What is the impact of a brand's marketing initiatives on its ROI? Can a brand's social media index be compared to it's stock index? Do social media KPIs matter in forecasting the possible growth or decline of a brand's financial position in the market? Sounds interesting, doesn't it? With this new marketing research, Fashionbi has dug deeper to compare the digital behaviour of a brand to its stock market value. A comparison trend has been observed and brought forward through this study. Read on to discover further about: - The reasons behind Adidas's growth to become the largest sportswear manufacturer in Europe - How Nike's well-targeted and consistent communication strategy results in its positive revenue growth pattern - Why Under Armour's focus on innovation and performance wear for athletes resulted in its strong performance - What impact do special events/happenings like the World Cup or consumer spendings have on a brand's positioning - How brands are actively using social media to improve reputation and eventually have positive impact on sales - Can a trend be forecasted for the brand's share in the stock market, merely by looking at its social media performances

1. Social Media vs Stock Market
Marketing Research
September, 2015
How Can Social Media Predict and Reflect a Company’s Stock Behaviour

2. Social Media vs Stock Market
September 2015
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Introduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3
1 Companies Results and Global Strategies . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5
1.1 Adidas . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5
1.2 Nike . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7
1.3 Under Armour . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10
2 Company Revenues vs. Social Media Performances . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14
2.1 Adidas 2014 Quarterly Revenues vs. Instagram Growth . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14
2.2 Adidas 2014 Quarterly Revenues vs. Average Active Facebook Fans in a Day . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15
2.3 Nike 2012-2014 Quarterly Revenues vs. Facebook Engagements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16
2.4 Under Armour 2014 Revenues vs. Average Twitter Mentions per Quarter . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17
3 Company’s Share Prices vs. Social Media Performances. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18
3.1 Adidas 2015 Q1 Stock Price vs. Facebook Active Fans . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19
3.2 Adidas 2014-2015 Stock Price vs. Average Twitter Mentions per Quarter. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20
3.3 Nike 2012-2014 Stock Price vs. Total Engagements on Facebook, Twitter and Instagram . . . . . . . . . . . . . . . . . . . 21
3.4 Under Armour 2015 Stock Price vs. Daily Twitter Mentions. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22
3.5 Under Armour 2015 Stock Price vs. Facebook Active Users. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 23
3.6 Under Armour and Adidas Stock Price vs. Fashionbi Index. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 24
4 Conclusion . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25
Index

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Nike
1. Stock Info*
NKE (NYSE) $113.64
2. Revenue Nike Inc. (in millions $)
2014 Annual Report - $ 27’799
4. Twitter Followers* @Nike
5 265 521
5. Nike Facebook Page Likes*
22 560 329
6. Instagram Followers* @nike
20 149 834
Under Armour
1. Stock Info*
UA (NYSE) $99.45
2. Revenue Under Armour Inc. (in millions $)
2014 Annual Report - $ 3’084
4. Twitter Followers* @UnderArmour
515 445
5. Under Armour Facebook Page Likes*
3 734 093
6. Instagram Followers* @underarmour
1 351 527
Adidas
1. Stock Info*
ADDYY (Nasdaq) $38.75
2. Revenue Adidas Group (in millions €)
2014 Annual Report - €14’534
4. Twitter Followers* @adidas
2 251 405
5. Adidas Facebook Page Likes*
20 473 261
6. Instagram Followers* @adidas
5 291 685
*Dated: 13th August 2015
Scope of Analysis

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Brands Results and Global Strategies
Nike Inc. is an American multinational corporation that is engaged in the design, development, manufacturing and worldwide marketing and
sales of footwear, apparel, equipment, accessories and services. The company is headquartered near Beaverton, Oregon, in the Portland
metropolitan area. It is one of the world’s largest suppliers of athletic shoes and apparel and a major manufacturer of sports equipment,
reaching a revenue of US$27.7 in its fiscal year 2014 (ending May 31, 2014). As of 2014, the brand employed more than 56’500 people
worldwide. In 2014, the brand alone was valued at $19 billion, making it the most valuable brand among sports business.
NIKE
Footwear
62%
Apparel
31%
Accessories
7%
NIKE BRAND REVENUES BY PRODUCT CATEGORY, 2014 NIKE BRAND REVENUES BY GEOGRAPHY, 2014
Western Europe
19%
Japan
3%
Emerging Markets
15%
North America
47%
Greater China
10%
Central & Eastern Europe
15%

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The period between July through September for years 2013 and 2014, showed the highest revenues for Nike, Adidas and Under Armour.
Especially, in the third quarter of 2014, the global sporting goods industry grew, driven mostly by increased consumer spending in the
emerging markets and internationally recognized sporting events.
Today, many companies agree that social media conversations are not only about promoting the brand and its products, but can also
influence their overall reputation, and hence the company’s financial results. This is supported by Adidas saying “The Adidas Group faces
considerable risk if we are unable to uphold high levels of consumer awareness, affiliation and purchase intent for our brands. Adverse media
coverage on our products or business practices as well as negative social media discussion may significantly hurt the Group’s reputation
and brand image, leading to public misperception of the Group’s business performance and eventually result in a sales slowdown.” Similar
statements have also been given by Nike.
Peak in Quarterly Revenues Across Nike, Adidas, Under Armour
Brands Results and Global Strategies
NIKE
Q1: June - August
Q2: September - November
Q3: December - February
Q4: March - May
ADIDAS/UNDER ARMOUR
Q1: January - March
Q2: April - June
Q3: July - September
Q4: October - December
FEB
MAR
APR
MAY
JUN
JUL
AUG
SEP
OCT
JAN
NOV
DEC
FEB
MAR
APR
MAY
JUN
JUL
AUG
SEP
OCT
JAN
NOV
DEC
FEB
MAR
JAN
2013 2014 2015
Fiscal Year
Under Armour Inc. Revenues Adidas Group Revenues Nike Inc. Revenues
Q3
Q1
Q4
Q2
Q1
Q3
Q2
Q4
Q3
Q3
Q3
Q2
Q2
Q4
Q1
Q1
Q4
Q1
$1000 mln
$6800 mln
$4200 mln
$2600 mln

