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Neha Kaushik

New Delhi , Aug. 3

ADIDAS-SALOMON AG's decision to purchase Reebok International would have a significant impact on market share equations in the Indian sporting goods segment as well.

Reebok is currently the market leader in the domestic premium sports shoes segment, with some analysts (in the absence of any survey in this segment) estimating that the company's market share is more than that of Adidas and Nike combined.

The acquisition would give Adidas an immediate foothold in the approximately Rs 600-crore premium sporting goods market, taking the company to a clear number one position over arch rival, Nike. Mr Andreas Gellner, Managing Director, Adidas India, however, declined to comment on the development when contacted.

Analysts point out that Reebok, in fact, has been doing exceedingly well in the Indian market and had garnered a turnover of Rs 250 crore last year with a target to take this to Rs 400 crore in the current year.

In fact, while announcing its quarterly profit last month, Reebok International had said that its 71 per cent jump in profit was helped by gains in countries such as India and China.

Commenting on the acquisition, Mr Amit Adarkar, Director, Synovate India (a market research firm), said, "The benefits would be substantial, specially in India where Reebok has a relatively stronger franchise as compared to the rest of Asia. Typically, consolidation results in better focus and marketing efforts in reaching out to consumers. To that extent, it should be good."

He added that a recent Synovate survey (The Young Asians) carried out in 8 countries across Asia showed a 39 per cent preference towards Nike; followed by 18 per cent for Adidas and 6 per cent for Reebok when it came to sports wear and sports shoes.

"This acquisition would certainly enable Adidas to inch closer to Nike's leadership in Asia", Mr Adarkar said.

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