Company Profile: Reebok

Reebok

1. Globally Fourth after Adidas, Nike and Puma

2. Number 1 in India- 53% share of branded sports footwear market ( estimated size 3500 cr per annum)

3. Its lowest price point is less than 1000 ( Rs. 999 for a pair of jogging shoes.

4. Has 1000 stores in 325 cities.

5. About 300 outlets cater to lower end of the market.

6. It offers 80 SKUs under 2590.

7. About 70% of the sales volume come from low end product. In terms of value it constitutes 50% of the revenue. 

8. Over 80% of the footwear is manufactured in India.

9. Reebok India MD- Subinder Singh Prem.

10. Yard stick to open a store: Any location which has a population of 10000 to 15000 can sustain a Reebok store.

11. Cost of Opening a Reebok Store in a semi urban market is not more than 2 lakh. 

12. Even if a franchisee, who owns the place sells three to four pairs a day, there is a profit of 30000 to 40000 per month.

13. Also shoes are sold to company on a consignment basis so company is only paid when it sells.

14. Reebok is thinking of leveraging social networking websites- by opening Reebok clubs across websites where people can exchange notes on fitness and Reebok products.

15. Middle class buyer change their footwear every three months and at lower end, the customers are changing once in 15 months. 

16. How Reebok is Segmenting to take advantage of both the class- and mass- market

a. Segment for Health and Figure conscious women- Easytone 

b. Fashion Conscious- Manish Arora collection of Fish Fry shoes.

c. Offering Free Reebok shoes with annual subscription of mail today.

d. Mass Market- Extended its sponsorship with KKR. opened a store in Kolkata- selling KKr merchandise.

At least nine players in Indian cricket team uses Reebok Bat.