Blog: Leonie BarrieTeam effort

Leonie Barrie | 3 August 2005

Did anyone see it coming? I must admit I did a double-take over today’s news that Adidas-Salomon is to buy Reebok. The two sporting goods companies have come together in a deal that gives Adidas-Salomon a newly expanded global reach and an all-important push into North America – where it will now be able to take on Nike directly. Adidas, which has contracts with football star David Beckham and rap artist Missy Elliott, will also be able to extend its reach to Reebok’s licenses to clothe players in the National Football League and National Basketball Association in the US.

In combination, the companies will also have more muscle in negotiating better terms or conditions with suppliers and retailers. Another positive is that the deal complements Adidas’s strengths in Europe and Asia where sports such as football are popular.

Perhaps surprisingly, analysts don’t seem convinced that Adidas’ move makes sense. One says that the message coming from Adidas is ‘We can’t cut it alone in the US,’ while others believe that the two firms will have to work hard to change many people’s preconceptions. Rather than complement each other, they suggest the focus pursued by each of the two companies may well prove difficult to merge. Whereas Adidas has a strong performance sportswear brand, Reebok seems to have concentrated more on positioning itself as a high fashion brand through endorsements with celebrity entertainers and athletes. Market leader Nike, on the other hand, is very focused and has built its brand reputation on sporting excellence and product innovation.

GERMANY: Adidas Buys Reebok In €3.1bn Deal


BLOG

Why digital supply chains are top of mind

Confirmation that digital supply chains are top of mind for apparel industry executives came last week with the latest plans from global sourcing specialist Li & Fung....

BLOG

Navigating global political frictions and economic uncertainty

As a barometer of the issues top of mind for apparel sourcing executives, it is hard to beat the annual Prime Source Forum in Hong Kong. ...

BLOG

Trump and Brexit generate more confusion

Over the past month, Donald Trump and his team failed to offer any clear plan to ensure Americans would "Buy American, Hire American" - while the British government's attempts to clarify the specifics...

BLOG

Bangladesh works to resolve labour activist issues

The Bangladesh government was forced to respond late last week to pressure over its crackdown on labour activists after a number of global brands and retailers, including H&M and Inditex announced pla...

just-style homepage



Forgot your password?