Puma’s announcement on Thursday, that Arthur Hoeld, former Adidas Sales Chief and new Puma CEO would replace Arne Freundt due to “differing opinions on strategy implementation,” was not just another leadership change.
This move brought a new chapter in the history of one of corporate rivalries most famous: Puma and Adidas.
This rivalry marked by talent exchanges and strategic competition had taken a new turn in 2022, when Puma appointed Bjorn Gulden as CEO. He had previously been senior vice-president of apparel and accessory at Adidas during the 1990s.
Under these boardroom maneuvers lies an older, more personal tale. It began as a bitter family split in a German small town. This feud has evolved into one of the world’s most famous sportswear rivalries.
Adidas and Puma are two of the largest sportswear companies in the world. They owe not only their success to innovation and ambition, but also to an old rift that existed between Adolf Dassler and Rudolf Dassler, German brothers.
Here is their story.
The Dassler Family feud
In the early 1920s, in a small town in Germany called Franconia named Herzogenaurach with a population of over 20,000 residents.
Gebruder Dassler Schuhfabrik, a company run by the Dassler Brothers Shoe Factory out of their mothers’ laundry room.
Adolf (also known as Adi) was a quiet, meticulous craftsman who focused on detail and design. Rudolf or “Rudi” was an extrovert, a charismatic salesman.
They were a hit from the start, and Jesse Owens won four golds in 1936 Berlin Olympics wearing their shoes.
During World War II, the relationship and business began to fall apart.
Open hostility arose from misunderstandings and grudges between individuals, as well as tensions arising out of politics.
It is still unclear what caused the split between Dassler and his brother.
The local records refer only to “internal difficulties” but, the story that is most commonly circulated, Rudi, who was often described as being the charismatic brother, had an affair with Adi’s wife Kathe. This betrayal permanently weakened the bond between the brothers.
Over the years, other theories have emerged.
The tension stems from their differing political views. Both brothers were Nazis in 1933. They also argued over who was to be credited with inventing revolutionary football spikes which helped West Germany win the World Cup in 1954 on a wet pitch in Berne.
A particularly infamous incident dates back to the 1943 Allied Bombing Raid over Herzogenaurach.
Adi, Kathe and Rudi rushed to an air-raid shelter that Rudi’s family had already taken up.
Rudi is said to have muttered “The Schweinhunde [pig dogs] , are back.”
Rudi claimed he was referring to RAF Bombers but Adi wasn’t convinced. This insult further strained their relationship.
In 1948, both brothers left Herzogenaurach.
Herzogenaurach – “the city of bent necks”.
Rudolf founded his company Puma on the Aurach River.
Adi, who stayed on the opposite side of the fence, registered his business as Adidas. This is a combination of his initials and his last name.
Even today, the two headquarters are located here. They’re only a few miles apart.
It was not only a rivalry between companies, but also a schism in the town.
Herzogenaurach was known as the “town of bent necks” because people would look at your shoes first before speaking to you.
In a Guardian article from 2009, Rolf-Herbert Peters, a local journalist said: “The division between the Dassler Brothers was to Herzogenaurach as the construction of the Berlin Wall for Berlin.”
The marriages of employees from Adidas and Puma are discouraged.
Every factory was home to its own barber shop, pub, football team, even bakeries and churches were aligned on one side.
Even religion and politics was part of this heady mixture. Puma and Adidas were viewed as Catholics and conservatives, while Adidas was Protestant and social-democratic,” Klaus-Peter Gabelein from the local Heritage Association said in the report.
The divide continued even in death: both brothers Dassler are buried at the opposite end of the cemetery.
Brand warfare: From Cold War cleats and brand war
Adidas and Pumas’ rivalry is no longer a personal vendetta, but a boardroom battle.
Both brands have been competing for decades to be the most dominant in sponsorships of football, athletes, and Olympic moments.
Adidas has signed Franz Beckenbauer, David Beckham and Pele. Puma, on the other hand, recently acquired Usain bolt, Neymar Junior and Pele.
Differentiating identities of brands also contributed to their competitive advantage.
Adidas focused on innovation, performance and heritage. Puma went for a youthful and fashion-forward approach, working with designers such as Alexander McQueen, Rihanna, and artists.
Modern leadership has tried to defrost relations despite the intense tension.
Employees from both companies played a football game in 2009 to encourage peace and reconciliation. The battle continues in the market.
Adidas and Puma generate millions of dollars in sales today, and compete globally with Nike and Under Armour.
In Herzogenaurach the division still resonates. The locals joke about the fact that wearing the wrong shoes is the quickest way to offend somebody.
As new information becomes available, this post Adidas vs. Puma – How a sibling breakup in a German small town led to the birth of a long-standing rivalry could be updated.
This site is for entertainment only. Click here to read more