- Aditya Birla Fashion and Retail Limited, the retail arm of Aditya Birla Group, has purchased exclusive rights to sell and distribute Reebok products in India and Southeast Asia.
- ABG has now sold the exclusive manufacturing and retail sale right of Reebok in India and Southeast Asia to Aditya Birla Retail.
- The addition of Reebok will enable Aditya Birla Retail’s entry into the sportswear and activewear segment.
Aditya Birla Fashion and Retail Limited, the retail arm of Aditya Birla Group, has purchased exclusive rights to sell and distribute Reebok products in India and Southeast Asia. Reebok, originally a British company started in 1895, was acquired by German fashion giant Adidas. The German company acquired Reebok to enter the American market and challenge Nike’s leadership.
However, the ownership of Reebok did not bring much in the hands of Adidas as the company was ridden with various management and financial failures including a scam unearthed in 2012. Slowly the Reebok brand diminished and Adidas sold the company to Authentic Brands Groups (ABG), an American brand management company that has hundreds of retail brands under the umbrella, for 2.1 billion Euros.
ABG has now sold the exclusive manufacturing and retail sale right of Reebok in India and Southeast Asia to Aditya Birla Retail. The Aditya Birla Group, which owns many prominent retail brands such as Louis Phillip, Allen Solly, Peter England, and Sabyasachi, sells products under popular retail chain Pantaloons.
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“This segment is expected to grow to $13 billion by FY24 at an annual growth rate of 14%. The transaction marks a significant milestone in the journey of ABFRL, which has evolved its portfolio into a powerhouse of brands across all major fashion and lifestyle segments over the last several years,” the company said in a statement.
“The addition of Reebok would fill an important white space in ABFRL’s portfolio,” it added.
ABFRL has a network of 3,264 stores across about 26,840 multi-brand outlets with 7,094 points of sale in department stores across India. ABFRL is also the exclusive retailer for Forever 21, American Eagle Outfitters, and Ralph Lauren clothes in India.
Reebok used to be the most popular footwear brand in India, but slowly it gave away the title to Adidas, the parent brand. From the last few years, the company is trying to revive its sales, which grew marginally from Rs 388 crore in 2017-18 to Rs 400 crore in 2018-19, and Rs 429 crore in 2019-20.
Talking about the increase in consumption of apparel in India, Ashish Dikshit, Managing Director of ABFRL, stated, ”As Indians get more active, athletic and health focussed, their consumption of apparel and accessories is expected to increasingly change in line with these trends, providing an opportunity to build iconic brands of global repute. Reebok is one of the leading brands in the sporting goods industry globally and has built a very strong presence in the Indian market over the last two decades,”
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