Indian Economy News

Aditya Birla Fashion and Retail to take over Reebok's operations in India

  • IBEF
  • December 15, 2021

According to a press statement on 14 December, Aditya Birla Fashion and Retail (ABFRL) has inked a long-term licensing agreement that gives the company exclusive rights to distribute and sell Reebok products in India and other ASEAN nations through wholesale, e-commerce, and Reebok branded retail shops.

This is ABFRL's first push into India's burgeoning sports and active wear market.

According to the company, the transfer of ownership of the Reebok brand from Adidas to Aditya Birla Group (ABG) is planned to be completed in Q1 of 2022.

"Over the last few years, this segment has been rapidly growing on the heels of rising income levels, increased health consciousness, and the adoption of active lifestyles by young Indians," the company said in a statement, adding that the segment is expected to grow to US$ 13 billion by FY24, with a 14% annual growth rate.

"As Indians become more active, athletic, and health-conscious, their consumption of apparel and accessories is expected to change in line with these trends, providing an opportunity to build iconic brands of global repute," Mr. Ashish Dikshit, Managing Director of ABFRL, said in the release, adding, "We plan to accelerate Reebok's business in India, combining its global appeal and salience amongst Indian youth."

According to Mr. Dikshit, the deal boosts ABFRL's portfolio and expands its ability to engage with customers across a variety of demand areas.

Per this announcement, this agreement contributes to ABG's worldwide Reebok strategy of developing a network of core operating partners throughout the world who are committed to fostering innovation and growth.

To achieve a cohesive brand voice and vision, ABFRL will collaborate with Reebok Design Group (RDG), a newly-established global brand hub based in Boston, on all product design, development, innovation, and creative direction.

After due diligence, relevant statutory approvals, and the signing of definitive agreements, the deal will be completed.

"We are very pleased to expand our existing partnership with ABFRL, which includes Forever 21 and other ABG brands, and are confident that ABFRL will be successful in solidifying Reebok's position with a growing audience of fans in India and Southeast Asia," Authentic Brands Group CEO, Mr. Corey Salter said in a statement.

Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.

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