Discount closures, a cumulative loss of $2.8 billion over 15 years! The once world’s number one sports brand has become a frequent visitor to discount stores

Source: Brand Observer

$2.8 billion loss over 15 years, offline stores almost disappeared in the Chinese market. Once surpassing Nike as the trend sneaker king, is Reebok no longer popular?

When it comes to Reebok, many post-2000s might not remember what brand it is. Shoe enthusiasts and resellers will instinctively recall seeing this “up to 50% off” clearance regular at outlets.

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However, fans from the 80s and 90s will feel quite nostalgic, as Reebok was once their “white moonlight” and a trend sneaker king in their hearts.

The root of this gap in perception mainly stems from Reebok’s decline in China. But a recent major event might change this situation and help Reebok regain its peak in the domestic market.

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On March 6th, a shocking news hit the sneaker industry. The rumors that Anta would acquire Reebok, which had been circulating for half a year, have now been settled.

According to information released by brand development and licensing platform ABG, after four years, Reebok’s Chinese agency has once again “changed hands.”

The new operator is not Anta, which was previously rumored to acquire Reebok, but a company called New Reebok Sports.

Image source: Jiemian News

Reebok’s performance in China over recent years has been consistently sluggish. To what extent? This once top-tier international brand has almost “zeroed out” its offline stores in China, the world’s largest single market.

In Beijing, Reebok has long since closed all stores. Moreover, its product positioning in China is quite “awkward.”

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Compared to high-end brands like Nike and Adidas, Reebok cannot compete. In the mass market, its product value-for-money is inferior to local brands like Anta, Xtep, and 361°, leaving it in a “neither high nor low” dilemma.

Now, with its China business once again “changing hands,” can the new owner help Reebok make a comeback and return to the peak?

Once prompting Adidas to spend $3.8 billion to acquire

Why is it now a frequent discount store?

Looking back at Reebok’s development history, this is not its first change of ownership. From past cases, whether the new owner can help it reach the top again remains uncertain.

After all, this former global number one sports brand’s recent performance decline started from its most expensive “sale” event.

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Reebok’s rise was different from Adidas and Nike. It initially gained popularity through female consumers.

By selling “women’s shoes,” it achieved a remarkable annual revenue increase of 100 times, then gradually expanded to “unisex” products, once forming a “trinity” with Adidas and Nike.

In 1895, a British shoemaker named Foster, unable to find the running shoes he wanted, made a pair himself. With this self-made pair, the world’s first spiked running shoes appeared.

Image source: Reebok

Foster’s shoes became the standard for athletes worldwide, and some athletes even won Olympic gold wearing them. As a result, Foster’s shoes became an instant hit, resonating globally.

The Foster family then expanded into football and rugby shoes.

By 1958, the third-generation Foster heir started his own business, establishing a new company based on the family’s running shoes—later known as Reebok.

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Although Foster shoes were popular at the time, their sales were mostly concentrated in the UK and had not yet become a global brand.

After going solo, Reebok shoes briefly entered the US market, but due to low manual production capacity, they didn’t make much impact.

However, persistence paid off. The turning point for Reebok’s fate in the US came at the 1979 Chicago Shoe Expo, where an American businessman took a gamble on Reebok and gained distribution rights in the US.

Image source: Reebok

At that time, the US sports shoe market was dominated by Adidas and Nike. The distributor devised a shortcut, helping Reebok achieve a 100-fold increase in annual sales.

American society was then crazy about aerobics, a trend mostly led by women. But this market was not fully targeted by Nike or Adidas.

Reebok took a different approach, launching the world’s first lightweight women’s athletic shoe, Reebok Freestyle.

Image source: Reebok

After its launch, Reebok became an instant hit in the US, selling 30,000 pairs in just one month. Its sales soared from $1.5 million to $150 million that year.

In 1987, Reebok’s global sales reached $1.4 billion, surpassing Nike to become the world’s top sports brand. Nike’s sales that year were only about $900 million.

Image source: Reebok

Relying on precisely targeting women’s athletic needs, Reebok did not rest on its laurels but quickly expanded into men’s shoes.

Stores closed, discounts offered, and some models disappeared!

15 years of losses totaling $2.8 billion

After capturing women interested in aerobics, Reebok soon targeted active men, but the process was more complicated.

