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Reebok eyes Rs 250-cr sales

23-April-2004
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Reebok eyes Rs 250-cr sales

Reebok India hopes to end calendar year 2004 with a sales turnover of Rs 250 crore. The major sales boost would come from apparel, which should contribute around 40 per cent to overall sales. Last year the company had recorded a Rs 170 crore turnover. Interestingly, it also plans to open a specialised women’s store in Gurgaon in May, which will have a large range of apparel for women, including specialised categories like yoga wear, aerobic wear and swim wear. The concept may be extended to other cities later.

Speaking to FE, Reebok India managing director Subhinder Singh, said apparel would be a big focus for Reebok this year. It has over 1,000 SKUs in apparel with the addition of several new categories. Says Mr Subhinder Singh, "We are riding a fitness wave and are extending this to the women’s category, with a range of smart wear designed for differnt kinds of sports and exercise activity."

Last year the apparel category had accounted for Rs 70 cr in retail sales. This year it expects to touch Rs 100 cr, a major part of which will be boosted by the Replica, women and kids categories. Fitness and footwear are the other two segments it operates in.

The Replica business, a segment which the company had entered with some trepidation, has caught the fancy of the younger generation and has turned out to be a Rs 3 crore business. From initial sales, the company now feels the National Basketball League (NBL) category has the potential to outpace the National Footbal League (NFL) business. This despite the fact that the two sports have a thin following in India. The company has also increased its marketing spends to Rs 27 crore this year, which works up to 11 per cent of sales against 8 per cent last year.

Reebok is also looking at retail expansion through opening of more franchised stores. On the anvil are at least 25-30 new stores this year with 90 per cent situated in shopping malls. "We see malls and the quality retail environment they offer, alongwith increased consumerism, as a big opportunity to spur demand," says Mr Singh.

Reebok currently has 102 exclusive stores. With the north accounting for a large part of its sales, it sees the south as a growing market which is likely to grow faster than the west.

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