Thursday, August 04, 2005
ab Ricky Ponting aur Rahul Dravid BHAI BHAI !!!
Yesterday we read/heard of one of the biggest merger in the history of Sports Apparels and Shoes industry, Adidas announced its plan of buying out shoemaker Reebok for $3.8 billion, giving the company about 20 percent of the U.S. market. By the beginning of next year all the legal formalities of the hand over would be completed. Adidas will continue to use the 'REEBOK' brand name.

It is very interesting to note that inspite of these two brands coming together, they are still behind Nike International interms of market share as well as profitability.

An important view point mentioned "Adidas-Reebok will make inroads against Nike by presenting a stronger fashion brand, which will also gain wider support and endorsement deals," said Faith Hope Consolo, a retail consultant and lecturer, who also works for Prudential Douglas Elliman in New York. "When they present this united brand, they will have the luster to get more endorsements from high-profile athletes." "Separately they had a very small niche, but together Adidas and Reebok will have a global presence to compete one-on-one with Nike," she said.

Most of the articles that i have read about the merger mainly talk about the 'SHOES' category, though what would interest me the most is the impact of this merger on the 'SPORTS APPARELS' category. Afterall that's my bread and butter. It is said that by next year both the brands will be targeted at different market segments. Reebok will be focused on the common man, while Adidas will be catering mainly to the premium segment.

HOW DOES THIS EFFECT
'BLACK PANTHER' SPORTSWEAR ?? (one of India's leading sportswear brand).

Well this will be only answered with time. However, if REEBOK which has a very strong brand value & presences reduces its pricing and starts focusing in our price bracket then it would definitely be difficult for brands like ours to compete.

Another very interesting
article from business point of view on the merger.
posted at 8/04/2005 04:14:00 PM | comments (2) | permalink

2 comments:

  1. Good plug for your company !!! :)

    Anyways from what i have read about the merger, the impact in the US will be much lesser than everywhere else in the world. A combined Reebok and Adidas will have a 20% market share in the US, while Nike still has a 37% stronghold.

    I think the playing field will get level in Europe and Asia, where both adidas and reebok are as ingrained as Nike.

    A side story...Years (decade ?) ago when the founder of Adidas died, his sons ran the company for a short while but then split...one remained as head of Adidas, and the other one started Puma !!

    Interesting hunh !!
     — Anonymous arZan, at 8/04/2005 07:43:00 PM 

  2. Thanks for your comment..but i think 'BLACK PANTHER' and my company will survive.

    You are right...it will take ages for Adidas and Reebok combined to evenly compete with Nike for the US market.

    As for the Indian, well Nike is mostly popular with the High Income class...mainly cause they are more brand consicious than price consicious. But mojority of the Indian sports consumers are mainly price consicious...therefore other brands have a much larger market share the Nike here.

    As for the 'Adidas' history, well i was told about it when i had newly joined my company. Adidas is registered as a company, named after its founder: 'Adi' from Adolf and 'Das' from Dassler.

    Personally i feel 'PUMA' is much better then 'Adidas' or 'Reebok'...atleast in the Apparels category.
     — Blogger Sakshi, at 8/05/2005 12:02:00 PM 

Post a Comment

Just Me
Previous Posts
Monthly Archives
My Blogs
I Owe It to
I Simply Love
Added Features




Google
Web To Each Its Own !







 View My Public Stats on MyBlogLog.com



Get Firefox!

 Blog Top Sites



Join the Blue Ribbon Online Free Speech Campaign
Join the Blue Ribbon Online Free Speech Campaign!