Home Fashion products reebok: Aditya Birla Fashion will now own and operate Reebok stores in select markets

reebok: Aditya Birla Fashion will now own and operate Reebok stores in select markets

(ABFRL) will also open Reebok owned and operated outlets in select markets, instead of having stores solely through its existing franchise model.

Last year, ABFRL signed a long-term licensing agreement with Authentic Brands Group (ABG) – the owner of Reebok – for the exclusive rights to distribute and sell the sports brand’s products through the sale wholesale, e-commerce and Reebok branded retail stores. The company said operations of Reebok India would be transferred to it from October 1.

Reebok’s main model in India is wholly owned by a franchisee.

“We believe that to strengthen the brand, we will do a combination of franchises…and a few exclusive company-owned stores. This is necessary to reposition the brand well to gain share in some of the key markets,” Ashish said. Dikshit, managing director of ABFRL, told investors on an earnings call. “There will be investments in at least the key markets where we would like to establish the brand more strongly and spend the company’s money.”

Reebok’s operations will be classified under the Madura Fashion and Lifestyle subsidiary and will enjoy a net economic benefit for the second half of the fiscal year, the company said.

Reebok was the biggest sports shoe brand by revenue a decade ago, but financial irregularities forced the brand to close many stores. The ABFRL said it was betting on its legacy and would try to regain its leadership position.

“The task ahead of us is to be able to restore that kind of position to the brand. Several things have to be done. We will be moving in from October 1st. The pricing, the type of product segments that we want to strengthen more, the type of geographies, distribution… will have to be addressed,” Vishak Kumar, general manager of lifestyle business at ABFRL, said on the earnings call.

Currently, German sportswear maker Puma’s revenues in India are higher than those of its rivals – Adidas, Nike and Reebok – combined last year, boosted by increased fitness awareness and growing demand for clothing. “athleisure” in the country.

India has also seen a growing interest in sports such as kabaddi, football, volleyball, hockey and badminton. Reebok’s positioning was historically oriented towards cricket. Sixteen years after acquiring Reebok for $4 billion, German sportswear giant Adidas sold the brand to ABG for $2.5 billion last year.