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

Aditya Birla Fashion and Retail (ABFRL) has signed a long-term licensing agreement, which grants ABFRL exclusive rights to distribute and sell Reebok products through wholesale, e-commerce and Reebok branded retail stores in India and other ASEAN countries, the company said in a release.

This deal marks ABFRL's foray into India’s fast-growing sports and activewear segment.

The transfer of ownership of the Reebok brand from Adidas to Aditya Birla Group (ABG) is expected to close in Q1 of 2022, the company said in its release.

“Over the last few years, this segment has been growing rapidly on the heels of rising income levels, increased health consciousness and the adoption of active lifestyles by young Indians,” the company said in the release, adding that the segment is expected to grow to $13 billion by FY24 at an annual growth rate of 14 per cent.

“As Indians get more active, athletic and health focused, their consumption of apparel and accessories is expected to increasingly change in line with these trends, providing an opportunity to build iconic brands of global repute,” Ashish Dikshit, managing director, ABFRL said in the release, adding, “In partnership with ABG, we plan to accelerate Reebok’s business in India, combining its global appeal and salience amongst Indian youth.”

Dikshit also said that the transaction further strengthens the ABFRL portfolio and increases its ability to engage with consumers across various need spaces.

This partnership helps further ABG’s global Reebok strategy of assembling a network of core operating partners around the world who are committed to driving innovation and growth, the company said in the statement.

The company added that ABFRL will partner with Reebok Design Group (RDG), the newly-established global brand hub based in Boston, on all product design, development, innovation and creative direction to drive a unified brand voice and vision.

The transaction is subject to completion post due diligence, necessary statutory approvals and signing of definitive agreements.

“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,” Corey Salter, chief operating officer, Authentic Brands Group, said in the release.