Aditya Birla Fashion and Retail Limited (ABFRL) announced that the company is entering into a long-term license agreement with a global marketing and entertainment company Authentic Brands Group (ABG). Through this agreement, the ABFRL will grant the exclusive rights to distribute and sell Reebok products through wholesale, e-commerce and Reebook branded retails stores in India and ASEAN countries.
This deal will mark a foray for ABFRL as the India’s is growing towards a fast-growing sports and activewear segment. Over the last few years, the segment has been growing rapidly on the heels of rising income levels, increased health consciousness and the adoption of active lifestyles by young Indians. This segment is expected to grow to USD 13 billion by FY24 at an annual growth rate of ~14%. The addition of Reebok will fill an important white space in ABFRL’s portfolio.
Ashish Dikshit, Managing Director, ABFRL commented on this announcement “ As Indians get more active, athletic and health focussed, 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. 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. 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.”
Corey Salter, Chief Operating Officer, Authentic Brands Group added to this and said, “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.”
In August 2021, Adidas announced the sale of Reebok to Authentic Brand Group(ABG) for a total consideration of $2.1 billion. Authentic Brand Group also owns the Forever 21 brand globally that is sold in India through ABFRL.