Reebok relaunches with Fit Hub stores

Once in a legal hassle, Reebok India makes a comeback as it announces the launch of exclusive ‘Fit Hub’ stores. The new stores, as the name suggests will offer a range of services related to fitness, and will offer a constructive advice on purchase decisions. Reebok has emerged with an aim of achieving constructive feedback from consumers and also has revamped its marketing strategies to regain its market share in India. The fitness giant looks at targeting Reebok’s consumer base by allowing them to have a complementary role which will include counselling only from trained staff and certified trainers especially in peak hours. These people will help the customers in choosing the products which are specific to their training schedule. Company is also looking to redone its business strategy. Now they are looking to transform themselves from minimum guarantee model to a cash and carry business. Moreover, so far minimum guarantee scheme was applied for Indian franchisees; under this program they were receiving the minimum amount from the company. The new business model suggests a flat margin of 35 per cent on store sales. As of now company is aiming for 100 Fit Hub stores by the early 2014. Initially, company will focus on metro and then move to tier II and III cities. Other than this, company is looking to overhaul its existing stores and make them equivalent to Fit Hubs, as this will from here be their basic store
format.