Dive Brief:
- Reebok launched European e-commerce and wholesale operations with digital luxury services provider Farfetch Platform Solutions, as part of a larger partnership deal inked with Reebok owner Authentic Brands Group last year.
- The partnership is managed by NGG++, a newly formed division of Farfetch-owned New Guards Group. This new division will be focused exclusively on expanding the reach of NGG sportswear and sneaker brands, including Reebok.
- Cristiano Fagnani has been appointed CEO of NGG++. He was previously CMO of NGG, and before that, spent almost two decades at Nike in marketing and communications roles.
Dive Insight:
Since ABG’s acquisition of Reebok last year, the sneaker company has been working hard on a brand makeover, focusing on repositioning itself as a viable competitor with larger sneaker companies including Nike. Earlier this year, Dutch fashion house Botter showed 3D-printed Reebok sneakers on its Paris Fashion Week runway, and in a recent interview with High Snobiety, Nick Woodhouse, president and CMO of ABG, said, “Five years from now we’re going to look like geniuses because Reebok is going to be back in its rightful place amongst sportswear's elite.”
This new deal with Farfetch will help with that mission. Fagnani said in the news release announcing the Farfetch launch that he planned to leverage Reebok through luxury collaborations, particularly in terms of “new high-end products designed in Milan and made in Italy.”
While the initial launch of NGG++ will focus on Reebok, there’s also room for growth. “All of this will help us accelerate wider opportunities for NGG in the sneaker and sportswear markets,” said Fagnani.
In the past few years, ABG has been on a buying spree, acquiring a slew of consumer brands including last month’s deal to bring surf labels Billabong, Quiksilver, Roxy, RVCA, DC Shoes and Element on board. There are now more than 40 brands under the ABG umbrella, including Forever 21, Frye and Nine West. With the acquisition of Boardriders, ABG expects to grow annual sales to $27.6 billion.
Meanwhile, Farfetch saw some shake-ups in early 2023 when its chief brand officer and chief growth officer left the company. For 2022, overall full-year revenue climbed 3%, to $2.3 billion, beating analyst expectations.
