Reebok first entered Shanghai Fashion Week to bet on the Chinese market

Reebok, who was "in the pocket" by Adidas, hopes to return to the peak with the help of the Chinese market.

Recently, Reebok first entered Shanghai Fashion Week, and set off the world's first show of Reebok's 2019 autumn and winter products. The move was interpreted by industry insiders as a signal that Reebok has released further efforts in the Chinese market. Reebok was once considered to be the fastest growing company in the Americas, but its development has not been satisfactory in recent years: In the latest earnings report of Adidas, Reebok's global sales fell by 3%. It is worth noting that Reebok's sales in the Asia-Pacific market have increased, with an increase of 3%. The rapid growth of the Asia Pacific market has also given Reebok more confidence. Previously, Reebok not only set up a product creative center in Shanghai, but also launched a joint name to further attract Chinese consumers.

The industry believes that Reebok wants to occupy a place in the Chinese market, but also needs more accurate product positioning; if Reebok can turn over, it can also help Nedidas to fight against Nike.

New signal from Shanghai's first show

On March 27th, Reebok teamed up with Shanghai Fashion Week to present the opening show of 2019 Shanghai Fashion Week in the Xintiandi Taiping Lake. Reebok spokesperson Chen Weiwei and famous rapper Future also attended the opening show to help Reebok.

It is worth noting that this is the first time that Reebok has been in Shanghai Fashion Week, and it is also the world's first show of Reebok's autumn and winter products in 2019. With the theme of “The Other Side”, Reebok set off a retro-style fashion show.

In this show, Reebok presented the most cutting-edge fashion design and technological innovation products in the fall and winter of 2019, mainly including the first launch of the Reebok Pioneer concept series, the first product pioneer concept - Reebok Sole Fury series and the debut of autumn and winter innovations. The shoe Interval, in order to break through the definition of traditional sports fashion. At the same time, Reebok also staged a special series of “see and buy” in the spring and summer of 2019 in the Tmall platform. It can be purchased immediately at the scene while watching the big show, further narrowing the distance with Chinese consumers.

In addition, Reebok will hold the first BOF China Prize in collaboration with BOF Fashion Business Review at Shanghai Fashion Week. And will join hands with China's top new designers to create a new exclusive limited edition shoes.

Matt O'Toole, president of Reebok Global, said in an interview with the media: "This event is part of Reebok's strategic plan to expand into the Asian market. Over time, we have been investing in China. Like most brands, we also think there is huge potential here."

In fact, Reebok's participation in Shanghai Fashion Week is also China's largest and most influential contemporary fashion platform. “Reebok has always been a bold, unconventional brand. We are willing to make some new attempts. When most international brands are only focusing on introducing Western fashion into the East, Reebok is willing to 'reversely' Come to the fashion capital of the East to absorb the emerging trend of power here, because we know that the future of fashion, fashion and innovation must be here, especially China.” Chad Wittman, Vice President of Reebok Asia Pacific and General Manager of Greater China, Cha Wei The text said.

Textile and garment management expert and general manager of Shanghai Liangqi Brand Management Co., Ltd. Cheng Weixiong told the Beijing Business Daily that nowadays domestic brands have become international and international brands have become the trend of clothing brands, especially for sports brands. For example, before Li Ning boarded New York and Paris Fashion Week, this is a step for domestic brands to enter the international arena. And Reebok landed in Shanghai Fashion Week, but also hopes that the brand will be more grounded, thus further exploring the Chinese market.

Transformation, significant sales, warming up

In order to consolidate the brand's position in the Chinese sports consumer market, Reebok set up a product innovation center in Shanghai in 2018 and signed a number of Chinese designers. The Creative Center is primarily responsible for product design and marketing in the Chinese market, with some products listed only in China or Asia. Most of the products displayed at Shanghai Fashion Week come from the design of the creative center, and it is expected to showcase their sports fashion categories to the Chinese market.

At the beginning of 2017, Reebok also revealed that it plans to open 500 brand image stores in the Chinese market by 2020, and the goal is to open 50.

Some insiders pointed out that the constant increase in the Chinese market is closely related to Reebok's "frustration" in the global market and optimistic about the Asia-Pacific market including China. Adidas' latest financial report shows that Reebok's global sales fell by 3%. Among them, sales in the Asia Pacific market increased by 3% to 336 million euros. From the financial report, this is the fastest growing region in the world's major markets.

