Bags / Shoes & Accessories

On May 6 news,sporting goods stocks rose,Li Ning rose more than 4%,Xtep rose more than 3%,Too Boost rose more than 2%,and Anta rose 2.01%.

Some media quoted sources as saying that sports goods manufacturer Adidas has already begun selling its Reebok brand,and it is expected that China's Anta Sports and Li Ning will submit offers.Adidas acquired Reebok for US$3.8 billion in 2006,but it is currently estimated that Reebok can only sell for about 1 billion euros(approximately US$1.2 billion).

Some media quoted sources as saying that sports goods manufacturer Adidas has already begun selling its Reebok brand.Adidas has requested to submit the first round of bids next week,and it is expected that China’s Anta Sports and Li Ning will submit quotations,as will Wolverine of the United States.Considered by the market as possible bidders.In addition,financial investors including TPG Capital,Sycamore,Cerberus and Apollo may also join the competition because they are optimistic about Reebok's potential for better performance.Reebok is expected to record a loss this year,and next year's core profit is expected to only increase slightly.

Adidas acquired Reebok for US$3.8 billion in 2006.At that time,it intended to compete with Nike,but the brand value has been greatly discounted.It is currently estimated that Reebok can only sell about 1 billion euros(approximately US$1.2 billion).In addition,Adidas performed an accounting write-down on Reebok in 2018,erasing hundreds of millions of euros from its book value,and recording its accounting book value as 800 million euros.

According to relevant reports,the reason why Adidas chose to sell Reebok may be related to the continued weak performance,because Reebok has been performing mediocre since it was acquired by Adidas Group for US$3.8 billion in 2006.During the epidemic last year,Reebok's global stores started in March.The successive shutdowns have caused its sales to fall by 20%in the first nine months of 2020,and its revenue in the second quarter of last year dropped by 42.3%.

In addition,some media also reported that the revenue contributed by the Reebok brand to the Adidas Group since the acquisition is gradually declining.In 2007,a quarter of the total retail sales of Adidas came from Reebok,but in the second quarter of 2020,Reebok only It accounts for 6.4%of Adidas'total sales.

In addition,Adi is still being boycotted in China due to the Xinjiang cotton turmoil.This may become a factor considered by Chinese buyers and even affect the selling price.According to reports,for the Shanghai Half Marathon held in mid-April this year,the organizer temporarily announced on the eve of the race that it would not provide participants with T-shirts with adidas printed on it,and refunded part of the money to participants.The organizer did not explain the reason for this,but it is generally believed that it was caused by the Xinjiang cotton issue.

In addition,Adidas is the clothing sponsor of many Chinese audition shows this year,so in April TV stations also used mosaics to cover up the brand trademarks on the players.

Regarding the above rumors,Adi and other parties have not responded.

As early as last December,there were market rumors that Reebok might be sold by Adidas.At that time,CNN quoted a statement issued by Adidas saying that when it formulated its new five-year strategy,it evaluated Reebok's"strategic options",including the sale of Reebok and the continued rebate as part of the company.On February 16 this year,Adidas announced that it had completed the evaluation.As part of the new five-year strategy,Adidas decided to officially start the process of divesting Reebok.It is expected that starting from the first quarter of this year,Adidas will no longer announce Reebok’s performance.report.

Adidas CEO Kasper Rorsted said at the time:The long-term development opportunities in the sports industry we are in are very attractive,especially for iconic sports brands.After careful consideration,we believe that Adidas and Reebok,as two independent brands,will be able to better realize their growth potential.In the next few months,we will do our best to ensure the long-term success of the Reebok brand and its team.

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The history of Reebok,once the world's third largest sports brand,can be traced back to 1895.Joseph Foster from Bolton,England invented a spiked running shoe,which is also the world's first spiked shoe.Subsequently,he and his sons established a special company,which is the predecessor of Reebok"foster's".

In 1958,Joseph's two grandsons,Joe and Jeff,jointly founded Reebok,which shined in the British market.In the early 1980s,Reebok airdropped itself to the United States through the opportunity of an international sneaker trade show.

Since then,the competition between Nike and Reebok has become the main theme of the American sporting goods market in the 1980s and 1990s.At that time,Reebok had set many"world firsts":the first pair of spiked running shoes,the first pair of inflatable sports shoes,the first pair of sports shoes specially designed for women...It even beaten it in 1987.Nike has occupied the top spot in the American sporting goods market for three years.

But the good times didn't last long.In 2005,in order to fight against Nike,which had a far-leading global market share,Adidas,which ranked second,acquired Reebok,the third,a lose-lose bane.

According to Jiemian News,before the acquisition,Reebok held equipment sponsorship contracts for the three top North American competitive sports events of the NBA,NFL(National Football League)and NHL(North American National Hockey League).

In 2006,Adidas bought the company.

Let your former competitors seek development for you,which is less credible than"parents help you keep your New Year's money".

Under the escort of the NBA,NFL,and NHL contracts,Reebok firmly occupied the third position in the American sports market more than ten years ago.But after the merger,Adidas took away Reebok’s NBA and WNBA jersey sponsorship rights.In 2010,due to the decline in Reebok’s performance,the NFL contract was won by Nike.In 2015,Adidas took it again from Reebok.The last big contract is gone-NHL.

According to China Business News,in 2014,Reebok changed its LOGO,changed the track,and focused on the fitness market.This seems to the outside world to avoid being separated from Adidas and to find another way.But this fitness track is not easy to go.Undet Armour has already risen in the United States and has a strong limelight.Even in an emerging sports market like China,it is difficult for people to find Reebok among mainstream players.

Reebok has gradually become a burden of Adidas'"big tail".

According to The Paper,despite the poor performance,in fact,since Adidas CEO Kasper Rorsted took office in 2016,he has put forward a positive view on the development of the Reebok brand under the Adidas Group.He has repeatedly determined not to sell Reebok.At the annual meeting of Adidas in 2017,Roster also publicly stated Reebok’s profit target,hoping that Reebok can turn losses into profits in four years,and achieve the same profit margin as the Reebok brand and Adidas parent company in 2020..

In order to achieve this goal,Reebok not only established partnerships with the well-known British custom brand Huntsman in the following years,but also cooperated with designer Victoria Beckham.In terms of brand image,Reebok invited"Game of Thrones"actor Nathalie Emmanuel,"Wonder Woman"actor Gal Gadot,model Gigi Hadid(Gigi Hadid)and others acted as image ambassadors to increase the brand’s visibility among female consumers.

These efforts have been effective.Reebok lost more than 150 million euros in 2016,but returned to profitability in 2018,completing its goal two years earlier than Roster expected.