How Are CONVERSE And Reebok Under The Fence?

In the 70s and 80s of last century, the old American sports shoes giant was very popular.

(Converse) I'm afraid that one day, I will become a sub brand of Nike (Nike).

At that time, CONVERSE held Magic Johnson and big bird bird's two NBA signboards as spokesmen, ConverseWeapon on their feet.

The popularity of AllStar is also a symbol of American classical culture.

But the sporting goods market is changing rapidly. Technology and ideas have not kept pace with the declining trend of CONVERSE.

In 2003, CONVERSE was bought by Nike at a price of 305 million US dollars.

Reebok, which has a longer history than CONVERSE, is also unable to escape the fate of Reebok.

In 2005, Adidas (Adidas) spent $3 billion 800 million to buy it at that time, then it was the second largest sporting goods company in the United States.

This price is more than ten times the price of CONVERSE.

Thirty years Hedong thirty years Hexi, CONVERSE and Reebok two "

How are things with Nike and Adidas's old friends?

After purchasing CONVERSE in 2003, Nike said it would not interfere with its operation. CONVERSE will remain its independent brand status and its headquarters is located at its original site, and its management personnel structure will remain unchanged.

In the year of acquisition, CONVERSE's annual sales volume was only $205 million.

After that,

CONVERSE has gained many players and channel resources over the years.

CONVERSE's basketball products initially existed as a layout of Nike in the low-end market.

At the same time, CONVERSE also signed some young players as spokesmen, and when it developed into a star, it was sent to Nike, and DwyaneWade and ChrisBosh were both.

After being "castrated" in the basketball business with obvious decline, CONVERSE seems to have been marginalized by Nike for a long time and can not find its own direction of development.

But the thin camel is bigger than the horse. With the rise of retro fashion, CONVERSE focuses on the leisure fashion market with AllStar, JackPurcell and other classic retro shoes.

On the one hand, CONVERSE has made the most of its cultural heritage accumulated over the past hundred years. On the other hand, CONVERSE, which gave up its sports attributes such as basketball, has also avoided its disadvantages of lack of technology and professionalism.

With Nike's strong marketing team and its worldwide sales network, CONVERSE has gradually recovered.

CONVERSE, which has changed its focus, has been doing well in recent years.

According to Nike's earnings report, CONVERSE's revenue in the past five fiscal years has reached 1 billion 324 million, 1 billion 449 million, 1 billion 684 million, 2 billion and 1 billion 955 million US dollars respectively.

It was nearly ten times more than Nike's $205 million revenue.

Reebok: lose the heavy sponsorship contract, cut into the fitness campaign

Adidas acquired Reebok's position in the US market in 2005, especially Reebok's resources in the field of basketball and rugby.

At the time, Reebok had more than two star spokesmen, such as AllenIverson, BaronDavis and Yao Ming, holding NBA and NFL's North American sports league's sponsorship contract, which means a great deal of exposure and Jersey sales.

But after taking over Reebok, Adidas took the place in 2006 and signed a New Jersey contract with NBA for 11 years.

"Shun" has taken Reebok's important resources Adidas's move is quite "kill the chicken to get eggs" suspicion.

In 2010, Reebok again lost the sponsorship contract of the American Professional Football League NFL.

Reebok, which has gradually lost its characteristics, has been struggling to survive in Adidas's sports lines, Originals, Neo and Y3.

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Without the sponsorship contract, Reebok's performance in basketball related businesses has been tardy.

Since 2014, rumors about Adidas's sale of Reebok have been rampant.

In 2014, Adidas almost sold Reebok to a consortium formed by investors from Hongkong and Abu Dhabi. Reebok's subsequent gains in 2015 made Adidas abandon the idea of selling.

The reappearance of Reebok comes from its strategic focus on the field of fitness that once thrives.

Since 2010, Reebok has signed a 10 year sponsorship cooperation contract with CrossFit, which was not so well known at the time, and made customized products for CrossFit.

CrossFit was founded in 2000 by the American fitness coach GregGlassman, and now has more than 13000 clubs in the world, and Forbes valued $4 billion in 2015.

In addition to the fitness field, Reebok has also launched the trend sports products and the 80s and 90s classic shoes re engraving products, competing for the leisure fashion market.

So far, Reebok pformation, which has been far from professional sports, has been fairly smooth. Revenue in the last five fiscal years has been 1 billion 940 million, 1 billion 667 million, 1 billion 599 million, 1 billion 578 million and 1 billion 751 million euros respectively.

Subbrands of domestic giants

Like big brands like Nike and Adidas, domestic giants Anta and Lining are also expanding their market coverage by establishing sub brands.

Anta has implemented a multi brand strategy in recent years. In 2009, it acquired the trademark rights and franchises of BELLE sports brand FILA in China, with a total price of 332 million yuan.

As of June 30, 2016, Anta had 687 FILA stores in mainland China, Hongkong and Macao (including FILAKIDS independent stores).

In February 2016, Anta set up a joint venture to spend 150 million yuan to design and sell all kinds of products of the famous high-end ski brand Descente in China.

Anta's first Descente store opened in Changchun in August 2016. It is expected that the number of stores in China will reach 5-10 by the end of 2016.

Like Anta, Lining has gained the right to operate international brands in China through cooperation and agency, so as to establish his own brand.

In 2005 and 2008, Lining established cooperation with the French outdoor brand Aigle and the Italy fashion brand Lotto, and obtained the exclusive franchise of these two brands in China's production, marketing and sales.

In addition to acting as an international brand, Lining bought a 57.5% stake in the domestic table tennis brand red double happiness in 2007 for 305 million yuan. In 2009, he bought 165 million of the total stake of the domestic badminton brand, Kaisheng, in order to increase its share in the badminton market.

In 2015, Lining sold a 10% stake in red double happiness at a price of 125 million yuan, and said he would no longer report it in the earnings report.

In addition to the red double happiness, Lotto, AI Gao and Kaisheng in the first half of 2016 brought Lining a total of 42 million 980 thousand yuan, accounting for 1.2% of the total income.

For large companies, how to make sub brands to make up their own market vacancies under the premise of maintaining their characteristics and form healthy brand interaction is a task that must be repaired.

Both CONVERSE and Reebok have gone through detours, but now they have found the way forward.