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ARE MOUNTAIN BIKE RETAILERS GEARED FOR ANOTHER SALES BOOM?
"These have not been easy times for the once-robust bicycle business," according to James Sterngold of the N.Y. TIMES, who wrote that while sales "have declined and a shakeout may loom," many experts predict the bike market "is on the cusp of a potentially wrenching consolidation." Hambrecht & Quist analyst Sean Milne: "It has gotten a little ugly for some of these companies because conditions have gotten so tough and volatile. ... I don't think we will ever see the mountain bike sector grow the way it had." Sterngold added that Cannondale is "taking particular aim at overseas markets," and that foreign sales of its American- made bicycles have risen from 44% of revenues through June '95 to 49% through June '96 (N.Y. TIMES, 11/30). -
FTC RULING ON "MADE-IN-USA" SEEN AS SETBACK FOR NEW BALANCE
In an "about-face," the FTC won't "relax the half- century standard for making 'Made in the USA' claims on consumer-product labels," according to Bruce Ingersoll of the WALL STREET JOURNAL. The proposal to overturn the decision "stemmed largely" from a '94 enforcement action that the FTC brought against MA-based New Balance, charging it with "deceptive advertising and labeling" because New Balance had imported outer soles from China for some footwear it claimed were U.S.-made. New Balance had then asked Congress for a more flexible U.S. origins standard. Today, the FTC will publish an enforcement-policy statement clarifying that any product bearing an unqualified "Made-in- USA" claim "should contain only a de minimis, or negligible, amount of foreign content" (WALL STREET JOURNAL, 12/2). NEW BALANCE: In Boston, Chris Reidy reports that "in a world where most athletic shoes are made in Asian factories, New Balance maintains, it should be allowed to alert consumers that it remains committed to US workers." New Balance said it would not comment on "the possibility it may now have to relabel its shoes" until the FTC's decision has been reviewed by its lawyers (BOSTON GLOBE, 12/2). -
MARKETPLACE ROUND-UP
Actor Joe Pesci is backing a new line of golf clothing called "Piagga," which means "I like" in Italian. The line will be designed by a "head designer" from Guess and be targeted for department stores. Piagga will be introduced at the PGA Merchandise Show in January (GOLF WEEK, 11/29). ...CA-based Sports Placement Services signed 4-time World Kickboxing Champion Lucia Rijker to a worldwide marketing deal (SPI)....France's competition board fined adidas $2.7M for entering into a soccer club sponsorship accord that breached competition rules (REUTERS, 11/28)....Squash prodigy Gilly Lane, who began competing at age 10, is sponsored by Prince, which provides him with rackets and strings (PHILADELPHIA INQUIRER, 11/29). -
MLB DEBATES WHETHER TO ENLARGE OR REMOVE UNIFORM LOGOS
MLBP President Bob Gamgort, putting together an apparel program that he hopes will generate as much as $20M-a-year, "has conceived one scenario in which all non-MLB logos would be eliminated from uniforms, in the hope that sneaker marketers would pay more for ad rights and have no reservations about using MLB players in creative, since they would not be wearing the logo of a competitor," according to Terry Lefton of BRANDWEEK. Another possible scenario would see even larger logos on uniforms. Lefton adds that MLB "needs to line up a new uniform deal by early next year to meet manufacturing lead times" for the '99 season. In related news, Gamgort said he has received funding to hire senior execs to run MLB's licensing program and bring corporate sponsorship sales in-house, leaving himself "free to focus solely on marketing" (BRANDWEEK, 12/1 issue). NIKE PLAYS HARDBALL: AD AGE's Bradley Johnson reports that Nike "won't use" MLB endorsers in their uniforms in '98 ads because it "doesn't want to indirectly promote exclusive MLB uniform licensee Russell Athletic, especially after MLB owners last year shot down a proposed marketing alliance with Nike" (Bradley Johnson, AD AGE, 12/1 issue). -
NIKE DEBUTS NEW AD CAMPAIGN AROUND WOMEN'S BASKETBALL
Nike today debuts, "A Champion Season," a new ad campaign created by Goodby, Silverstein, & Partners. The ten ad series, which runs through the end of March '98, follows the fictional Charlestown Cougars women's high school basketball team through an entire season. The TV ads will be supported by a print campaign in Seventeen and YM magazines (Nike). AD AGE's Jeff Jensen reports that Nike hopes the new series will be its "most conspicuous campaign yet in support of its women's basketball business." A Nike spokesperson said that the campaign "will be on par" with Nike's biggest ad efforts for its women's business. The campaign will also mark the first time players from the ABL and WNBA will share Nike ad time together, as one ad will show the ABL's Kate Starbird and the WNBA's Jamila Wideman playing together during college (AD AGE, 12/1 issue). NIKE NOTES: Nike named Wieden & Kennedy to handle its advertising in Britain, according to Stuart Elliott of the N.Y. TIMES. Billings were estimated at $15M. Nike Dir of Global Advertising Geoffrey Frost: "This should be a great opportunity for the industry to draw its own conclusions on how strong our relationship is with Wieden & Kennedy." W&K will open an office in London on April 1 that will initially have a staff of 10 (N.Y. TIMES, 11/28)....Japan's Fair Trade Commission raided Nike's Japan office last week, reportedly to "investigate claims that the company was pressuring retailers to inflate prices." A Nike spokesperson said the company was "stunned" by the allegations and "will cooperate" with investigators (Mult., 11/28).




