Reebok distributor upbeat
Thai Top Sport Co, the distributor and marketer of Reebok sporting goods, aims to double its business in Thailand by 2020 thanks to increased interest in sports and fitness.
The sporting goods market grew by 15% to 5 billion baht last year even though consumer purchasing power remained weak. The rise lured fashion brands, both Thai and international, to enter the segment last year, with more joining this year, including Body Glove, D&G, H&M and Timberland.
“The sporting goods market in Thailand had the highest growth in Asean, which is demonstrated by the increase in fitness branches here. Sales of Reebok Thailand ranked second after Reebok Indonesia in this region,” said Vijak Sirising, the company’s chief executive.
Based on this market potential, the company plans to double its business by increasing the number of Reebok stores to 22 by 2020, up from 11 last year.
The new stores will be opened in Bangkok and upcountry. The store size will also be enlarged to 150-200 square metres. Each store will require investment of 5-6 million baht.
In addition, Thai Top Sport plans to expand from shoes and apparel to sport accessories, offering more products for sports such as boxing and yoga. The company plans to introduce 120 items a month to fulfil customer need, importing from Reebok Mexico, Vietnam and Indonesia.
Reebok sporting goods were previously made in Thailand, but the parent company moved production lines to other countries when wages rose here.
Thai Top Sport expects its sales in 2020 will grow by 30% from last year’s level.
The company is particularly keen on the younger generation, which it noted likes to buy sports shoes globally as collectors’ items.
The price of some sports shoes skyrocketed to 20,000 baht per pair in one day, up from 7,000 baht, said Mr Vijak.
The company will collaborate with business partners to supply Reebok limited editions, which have received a good response from collectors.
It hired Sarunrat “Lydia” Visutthithada, a famous actress and singer, to become a Reebok presenter.
“Celebrities have lots of influence with customers. Khun Lydia has 4 million followers on Instagram, so this move should increase Reebok’s exposure among prospective customers,” he said.