When he traveled to London two weeks ago to make a speech on the benefits of Reebok’s costly acquisition, Herbert Hainer, Adidas’ chief executive, carried with him a pair of Reebok’s Premiere running shoes to try them out. Hainer admitted that he had yet to buy his first pair of Reeboks – the running shoes were a present – but he was adamant that Adidas and Reebok have already overcome the tallest cultural hurdles toward their integration.
Behind the curtains, the London meeting led to some awkward exchanges, as Reebok employees confessed to the emotional trauma of buying their first three-striped products, and some Adidas employees visibly struggled to praise their American counterparts. Still, many others went out of their way to underline the smoothness of their collaboration.
The group’s chief executive says that he has been consistently impressed by the friendly and business-like attitude of Reebok employees, adding that such a takeover would have caused much more friction in the case of an American company buying a German or French rival. He was equally pleased with the on-going commitment of Paul Fireman, who continues to call and e-mail on an almost daily basis although he exited the company several months ago, as agreed.
For the time being, the few high-profile employees who have resigned since the merger were all part of Reebok, and all but a handful of global positions have been assigned to Adidas executives. Still, Hainer stresses that Adidas is keeping dual management in some large markets, such as the UK, and retaining Reebok managers in most of the others. In at least one European country, Poland, the joint general manager’s role was assigned to the Reebok candidate, Chris Cialowicz, who has an impressive track record at the head of Reebok Polska.
Among the cultural differences between the two brands, Hainer cites the opportunistic spirit of Reebok’s management, which quickly latched on to new concepts, while Adidas executives hesitated a little longer to embrace new ideas but then often proved more consistent in their implementation. He also points to specific Reebok strengths which are bound to benefit the entire group, such as its cost-consciousness and its expertise in the licensed products business - based on the very innovative business model which Reebok set up to handle its all-encompassing deals with the basketball, football and hockey leagues.
Logo Athletics, Reebok’s production facility in Indianapolis for licensed products, will be used right away to make items for colleges endorsing Adidas. The company will also study to what extent the concept may be used for its own replica activities in Europe, around football clubs like Chelsea and Real Madrid.
Hainer was amazed at what he witnessed a couple of months back while attending the U.S. Super Bowl next to David Baxter, the Reebok executive who heads up the brand’s on-field business. At half-time, when the Pittsburgh Steelers were slightly ahead, Baxter apparently grabbed his phone to order mass production of Pittsburgh caps. The facility turned out one million caps in just 48 hours.
Adidas is also mooting the construction of a joint service center for the U.S. market, which would be run by a Reebok executive. The center is likely to be based in Spartanburg, South Carolina, where Adidas already has a warehouse and a customer service center.
