Adidas Restructures Reebok
Adidas is the sporting giant that owns Reebok trainers - and they're hoping to revive the Reebok brand.
Adidas is something of a giant in the footwear industry. Not only is it the most famous trainer brand, it owns the major trainers label, Reebok. And recent news in the Financial Times says Reebok plans to overtake Puma to become the third largest sporting goods brand with a five year plan. Under Adidas, Reebok plans to rebuild its high-quality image. Unlike Adidas, which has maintained its position in the sporting world thanks to its innovative approach to technology and sport, Reebok lost its allure after the trainers were sold cheaply. The brand devalued and was seen as the cost-effective alternative to Adidas, rather than a designer label that was cool to be seen in. In America, the running shoes were even sold in supermarkets alongside beer.Adidas Revamp Reebok
But Adidas wants to change all that. Adidas is revamping Reebok, albeit at a difficult time as consumer demand for sportswear has dropped during the global financial crisis. Many believe this is the last attempt Adidas will make on trying to turn around the fortunes of the Reebok brand, which suffered an operating loss of €96m in the first quarter of 2009. Adidas hope that the investment in the re-branding will ensure the trainers will 'hit the ground running' when the economy recovers. The chief executive of Reebok, Uli Becker, hopes that the Rebook brand will become a driving force and a main growth area for Adidas. He told the Financial Times: "We want to kick the number three from the podium within the next five years." Reebok are considered to be fourth behind the big three global giants of the footwear industry: Puma, Adidas and Nike.Adidas Aim to Stop 'Junk Sales'
Adidas bought Reebok as part of its attempt to take on its main rival, Nike but have since acknowledged that they took on more work than they had expected in restructuring the footwear brand. Reebok has lost its designer status - something Adidas are working hard to recover, focusing on design and development, as well as product management and brand image. Adidas have joined forces with the circus Cirque du Soleil for example to create a quirky new Reebok fitness trainer for women in a move to combat the 'junk sales' approach of the past. By 2010 the brand will experience a complete marketing overhaul. Adidas merged with Reebok in a joint operating model in Asia recently to help save costs during the rescue re-branding process.Find Adidas Footwear & Clothing at FootAsylum
FootAsylum is a retailer with a passion for sport shoes. At FootAsylum, we believe trainers are a lifestyle choice. Here, you'll find a wide range of footwear and clothing from the biggest fashion and sporting brands, including Nike, Adidas, Gio Goi and Diesel. Have a question? Call us on 0845 009 8939, we're happy to help.