About Reebok

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Reebok International Limited is a manufacturer of athletic apparel, shoes and many more accessories. Reebok is part of the Adidas umbrella of subsidiary companies along with other businesses like TaylorMade and CCM. According to Reebok, they are a global brand inspired by the United States “that creates and markets sports and lifestyle products built upon a strong heritage and authenticity in sports”.

History

This strong heritage dates back to the foundation of Adidas in Germany along with the acquisition and name change from J.W. Foster and Sons to Reebok. J.W. Foster and Sons was a family owned footwear company that started in 1895 in England; the name was changed after the acquisition to Reebok in 1958 representing the African spelling of a rare type of gazelle.

Function

Internally, Reebok is most concerned with creativity in developing new products and changing the status quo in the athletic apparel industry. They focus on producing athletic apparel that helps every athlete, from professional athletes playing for a living to children playing for recreation and fun, perform athletically at their highest possible level and unleash their true potential.

Production

Reebok employs over 75,000 people in factories across the world. Most footwear production is conducted in Asia with more than 50 percent of all shoes being produced in China; Reebok has shoe factories operating in 14 countries including Vietnam, Indonesia, and Thailand. Reebok also has separate apparel production centers in over 40 countries. Once again, most is produced in Asia but more apparel factories are located in Africa, Middle East and the Caribbean.

Endorsements

Reebok has exclusive rights to produce and sell jerseys of the National Football League as well as being considered the official shoe of both Major League Baseball and the NFL. Reebok also entered the professional hockey market with the acquisition of CCM in 2004; a couple years following the acquisition, Reebok signed the two brightest stars of the NHL, Alexander Ovechkin and Sidney Crosby, to wealthy endorsement deals. Other endorsement deals brokered by Reebok include athletes such as Allen Iverson, Vince Young, Yao Ming and Thierry Henry, as well as entertainers such as Jay-Z, 50 Cent and even Scarlett Johansson.

Financials

According to Adidas’ financial statements, Reebok accounts for about 25 percent of all the company’s net sales. In the first quarter of 2009, Reebok’s net sales equaled 458 million Euros while their parent company, Adidas totaled over 2,500 million Euros including both Reebok and TaylorMade sales. Reebok’s profit margin is quite a bit lower than most other apparel companies; Reebok’s profit margin is only about 30 percent compared to Adidas' higher profit margin of almost 50 percent.

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