""I'm tired of hearing about money, money, money, money, money. I just want to play the game, drink Pepsi, wear Reebok." - Shaquille O'Neal
Sales of athletic shoes declined industry-wide in the late 1990's. Reebok lost $7.1 million in 1998. Whether this loss is due to industry problems or internal problems with Reebok is questionable. Reebok responded to losses by laying of 500 if its then 5,000 workers. CEO Paul Fireman declined his 1998 bonus in reaction to the slump and appointed two market legends, Angel Martinez and Carl Yankowski, to run Reebok Unlimited. Martinez had created Reebok's aerobic shoe in the 1980's and in his capacity as chief executive of Rockport, he increased the subsidiary's sales by selling them as "more than just comfortable." Teamed up with Yankowski, former Sony COO, Martinez embarked on a plan to reclaim Reebok's roots and refocus the business.In 1989, Reebok launched Step Reebok nationally after conducting comprehensive scientific and biomechanical research that showed step aerobics was a highly credible and effective format for cardiovascular exercise. This revolutionary, never before seen form of exercise quickly caught and launched a new exercise trend.
In 1997, Reebok introduced its DMX technology shoe. The DMX shoes were designed to increase air flow and cushion and stabilize the feet. Venus Williams and Allen Iverson endorsed the 1999 DMX advertising campaign, but did not catch on. In April of the same year, Reebok launched a new campaign to market the shoes as the VW Beetle of sneakers; unattractive but highly functional shoes for people who care more about how the shoes feel than how fashionable they look. Unsurprisingly, the campaign and shoes lacked appeal with the growing youth market. Teenagers in the late 1990's gained greatly in buying power and they demanded fashion not function. Reebok then went back to its original plan and began marketing to more women and to embrace and encourage individuals establishing a marketing partnership with talk show host/comedienne/actress Rosie O'Donnell, who endorsed Reebok through her "Chub Club" exercise club for regular women. This campaign was counter to the general idea that athletic shoes are primarily sold to teenage males looking for the trendiest buy rather than the most practical.
Increasingly, Reebok has dug in for competition in the fierce rivalry with Nike. In 2000, Reebok again revolutionized how people exercise and train with its global introduction of Reebok Core Training and the Reebok Core Board. Widely used today by professional athletes, conditioned exercisers and beginners alike, this innovative workout is a dynamic strength and conditioning program that focuses on developing total body power by emphasizing the abs, torso and "core" muscles. Reebok and the National Football League announced the formation of an exclusive partnership. The NFL granted a 10-year exclusive license to Reebok beginning with the 2002 NFL season to manufacture, market and sell NFL licensed merchandise for all 32 NFL teams. This license allows Reebok to provide on-field uniforms, sideline apparel, practice apparel, footwear and sell an NFL-branded apparel line as well as exclusive rights to develop a new line of NFL fitness equipment.
In August 2001, Reebok formed a 10-year strategic partnership with the National Basketball Association under which Reebok will design, manufacture, sell and market licensed merchandise for the NBA, the Women's National Basketball Association (WNBA) and the National Basketball Development League (NBDL), the NBA's fledgling minor league. The next year, Reebok and the Indy Racing League (IRL) teamed up in an agreement that named Reebok the official outfitter of the IRL. As part of the agreement, Reebok provided custom-designed, co-branded Reebok-Indy Racing League apparel to IRL officials and selected teams. The Reebok brand also received exposure through logos on race cars, team uniforms, transporters and other IRL promotional programs included in the promotional rights agreement.
Also in 2002, Reebok launched Rbk, a collection of street-inspired footwear and apparel hook-ups designed for the youth to reflect the attitude of their lives - cool, edgy, and authentic. Rbk is inspired by current street fashion and marketed to appeal to the current culture. The global Sounds of Rhythm of Sport campaign was launched in January of 2002 with a flurry of product launches, television and print ads, consumer and retail promotions, and celebrity events. The "Sound & Rhythm of Sport" collections represent the fusion between sports and music. The campaign featured Reebok's NBA, NFL and tennis athletes paired with many of the music industry's edgiest hip-hop and rap artists. Reebok also previewed its Rbk collection at more than 1,000 music stores around the U.S. Noted styles from this marketing campaign are the Reebok G Unit collection, promoted by rapper 50 Cent, and the Reebok S. Carter collection.
Beginning in the 2004-05 season, Reebok gained exclusive rights to supply and market all on-court apparel, including uniforms, shooting shirts, warm-ups, authentic and replica jerseys and practice gear for all NBA, WNBA and NBDL teams. Reebok also gained exclusive rights, with limited exceptions, to design, manufacture, market, and sell headwear, T-shirts, fleece and other apparel products for all teams in most channels of distributions. Also in 2004, after years of champion human and civil rights, the fair Labor Association accredited Reebok's footwear division, the first such credit issued.
In August 2005, one of Reebok's largest rivals, Adidas, announced that it would acquire Reebok, allowing both brands to compete with Nike. This merger is expected to be completed by the middle of 2006.
