Kasper Rorsted, CEO, Adidas is putting pressure on the US subsidiary of Reebok to strengthen its position in the market. “It is clear that Reebok has to improve significantly. Reebok has in fact posted growth the past 15 quarters, but only outside of the US domestic market. The Group had thus decided to completely disconnect the US brands such as Reebok and Adidas from each other. The Reebok team in Boston will focus on its own business going forward. If that works as planned, Reebok will remain part of the family,” he said.
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It may be mentioned here that sportswear giant Adidas purchased Reebok in 2006 and has been trying to establish it as a fitness brand ever since. However, the transition has not been smooth.
The CEO also wants to boost Adidas’ entire North American business to catch up to the competition, where the Group recently made some gains and has made heavy investments. He has also inherited a detailed multi-year 2020 strategy for the brand’s revamp, a plan he intends to adhere to. “This over-investment is simply necessary to close the gap with Nike and facilitate amped up growth there,” added Rorsted.
