It has been a proud week for Germany's Dassler family. Both Puma and Adidas-Salomon, the sportswear companies founded by brothers Rudi and Adi, reported thumping third-quarter results. In North America, Adidas sold 16 per cent more year-on-year; Puma, off a much lower base, 63 per cent more. Asia remains hungry for western sports brands. Demand in China is expected to double each year until the Olympics in 2008. The European market is weaker, but next year's football World Cup finals should provide a boost for both brands in their homeland.

Adidas's branding and growth via acquisition contrast with Puma's organic, fashionista-friendly approach. Their race to take market share presents risks. For Adidas, successfully integrating Reebok is the big short-term hurdle. Puma, meanwhile, must now bring its high-end apparel to a wider market. That will inevitably hit margins and risks diluting the brand. Set against that, however, is the management's formidable track record.