Reebok develops fresh business plan for India
Reebok India Co, the sportswear major is developing new strategies as a part of its parent firm Adidas AG’s global business strategy till 2015. The company is yet to get a clean chit from the investigation team inspecting Rs 8.7 billion fraud case against it.
Reebok India is carrying on its campaign and it is working with few of its prime franchise partners to have a discussion on its 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,” said Reebok India Company in an email response to PTI.
In May 2012, Adidas announced its plans of restructuring the brand by shutting down one-third of its 900 Indian Reebok stores. “The restructuring could lead to additional one-time charges of an estimated Euro 70 million in the remaining quarters of 2012”, said Herbert Hainer, CEO, Adidas Group.
Adidas had declared its ‘Route 2015’ programme in November 2010. Under this programme, the company would make further investments in its retail activities and open 400 more stores globally by 2015. It planned to open most of the new stores in emerging markets including Russia.
In July 2012, 80 franchisees sought Hainer’s intervention regarding the future operations of the company and the role of the new management. They alleged that while planning to start a new business model, they were not taken into confidence by the Reebok India Company.
http://investment.contify.com/story/reebok-develops-fresh-business-plan-for-india-17913106
