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Neighbourhood gyms will soon have international competition — from fitness brand Reebok. It launched its first fitness studio in Mumbai.
Reebok is extending itself as a service brand, offering aerobics, pilates, zumba and power yoga.
About ten new Reebok Fitness Studios are planned this year, opening a new revenue stream for its franchisees.
According to Somdeb Basu, Brand Director, Reebok India, “With the Reebok Fitness Studios, we expect our revenues to increase by 10-15 per cent every month. The services are for an hour each, three times a week for which the fees would range between ₹4,000 and ₹5,000 a month. There will be a revenue sharing arrangement between the franchises and the master trainers who will be appointed by the company.”
In markets such as the US, Reebok is already offering ‘CrossFit’ box classes on the same premises as it stores. “Unlike CrossFit which is a functional workout without the use of machines, the Reebok Fitness Studio is an India-specific initiative involving fitness equipment and is the first of its kind for Reebok anywhere in the world,” added Basu. Reebok expects international quality trainers and affordable rates to differentiate itself from the neighbourhood gyms.
“We can compare ourselves with the mid-market gyms and are even ready to give free classes to customers who buy from our stores as part of experiential marketing exercise,” he said.
Actor Nargis Fakri is the brand ambassador for the Reebok Fitness Studios.
Brand differentiation According to industry observers, Reebok is trying to differentiate itself from its sister brand Adidas (globally, Reebok was acquired by Adidas in 2005) by getting into fitness services.
Reebok is positioned as a multi-fitness brand while Adidas is a multi-sport brand but both have similar pricing.
“Unlike Reebok, Adidas is unscathed by the scam in India, so the company would like to keep both the brands distinct,” said an industry observer.
With its 300-odd stores run by franchises, footwear continues to be the largest selling item for Reebok with India serving as one of its sourcing hubs.
It is targeting another 80-100 more stores this year.
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