The Hindu Business Line : Reebok India plans thrust on tier-II cities

Reebok India sees rising aspirations among people in tier-II cities as their counterparts in the major cities, as customers in smaller towns too have started to look at branded products. "It is wrong to think that there is no market in such towns. There is no denying that every market is price-sensitive. But the markets are also value-sensitive," Mr Subhinder Singh Prem, Managing Director of Reebok India, told Business Line.

Mr Subhinder was in the city in connection with the launch of the world's biggest showroom for Reebok in Hyderabad. The company has been expanding into tier-II cities in the last two years.

"Of the 505 outlets we have at present, about 40 per cent are in tier-II cities," he said.

However, he admitted to the fact that contribution to the sales turnover from these cities was less. "It is about 15 per cent in turnover."

The company claims to have a market share of 51 per cent in the Rs 2,000-crore premium sports wear market in the country. Reebok plans to have a total of 600 outlets by the year-end.

"We have grown six times in the last four years. We had just 100 outlets in 2003," he said.

Sponsoring cricket

Reebok, which roped eight of the 11 cricketers in the official Indian team, has no plans yet to support the rebel Indian Cricket League (ICL).

On whether it has plans to join some top companies that have decided to support ICL, he said the issue was not on the company's agenda.

On piracy, he said though the problem was not significant, the company has launched a cell to face the threat from counterfeit players.

"Our aim is to offer qualify products to customers. We will ensure that they get the right products."