Executive Impact Jul. 22, 2009 - 07:00AM JST ( 4 )

As soon as you walk into the offices of Reebok Japan, you can feel a buzz in the air. There is an enthusiasm and energy level evident among the staff who are mostly dressed in the latest cool fashions from the sports shoe and apparel brand.

Reebok, which is a subsidiary of German company adidas, has had a presence in the Japanese market for about 20 years. Heading up the operation is Dieter Haberl, the brand president for Reebok. Born in Austria, Haberl studied in finance and economics in the U.S., and got a Ｍaster’s in Ｉnternational Ｍanagement at Thunderbird. After working for Coca-Cola in Europe for seven years, he worked in Japan with Coke from 1997-2004, followed by a stint at Gap, before joining the adidas group three years ago. Haberl assumed his current position in May of 2008.

Japan Today editor Chris Betros visits Haberl at the Reebok office in Shinjuku ward to hear more.

How do you compare working at Reebok with your previous jobs?

What I like about our group and brand is that it feels young. There is more energy and fun in the day-to-day activities. We try to live our principles.

How familiar were you with Reebok before you joined the company?

Well, my parents had a sporting goods store in Austria, so I grew up with all the products.

What is the image of Reebok in Japan?

Reebok has been in the Japanese market for about 25 years. I think it is best known for the classic Freestyle shoe that helped launch the aerobics craze. We are a brand that is best known for our popular lifestyle shoes, such as the Pump and Freestyle, as well as our women’s fitness products and our Taikan (“body core”) line of shoes and apparel, designed to make exercise easier and help your body perform at its best.

Is there much overlap between Reebok and adidas brands?

There are overlaps, but the brands are kept very independent in terms of how we approach the market and how we approach consumers. Reebok does have a distinct identity with its own areas of focus in this age of increasing health awareness.

How is business?

It’s true that worldwide in 2008 and 2009, across all business sectors, consumers have tended to buy fewer items and are looking for value-oriented pricing. Whereas 2009 has been a tough year for the industry overall, it is turning out to be a good year for Reebok Japan, because of the strong momentum of our EasyTone and Taikan product lines.

Tell us more about the EasyTone.

It is our most unique product, exclusively for women. The reason why EasyTone is so wildly popular with women is because leg and buttock muscles are toned by just wearing it during everyday activities like walking, shopping, commuting or even in the office. The EasyTone shoe creates these dramatic benefits by activating the muscles in your calves, thighs (+11%) and buttocks (+28%). It achieves this thanks to the two balance pods built into the soles of the shoe, which intentionally create instability which activates the muscles.

The shoe is built to address the needs of the modern woman, with an interest in health, fitness and beauty, but who is often too busy to find time to exercise. Women love it. When we introduced EasyTone in February, we ran a long campaign until May that offered a money back guarantee, no questions asked, if a customer wasn’t satisfied. The response was extremely good and the only returns we had were for different sizes.

And Taikan?

The Taikan running shoe is the best seller for men. It is a unique shoe with unique benefits. The shoe was developed to focus on your body core to enhance your posture for more efficient running. We have expanded the concept to include apparel and later this year will introduce the newest Taikan line-up, which provides dramatic health and performance benefits across a wide range of activities from running and general fitness all the way to golf.

Our labs are still in the middle of scientifically testing all the benefits, but preliminary results indicate that Taikan with its focus on strengthening the muscles that support your body core will deliver dramatic performance improvements. Initial benefits that we are seeing range from increasing your oxygen intake by a full +7% to improved flexibility and posture, which in turn lead to greater muscle efficiency and endurance.

How much of your business is shoes?

About 60% of our business is shoes and 40% apparel and equipment.

Where are the goods manufactured?

We have several carefully chosen factories in China and Southeast Asia that service this market. We have very rigid guidelines and a team that is exclusively dedicated to constant audits factories to ensure their compliance with our strict policies on product quality, work place standards and regard for the environment.

What are some characteristics of the Japanese market?

Japanese consumers are the most demanding and sophisticated in terms of quality of the product, material, design and benefits. Some of the color variations are unique to Japan as well. Buying and selling are also a little different in Japan. There tends to be less interaction between sales staff and consumers. The consumer doesn’t necessarily try on as many pairs as Westerners do—they come in knowing more specifically what they are looking for.

You recently held an exhibition for your 2010 lineup. What was the reaction of retailers?

Among the things that retailers are looking for are products that draw consumers to the store—in other words, products that actually provide retailers with an additional benefit. Naturally, retailers are always very cautious about being in the vanguard with new products. But the response we got at the 2010 exhibition was very enthusiastic for our EasyTone and Taikan lines because they proven to provide actual benefits to consumers.

How do you research the market?

We do our own market research and we use outside agencies. As you would expect, we also have a lot of dialogue with retailers. Furthermore, we have a call center which provides us with a lot of good feedback directly from consumers. 

Many foreigners often have trouble getting larger sizes in Japan.

Japanese are getting taller and we are seeing more demand for larger sizes—not for every shoe, but for shoes like Taikan. So in some lines, we do have shoes up to size 12.

Where are your shoes and apparel sold?

You’ll find us in sporting goods stores like Xebio, Alpen, Sports Authority, as well as ABCMart and other shoe chains.  We are in department stores like Nihonbashi Takashimaya, and from August, we will have a women’s line in Isetan. In some countries, we do have dedicated Reebok stores and franchise stores.

How important is it for you to educate the retail store staff?

Very important. Sales staff need to be educated on the benefits of EasyTone and Taikan and some retailers have been asking us for more help. We’ve been active with that and have seen an increase in sales where that has taken place. I visit stores as often as I can. Everytime you’re out there, you learn something new.

Can consumers buy your goods online?

Not yet, but we are actively exploring it. When you look at the retail industry in general, online is one of the few areas that are still growing. The return rates in Japan are much lower than in other countries.

Tell us about your staff.

Here we have 75. It’s a very good mix of diverse talents and expertise, both from the sports industry as well as other backgrounds—a small, fun, tight-knit group, young and energetic.

Do they have to wear Reebok?

No, but many do because they like our products. I always wear Reebok shoes.

What is your management style?

I like to delegate as much as possible, and it is easy to do that because we have a competent team. I am hands on when it comes to people development and the company culture because that makes a big difference in the long term.

Is Reebok involved in any charity activities?

On a global level, we support the Pink Ribbon campaign and we’ll be involved in a few more things like that later this year in Japan, such as a walkathon sponsored by the American Chamber of Commerce in Japan (ACCJ). Apart from that, we will sponsor a new ice hockey team, the Tohoku Freeblades, which will take part in the Asia League.

What is a typical day for you?

I show up a little before 9 a.m. My Blackberry helps me take care of emails before I arrive at the office. Time in the office is spent dealing with issues and meetings. I like one-on-one meetings because that is the fastest way to get things moving. Usually the day ends around 7 p.m., although sometimes I do a little bit of wining and dining.

What advice would you give newcomers to Japan?

You need to recognize that Japan is different from your home country. Understand how it is different and work with that. Some things take longer, but there are other things that move much faster. Put on hold your preconceived ideas of how things are done and enjoy seeing some things from a new perspective. Enjoy what makes Japan unique; it will help keep you young — and hopefully, fit!