The All Blacks jersey debacle is "right up there" when it comes to public relations disasters, an industry leader says.
The jersey can be bought overseas for around half the price it is being sold at in New Zealand, leading to a storm of protest.
There were also calls for an adidas boycott after it emerged that overseas websites were blocked from selling the jersey to people in New Zealand.
Deborah Pead, managing director of Pead PR, told TV ONE's Close Up that adidas has taken fans for granted and had shown an enormous amount of naivety.
"I can hardly remember a time in recent years where I've seen people get so angry, so quickly, about an issue," she said.
Pead told Close Up tonight the problem started when adidas had a dual pricing strategy for a global product.
"Brand loyalty is a two way street. It's not just about fans being loyal to the brand, it works in reverse."
And she said adidas has had a week to explain and has not been able to.
"They have got very confused about this matter, haven't got a plan and are unprepared," she said.
Marketing expert Malcolm Wright from Massey University puts the PR fiasco down to the "consequence of hands off centralised management".
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"They've lost touch with the New Zealand public," Professor Wright said.
He said despite an average annual New Zealand turnover of around $50 million, adidas does not have a director in New Zealand although it has two in Australia and one in Germany.
"It's pretty hard to stay close to your customer if your management is so distant."
Wright watched the Close Up interview last night with adidas New Zealand manager David Huggett and the company's managing director for the Pacific, Greg Kerr, and said he saw "a couple of guys who had been told to come here and had no real authority".
Wright believes Huggett has been trying to argue New Zealand's case internationally but said "it was pretty clear to me they had no scope or remit to be able to say anything different".
Wright said adidas has got an ongoing problem after "creating a lingering sense of injustice".
It's time to go on the front foot, he said with a promotion such as a two for one deal.
But former All Black Andy Haden believes adidas could have solved the price much earlier by putting the overseas price up.
They could have made a shoddy garment for ten bucks, Haden said, adding that he believes what the fans really want is a premium team and jersey.
"If they put a real quality product on the shelves and price it accordingly the fans are going to be happy."
And Haden said the rugby union is suffering from guilt by association and is "damned if they do and damned if they don't".
He said at the end of the day it is the fans who are paying the wages, whether it is through royalties or ticket sales, and they have been treated with contempt.
Haden believes to a certain degree the rugby union has lost control of its intellectual property, "resulting in this dislocation between the local and international market".
The rugby union needs to help get some parity back for local fans and ensure they are treated no differently to those overseas, the former All Black said.
Adidas New Zealand manager David Huggett has apologised for the jersey debacle detracting from the Rugby World Cup excitement.
"The last 11 days has been pretty tough, I want to apologise to you for creating a distraction to what should have been a smooth build-up to the Rugby World Cup," he said earlier today.
Huggett told Close Up last night that when considering the difference between prices in New Zealand and those offshore, adidas has to look at its investment into grass roots rugby, and into the retail landscape with its stores.
"We invest significant amounts of money here that isn't invested in other parts of the world
The jersey can be bought overseas for around half the price it is being sold at in New Zealand, leading to a storm of protest.
There were also calls for an adidas boycott after it emerged that overseas websites were blocked from selling the jersey to people in New Zealand.
Deborah Pead, managing director of Pead PR, told TV ONE's Close Up that adidas has taken fans for granted and had shown an enormous amount of naivety.
"I can hardly remember a time in recent years where I've seen people get so angry, so quickly, about an issue," she said.
Pead told Close Up tonight the problem started when adidas had a dual pricing strategy for a global product.
"Brand loyalty is a two way street. It's not just about fans being loyal to the brand, it works in reverse."
And she said adidas has had a week to explain and has not been able to.
"They have got very confused about this matter, haven't got a plan and are unprepared," she said.
Marketing expert Malcolm Wright from Massey University puts the PR fiasco down to the "consequence of hands off centralised management".
Advertisement
"They've lost touch with the New Zealand public," Professor Wright said.
He said despite an average annual New Zealand turnover of around $50 million, adidas does not have a director in New Zealand although it has two in Australia and one in Germany.
"It's pretty hard to stay close to your customer if your management is so distant."
Wright watched the Close Up interview last night with adidas New Zealand manager David Huggett and the company's managing director for the Pacific, Greg Kerr, and said he saw "a couple of guys who had been told to come here and had no real authority".
Wright believes Huggett has been trying to argue New Zealand's case internationally but said "it was pretty clear to me they had no scope or remit to be able to say anything different".
Wright said adidas has got an ongoing problem after "creating a lingering sense of injustice".
It's time to go on the front foot, he said with a promotion such as a two for one deal.
But former All Black Andy Haden believes adidas could have solved the price much earlier by putting the overseas price up.
They could have made a shoddy garment for ten bucks, Haden said, adding that he believes what the fans really want is a premium team and jersey.
"If they put a real quality product on the shelves and price it accordingly the fans are going to be happy."
And Haden said the rugby union is suffering from guilt by association and is "damned if they do and damned if they don't".
He said at the end of the day it is the fans who are paying the wages, whether it is through royalties or ticket sales, and they have been treated with contempt.
Haden believes to a certain degree the rugby union has lost control of its intellectual property, "resulting in this dislocation between the local and international market".
The rugby union needs to help get some parity back for local fans and ensure they are treated no differently to those overseas, the former All Black said.
Adidas New Zealand manager David Huggett has apologised for the jersey debacle detracting from the Rugby World Cup excitement.
"The last 11 days has been pretty tough, I want to apologise to you for creating a distraction to what should have been a smooth build-up to the Rugby World Cup," he said earlier today.
Huggett told Close Up last night that when considering the difference between prices in New Zealand and those offshore, adidas has to look at its investment into grass roots rugby, and into the retail landscape with its stores.
"We invest significant amounts of money here that isn't invested in other parts of the world