From licensing to local impact: ABG strengthens China presence with Shanghai HQ

by Zhou Fangying

Authentic Brands Group (ABG), the brand management company behind Reebok and Champion, has established its Asia-Pacific headquarters in Shanghai and plans to double regional headcount within the year as it ramps up expansion in China.

Founded in 2010, ABG owns over 50 lifestyle, fashion, and sports brands, with global systemwide retail sales reaching US$32 billion annually. In the Asia-Pacific region, sales stand at around US$2 billion—just a tenth of its U.S. total—highlighting what CEO Jamie Salter calls a "huge growth opportunity."

The Shanghai headquarters will oversee operations in China, Japan, South Korea, Australia, and New Zealand. Currently, ABG employs about 40 people in the region and 400 in the U.S. The firm plans to significantly increase regional staffing to support rising demand. It is also launching a dedicated "collaboration unit" in Shanghai to deepen partnerships with local Chinese brands, Salter told Jiemian News.

ABG operates under a licensing-driven, asset-light model, acquiring established brands and expanding them globally via partnerships rather than direct retail. This gives local teams autonomy in brand strategy, enabling flexible market adaptation while maintaining brand consistency. Salter said this model yields higher gross margins compared to traditional brand-dealer setups.

Still, the approach comes with challenges. Poorly managed licensing can dilute brand identity—a cautionary tale seen in Chinese thermal wear brand Nanjiren, which became overextended across categories and lost consumer trust.

ABG has taken a more selective route. In China, it has formed long-term joint ventures with local partners to deepen brand operations. In 2023, ABG partnered with Baozun E-Commerce to manage Hunter's Greater China business, transferring 51% of regional IP rights. In April 2025, ABG expanded its collaboration with Belle Fashion Group on Champion, broadening the license from footwear and accessories to full-category rights.

Champion has been one of ABG's fastest-growing brands in China. According to Meritco's databank, Champion generated 790 million yuan in online sales in 2024, compared to 160 million yuan for Reebok. Reebok's digital sales have nearly halved since 2021, reflecting post-acquisition challenges despite being operated by Hong Kong-based Tristate Holdings.

Meanwhile, ABG's surf brand Roxy recently debuted a capsule collaboration with Chinese sportswear giant Anta, its first product release in China since the brand was acquired.

Across its global portfolio, ABG recorded 400 brand collaborations last year. Salter said the company is hoping some China-originated products could eventually succeed in Western markets.

With Reebok and Champion together accounting for 28% of ABG's global retail sales, the company's success in China will hinge not just on growing distribution partnerships, but on whether it can invest consistently in product innovation and brand development. Analysts say Champion's trajectory suggests potential, but Reebok's performance highlights the limits of licensing alone to revitalize a brand.