umaro
Nike Ditches Underperforming Umbro Brand
Article
|
12 Jun 2012
Nike, the world's leading apparel player with a global market value share of 2%, has announced plans to streamline its business and focus on its core Nike brand, in part by selling off the Umbro brand.
A dynamic alignment…
Nike bought Umbro, manufacturer of the English national football team kit, in 2008 for £285 million as it sought to increase its presence in football. At the time of purchase, Umbro appeared to be a good strategic move for Nike, and the acquisition was touted as a 'dynamic alignment' that would bring Nike to the forefront of football brands.
Driving Nike's ambition was – and still is – its desire to surpass adidas as the dominant brand in football, as well as put more pressure on its global rival in Europe.
Premiership football in the UK is in huge demand and is watched globally, and no doubt Nike planned to use its acquisition of Umbro to showcase both Umbro and Nike product development as well as increase the brands' visibility and awareness. As the acquisition of
Umbro appeared to offer Nike the opportunity to develop a strong foundation in football in the US and the UK, and furthermore be a stepping stone for emerging football markets including China, Russia and Brazil, it is likely the potential increase in global visibility was as much a driving factor behind the acquisition as the potential for actual sales. … that did not deliver
Despite Nike reporting double-digit growth for football products in its
North American, Western European and Central and Eastern European regions in 2011, since its acquisition the Umbro brand has not performed as well as had been hoped.
To a certain extent, wider and uncontrollable circumstances made for tough trading for the brand from the start. For example, about a month after the deal was announced, the England football team failed to qualify for the 2008 European Championship, thus negatively
Article
|
12 Jun 2012
Nike, the world's leading apparel player with a global market value share of 2%, has announced plans to streamline its business and focus on its core Nike brand, in part by selling off the Umbro brand.
A dynamic alignment…
Nike bought Umbro, manufacturer of the English national football team kit, in 2008 for £285 million as it sought to increase its presence in football. At the time of purchase, Umbro appeared to be a good strategic move for Nike, and the acquisition was touted as a 'dynamic alignment' that would bring Nike to the forefront of football brands.
Driving Nike's ambition was – and still is – its desire to surpass adidas as the dominant brand in football, as well as put more pressure on its global rival in Europe.
Premiership football in the UK is in huge demand and is watched globally, and no doubt Nike planned to use its acquisition of Umbro to showcase both Umbro and Nike product development as well as increase the brands' visibility and awareness. As the acquisition of
Umbro appeared to offer Nike the opportunity to develop a strong foundation in football in the US and the UK, and furthermore be a stepping stone for emerging football markets including China, Russia and Brazil, it is likely the potential increase in global visibility was as much a driving factor behind the acquisition as the potential for actual sales. … that did not deliver
Despite Nike reporting double-digit growth for football products in its
North American, Western European and Central and Eastern European regions in 2011, since its acquisition the Umbro brand has not performed as well as had been hoped.
To a certain extent, wider and uncontrollable circumstances made for tough trading for the brand from the start. For example, about a month after the deal was announced, the England football team failed to qualify for the 2008 European Championship, thus negatively