NEW DELHI: Aditya Birla Fashion and Retail Limited (ABFRL) on Tuesday signed a long-term licensing agreement with a global brand development firm Authentic Brands Group (ABG), which grants the Indian fashion retailer exclusive rights to distribute and sell Reebok products through wholesale, e-commerce and Reebok branded retail stores in India and other ASEAN countries.
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, ABFRL said in a statement. This segment is expected to grow to $13 billion by FY24 at an annual growth rate of 14%.
Reebok is one of the leading brands in the sporting goods industry globally and has built a very strong presence in the Indian market over the last two decades, Ashish Dikshit, Managing Director, ABFRL said in the statement.
“In partnership with ABG, we plan to accelerate Reebok’s business in India, combining its global appeal and salience amongst Indian youth. This transaction further strengthens the ABFRL portfolio and increases our ability to engage with consumers across various need spaces,” he added.
The transfer of ownership of the Reebok brand from Adidas to ABG is expected to close in Q1 of 2022.