German sports major and parent company of Reebok, Adidas hassaid that two years after alleged fraud carried out by biggies at Reebok India office, it has been able to turn around the India business. Despite completely shifting focus away from cricket-related marketing, Reebok India has managed to turn profitable by shrinking store count to a third and raising its merchandise cost by nearly 25 percent.
The new aggressive strategy revolved around eradicating losses and strengthening the brand’s image as increasing its foothold by 2015. So now Reebok is being repositioned as a fitness label targeting upwardly customers while changing its earlier mass brand image. With increased awareness about fitness in India, the company is focused on opening 'fit-hub' concept stores in metros and some Tier II cities as well. Reebok opened over 360 stores last year including 100 Fit Hub stores that sell premium products and provide fitness consultation to customers. The company plans to double store count to 600 in another 3 years.
However, experts feel it still has a long way to go before Reebok really gains its lost ground in the country. It has to woo back customers, who moved away from the brand. A change in its image from mass to premium product will also make a huge impact on its customer base. Also its decision to move away from cricket may work negatively in a cricket-crazy country.