Is Reebok Still a Major Player in the Sneaker Game?

As someone who grew up in the 80s and 90s, Reebok shoes were a big part of my early fashion and brand consciousness. With hot models like the Freestyle and Pump dominating malls and sidewalks, Reebok managed to give big rival Nike a run for its money.

But walking around today, you probably don‘t see nearly as many Reebok kicks on people‘s feet. So what happened to this once-iconic athletic brand? Does it still have strong market footing and fashion appeal with consumers?

After researching Reebok‘s history and recent performance, my assessment is that while the brand maintains retro charm and niche strengths, it faces significant challenges in regaining its past stature as a major industry player comparable to Nike.

Let‘s take a deeper look at the key factors shaping Reebok‘s business today.

Reebok‘s Rise and Fall – A Brand History

To understand Reebok‘s current standing, it helps to look back at its origins and changing fortunes over the decades:

• 1895: J.W. Foster and Sons founded in England, making running shoes

• 1958: Grandsons start "Reebok" as companion company; named after African gazelle

• 1979: Reebok Freestyle launched; became hugely popular women‘s aerobics shoe

• 1986: Introduced The Pump – custom inflatable basketball shoe; sales hit $1 billion

• 2000: Reebok acquired by Adidas for $3.8 billion

• 2014: Reebok‘s retro Classics accounted for 30% of sales

• 2020: Reebok‘s total revenue was just $1.6 billion, compared to Nike‘s $37.4 billion

As this timeline shows, Reebok experienced tremendous growth in the 80s and 90s off hot new technologies like The Pump and Freestyle. Its shoes were worn by huge crossover stars like Shaq, Dominique Wilkins, and Allen Iverson.

But things slowed down after acquisition by Adidas. Despite some retro success, Reebok failed to generate consistent hit shoes or major star power. As a result, its sales and status eventually declined sharply.

By the Numbers: A Distant Third Place

Let‘s look at some key statistics that quantify Reebok‘s market position today versus the top athletic brands:

• Reebok‘s global revenue in 2020 was $1.6 billion. Nike did over $37 billion.

• In the US athletic footwear market, Nike has 65% market share. Adidas is #2 at 10%. Reebok sits at just 2%, behind Skechers.

• Reebok has around 3,000 stores globally today, versus over 30,000 for Adidas.

• Based on brand value, Nike ranked #16 globally in 2022 at $33.4 billion. Adidas was #55 at $16.7 billion. Reebok does not rank in the top 100.

• Reebok‘s parent company Authentic Brands Group has about 4,300 employees. Nike employs over 75,000 people.

As these numbers show, Reebok stands far behind category leaders Nike and Adidas across all key industry metrics – revenue, market share, brand value, and workforce. It represents only a sliver of the overall global sneaker and athletic apparel landscape today.

Is the Brand Still Trendy? Signs Point to Selectively

One key to any brand‘s continued success is maintaining cultural relevance and cool appeal with consumers. Here are some indications of where Reebok stands today as a fashion brand:

• Retro Classics have buzz: Stars like Gigi Hadid and Kendall Jenner have been spotted wearing the iconic white leather Classics, driving renewed hype. Vintage is hot right now.

• Collabs generate interest: Recent shoe collections co-designed with Cardi B and others gain significant social buzz, though have limited availability.

• Design innovation lags: Reebok hasn‘t had a major performance shoe hit recently on par with Nike‘s Flyknit or Ultraboost. Lacks tech hype.

• Core identity: Reebok maintains strong appeal among CrossFit/HIIT devotees given sponsorship focus. Leans into fitness roots.

So in terms of fashion and culture, Reebok remains selectively popular: more for its retro legacy and fitness identity than product freshness or mainstream trendsetting ability. It gets boosts from collaborations but lacks breakout hits.

Can Rebranding Save Reebok‘s Competitive Edge?

In its quest to modernize its image and offerings, Reebok has made some major branding moves:

• Dropped old vector logo for new wordmark logo in 2014

• Adopted "Be More Human" tagline to inspire change and inclusiveness

• Signed major endorsements like CrossFit and UFC to double down on fitness identity

• Partnered with fashion lines Maison Margiela and Kerby Jean-Raymond on new looks

• Released sustainable shoes using recycled and plant-based materials

These efforts do appear to be making Reebok feel more relevant, with 72% of consumers saying the brand seems more "innovation-focused" lately. But reviving demand to Nike levels will require truly breakthrough, hype-driving products.

In my view, a smart Reebok strategy would be to lean fully into specialty performance for key sports like CrossFit, boxing, and dance where it already has credibility and distribution. Trying to be all things for all people spread it too thin before.

What Does the Future Hold for Reebok?

In 2021, Adidas sold Reebok to Authentic Brands Group (ABG) for $2.5 billion. ABG sees potential to grow Reebok‘s sales back above $5 billion in the years ahead. It also brings ownership of apparel brands like Aeropostale that could aid Reebok‘s clothing business.

However, Reebok also faces risks of getting diluted or overshadowed among ABG‘s diverse brand portfolio of over 30 labels. And the growth targets seem very ambitious given how far Reebok‘s sales have slipped in recent years while rivals keep charging ahead.

Reviving Reebok to past glory could require truly bold moves – maybe even buying back the brand outright someday as its own independent company again. But its best opportunities likely remain in focusing on fitness devotees and nostalgic sneakerheads rather than chasing Nike.

My Verdict: Reebok Has Lost Major Competitive Edge

As both a lifetime sneaker fan and industry analyst, I believe Reebok still maintains strong legacy appeal but remains a distant competitor to athletic giants like Nike.

For consumers seeking hot new performance innovations, Reebok has lost major ground. But for those looking for a retro gem or CrossFit-specific shoe, it retains niche relevance.

My hope is that Reebok can thrive in playing to its core strengths rather than trying to match the broad sporting world dominance of its larger rivals. When it comes to athletic footwear clout, Reebok is unlikely to ever pump itself back up to where it stood decades ago. But by embracing what makes the brand unique, like its Classics, it can perhaps find its footing again as a specialty fitness and lifestyle player.