There are more than 900 Reebok stores in India, but a lot of them are not earning profits, an organization insider stated. The business will down shutters on some 300 this sort of shops. The organization also plans to do away with the 'minimum guarantee' model for all its retailers.
Under this type, the firm compensated franchisees a assured sum irrespective of their monetary efficiency. Since last yr, the company continues to be withdrawing this design, changing it having a cash-and-carry type where it sells products to franchisees without having taking back any unsold stock. Some 500 shops nonetheless take pleasure in 'minimum guarantee' benefit that Adidas ideas to halt now.
An organization insider said the decision to shut numerous Reebok stores had been taken final 12 months since rentals and other costs are extremely large. Reebok had gone on an growth spree in India, growing from some 100 shops in 2003 to more than 900 shops in 2012. But its profitability was hit. The Indian trouble has clouded Adidas' robust begin to some bumper sports yr with the Euro soccer event and Olympic Games in London.
Adidas documented a 17% rise in its initial quarter revenue at e3.8 billion (approx Rs 26,650), while its working profit elevated 30% to e409 million (Rs two,868). The business had raised its outlook for 2012 on Monday. The Reebok brand's revenue within the initial a few months, nonetheless, have been down 7%. Shares in Adidas have hit record highs following the company elevated its outlook for 2012 on Monday and introduced that 1st quarter earnings surpassed expectations with sales of e3.8 billion and running profit of 409 million. The business, famous for its three-stripe brand, is outperforming bigger rival Nike and neighbor Puma within the crucial Chinese market.
"We undoubtedly do think that our momentum in China is fantastic, that it'll continue and we foresee double digit product sales progress for that years to return," he advised reporters. mentioned he was convinced that product sales from soccer would conquer his annual target of 1.5 billion euro. Adidas is package supplier to both Munich and Chelsea -- who meet up with in the Champions' League last in Munich on Could 19. Soccer will continue to be centre stage in June when Poland and Ukraine host the Euro 2012. refused to become drawn right into a row above Ukraine's human rights document which has led some European politicians to say they will boycott matches. Product sales in Poland had been up 35% on the currency-neutral basis, and by 19% in Britain.
Under this type, the firm compensated franchisees a assured sum irrespective of their monetary efficiency. Since last yr, the company continues to be withdrawing this design, changing it having a cash-and-carry type where it sells products to franchisees without having taking back any unsold stock. Some 500 shops nonetheless take pleasure in 'minimum guarantee' benefit that Adidas ideas to halt now.
An organization insider said the decision to shut numerous Reebok stores had been taken final 12 months since rentals and other costs are extremely large. Reebok had gone on an growth spree in India, growing from some 100 shops in 2003 to more than 900 shops in 2012. But its profitability was hit. The Indian trouble has clouded Adidas' robust begin to some bumper sports yr with the Euro soccer event and Olympic Games in London.
Adidas documented a 17% rise in its initial quarter revenue at e3.8 billion (approx Rs 26,650), while its working profit elevated 30% to e409 million (Rs two,868). The business had raised its outlook for 2012 on Monday. The Reebok brand's revenue within the initial a few months, nonetheless, have been down 7%. Shares in Adidas have hit record highs following the company elevated its outlook for 2012 on Monday and introduced that 1st quarter earnings surpassed expectations with sales of e3.8 billion and running profit of 409 million. The business, famous for its three-stripe brand, is outperforming bigger rival Nike and neighbor Puma within the crucial Chinese market.
"We undoubtedly do think that our momentum in China is fantastic, that it'll continue and we foresee double digit product sales progress for that years to return," he advised reporters. mentioned he was convinced that product sales from soccer would conquer his annual target of 1.5 billion euro. Adidas is package supplier to both Munich and Chelsea -- who meet up with in the Champions' League last in Munich on Could 19. Soccer will continue to be centre stage in June when Poland and Ukraine host the Euro 2012. refused to become drawn right into a row above Ukraine's human rights document which has led some European politicians to say they will boycott matches. Product sales in Poland had been up 35% on the currency-neutral basis, and by 19% in Britain.
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