Reebok looks abroad for growth

Shonda Schilling, wife of Red Sox pitcher Curt Schilling, worked out at Reebok's Canton headquarters before the 2006 Boston Marathon. (Globe file photo)

Reebok’s US sales will probably drop again in 2007, but worldwide the brand is expected to grow to a $5 billion business within three to five years, Adidas chief executive Herbert Hainer says.

Canton-based Reebok, bought last year by Adidas, the German sporting goods giant, today laid out plans to refocus its strategies by raising its average selling price, expanding more aggressively overseas, bolstering its sports credentials, and concentrating on marketing to runners and women.

Currently, the brand has about $3 billion in sales.

After a tough transition year, in which about half of the Reebok leadership team changed and sales dragged, the company is trying to do better in a few key areas.

"We’re going to do less, [but do] better as a company," Reebok chief executive Paul Harrington said today.

Reebok is looking to open up to 90 stores in Russia this year and as many as 200 in China as it continues to expand in key markets such as India and Latin America.

It’s also introducing two major marketing campaigns this year. While many other brands speak about "the blood, sweat and tears" of running, Reebok is looking to celebrate the camaraderie, joy, and fun with its "Run Easy" campaign, to debut this spring, chief marketing officer Uli Becker said.

"Unfortunately our image is not one of being a true running brand," Becker said.

The "Best on/Best off" campaign, to be introduced this fall, will attempt to differentiate Reebok as a brand that shows its strength both in sports and in lifestyle footwear.

While Adidas plans to promote itself as high-performance, high-end fashion, Reebok will market itself more as a fitness and lifestyle brand.

Reebok is also trying to rebuild its reputation as a leader in women’s footwear. The company gained a huge following in the 1980s, during the aerobics craze. In July, Reebok will unveil what it calls the first running shoe created exclusively for women, the Hatana shoe.

Reebok is also discussing whether to continue promoting itself as "Rbk," which it adopted several years ago to create a hipper, urban image.

"Obviously, there are still some challenges and hurdles we need to overcome," Hainer said. "But I believe we are on the right track."
(By Jenn Abelson, Globe staff)