The resurgence of the Terrace trend is favoring Adidas and Puma, while Nike seems to have lost ground. During the '70s and '80s, this trend gained popularity, drawing attention away from the football ground, and Adidas dominated the production of such sneakers.
On the other hand, Nike, known for its basketball hardwood soles, has limited offerings in casual or football shoes, creating an opportunity for Adidas and Puma to capitalize on the trend.
Although the fad of basketball sneakers remains strong, the Google search for 'Adidas Samba' peaked in mid-June, indicating the ongoing popularity of the Terrace trend. With this trend's continued momentum, Adidas and Puma have an advantage in ruling the sneaker market.
Some trends never go out of fashion, but stay a little low for sometimes and the 'Terrace' fad is quite similar to that. Wales Bonner's recent Adidas collection shows a bunch of Adidas Samba pairs which accelerate the 'Terrace' trend where celebrities like Bella Hadid, Rihana, and Jonah Hill's appearance in Samba builds a strong base of this fad.
What is the Terrace Trend?
When the 'Terrace' fashion is talked about, the football fanatics must be remembered. Though it started with the outskirts of the U.K., European football lovers brought them before the world's eyes. In the late '70s when Americans were happy with Adidas Superstar, some Uk kids wore Gazelles and Stan Smith.
Football lovers who use to wear those gum-soled Terrace silhouettes in the '70s are known as casuals. Back then, England did not have a seat in the stadium but on the terrace where football lovers enjoyed the game standing still. However, the scenario might disturb the present football fans but it was the story behind the name.
Hooliganism during matches is also associated with the current casual fashion. Initially, Adidas targeted soccer players and rich athletes with the Stan Smith shoes, but the comfort of leather uppers and low-rise rubber soles made them popular among the working class. As a result, they became a lifestyle staple, transitioning from being solely meant for the soccer field to casual everyday wear.
Adidas beats Nike in the current Terrace Fashion trend though the investors of 3- the Stripes brand are still worried
The fad regarding retro shoes is evolving every day and the stockpile of Adidas with their retro casual soars. Being the staple in basketball sneakers, Nike is having slow growth in the last month. Puma is also in the race but their terrace collection is not as high as Adidas.
However, according to the investors of Adidas, the terrace collection holds a bare minimum part of their whole business. The investors are focusing on the weaker customer demands and making strategies to cater to them.
According to The Business Times, Deutsche Bank analyst Adam Cochrane said,
"If there’s a loser from this it’s Nike, which doesn’t have the track record from the 80s so you don’t have the historic shoes to fall back on and the back catalogue to revisit.”
Also, the Adidas shareholder Robert Schramm-Fuchs quoted,
"We believe the US market is now (following on from China) at the heart of the worries for investors in Adidas and Puma."
However, some analysts feel that the casual fashion trend is increasing and sportswear became an integral part of lifestyle fashion. Morgan Stanley analyst Aubin commented,
"However, the cost to compete for sportswear brands is very high, and barriers to entry are low, making retailers quite vulnerable to ‘boom and bust’ cycles as trends change."
So, a pair of samba or Stanley Smith donned casual fashion fuel the fire of the terrace fads where Adidas and Puma top the list.