Adidas and Reebok and Resellers in China Respond to Millions of Yuan

Potential loss of next year's Reebok merchandise distribution rights

“I now meet acquaintances and ask them about their size. I’ve sent several sets of Reebok in the past, so I personally do something good, or 1.7 million yuan of clothes and shoes will be scrapped in 20 days.” Nantong Ruibo Economic and Trade Co., Ltd. Yu Bin, general manager, said with a smile. The three Reebok dealers, including him, went to Shanghai yesterday to formally negotiate with Yueba (Shanghai) International Trading Co., Ltd. (Reebok's general agent in China) and vowed to back up for them. Millions of yuan worth of goods, investment in several million yuan of fixed assets to discuss the argument. After Adidas' acquisition of Reebok, the restructuring of its sales channels will likely cause them to lose their Reebok merchandise distribution rights next year.

Chinese distributors pay for mergers and acquisitions

In the middle of last year, Adidas acquired Reebok for $4 billion. After a one-and-a-half year long transition period, the right to use the Reebok trademark in China will be owned by Adidas from January 1, 2007. The new CEO of Reebok, Paul, said in an interview with Chinese media last month that after the merger, Reebok will take back the original distribution rights.

However, some small and medium-sized distributors in China have accused Adidas and Reebok in the transitional period, on the one hand, encouraging them to make more orders and expanding stores. On the other hand, they have excluded them from the list of dealers in 2007, actually making them distributors in China. Adjust the bill for the merger of the two major brand names.

Reebok has not given a reply so far

These dealers said that the improper acts of the two major international brands have caused them a heavy loss. Yu Bin disclosed that the inventory of its inventory is as high as more than 220 million. Although these days have already been sold at a low price, there are still more than 1.7 million in inventory that cannot be cleared. At the same time, he had two new stores that had to be closed for only half a year. Wang Xuezhi, chairman of Yancheng Guozheng Sporting Goods Co., Ltd., was even more bitter: “Last year, it was a reliance on the reputation of the international brand. It was not hesitating to borrow money from relatives and credit unions, and opened Reebok’s first store in Yancheng. Now that it is fine, a few million yuan worth of goods cannot be sold or returned. What else can I do next year besides debt hiding?"

Tianjin Reebok dealer Wu Xiuyan said to the Morning Post yesterday that it was unable to accept the conditions for the new distributors. The Reebok upper tier has not yet given a clear document that it will not be allowed to sell in 2007, so it is still in a stage of stalemate and wait-and-see. .

Adidas claims to have nothing to do with disputes

Miss Yue (Shanghai) International Trading Co., Ltd. Marketing Department Miss Zhang yesterday expressed on behalf of the Reebok brand, for the dealer's specific questions, can not give a precise reply. However, she stressed that relevant agreements between the relevant distributors and the Reebok brand will expire at the end of this year. As for whether this qualification can continue next year, Adidas will reply and Adidas has not confirmed any dealers in China.

Mr. Wu, who will represent Adidas' responsibility for the East China area of ​​the Reebok brand next year, said Adidas will take over the brand from next year, and all disputes are now unrelated to Adidas.

Some dealers questioned

- Question one: Not fully informed? Yu Bin and other distributors stated that Adidas and Reebok did not fulfill their obligation to inform the issue of agency rights for next year. The two brands have been in merger for more than a year. However, at the two Reebok ordering meetings in July and October this year, they publicly stated that they will not deprive them of their 2007 license, and even let them leave for the next year and the second quarter. The orders have led distributors to continue expanding their investment. Then a phone call tells them not to renew their contract. This obviously does not give them enough warnings about business information. It is "intentional deception."

- Question two: Dealing with product accumulation "inaction"? Yu Bin and other dealers said that if they can’t do it, they are also willing to transfer stores, goods, and branded props to the new distributors of Reebok next year, but this must be done in an equal manner, and Adidas and Reebok should follow suit. Play a coordination role.

It is difficult for them to accept that the two major international brands have always "do not act." Even the basic principle of "mergers and acquisitions" is not recognized, but it is emphasized that new dealers will "help" them. Under such circumstances, they will not be able to achieve equal status with Reebok's new dealers next year and will certainly suffer a great deal of damage.

- Question 3: Unequal cooperation is "convention"? Wang Xuezhi said that Leaping is an international brand and he has always been in a condescending position in the past cooperation, squeezing small and medium distributors. The "Supplier Agreement Supplemental Agreement" he showed to reporters showed that Yuba’s first purchase target for Yancheng Guozheng was 300,000 yuan. He said: "The goods are unilaterally designated by Yueba, so the 300,000 yuan will be for sale."