CEO in Question: Acquiring Forever 21 Was My Gravest Blunder
Loose Cannon (unedited, uncensored, explicit):
Yo, let's dive into the juicy details of the Orlando conference where Jamie Salter, that dude from Authentic, spilled the beans about their moves with Shein and Forever 21.Turns out, copping Forever 21 was a huge fuck up, says Salter, but partnering with Shein? THAT'S the way to turn things around, bro.
Salter admitted he underestimated Shein and Temu, and his board wasn't too keen on buying Forever 21 either. But Smith, that mall bigwig, told him to reconsider partnering with Shein because it's clear as day they can't beat them in the fast-fashion game.
So far, selling Forever 21 on Shein's site is "good, but not great" for Salter. But the rest of the partnership, like those pop-ups, man, those are "huge home runs." In fact, Salter says he's dating Shein and it's been incredible so far.
Now, you might've heard ‘em talkin' about Shein secretly filin' for an IPO way back in November. But right now, they're still a private company keepin' their financials under wraps. Salter did throw out a figure, though: according to him, Shein is bringin' in over $30 billion, but who knows, maybe it's more like $40 or even $35.
We reached out to Shein for comment on that juicy number, but they weren't ready to talk just yet.
Alright, let's move on to Reebok. ‘Course, we all know Authentic bought Reebok from Adidas in 2021 and they closed the deal in 2022. Salter's goal? Get Reebok to $5 billion within three years, and then up it to $10 billion within the next three. That's quite the turnaround from the decline at Adidas, bro, especially since they're aimin' to be as big as Lululemon by 2026.
How do they plan on doin’ that, you ask? By focusing on basketball. Salter brought on Shaq as the prez of Reebok basketball and tapped Allen Iverson to attract the younger crowd. They're gonna take Reebok BIG in the basketball world, man.
As for going public, Authentic once put an IPO on hold in 2021 after gettin' new funding, but Salter reckons they'll be public in the next 12 to 18 months. But don't worry, they ain't gotta go public if they don't wanna. As long as they're tradin' at 18 times EBITDA, Salter thinks they're doin' just fine.
So there you have it, folks. Authentic and Shein movin' in together, and Reebok on a mission to dominate basketball. Stay tuned for more!
Authentic's been growin' Reebok with smart partnerships, eco-friendly product innovation, and market expansion, even though they don't explicitly say they're aiming for that $10 billion revenue. Their strategy seems to involve:
Basketball's Big Time
While they ain't talkin' specific basketball strategies, Authentic's overall growth blueprint suggests possible moves like:- Collaborating with designers in the sportswear or footwear scene.- Leveraging their portfolio (e.g., Champion, Forever 21) to merge Reebok with broader lifestyle categories.
Sustainability's the Shit
Reebok's focus on eco-friendly materials and transparency lines up with the demand for sustainable performance gear. Between the green angle and the quality of their products, they could outshine the competition.
Mergers and Acquisitions FTW
Authentic's active acquisition spree (e.g., a potential Guess takeover[5]) could help bolster Reebok's retail presence either through enhanced distribution networks or partnership bundles.
Good Governance and Ethics
Lately, Authentic's been stressin’ ethical practices and shit to build strong brand equity, while streamlining operations to scale up production and distribution.
No clear revenue targets are mentioned, but this growth framework seems adaptable to the basketball market, especially through strategic partnerships and sustainable product launches. Direct basketball-focused gains might come from collaborations with athletes, leagues, or tech-driven product launches.
- In the AI realm, it's possible that Authentic could leverage technology to innovate their product lines, taking a cue from their eco-friendly approach with Reebok.
- With a focus on basketball, Brookfield Properties might consider implementing a basketball-themed development project in their capable hands, adding a unique twist to their retail and real estate endeavors.
- The finance industry could observe and adapt to the ethical practices Authentic is embracing, with a view to boosting their own brand equity and customer trust.
- In the rapidly evolving fashion industry, industry players can draw inspiration from Authentic's partnership strategy with Shein, as it demonstrates the importance of forging impactful collaborations in the fast-fashion landscape.
- Temu, also operating in the retail sector, can look towards establishing potential partnerships that mirror those made by Authentic, merging products and services for a broader market appeal.
- Researchers interested in the retail sector can delve into the strategies of companies like Authentic, exploring their innovation, sustainability, and partnership efforts to glean insights into contemporary and future retail trends.
- By the year 2026, the sports and fitness industry could see a significant shake-up, with brands like Reebok perhaps dominating the basketball sector as they aim to emulate the success of brands like Lululemon.
