Reebok began in 1895 in England as a manufacturer of track shoes and was renamed Reebok in 1958. It entered the Indian market in 1995 when fitness was still emerging. Reebok educated consumers about fitness and established itself as shoes became popular for exercise. It faces competition from Nike, Adidas and local brands. A PEST analysis notes the growing young population and urbanization supporting demand for sports shoes. Reebok has over 1000 stores in India and aims to transition to a cash and carry model to reduce losses.

1. REEBOK
Ruchi Dalal
MBA Sem – III

2. Company profile
• Founded in England in 1895 as J.W. Foster and
Sons, a manufacturer of track shoes
• Renamed Reebok in 1958.
• North American distribution rights purchased
by Paul Fireman in 1979.
• Fireman and a few investors bought the parent
company in 1984.

3. PRODUCT LINE
• The product line of a Reebok retail outlet
generally consists of sports accessories. The
product line is divided into four sections:
1)
2)
3)
4)
5)
Shoes
Apparels
Sports equipment
Exercising / health products
Personal grooming.

4. PRODUCT MIX

6. Major competitors
At Global level
• Nike
• Woodland
• Liberty
• Lancer
• Lotto
• Puma
• Red chief
In India
• Bata
• Lakhani
• Action

7. Reebok in India
• It entered the Indian market in the year 1995. When
Reebok entered India, fitness was a primitive industry in
India.
• People used to buy branded shoes only for fashion and
image.
• Reebok started educating people about the fitness and by
the time Reebok established itself in the Indian market, a
significant portion of consumers started buying sports
shoes for fitness activities.
• In year 2006, Adidas acquired Reebok for USD 3.8 billion.
• In India, Adidas and Reebok have integrated in the year
2011. Reebok India strategy is different from Adidas
strategy.

8. PEST Analysis
Political Factors
• In India, government allows foreign
companies to establish their business, this is
favorable situation.
• In Q1 2012, the central government approved
100% FDI in single brand retail (with 30%
goods sourced from Indian SMEs) which
means foreign sports shoe retailers can now
set shop more easily in India.

9. Economic Factors
• GDP growth rate is estimated at 7.3% for the FY
2012-13, up from 6.8% for the previous year.
• Inflation rate has fallen to 6.8% as compared to
8.0% last year.
• The rupee has depreciated to record lows and the
country’s high trade and fiscal deficits are
pressurizing financial markets.
• The middle class is rapidly emerging with increase
in the no. of DINK households accompanied by an
increase in disposable income; this is acting as a
driver for the increasing demand for new goods
like branded sport shoes.

10. Socio-Cultural Factors
• In 2010, approximately 39% of the Indian
population was in the age group of 20-44.
• This growing young population drives up demand
for branded sports shoes.
• The country is steadily moving towards a more
urbanized setup with a forecasted 32% of
population attributed to urban India by 2015.
• The urban Indian middle class as a whole is slowly
moving away from its unhealthy Dalda consuming
habits, and is adopting a healthier lifestyle which
includes exercising and playing sports.

11. Technological Factors
• The online retail market is growing at an
annual rate of 35% helped by increased
internet access; and easy returns by e-tailing
websites like Myntra.com make it easier for
the consumer to buy online.
• India is poised to have the third largest no. of
internet users in the world by 2013.

12. SWOT Analysis
Strengths
• First foreign player to change its existing shoe
designs to fit the Indian foot better.
• 1000+ stores across India – highest no. of single
brand sports shoe retail stores in the country
Weakness'
• “Factory outlets” offering discounts all year round
lead to brand dilution
• Franchisees currently work on the Minimum
Guarantee model which has led to high losses for
the company in wake of dipping sales.

13. Opportunities
• Adidas is planning to reposition the Reebok brand
in India in 2013.
• Change to the Cash and Carry model from the
Minimum guarantee model will drastically reduce
losses in the near future.
Threats
• Reebok was booked for Foreign exchange
management act (FEMA) violations in July 2012.
• Plan to switch to Cash and Carry model could
result in the closing of more than 300 stores.

14. Related Facts
•
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•
•
40 Main Footwear Factories in 8 Countries
600 Apparel Factories in 29 Countries
450 Raw Material Suppliers
27 Freight Forwarders
• Transportation modes include Ship, Truck, Rail
and Air
• 34 Custom Brokers
• Over 5,000 purchase orders placed each
month