The year 2008 seems to be one of change for Reebok as this premium sportswear goliath plans to focus on two areas ? lifestyle wear and kids products. ?Sport and lifestyle are coming together ? the lines are blurring,? said Subhinder Singh Prem, managing director, Reebok India. What was being worn for sports is being worn for lifestyle today, he said, adding, ?We have a big presence in the fashion and film industries. These markets are growing and segmenting, giving us an opportunity to open up many more lifestyle stores.? It?s not that Reebok wants to move away from sports. ?We are still a very dominant sports brand in India. We will stick to that core proposition and the DNA of the brand. But lifestyle is also another focus that we are bringing in,? said Prem.
The kids segment will be another area of focus for Reebok in 2008 and the company wants to expand its product portfolio for kids. ?I see kids segment as a huge opportunity in a market like India, especially because kids are wearing sports wear all the time – apparels, shoes and sports shoes. And so it is an ideal segment for us. This year, we are planning to make the kids segment a larger chunk of our business,? said Prem.
Reebok launches about 20-30 new styles every month. The company will also bring a lot of collections including French, Spanish, Asia Pacific and US collection, etc. The compounded annual growth rate (CAGR) of the company is about 30% and last year, it crossed Rs 900 crore on the maximum retail price (MRP). Traditionally for the company, the maximum revenue churner is northern India. The company added 200 stores in 2007 and plans to add a similar number of stores in 2008 as well. The top end premier series running shoes are the highest selling Reebok product in India. As far as marketing is concerned, Reebok will bring in their global campaigns to India. The idea is to build the aspirations of the customers about global styles and fashion. McCann Erickson is the advertising agency for Reebok in India and the Carat is the media-buying agency.