Thursday, January 10, 2013

Indian consumers were not ready for them

when they entered, indian consumers were not ready for them. but reebok began relentless expansion. the strategy has worked...

Didn’t over expansion result out in cannibalizing their own sales? For instance, in many localities (like South Ex in Delhi) they have two stores. Actually Reebok managed its retail strategy through product proliferation and brand extension strategies. Explains Subhinder, “In one store, the first floor has lifestyle products and on the second floor, we have sports goods. In the second store, the first floor has women’s apparel and the second floor, men’s... It might sound very simplistic, but this is indeed what helped us to run our stores in same locality phenomenally!” The company also rolled out its premium brand Rockport in India in 2000 and started creating brands for entering into new segments followed by opening new stores for the same. India insights worked well. For instance, Reebok launched shoes with broader forefoots, that suit the Indian customer, unlike the offerings of its international rivals (IBEF).

Finally today, these strategies have helped the company earn a turnover of Rs.14 billion for the year ended 2008. Their focus has also shifted now, since women’s apparel is contributing to 30% and Reebok Classic (the lifestyle venture) is contributing 10% of its Indian turnover. In fact, the women audience is being pampered with the recently launched Easy Tone shoes. By just walking in them, women can get a well toned butt. Irrespective of catering into so many segments, still the company wants to resist the temptation to create its own manufacturing hub in India and is cashing in on the sourcing hub of Adidas.


Source : IIPM Editorial, 2012.
An Initiative of IIPM, Malay Chaudhuri
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