Monday, October 31, 2011
PUMA to set up Israel subsidiary
Multinational sportswear company has been represented in Jewish state in past 20 years by Grundman & Co.
Multinational sportswear company PUMA, which has a sales turnover of $2.5 billion, is setting up its first subsidiary in Israel.
For the past 20 years, the company has been represented in Israel by Grundman & Co.
PUMA' competitor, Nike, is active in Israel through a direct representative of the parent company, while its stores are operated by three local franchisers. Adidas has a direct representative in the Jewish state as well, led by a German CEO.
In addition to the marketing of PUMA's products at 350 points of sale across the country, Grundman has also set up five PUMA concept stores. PUMA's new representative will continue working with Grundman.
Grundman said in response, "This is a process that happens all around the world: When a market segment reaches a respectable size, like what happened in Israel, the international company wants the activity for itself.
"PUMA is among the top 3 in Israel, alongside Nike and Adidas. It's kind of absurd that the better the local agent and the more achievements he reaches, the bigger the chance that the international company will take control of the activity.
"Nonetheless, the change will take place in the right spirit and in full cooperation with us."