Starting in 2001, Reebok signed contracts with many NBA legends and secured exclusive sponsorship rights for their gear.

With appearances in major competitions and endorsements from legendary players, Reebok quickly gained recognition as a trend sneaker among Western men.

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After establishing itself among Western men, Reebok’s ambitions grew further—aiming at the broader Asian market.

When Reebok first entered China, it made a big move that drove Chinese men crazy—hiring Yao Ming as a spokesperson.

Soon, Reebok launched a limited edition of 2,008 pairs of Chinese Dragon boots. With Yao Ming’s participation in the Olympics, these boots became a hit.

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In an instant, Reebok stores in China were crowded, and some fans even flew to Beijing just to buy a pair of Yao Ming’s signature sneakers. Back then, Reebok’s basketball shoes were the “white moonlight” for many 80s and 90s fans.

At the peak, Reebok was acquired by a rival at a high price—$3.8 billion—by Adidas in 2006.

At that time, Nike still held the dominant position in the sports shoe market. The acquisition was seen as a strategic move by Adidas and Nike to challenge Nike’s leadership.

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However, the reality was different. The high purchase price meant Adidas used Reebok mainly to “fill the gap,” such as in 2015, when Adidas replaced Reebok as the sponsor of the NHL.

From 2006 to 2018, Reebok’s sales dropped from $2.9 billion to $1.7 billion, while Adidas’s sales soared from $6.6 billion to $19.9 billion.

By 2020, Reebok’s share of Adidas Group’s total sales had fallen from 20% in 2006 to 6.7%. Over these years, Reebok accumulated losses of $2.8 billion.

Image source: Reebok

In 2021, Adidas gave up and sold Reebok for $2.5 billion to brand management company ABG.

ABG, which relies on brand licensing, bundled Reebok’s China operations with Lianya Group.

Many who knew Reebok’s history hoped it could revive under the new owner. Even Lianya was confident, claiming to lead Reebok to success. But Reebok’s development in China afterward was surprising.

Once the world’s top sports brand

Desperate for a boost in China?

After Lianya took over, the most obvious change was an increase in stores. By the end of 2022, Reebok had only 15 stores in China; by mid-2024, that number grew to 36.

Unfortunately, this expansion did not significantly boost sales. Due to ongoing poor performance, Lianya began closing underperforming stores from the first half of 2025.

Image source: Reebok

More painfully, continuous losses persisted. According to Lianya’s financial reports, Reebok recorded a net loss of HKD 49 million in 2023. Although losses decreased in 2024, they still amounted to about HKD 13 million.

Unstoppable losses and stagnant sales finally prompted Lianya to consider “selling.” Rumors in late 2025 suggested Anta was interested in acquiring Reebok’s China business.

However, due to issues like not obtaining full licensing rights, the deal fell through.

On March 6th of this year, the new owner was finally confirmed—New Reebok Sports will take over Reebok’s China operations.

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Although Reebok’s current product competition in China is awkward, its history shows it is a brand with a strong athletic DNA.

Therefore, after this change of hands, how New Reebok will leverage Reebok’s existing advantages to reorganize its supply chain and break through in China’s highly competitive sports market has become a major industry focus.

Some industry insiders believe that reviving the basketball business could be a key breakthrough for New Reebok to activate its brand advantage.

Image source: “Overseas Sports Industry Research”

In fact, as early as 2024, Reebok was increasing investments in new-generation players to attract younger consumers.

In September 2025, it launched a signature sneaker for WNBA player Angel Reese. The product release attracted significant market attention, even leading to some channels running out of stock.

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This shows that Reebok still retains a certain influence in the sports market.

In conclusion

Reebok’s multiple ownership changes reflect the survival situation of many second-tier global sports brands.

In the context of Adidas strengthening its localized strategies in China, competition among domestic sports brands like Li Ning and Anta will become even fiercer.

Image source: Reebok

Meanwhile, leading domestic brands like Li Ning and Anta have long evolved beyond their past selves, with precise control over channels and product R&D to meet domestic consumer preferences.

In such a fiercely competitive environment, Reebok’s repeated change of ownership in China is only the first step in its strategic restructuring.

Image source: Reebok

How it will focus resources to reverse its decline and win more Chinese consumers’ recognition remains the key challenge ahead.