|
Puma
PUMA is one cat
that keeps changing its stripes. The company, which makes sports specific
shoes and apparel sold under the PUMA and Tretorn
labels, was formed when German brothers Rudi and Adi
Dassler feuded and split their family firm into adidas and PUMA. While shoes are PUMA's
heritage, apparel accounts for a growing portion of sales. It is expanding
apparel styles to include men's travel business casual wear. Considered a
founder of the athletic apparel industry, PUMA struggled through missed
trends and four owners before new management and a reorganization made it a
serious player again. Products are outsourced and distributed in more than 80
countries. PUMA ventured into eyewear in 2006.
It inked a deal with Japan's
Charmant Group, which will design and manufacture a
line of upscale eyewear. Charmant makes licensed
eyewear for Hugo Boss, Elle, and Espirt. In a
separate deal Luxottica will be the exclusive North American wholesale
distributor and will sell the products in about 5,600 doors worldwide through
its retail network.
The company makes athletic shoes and apparel for sports ranging from soccer
and tennis to auto racing. Europe accounts
for about two-thirds of its sales. PUMA wants to increase its apparel
business, which accounts for more than a third of sales. The company has
announced a sponsorship deal with soccer legend Pele for the 2006 World Cup;
PUMA also has a sponsorship deal with Formula One racing star Michael
Schumacher.
A late 2006 deal with Italian motorcycle maker Ducati
is helping to put the peddle to the metal in its
PUMA Moto line. The agreement expands PUMA's portfolio of motorsport
offerings and involves PUMA being the official footwear supplier of the Ducati racing teams and a licensing agreement with Ducati Motor Holding to make and market co-branded
performance and lifestyle items for spring 2007.
In 2005 Gunter and Daniela Herz (who made their
fortune through the TCHIBO coffee group) raised their stake in PUMA to a
blocking minority of 25%, raising speculation that the family will try to
block a rumored takeover bid by NIKE.
Reebok
Reebok International feels comfortable stepping out onto
any surface. It has long been at home in sporting arenas and is the #2 US maker of athletic shoes, behind NIKE. In addition to
Reebok sportswear and accessories, Reebok sports the Greg Norman line of
men's casualwear, as well as Rockport and Weebok shoes. It runs more than 220 retail stores. Reebok
sponsors sports stars and it has taking strides to become more fashionable.
In 2005 Reebok sold its Ralph Lauren Footwear unit to Polo Ralph Lauren for
about $110 million. adidas,
in 2006, acquired Reebok for about $3.8 billion. Paul Harrington then
succeeded Paul Fireman (who, with his wife, owned nearly 19% of the firm) as
head of Reebok.
The company that made its name in the aerobics craze of the early 1980s has
fallen slightly out of step since. (To stay afloat, initially, it lent its
name to sports equipment, fitness videos, and a bottled
water -- Reebok Fitness Water produced by Clearly Canadian.)
Reebok has been playing second fiddle to NIKE for the two long decades since
aerobics lost its luster. Its acquisition by adidas
elevates Reebok to compete head to head with its #1 nemesis in a battle of
the global brands. With Reebok's brand strength in the US, Germany's
adidas will also achieve a deeper reach there --
nearly doubling its sales in the US athletic shoe and apparel
markets. As part of the deal, Reebok retained its headquarters in Massachusetts.
When consumers turned their backs on athletic footwear in the 1990s and
manufacturers were met with news of overcapacity among retailers, Reebok had
to refocus. Its woes have included unwieldy product lines and a revolving
door in its executive offices. Its market share plummeted during the early
1990s, though today it is back among the top three, due in part to trends
turning back toward athletic footwear as fashionable.
In 2003 the company launched a category of fashionable shoes and clothing
called Rbk. The collection means to rally urban,
fashion-conscious consumers; endorsers include entertainers Jay-Z, Shakira, Eve, and Mary J. Blige.
Intending to extend its reach to this younger audience, Reebok partnered in
2005 with hip-hop artist Nelly (born Cornell Haynes Jr.) to market a line of
apparel, accessories, and footwear.
It also added women's wear to the Greg Norman Collection (GNC) but the
apparel line didn't last long in Reebok's closet. The company announced in
2006 that its Greg Norman Collection unit would be better suited for MacGregor Golf. GNC will become part of the MacGregor Golf operations by the end of 2006. Announced
in October 2006, the deal is strategic for GNC, as MacGregor's
presence in Japan and South Korea
offers GNC a foothold in these Asian markets. As part of the deal, GNC
purchased a noteworthy equity stake in MacGregor
Golf.
The company took its focus on fashion one step further by issuing a series of
limited-edition sneakers in 2004, using such materials as crocodile skins and
satin linings -- and "sneaker boots." Experimenting in innovation,
the company midyear introduced specialty-sneaker vending machines in test
outlets where its footwear is sold.
In its first attempt to target another niche -- 'tween
female customers -- in 2005 Reebok began packaging Bonne Bell Lip Smackers
with its Sweets sneaker line. Reaching out to touch the young female
customer, again, Reebok partnered with Scarlett Johansson in mid-2006 to
co-create a fashion apparel and footwear line named
Scarlett "Hearts" Rbk.
In mid-2004 Reebok bought Canadian hockey jersey maker The Hockey Company, an
acquisition that shores up Reebok's foothold in the sports equipment arena.
The firm has purchased 92% of Hockey Company Holdings. In February 2005
Reebok launched its Rbk Hockey line of professional
skates, sticks, and protective equipment, which was developed by The Hockey
Company in collaboration with world-renowned hockey players. Then, The Hockey
Company signed a young hockey talent to represent its brand. In 2006 Reebok
tapped its feminine side to develop a line of hockey apparel -- complete with
T-shirts, jackets, and jerseys -- for women through a partnership with the
NHL.
Looking to boost business significantly, Reebok in early 2005 announced it
was making a significant investment in what is the firm's largest marketing
campaign ("I Am What I Am") in nearly a decade. The campaign
features athletes (Allen Iverson), celebrities (Lucy Liu), and musicians
(Jay-Z, 50 Cent).
Getting into the swim of things in 2006, Reebok launched its first swimwear
line in the US
in April. The company dove into the performance swimwear niche through a
licensing deal with Pennsylvania
swim manufacturer Backflips. The collection sells
in specialty swim stores and sporting goods chains.
|
