major sports in North America, where does Adidas compare to competitor Nike?

Questions4. Once the partnership between Adidas and the NHL expires, how

should the NHL approach its efforts in trying to continue globalizing its brand?

5. With Adidas being on a much more global scale than sister companies Reebok and CCM, will this help create more popularity for ice hockey and the league in countries where it struggles to find a fan base?

Works CitedRosen, D. (2015, September 15). NHL announces partnership with adidas as official outfitter beginning in 2017-18. Retrieved September 21, 2015.

Supply Chain Structure. (n.d.). Retrieved September 20, 2015, from http://www.adidas-group.com/en/sustainability/supply-chain/supply-chain-structure/