Attention Of Shoe Enterprises: The Entry Procedure Of Adidas Stripping Reebok

Adidas has decided to officially start the process of divestiture and Reebok's business will stop from the first quarter of 2021.

On February 16, European local time, adidas Group announced that it had completed the "strategic choice assessment" of Reebok brand and officially started the divestiture process of Reebok brand. In the future, the company plans to focus on further improving the market position of Adidas brand in the global sporting goods industry. Since the first quarter of 2021, Reebok will include discontinued operations in the company's financial statements. Adidas said the market volatility caused by the epidemic has resulted in higher bad debt limits, increased inventory, loss of its own stores and Reebok brand.

According to a source quoted by Reuters, Reebok is currently valued at more than 1 billion euros. The German media had previously said that the valuation amount was more than 2 billion yuan. Kasper rorsted, Adidas's chief executive, has said it was one of the most expensive mistakes the group has ever made. "After careful consideration, we believe that Adidas and Reebok as two independent brands will be able to better exploit their respective growth potential."

According to foreign media business insider statistics, since the acquisition, Reebok brand's contribution to adidas Group's revenue is gradually declining. In 2007, a quarter of Adidas's total retail sales came from Reebok, but by the second quarter of 2020, Reebok only accounted for 6.4% of Adidas's total sales. More than a decade after the acquisition, Reebok's situation has deteriorated.

Some people in the industry believe that the top management of Adidas headquarters failed to clearly distinguish the target market of Adidas and Reebok. Once they encounter ambiguity and cross cutting areas, they always choose Adidas, which has led to Reebok having to give up more and more business over the years.

In 2014, Reebok changed its logo and began to focus on the fitness market. In the eyes of the outside world, Reebok is trying to avoid direct confrontation with Adidas. However, this fitness track is not easy to walk. In the United States, under armour has been rising and has strong popularity. Even in emerging markets such as China, Reebok has not become the first choice of target customers. It was also this year that Reebok was the first to be acquired, but Adidas denied it.