Tuesday, July 24, 2012

"Adidas Reebok Revival Depends on CrossFit"

This is a fascinating story to me.  A giant, international corporation, has hitched it's wagon to CrossFit.  It has been an interesting story to see from inside of CrossFit, with many fearing that CrossFit has "sold out."  But if you watch the Reebok videos, they have "bought in."  They love CrossFit and see it like CFers do - elite fitness.  I will be fun to see where it all goes next.  

I trained at Reebok CrossFit 1 in Camden when I attended the POSE Seminar with Dr. Romanov; they have dedicated 12,000 square feet so those folks can CrossFit.  Amazing.

I admit to not understanding how Reebok expects to profit from the partnership, except it says it wants to be the "fitness" brand.  I'm impressed they realize the connection to CrossFit and fitness.

Excerpt and link follow:

The brand that helped make step aerobics a staple in gyms around the world two decades ago has posted sales declines for three of the five full years since Adidas purchased it for $3.7 billion. Adidas, which won’t say how much it’s paying for the arrangement, has splashed the Reebok name across CrossFit equipment, gyms and trainers’ clothing.
After a brief bounce in sales due to the popularity of its ``toning’’ shoes-- which the company claimed help strengthen leg and butt muscles-- Reebok has forecast another decline in revenue this year.

Lost NFL Contract

Adidas is wrestling with a fraud investigation at its Reebok unit in India and in the U.S. in April it lost a contract to outfit the National Football League, which may cost the world’s second-biggest maker of sporting goods more than 200 million euros in lost revenue a year. Reebok is facing a slowdown in the market for toning shoes and last September agreed to pay $25 million in a settlement that will be used for consumer refunds after the U.S. Federal Trade Commission accused the company of deceptive health claims about its EasyTone and RunTone footwear.


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