German sportswear major Adidas AG, which a few months ago decided not to add more Reebok stores following reports of financial irregularities at its India unit, is back on an expansion spree in the country.
Adidas now plans to work on Reebok's brand image, hit by the scam, by tweaking the look and experience at outlets. The company plans to launch a new retail format, entailing greater interaction with customers.
"We are coming up with an all together new store format, Fit Hub, for Reebok," said Erick Haskell, managing director, Adidas India. "Reebok plans to open 50 new stores. It also plans to open 100 new retail format stores in the span of one year." For Adidas, the company plans to add 50 outlets by this fiscal year.
The new format is designed to interact with consumers on personal fitness matters. "It will not just offer the right products but customers will also get advice about what the right fitness regime for them would be, the right gym to go to and much more," Haskell said.
After pruning a number of Reebok stores in India, two-thirds of their 800-odd franchisees have agreed to switch to a new arrangement with the parent company.
Despite a hole of Rs. 1,500 crore in the company's balance sheet due to the alleged fraud, the German sportswear maker remains committed to the Indian growth story, said Haskell.
"India is an important market for us and we will launch the best product portfolio to tap the market."