Reebok to get trimmer in India

Adidas will overhaul its struggling fitness brand Reebok. It will speed up plans to cut Reebok's store network and focus on growing the business with wholesale partners, cutting the number of factory outlets and limiting the number of Fit Hub stores.

Reebok came to India in 1995. In 2013-14 Reebok had more than 800 stores in India. The brand is attempting a revival ever since financial irregularities were detected in its functioning. A new brand executive has been appointed to spearhead future growth. It has positioned itself as a fitness brand, part of a trend where many brands have changed positioning from when they entered the market.

It will have a strong focus on women, strengthening the offering in the premium segment (shoes priced above Rs 9,999), fitness accessories and technology-enabled products. The focus will be on metro cities. Reebok is also planning to seek approval for 100 per cent foreign direct investment to open company-owned stores.

Adidas also wants to sell its golf business by the end of the year, albeit at a loss. It does not expect to achieve the same level of revenue and profit growth in 2017 after its strong performance in 2016.