One trend gaining steam is for large activewear firms to link with big-name fashion designers and celebrities to build the brand and generate additional sales. Adidas, Reebok and Puma all have deals with various stars and designers, and that strategy shows no sign of slowing.
Companies in this sector are also working to find the right mix of lifestyle and performance products. Nike and Adidas, for example, have long stressed their performance heritage, while Puma has been transitioning more into a lifestyle company with a wider array of street merchandise.
The list this year includes all the same firms as last year’s top 10, albeit in a slightly different order. Topping the list is Nike, which continues to grow its business aggressively in the U.S. and around the world. The global athletic powerhouse last August purchased the Official Starter Properties, the owner of Starter and other brands, as part of a plan to build its business in the mass channel. Nike also recently made a significant change in leadership: Phil Knight, the brand’s co-founder, president, chief executive and chairman, passed the helm to William D. Perez, although Knight remains chairman.
The Beaverton, Ore., giant has made several moves to build its women’s business this year. It launched a fitness dance collection for women, and began shipping a women’s-only catalogue.
The company’s sponsored athletes, such as tennis players Roger Federer and Maria Sharapova, are an emblem for the brand at major sporting competitions.
Adidas has taken some bold steps this year to increase market share. The company teamed with Stella McCartney for a cobranded performance collection that has been a hot seller at retail. Adidas also opened a global flagship in the heart of Manhattan’s SoHo district, signaling its commitment to building its U.S. business.
“We are making progress in the U.S.,” Adidas ceo Herbert Hainer told WWD in May. “We believe we are building for the future, and we are working in all the different areas we need to improve our business, including products, distribution and communications.”
Reebok also had a management change as Reebok brand president Jay Margolis stepped down last fall and his responsibilities were taken over by chairman Paul Fireman. (Margolis became group president of Limited Brands apparel.) Reebok has been updating its branded women’s apparel, which has been a sore spot in recent years, and that category is starting to rebound. Reebok also recently launched its largest marketing campaign in a decade under the theme “I Am What I Am.” The ads include athletes and celebs like Christina Ricci, Lucy Liu, Jay Z and Allen Iverson.
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Meanwhile, New Balance, in fourth place, has been making strides in the apparel end of its business. The company recently hired a general manager of apparel, a new position, and is branching out with a larger selection of performance offerings.
Another footwear brand sprinting ahead is Converse, a division of Nike. The iconic sneaker brand, ranked fifth, has been building on its heritage with updates of its classic products, and also is making a licensed line for Hurley, another Nike brand, for next spring.
Champion, which is best known for its sports bras and activewear, is facing an uncertain future now that its owner, Sara Lee Corp., is spinning off the sixth-place brand along with its other branded apparel to focus on its food businesses. Nonetheless, Champion continues to develop new product offerings, including styles in cotton.
Danskin held steady in seventh this year. It continues to expand its fashionable and functional activewear. Its newest looks include Tactel nylon with performance properties in bold colors. The company also is sponsoring its 100th women’s mini-triathlon this summer as part of its ongoing triathlon series, Danskin’s largest marketing initiative.
Another footwear brand making the cut is eighth-ranked LA Gear, now owned by ACI International, which has gone through a major overhaul since being acquired in 2001. The company’s main focus now is on its women’s footwear, including the Fashion Track line of bright, feminine athletic sneakers. Plans for LA Gear apparel and accessories have been pushed back to 2006 so the company can focus on footwear.
Puma, number nine, has been actively building its fashion offerings as well as its collaborative lines. The company now has deals with stars such as Christy Turlington, and in May said it was working on a footwear deal with Alexander McQueen. Puma in February opened its first store devoted to its upper-end labels in Manhattan’s trendy Meatpacking District.
Among the brands to watch in coming months is Spalding, a division of Russell Corp. It’s being relaunched with apparel and footwear now designed in-house, not under license. Russell said recently that it wants to build the iconic basketball label, which landed in 10th place, into a billion-dollar megabrand.
- Nike
- Adidas
- Reebok
- New Balance
- Converse
- Champion
- Danskin
- LA Gear
- Puma
- Spalding