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JD Sports part of Fila plans
Footwear brand enters long-term licensing agreement with JD Sports
Footwear brand Fila has entered into a long-term licensing agreement with JD Sports covering the UK, Ireland and the Channel Islands, as it looks to transform the strategy and structure of the business in the EMEA region.
Under the agreement, Fila branded products will be available in JD Sports’ stores and through the retailer’s website in autumn 2011, as well as in other fascias of the JD Group and selected wholesale channels. JD Sports has also been given the right to sell Fila branded products in its retail stores across Europe.
The licensing agreement is one of a number between Fila and retailer partners, including Dosenbach/Ochsner for Europe, SportMaster for Russia and Cravatex for most of the Middle East, Northern Africa and India, and is the first significant move by Fila Luxembourg since parent Fila Korea repurchased the master license for its brand in Europe in mid-January.
Fila said the licensing agreements are part of a restructuring mission to transform the strategy and structure of the business in order to ‘resolve the distribution channel confusion that has characterised the Fila brand in EMEA for the past few years’.
As part of the restructuring process, most of the previous Fila operations in the UK, as well as Germany and Italy, are being discontinued as the operations transition to the new licensees. Moving forward, a commercial director, based in Italy, will be appointed to coordinate Fila activities in the EMEA region with additional administrative and product functions based in Europe.
“The ultimate goal of the new licensing structure is to elevate the brand and streamline the flow and logistics of the business in the region,” Fila Luxembourg said in a statement. “The new strategy in EMEA is centered on a direct to retail structure as well as developing a complementary wholesale business which will include distributors and sub-licensees. The long-term license agreements include the rights to manufacture and sell women’s, men’s and children’s apparel, footwear and accessories.”
Gene Yoon, chairman of Fila Korea, said: “We are thrilled to have the opportunity to combine our Fila brand with the successful, well-established infrastructure of our new licensee partners in the EMEA region. Each partner has scale, performance market positioning and the ability to deliver growth in both profitability and market share, quarter after quarter.
“I cannot think of better broad based partners for our brand in these markets. As we celebrate the centennial of the Fila brand, we look forward to working with each partner to re-establish Fila as a premier sport lifestyle brand in the influential EMEA region.”
JD Sports chairman Peter Cowgill said: “The Fila brand is one of the most recognisable names in sportswear and athletic footwear and has long been known as an authentic sport brand. We are excited to share in the heritage of this storied brand through this licensing arrangement.
“This partnership allows us to advance our strategy of bringing high-quality, sport fashion brands to our consumers.”
