Tuesday, August 09, 2005
Adidas & Reebok join hands to beat Nike
Adidas and Reebok joined hands to give competetion to the world's No.1 brand Nike in branded sports wear market but Reebok is likely to retain its brand. In Indian and south Asian market, Reebok and Adidas would be available as separate brands. In this acquisition Adidas will pay $ 3.8 billion or Rs.16720 crore. As far as Indian market is concerned Reebok is market leader in branded sports wear category. It has 150 outlets and more than 3000 stockists all over India, with a market share of around 45 percent where Adidas has 30 percent market share and biggest player in the world athletic and life style branding, Nike has 25 percent share. Total size of branded sports wear market in India is Rs. 375-400 crore. After this deal between German brand Adidas and Reebok, a new company is likely to be formed which will have a combined annual sale of some $11.1 billion where Nike's annual sales are $ 14 billion worldwide. In the market Adidas is popular among soccer, track and field fans and Reebok appeals to fans of sneakers, athletic football, base ball and basketball. Adidas and Reebok deal is done to face Nike's competition in world market.