A project on the Distribution channel of Reebok

1. HISTORY
Reebok’s headquartered in the US, Reebok is worldwide designer, marketer and
distributor of sports, fitness and casual footwear, apparel and equipment under the
Reebok, Rockport, CCM, Jofa, Koho and Greg Norman brands. Reebok announced in
August 2005 that it would be merging with Adidas. Reebok is an American-inspired,
global brand that creates and markets sports and lifestyle products built upon a strong
heritage and authenticity in sports, fitness and women’s categories. The brand is
committed to designing products and marketing programs that reflect creativity and the
desire to constantly challenge the status quo.
Reebok International Limited, a subsidiary of the German sportswear company Adidas,
is a producer of athletic footwear, apparel, and accessories. The name comes from the
Afrikaans spelling of rhebok, a type of African antelope or gazelle. In 1890 in Holcombe
Brook, a small village 6 miles north east of Bolton, England, Joseph William Foster was
making a living producing regular running shoes when he came up with the idea to create
a novelty spiked running shoe. After his ideas progressed he joined with his sons, and
founded a shoe company named J.W. Foster and Sons in 1895.
In 1960, two of the founder's grandsons Joe and Jeff Foster renamed the company
Reebok in England, having found the name in a dictionary won in a race by Joe Foster as
a boy; the dictionary was South African edition hence the spelling. The company lived up
to the J.W. Foster legacy, manufacturing first-class footwear for customers throughout
the UK. In 1979, Paul Fireman, a US sporting goods distributor, saw a pair of Reeboks at
an international trade show and negotiated to sell them in North America.
Reebok surged in popularity in 1982 after the introduction of the Freestyle athletic shoe,
which was a designed for women and came out when the aerobics craze started. Not only
was the Reebok Freestyle popular as athletic wear, but also as casual wear. As a result the
Freestyle became an icon of the 1980s fashion scene with hi-top versions and colors,
including white, black, red, yellow, and blue. Reebok continues to produce the Freestyle
as it is popular with cheerleading, aerobic dancing, the gym and consumers.
Following the Freestyle success, Reebok also introduced an athletic shoe for men, called
the Ex-O-Fit. Similar to the Freestyle, it came in low-top and high-top versions; however,
unlike the Freestyle high-top with two velcro closure straps, the Ex-O-Fit only had one
strap. One of the designers of this early footwear was the founder's son, David Foster.

2. OVERVIEW
Reebok India
Reebok started its operations in India in 1995. Headed by Managing Director Mr.
Subhinder Singh Prem, Reebok India has a pan-India presence with branch offices in
Mumbai, Kolkata and Bangalore and ranks at the top amongst international footwear
companies in India. The Company's brand vision is fulfilling potential, its mission –
Always challenge and lead through creativity. Reeboks brand values are authentic,
individualistic, courageous, empowering, innovative and real. Reebok has introduced its
internationally acclaimed fitness programs in India, conducted under the banner of
Reebok Instructor Alliance, which is dedicated to fitness instructors, personal trainers and
health club owners. Reebok has trained and certified more than 800 trainers till now.
Reebok India commands a 54% market share in the premium sportswear industry
according to the calendar year December 2008. Its revenue has touched 1400 Crores (at
retail price) in 2008. It plans to increase the store count from the existing 500 to over 600
before 2007. Reebok reaches out to its target customers through its 900 exclusive Reebok
Stores, 250 to 300 Shops in the shop outlets & more than 2500 dealer outlets. Reebok has
the single largest store in Hyderabad.
Reebok International Ltd.
Reebok International Ltd., headquartered in Canton, MA, is a leading worldwide
designer, marketer and distributor of sports, fitness and casual footwear, apparel and
equipment under the Reebok, Rockport, CCM, JOFA, KOHO and Greg Norman Brands.
Sales for 2004 totaled approximately $3.8 billion.
According to the Reebok website as on May 2007, Footwear Reebok uses footwear
factories in 14 countries. Most factories making Reebok footwear are based in Asia —
primarily China (accounting for 51% of total footwear production), Indonesia (21%),
Vietnam (17%) and Thailand (7%). Production is consolidated, with 88% of Reebok
footwear manufactured in 11 factories, employing over 75,000 workers. Apparel Reebok
has factories in 45 countries. The process of purchasing products from suppliers is
organized by region. Most (52%) of Reebok's apparel sold in the United States is
produced in Asia, with the rest coming from countries in the Caribbean, North America,
Africa and the Middle East. Apparel sold in Europe is typically sourced from Asia and
Europe. Apparel sold in the Asia Pacific region is typically produced by Asian-based
manufacturers.

3. CHANNEL
MANUFACTURER
WAREHOUSE
C & F AGENTS
STATEWISE DISTRIBUTORS
RETAILER OWN OUTLET
CUSTOMER

4. Reebok uses the channel which includes manufacturer who is Reebok to warehouse than
to c & f agents than to state-wise distributor than either to retailers or to their own outlets
and then to the end customer.
Logi s t i c s
Rebook uses the transportation method for logistics purpose. Reebok and TNT Logistics
Italy have signed a partnership agreement that will run through to the end of 2008. TNT
Logistics will continue to manage all distribution logistics activities for Reebok,
including product receipt, quality control, storage and handling, preparation of orders and
delivery throughout the country, as well as collecting and managing returns from stores.
Around 6,000 m2 of warehouse space will be dedicated to the account at the Scarmagno
site (Turin), TNT Logistics’ hub dedicated to its major customers in the fashion and
apparel industry. TNT Logistics will handle a total of over 1,800,000 items per year of
Reebok products (footwear and sportswear accessories), the equivalent of 140,000
parcels and a volume of over 1,300 tons.
“We are very pleased with the renewal of this agreement,” commented Gianfranco Sgro,
Chairman and Managing Director of TNT Logistics Italy, “because it is symbolic of the
trust that multinationals like Reebok have been continuing to place in us for some time
now. This partnership is also important as it strengthens TNT Logistics’ position as
leading provider for the fashion industry, a sector of economic importance to the country
and strategic to the further development of our organization in Italy.”
Product Form & Safety of goods
Reebok uses the packaged method because they are not selling their product in a liquid form or a
loose form. They are selling their products in a packaged form. And TNT Logistics are managing
all distribution logistics activities for Reebok, including product receipt, quality control,
storage and handling, preparation of orders and delivery throughout the country, as well
as collecting and managing returns from stores.