Developing new business strategy for India: Reebok
Sportswear major Reebok India is embarking on a new business strategy under a global strategy of its parent Adidas till 2015 even as investigations are on following its complaint against two former top executives in for an alleged Rs 870 crore fraud.business Updated: Aug 05, 2012 12:28 IST
Sportswear major Reebok India is embarking on a new business strategy under a global strategy of its parent Adidas till 2015 even as investigations are on following its complaint against two former top executives in for an alleged Rs 870 crore fraud.
As part of the exercise, Reebok India Company is at present working with some of its key franchise partners to discuss the future relationship with them.
"We are committed to the Indian market and are in the process of developing a new business strategy for Reebok India as a part of our Route 2015 plan," Reebok India Company told PTI in an email response.
Without sharing anything further, the company said a more detailed update will be shared once it enters the implementation phase.
In May this year, the German parent Adidas had said it planned to shut down one-third of its 900 Reebok stores in India as a part of a restructuring strategy for the brand.
Adidas Group CEO Herbert Hainer had said the restructuring could lead to additional one-time charges of an estimated Euro 70 million in the remaining quarters of 2012.
In November 2010, Adidas had announced its 'Route 2015' programme, under which the sportswear major would further invest in its own-retail activities and open up to 400 additional stores globally by 2015.
The majority of the new stores were planned in emerging markets, particularly Russia.
When asked about allegations from a group of Reebok India's franchisees that they were not taken into confidence while deciding the future, the company said: "Infact, we are inviting our customers to engage with us and also working closely with some of our key franchise partners to discuss our future relationship with them."
In July, nearly 80 franchisees from the national Capital expressed their insecurity in a letter addressed to Hainer due to lack of clarity from the new Indian management, which was announced at the end of March, about the company's future operations in New Delhi.
The franchisees had sought his intervention regarding handling of the situation by the new management and alleged that Reebok India Company has not taken them into confidence while planning to initiate a new business model.