Yahoo Finance

Footwear market competition: Can Nike and Adidas lead on innovation?

Competition in footwear is heating up as established leaders Nike (NKE) and Adidas (ADS.DE) are beginning to lose market share to newer competition such as On (ONON) and Deckers (DECK). Can established brands keep up with innovation and distribution compared to newer brands? Aneesha Sherman, Bernstein Senior Analyst, joins Yahoo Finance to discuss the increasing competition in footwear and why innovation and distribution in the sector are key to success. "Sneakers are not just for running anymore," Sherman explains, meaning there must be an emphasis on creativity in design. Sherman also highlights distribution as a critical issue for established brands: "These brands have also cut their presence at a lot of local running stores. If you go in to your local running specialty store, you're probably not going to see any Nike or any Adidas and so you're not going to buy any. That's been a huge challenge for them because these are differentiated, brand-heat-driving retail outlets that people go to for advice on what shoe to pick. If you're not in there, you're not getting selected. That's the other piece they need to gain back that also takes some time. " For more expert insight and the latest market action, click here to watch this full episode of Yahoo Finance Live. Editor's note: This article was written by Nicholas Jacobino