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

just-style market research sale

Are you planning for the year ahead and beyond? Well this week we’re offering great deals on some of our market research......

BLOG

Gearing up for the holiday shopping season

The volume of US apparel imports saw an increase in October on the prior year as retailers geared up for the holiday shopping season. Bangladesh booked the second highest growth behind India, reversin...

BLOG

Innovations to boost sustainability

Hong Kong-based textile and apparel giant Esquel Group, the world's largest woven shirt maker, is pushing ahead with the pursuit of sustainable and holistic quality. ...

BLOG

Sign up to try new re:source apparel sourcing tool for free

The old saying "Good things come to those who wait" is certainly true for re:source, the new suite of data-driven sourcing tools being developed by the team here at just-style....

just-style homepage



Forgot your password?