Reebok, "through the introduction" of Traxtar -- a
children's shoe containing a computer chip that helps
measure athletic performance -- and a "campaign for an
updated version" of the Classic sneaker model, is "trying
yet again to regain cachet with consumers and reverse a
decline in market share," according to Sharon King in an
extensive company profile in Saturday's N.Y. TIMES. But
Reebok's "strategy is a big gamble," as the company is
"seemingly writing off the huge and important teenage market
to distinguish itself from Nike." Reebok Chair Paul
Fireman: "We're focusing on innovation and luxury. Fashion
has moved from the hokey-looking to more streamlined
[styles]." Company CMO Angel Martinez added, "We stopped
trying to chase [coolness]." Reebok plans to spend about
$6M to market Traxtar in 2000, "triple what it is spending"
this year on children's shoes, and "plans to position" the
Classic line as "stylish, well made and upscale," via ads in
magazines such as Vogue, In Style and GQ. But Wall Street
"remains unconvinced that Reebok has found a winning path,"
as some "dismiss the Traxtar as a fad," believing technology
is "not what sells sneakers." S.F.-based Record Research
analyst Allison Malone added the Classic model has "a
following among older ladies. They're going to have to
appeal to a larger base" (N.Y. TIMES, 12/11).
