Reebok Adidas to rework marketing strategy for small towns


Reebok Adidas to rework marketing strategy for small towns

by Meenakshi Kumar
31 May 2016

Sportswear giants Reebok and Adidas are reworking their marketing strategy to boost their sales in Tier II cities and towns. This comes in the wake of the launch of Fithub store in Ludhiana. Fithub is a new concept store and part of the company’s expansion policy. Three years ago, Reebok launched FitHub retail concept. Today, nearly a third (151) of the world’s FitHubs are in India.

In 2005, Adidas took over Reebok globally when financial irregularities by a few members of former Reebok India management team were discovered. In the fiscal ended March 2015, Reebok’s total revenues in India stood at Rs 333 crores, less than half of Adidas at Rs 805.13 crores. In the last few years, Reebok’s retail footprint was reduced to about 250 stores from more than 800 in 2013-14.

Adidas’ in India, the company will focus on delivering the latest format stores and optimising channel growth opportunities. Adidas works with Flipkart, Amazon, Jabong, and Myntra for online sales and over the years the scale of e-commerce business has been growing.

For both Adidas and Reebok, 80 per cent of their total production is done in India, much more than any other multi-national company. In this sense, they are doing their bit for the Prime Minister’s pet project Make in India. The Indian sportswear and apparel industry is growing at a CAGR of 12-13 percent with buying behaviour also changing over the last five year or so.