Adidas-Reebok: Here's the plan

The management of the newly-combined company says that it will return Reebok to its roots as a performance brand, citing its pioneering role in introducing the first pump shoe.

Speaking at a World Shoe Association forum via satellite from Germany, Adidas Chairman and Chief Executive Herbert Hainer said he was dispelling rumors that the company would position Reebok as an entry-price brand.

"There is no doubt that we will position the Reebok brand more as a performance brand than it has been over the last two or three years," Hainer said.

He added that Reebok, which introduced its "pump" system some 20 years ago, was the first company to bring technology to the athletic shoe market.

"We will keep the brands separate because we do believe both brands have their own identity, their own heritage and their own consumer base," Hainer said.

I liked the idea, which we reported in this post, of positioning Reebok, not as a value brand, but as a fashion leader:

The acquisition of Reebok could allow Adidas to divide and conquer the two major market segments for athletic shoes and clothing — style and performance, Dhar said.

Reebok could focus on the style segment while Adidas could focus more on performance shoes and equipment to expand its market share with a broader offering of products, he said.

It will be interesting to watch the competition in the shoe category over the next few years.