Reebok, once a small player in the footwear industry, has now become a major brand without jacking up its prices. Unlike other well-known brands like Nike or Adidas, Reebok manages to keep its athletic shoes affordable for the average buyer.
This led me to a question; how do they do it? And to find the answer, I decided to check out their shoe scene myself.
After doing research for a while, I came up with some incredible reasons that explain everything.
Some of those reasons that explain the cost-effectiveness of Reebok shoes are manufacturing in economical labor markets, simple material selection, economies of scale, positioning for intense competition, and target market considerations.
Let’s see the reason in a bit of detail.
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Why Reebok Shoes Are So Cheap? Factors Behind Low Pricing!
The average price of Reebok shoes is around $70 to $80, which is a very high price for such a popular brand. Here are some reasons that you might want to know about their pricing plan:
Manufacturing in Economical Labor Markets
Reebok shoes are known for being affordable. One major reason is that they hire labor from countries with lower wages, which helps them keep production costs down.
The majority of their labor is sourced from Asian countries such as China, Thailand and Vietnam. In Vietnam, workers earn around 4,680 VND per month (approximately $191.539 USD), while in China, the highest monthly minimum wage is 2,690 RMB (equivalent to US$370).
In the United States, wages usually range between $7.25 and $15 per hour. So, as you can see, the gap is huge. This gap helps Reebok save a lot on making their products.
So, that’s one reason why they set up such affordability for their products.
Material Selection
Another big reason behind Reebok’s affordability is their strategic material selection.
They understand that using premium materials often leads to higher production costs. That’s why they deliberately select cost-effective yet reliable materials. They bring in materials that not only improve performance but also keep costs under control. Polyurethane foam, polyamide, nylon, synthetic leather and rubber are a few of these materials.
These materials are readily available and offer durability for a good amount of time. While they may not last exceptionally long, they effectively maintain foot comfort and support for a satisfactory span of 3 to 4 years.
So, to stay competitive and affordable, Reebok goes after cost-effective ways to make their footwear and other accessories.
Must Read: Is Rbx the Same as Reebok? | Everything You Want To Know
Economies of Scale
Reebok benefits from economies of scale as a larger production volume leads to lower costs per unit. I mean, through mass production, the brand effectively reduces production expenses. Additionally, mass production also enables Reebok to meet customer demand quickly and efficiently.
It’s a clever strategy and this is how the brand spreads fixed costs across a larger number of products. With this strategy, they are able to maintain low prices without compromising the quality of their products.
So, large-scale production allows Reebok to reduce their production costs and become more competitive in the market.
Intense Competition Positioning
Reebok actively contributes to market competition by creating a perfect balance of comfort and affordability.
In the market, you can notice that the competition is tough, with big names like Nike and Adidas in the sports and athletic wear industry. There are also other strong competitors like Puma, Under Armour, New Balance, and Asics.
All these brands are trying to win over customers by coming up with cool products, smart advertising, and being active in different areas of sports and fitness.
And in all this competition, Reebok stands out as an affordable brand that gives almost the same performance and comfort with the product, like other brands in the market.
So, to make customers enjoy the top performance in sportswear, they intentionally keep their prices affordable, making it a great choice for people who want quality without spending too much money.
Target Market Considerations
Reebok intentionally targets people who have a love for sports, fitness, and stylish everyday wear. They focus on fitness enthusiasts, like runners and CrossFit fans.
It also focuses on casual consumers who want comfortable and fashionable athletic clothing for everyday activities. Reebok is particularly popular among young people and millennials. This is because they offer products that match urban fashion and streetwear trends.
Moreover, the brand stays connected with sports lovers by sponsoring teams and endorsing athletes. This helps Reebok stay relevant and credible in the sports community.
And lastly, Reebok is positioning itself as an affordable option. This makes them attractive to budget-conscious consumers who still want good quality athletic and casual wear. This strategy helps Reebok compete successfully in a competitive industry.
FAQs
Is Reebok Having a Comeback Season?
After Adidas reached an agreement to sell Reebok to Authentic Brands Group (ABG) for $2.5 billion, Reebok is now making its way slowly back to trends.
The progression was slow at first, but Reebok is now seeing a resurgence in popularity. The company has released a new line of clothing and shoes, as well as partnerships with celebrities and influencers. This has helped to increase brand awareness and sales.
So, yeah, there’s a good chance of a comeback season.
Where Reebok Shoes Are Made?
Reebok shoes are mostly made in countries like Vietnam, China, Thailand, and the Philippines because it’s cheaper to produce them there compared to the US.
This helps keep the prices lower for customers.
Will Reebok Shoes Stretch?
Yep, Reebok shoes are designed to stretch, so they might feel a tad tight at first. But don’t worry, they get more comfortable as you wear them.
Usually, the length is just right, but some folks might face width issues initially. The good news is that, with time, the shoes loosen up and become super comfy.
Final Words: Should You Buy Reebok Shoes?
Yes! If you’re looking for good shoes at a reasonable price, Reebok is a solid option. They’re great for both fitness enthusiasts and everyday wear. Reebok has a wide variety of designs, some of which have been inspired by partnerships with athletes and celebrities.
Not just that, they’re also affordable and offer comfort for a good few years. In short, if you want a mix of style, durability, and affordability, Reebok shoes are a smart choice.
