India Business Forum

Search
The Indian Express

The Financial Express

Latest News

Screen

Express Computer
Feedback
Travel

Matrimonials

Careers

Lifestyle

Astrology

E-Cards

Columnists

Graffiti

Crossword

Letters

Environment

Jewellery
Info-tech

Power

Steel

Advertisers Forum

Business Forum

Morning Digest

In association with Amazon.com

Books Music

Enter keywords


FINANCIAL EXPRESS FRONT PAGE

Corporate

Economy

Expressions

Markets

Leisure

 

Thursday, February 25, 1999

Reebok to unveil 40 shoes in mid-price range 

Tina Edwin  
New Delhi, Feb 24: Reebok International will unveil a range of 40 mid-priced performance shoes starting September this year as a part of its global strategy to offer shoes at lower price points. The shoes will be sold through the 400 retail outlets/shop-in-shops the company already has a presence in, in smaller cities and towns spread across the country. An investment of Rs 40 lakh is expected in order to upgrade each of these outlets.

The new range, which will complement the existing models, will be sold primarily in non-metro cities and town across the country. Besides India, these shoes will be sold in other developing markets in Asia, Africa and Latin America. The Massachusetts-based Reebok International had announced plans to launch the mid-priced range earlier this month when the company president and chief executive officer Carl Y Yankowski was here on a visit. The move is expected to expand the market for performance shoes substantially. In India, the company expects its trading volumes to more thantriple in two years. Explaining the rationale of the introducing lower priced shoes, Reebok International regional director for Africa, Middle East and India Muktesh Pant said: ``We don't want to cater just to the top-end of the market. We like to appeal to the mid-segment of market.''

He, however, clarified that the company does not expect to go the Bata way in terms of addressing the footwear market. The company would sell only athletic performance shoes, he said.

Pant added: ``The shoes would cater to the functional requirement of the people who do not want a gold Rolex but would settle for a steel Rolex.''The mid-price range shoes will not be available in cities like Delhi, Mumbai or Bangalore. In these cities, the company will continue to retail its existing line. ``Similarly, we will not sell the new range in places like Tel Aviv, Dubai, Johanessburg or Pretoria,'' said Pant.

The new range has been designed by Reebok at its development laboratories in China and Thailand. The company has managed tolower costs by reducing the complexities of manufacturing the shoes, Pant said.

The present range of shoes have over 40 components while the new range will have lesser number of components. Besides, the company has found suitable but cheaper substitutes for certain components which have also helped the company reduce manufacturing costs. ``We have also re-engineering the manufacturing process by getting new mould for the soles and new cutter for the uppers to reduce complexities,'' Pant said.

Elaborating on the plans, Pant said the company expected to sell about two million pairs of the mid-priced performance shoes a year in Africa, Middle East and India region within two years. A sizeable portion of this target would be met by demand from the Indian market alone.

The company is expected to source a large chunk of its requirement of the mid-priced shoes from India for markets in Africa, Middle East, Central and South Asia. ``We would be looking at mass production to reduce cost.''Reebok shoes aremanufactured in India by Phoenix, Moja and Bawa, though some components like soles are sourced from east Asia. Pant said the company would try to indigenise production of the new range to extent possible in an effort to reduce cost.

Copyright © 1999 Indian Express Newspapers (Bombay) Ltd.


Top


Ashwa Energy Capsules

Global Tenders invited by MSTC

The National Stock Exchange of India (NSE)

 

Click here for a printer-friendly page Printer-friendly page

One of India's Leading Banks



EXPRESSindia.com
News   Business    Sports   Entertainment
The Indian Express | The Financial Express | Latest News | Screen | Express Computers
Travel | MatrimonialsCareersLifestyle | Astrology
E-Cards | Graffiti | Environment | Jewellery | Info-tech | Power