We started our coverage on global footwear giant – Reebok’s operation in India a year ago. In Sept-2007, Reebok India in an expansion plan had said that the company intends to have 600 outlets by the end of FY2008. However, Reebok has beaten its estimates and has a whopping 675 outlets when all other retailers including Reliance Retail are struggling to scale their presence.
Reebok controls 51% of the Rs 2,000 crore Indian market for sports goods and apparels in the premium segment. The company is now looking at having 800 outlets by the end of Dec-08. Having covered all the big cities across India, Reebok is now looking to penetrate the virgin markets of Tier-III cities.
Mr. S.S.Prem, MD of Reebok India said,
We are very bullish on growth prospects in India. However, the challenge is to position our brand and products appropriately in the smaller towns. In the big cities we shall have large format retail stores, while in smaller towns the showrooms will be smaller.
Reebok is also focused on localizing its products in India yet maintain international standards. It has roped in prominent designers to design lifestyle apparels. Reebok has also associated itself with IPL Cricket and has sponsored 4 of the 8 teams.
Reebok’s new retailing model in India