ABG has signed a long-term strategic partnership with SPARC Group to become the core licensee and operating partner for Reebok in the U.S. SPARC will also serve as the global hub for the newly created Reebok Design Group.
Source: ABG Announces SPARC Will Take on Operations for Reebok in the US — ABG NEWSROOM
Genesco, ABG, and other conglomerates most sneaker industry fans have never heard of, are the owners of licenses for many of the iconic brands that helped to create sneaker culture. These conglomerates also own apparel brands, and in some instances they handle the personal brands of athletes and entertainers. The multi-functional companies purchase businesses and then they extend licenses for other companies to build out the purchased brand’s retail and digital experiences. It’s a tried and true format, but if I use my own experience, the results can be damaging and that’s on a small scale. Looking at the rise and fall of FUBU, or how Lacoste entered sneakers, it can become clear that there isn’t one way for things to work out when brands are licensed.
ABG’s announcement of Sparc, the company that will hold the license for Reebok, has tempered my excitement about Reebok finally being from under adidas. Consider that Above The Rim, the brand heavily associated with Blacktop and Reebok is also owned by ABG and there is an opportunity for North Face x Supreme styled collabs, but also realize there hasn’t been anything from Above The Rim in years and there lies my worries. Although I mention VF Corporation, owners of The North Face, Supreme, Vans and Timberland, VF didn’t license out those brands. VF Corp allows the brands to operate relatively autonomous. When I heard ABG was buying Reebok, I thought Reebok would return to a business that operated in a similar fashion as Vans. I assumed incorrectly.
Sparc Group operates Aéropostale, Brooks Brothers, Eddie Bauer, Forever 21, Lucky Brand and Nautica. I’m not exactly blown away by those companies. Reebok, under adidas in the last year since the Three Stripes decided to sell, has made incredible strides and adjustments. They’ve expanded their content and collaborative efforts have been fairly successful. My trepidation comes from witnessing the degradation of brands under licenses because the companies acquiring those brands aren’t truly invested in the history and legacy of the brand. Acquisition companies are in the business of turning the dollar. Think about apparel brands who all of a sudden have sneakers. Those are typically license deals. With two companies basically over Reebok (ABG and Sparc) will the brand be allowed to continue the work it has implemented in the last year? According to ABG’s announcement:
SPARC, a leading retail enterprise, which brings unparalleled capabilities in brand building, technical design, specialized distribution and marketing, will oversee sourcing, manufacturing, branded retail stores, e-commerce operations and wholesale distribution for Reebok in the U.S. Categories include footwear for men, women and kids as well as lifestyle and active apparel for men and women.
In addition to securing Reebok’s U.S. operation, ABG has also signed leading partners for key regions, including The Falic Group for Latin America excluding Mexico, Brazil and Argentina, Accent Group Limited for Australia and New Zealand and MGS for Israel.
The brand will continue to operate out of, “Reebok’s global headquarters in Boston, MA, led by President Matt O’Toole and SVP and GM, Product, Todd Krinsky.” This is a cause for optimism, but the adage, ‘you can’t serve two masters’ comes to mind. I know it happens, but cliches are cliches because they tend to be true. I hope I’m wrong, but it is critical that if you’re a fan of the Vector, you should be pay attention to how this will work. That’s a lot of different license holders for the US and International market for Reebok in the paragraph above. I hope I’m wrong.