adidas-Salomon unveiled today a new brand positioning
strategy, which includes a new three division structure for
its core brand. The three new divisions will each produce
their own lines of footwear and apparel. The Forever Sport
Division will feature products for the sports performance
market that can also be worn off the court or playing field.
The Original Division will feature leisure-oriented products
exclusively. The Equipment Division will focus on creating
multi-functional products (adidas-Salomon). The WALL STREET
JOURNAL's Matthias Eberle reports that the restructuring is
part of an "effort to fight back against the increasing
number of clothing designers who are also competing for a
piece of the casual-wear pie," as the Original Division will
focus "solely on that market." The Original brand will
allow adidas to launch a "competitive attack not just
against sportswear makers but also against fashion houses."
adidas VP Herbert Hainer: "Where the Tommy Hilfigers and the
Ralph Laurens enter (the market), we'll push them out."
Eberle writes that the reorganization is a "key part of an
overall restructuring plan" that adidas "hopes will help
boost sales." The company is "especially concerned about
the U.S. market," which accounts for 40% of worldwide
sportswear and sporting goods sales (W.S. JOURNAL, 10/11).
