Adidas India In Row With Franchisees, Offering Discounts To Make Amends

Adidas is "finding it tough to make its Reebok store franchisees in India" accept terms of the new business agreement, according to Vivek Sinha of the HINDUSTAN TIMES. The "discontent among Reebok franchisees runs so deep that many have offered deep discounts, as high as 80%, in an effort to clear stocks and settle their accounts with the company." Around 500 franchisees own and operate close to 900 Reebok stores across India. A Delhi-based Reebok franchisee said, "We are in the process of settling our accounts with the company. The deep discount is to sell off the products." A Reebok storeowner said, "The company is offering us flat 35% margin on total sale proceeds. Earlier we used to get around 18% on our total investments and the company took care of rent and staff salaries as well" (HINDUSTAN TIMES, 1/15).