when they entered, indian consumers were not ready for them. but reebok began relentless expansion. the strategy has worked...
Your move. That’s how the latest Reebok ad campaign goes. The fact is that while globally, Reebok (which is the subsidiary company of Adidas) has had quite a chequered performance report, its India moves have done quite well. Globally, Adidas and Reebok combined find competing with Nike a daunting challenge. But in India, reebok alone is the number one sports footwear brand. So the million dollar question is how did Reebok actually secure this impressive lead when it comes to the Rs.11 billion Indian sports footwear & apparel market? A dexterous game plan and arduously woven strategic expansions have enabled Reebok India to score this coup.
In 1995, when Reebok made its debut on Indian pitches and hearts, the sports industry in the country was dominated by local players and MNCs like Bata. Nike and Adidas followed soon after and an intense competitive battle began. These MNCs came had accomplished themselves in manufacturing a range of high tech footwear. But the Indian market was quite unprepared; both for the sophistication of the technology and for the price. Unlike other players, Reebok decided that it would not unleash all its products. The product offerings of Reebok at that time were predominantly for the male consumer, considering the skewed gender balance at that time in the country. But the company believed in expanding very fast. Within one year, the first Reebok store reached a break even and 20 Reebok stores had propped-up across India; a number to reckon with considering those were still early days for liberalised India. “We started playing the expansion game (as it was proving quite a success for us) despite others calling it a mistake. We started spreading in metros and towns as well through tie-ups with retailers,” adds Subhinder Singh Prem, MD, Reebok India Company. No wonder then that through 700 exclusive brand outlets (as on March 31, 2009), Reebok has the highest retail presence in India today.
Your move. That’s how the latest Reebok ad campaign goes. The fact is that while globally, Reebok (which is the subsidiary company of Adidas) has had quite a chequered performance report, its India moves have done quite well. Globally, Adidas and Reebok combined find competing with Nike a daunting challenge. But in India, reebok alone is the number one sports footwear brand. So the million dollar question is how did Reebok actually secure this impressive lead when it comes to the Rs.11 billion Indian sports footwear & apparel market? A dexterous game plan and arduously woven strategic expansions have enabled Reebok India to score this coup.
In 1995, when Reebok made its debut on Indian pitches and hearts, the sports industry in the country was dominated by local players and MNCs like Bata. Nike and Adidas followed soon after and an intense competitive battle began. These MNCs came had accomplished themselves in manufacturing a range of high tech footwear. But the Indian market was quite unprepared; both for the sophistication of the technology and for the price. Unlike other players, Reebok decided that it would not unleash all its products. The product offerings of Reebok at that time were predominantly for the male consumer, considering the skewed gender balance at that time in the country. But the company believed in expanding very fast. Within one year, the first Reebok store reached a break even and 20 Reebok stores had propped-up across India; a number to reckon with considering those were still early days for liberalised India. “We started playing the expansion game (as it was proving quite a success for us) despite others calling it a mistake. We started spreading in metros and towns as well through tie-ups with retailers,” adds Subhinder Singh Prem, MD, Reebok India Company. No wonder then that through 700 exclusive brand outlets (as on March 31, 2009), Reebok has the highest retail presence in India today.
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