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2014 revenues for Adidas directly correspond to the percentage of growth in followers for its Instagram account. Throughout the year,
the brand’s best activity, that is the action that their followers engaged the most with, through Likes and Comments, was a post in Q3
announcing the collaboration between Adidas Originals and Pharrell Williams. The rise in both revenues and Instagram growth for Q3 can be
directly linked to the largely buzzed about collaborations and special sports events especially the Adidas sponsored team, Germany, winning
the 2014 FIFA world cup in July. From having both finalists, the winning team and all three Adidas golden award winners to achieving record
football sales and being the most talked-about brand, Adidas dominated on the social media. To increase speed, bring greater consistency
and drive higher levels of brand activation online, Adidas established digital newsrooms around the globe. This served to better coordinate
the brands’ online presence, as well as, magnify key brand initiatives throughout the year. For example, for the duration of the 2014 FIFA
World Cup, Adidas set up a newsroom in Rio de Janeiro called ‘Posto adidas’. Throughout the tournament, Adidas created and shared
content via its social media channels in real time, in highly debated moments during the games or by giving fans exclusive insights into
adidas’ player and federation partners.
Company’s Revenue vs. Social Media Performances
@adidas Instagram Followers Growth (%)Adidas Group Revenues (millions of €)
€3 600
€3 300
Q1 Q2 Q3 Q4
20%
40%
60%
80%
€3 900
€4 200
Adidas 2014 Quarterly Revenues vs. Instagram Followers Growth

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Under Armour started the Year 2015 with launching a UA Record in the Digital health and fitness network, and then, the first signature Shoe
by Stephen Curry; in February they acquired Endomondu and MyFitnessPal to establish worlds largest digital health and fitness community,
plus new campaign featuring Stephen Curry and Oscar Jamie Foxx. During the first month of the year 2015, Under Armour signed a lot of
other sports players and had numerous partnerships with sports clubs.
These activities by the brand had positive impact on the social media communities and the investors, as well. On the graph above, both the
stock market and the Twitter Mentions were on a low but from the mid February there is a steady increase in the stock market and mentions
on Twitter. The growth in the stock market between January and June 2015 was around 20%, while Twitter Mentions increased by 29%.
Company’s Share Prices vs. Social Media Performances
Under Armour 2015 Stock Price vs. Daily Twitter Mentions
@UnderArmour Daily Twitter MentionsUA Stock price (USD$)
$70
$60
$80
$90
2000
4000
6000
0

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Under Armour and Adidas Stock Price vs. Fashionbi Index
SEPT-2014
OCT-2014
NOV-2014
DEC-2014
JAN-2015
FEB-2015
M
AR-2015
APR-2015
M
AY-2015
JUN-2015
JUL-2015
AUG-2015
Brand activities on the social media and engagement with the audience plays an important role in creating a brand image which further transforms into the brand’s financial
value. One of the KPI’s that can be used to measure the brand’s image is Fashionbi Index (brands’ online popularity index). If we compare the Stock Market Value of Adidas
and Under Armour with Fashionbi Index, the latter could predict the future highs and lows of the stock market price. For Adidas, the low of Fashionbi Index from Aug-2014
towards end of the year depicts the lowest depression in the stock during the starting months of 2015. But the same time during the depression period of the stock price,
Adidas Fashionbi Index saw a high note in the month of Jan & Feb-2015, which further reflected in the growth of the Stock market. Though, Under Armour during the last 4
months of 2014 had lows on both the Fashionbi Index and the Stock Market. Starting from January 2015, Under Armour’s peak of Fashionbi Index communicated the further
growth in the stock market price, moreover, the following months the brand had its high notes in Fashionbi Index, which maintained an increase in the price of the share.
Fashionbi Index Stock Market Price
FashionbiIndex 750
500
250
FashionbiIndex
60
40
20

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This is an excerpt from
“Social Media vs Stock Market
How Can Social Media Predict and Reflect a Company’s Stock Behaviour”
(http://fashionbi.com/omni-search/publication)
The full Marketing Research puts emphasis on the impact of a brand’s marketing initiatives on its ROI. Can
a brand’s social media performance predict its stock value? The use of social media and engaging followers
is still a fairly new concept for the brands, but there is, undoubtedly, a link to increasing sales, there. As this
relation is understood more thoroughly, in the future, Likes, Comments, and Mentions will directly translate
into figures for a company’s revenue.
To access the full marketing research and more, become a member today: http://fashionbi.com/signup/member
Download PDF
or learn more from our website
> Adidas growth to becoming the largest sportswear
manufacturer in Europe
> How Nike’s consitent interaction with its audience
resulted in its positive revenue trend
> Under Armour’s athlete-endorsement and its emergence
as a solid market player
> Can special happening like FIFA World cup event or a
decrease in currency value impact the brand’s sales
> How activewear brands are continuosly strengthening
social media communications to lead to positive sales
> What prediction can social media performances of a
brand do for its stock market value

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