Puma to set up Israel subsidiary
Sporting goods company says that a local subsidiary will 'help strengthen Puma's status and guarantee that it takes full advantage of the potential in the Israeli market'
The athletic shoe and clothing manufacturer Puma, whose annual sales total 3 million euros, is establishing a subsidiary in Israel, expected to start operations on January 1, 2013. Mamon has learned that the company's offices and showroom will be based in Herzliya Pituach.
Guy Daneman, 36, has been appointed general manager of Puma Israel, after serving as sales manager for Nike Israel. Daneman will be responsible for putting together the Puma Israel team and overseeing its operations; setting up the offices and showrooms; and directing positioning and branding.
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In addition, Puma Israel plans to open three concept stores in major shopping malls over the course of 2013. According to Daneman, the company plans to open a total of 15 concept stores within five years, each one comprising some 170 square meters.
Usain Bolt (L) 'races' Britain's Prince Harry (Photo: AP)
For the past 20 years, Puma has been represented in Israel by Grundman and Partners, which will continue to distribute its products until December 31, 2012. Grundman and Partners established five concept stores for the brand as well as marketing Puma products to 350 sales points throughout the country.
"This is a process happening all over the world," Grundman and Partners aid. "When the market share becomes large enough, the international company wants the activity for itself. In Israel, Puma is one of the top three – alongside Nike and Adidas."
"It's kind of ridiculous that the better the local agent is, the greater the chance that the company will take over operations. However, the change is taking place in a good atmosphere and with full cooperation,"
Grundman and Partners concluded.
Puma said that its Israeli subsidiary would "continue to strengthen Puma's status and guarantee that it realizes the full potential the Israeli market has to offer."
