money & economicsanalysisWikipedia1920s · Herzogenaurach, Germany
Adidas began in a laundry room, with two brothers who would later become bitter rivals
Adolf Dassler started making sports shoes in his mother's laundry room in Herzogenaurach, Germany, after returning from World War I. His brother Rudolf joined in 1924, and the pair used a stationary bicycle for power when the town's electricity failed. Adolf developed spiked running shoes with canvas and rubber in place of heavy metal. In 1936 he persuaded Jesse Owens to wear them at the Berlin Olympics, and the reputation of Dassler shoes spread after Owens won four golds. The brothers split in 1947, with Adolf founding Adidas and Rudolf founding Puma.
Adolf experimented with lighter materials to make spikes that gave runners more grip and less weight. Owens' four golds in Berlin turned a small firm into a name known to athletes worldwide. Major sponsorship deals and the postwar occupation buyers then expanded the business.
The split turned a small family workshop into one of the two giants of sportswear, and their rivalry helped build the modern sports apparel industry. It also shows how the brands' early history was entangled with the Nazi era, since both brothers joined the party in 1933 and the factory made anti-tank weapons during the war. The town itself was divided between the two brands.
Family firms that split in bitter feuds are common in business history, and rivalries can drive innovation. The Dassler split is a clear example of how competition between siblings can grow a whole industry.
The Adidas three-stripe logo was acquired in 1952 from the Finnish brand Karhu Sports for two bottles of whiskey and a sum of money.
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