 "Somdeb Basu")
Don't want to miss the best from Business Standard?
Reebok, in its new-formed strategy of being a fitness brand with a strong focus on women, has effected a price increase. The brand director, Somdeb Basu tells Vinay Umarji the reason and its plans for an online store, even as its Fit Hubs further its offline foray. Edited excerpts:
How have the Fit Hubs fared in the last one year?
The repositioning (for fitness wear) has completely changed our image wherever we have opened up a Fit Hub. Growth at stores more than doubles, usually from the third month of opening a new one, because of word-of-mouth.
Who are you competiting with now?
Reebok shoes are not shoes which you wear to the Olympics or a marathon. The purpose is different. When it comes to running, Nike and Adidas also cover it. So, there are a few common products for which we have direct competition. The difference between other brands and Reebok is that for others, fitness is an add-on to the main sport. But for me it is everything and the idea is to get the first mover's advantage. We are trying to build affinity by giving consumers life-changing experience at the Fit Hubs.
We have gear for running, floor-training, cross-fit, aerobics, yoga, indoor cycling, swimming, and walking. We will get body combat gear by December, in a global launch.
The idea is that you have certain movements in body combat like kicking and turning for a workout and there are specific products like a shoe or an apparel meant up for it.
Pricing has changed in the Fit Hubs. Why is that?
We have not changed the price of products from our pre-Fit Hub phase. But wherever we have introduced a new range, it has been technically way superior and hence, the price increase. Even then, there is a price increase only when technical changes are effected and not on every product. The price rise has ranged between 5 and 25 per cent. But our belief is that people buy our products for the value and not the price.
What is the size of the fitness market? What is your market share?
The fitness and sportswear market is estimated at around Rs 25,000 crore. Of this, the branded segment would be roughly 10 per cent. We wish to target 30-35 per cent in three years, but first we would like to set up stores to match our competition.
Would you get into e-commerce?
We are almost in the final stages of launching our mono-branded e-commerce site and it should be running by October. There could be customers who would not only buy because there is an offer, but for convenience or even because the online store offers something unique not found in brick and mortar stores.
How are you reinforcing your fitness marketing regime?
In the bigger stores, we have gym trainers to give free training. At Reebok Fitness Avenue gatherings, we set up stages, microphones and music for free yoga, dance, aerobics, Sh'Bam and cross-fit classes. We are also telling companies that our trainers can come in to train their employees.
We also conduct a Reebok Running Squad in 36 locations every Saturday and Sunday where we train people in the art and science of running.
Have women overtaken men as your core consumer?
Our consumer demographic has leaned dramatically towards women but not at the cost of men. After we started getting hard core fitness merchandise at the hubs, in just about a year, women comprised 30 per cent of our base (industry average is around 15 per cent).
What we did was ask ourselves, 'If the real gender ratio is almost 50:50, then why not in our stores?'