At present, the sales volume in the Asia-Pacific market is second only to Europe and North America, which means that the Asia-Pacific market has become the third largest market for Reebok. However, Adidas did not disclose the specific performance of Reebok in Greater China.

In fact, Reebok had been very brilliant before. It is understood that Reebok was founded in 1895, the first pair of shoes created by founder Joseph William Foster is "Foster running shoes", which is also the world's first pair of spike shoes. It is not difficult to see that Reebok started with running shoes.

By the 1970s, Reebok had become one of the top 10 best brands in the world. In 1981, Reebok sales exceeded $1.5 million. Footwear sales continued to climb, soaring to $1.4 billion in 1987, a tenfold increase from 1981. Therefore, Reebok is considered to be the fastest growing company in the Americas.

In 1992, Reebok made a strategic adjustment. The focus of the market is divided from fitness apparel to other sports, especially the development of basketball shoes. In 1996, Reebok and the famous basketball star Iverson signed a cooperation agreement, which made the Reebok basketball career a new start.

While developing the basketball market, Reebok is also looking for new opportunities in the football market. In 1996, Reebok signed an extensive sponsorship agreement with Liverpool Football Club of the UK, including all clothing sponsorships for football clubs. So far, in the world sports goods market, the top three are Nike, Adidas and Reebok. In 2006, Adidas acquired the entire share of Reebok for $3.8 billion in order to further expand its market.

The industry believes that Adidas' acquisition of Reebok can compete against Nike. Although some products are partially competitive, they are not completely coincident, and all the resources of Reebok will be taken over by Adidas, which will help expand the market.

Returning to the rivers and lakes is not easy

However, in recent years, Reebok's performance has continued to slump, especially in the Chinese market, Reebok clearly lags behind FILA and other brands, which also makes the industry continue to spread Adidas acquisition of Reebok may hope to "marginalize" the brand to a certain extent.

In fact, the rumors of the sale of Reebok have been released in 2012, and it was very popular at the end of 2014. The three major golf brands such as TaylorMade, Adams Golf and Ashworth and the ice hockey brand CCM Hockey under the Adidas Group have been clearly listed as sales. But at the end of 2015, Adidas Group Chief Financial Officer Robin Stalke made it clear that he would not sell Reebok.

However, Cheng Weixiong believes that the main reason why Reebok is not tepid in the Chinese market in recent years is the vague positioning of the brand. Previously, Reebok chose to transform basketball from fitness and then to football. Now, Reebok returns to fitness and pays more attention to the trend. This is similar to Kappa, Puma and other sports, but also means that Reebok's positioning is constantly swaying.

For the positioning change of Reebok, Beijing Business Daily reporter interviewed Reebok. As of press time, the other party did not give an official reply. However, Adidas set a goal for Reebok in 2016 – to achieve significant sales growth and profit growth by 2020.

How to achieve this goal has not yet been determined, but it is foreseeable that China's sportswear market is energetic. Data show that in 2017, China's sporting goods industry achieved a main business income of 148.49 billion yuan, an increase of 6.3%. In 2013-2017, China's sporting goods industry's revenue and profits are growing, with a five-year compound annual growth rate of 7.64% and 9.37%. It is estimated that by 2022, the income of China's sporting goods industry will exceed 200 billion yuan.

Throughout the current growth of Anta, Li Ning, Xtep, 361 degrees and other domestic brands, coupled with Nike, Puma, Mizuno and FILA and other international brands, China's sportswear market competition is becoming increasingly competitive. "This is also a challenge for Reebok." Industry insiders bluntly.

“The market is big, but not every brand can seize the opportunity to revitalize the glory.” Cheng Weixiong further pointed out that sports brands expand the special sportswear market for different types of different consumers, therefore, segmentation The market has also made many brands more focused. Plus code segmentation can clearly outline the user's portrait, serve the consumer more accurately, and then seize the market. At present, Reebok is not doing enough at this point.

Another interesting thing is that Reebok has recently released a joint product with Chen Weijun in order to further narrow the distance with Chinese consumers, but the advertisement of this product has caused controversy: Reebok invites performers in Beijing. Dancing at the crossroads under the Guomao Bridge caused consumer dissatisfaction. "Don't want to shoot a video," said a netizen.

Insiders commented that controversy can create hotspots for public opinion, but consumers will not buy it if they create hot spots that are not ethical. In the future, the problem that needs to be solved by Reebok is still to further focus on subdividing products and create their own exclusive DNA brand.