Ten years ago Maxim Ignatiyev, the co-founder and chairman of the board of directors of Reebok-Russia and the general director of R-Fitness, introduced Reebok products to Russia. This international brand owes its presence in this country to him. He not only created the Russian branch of the company, he became official distributor and an exclusive partner of Reebok International. The Leader spoke with him about his experiences and what he wishes for Reebok in Russia.

Himself a fitness-minded person, Reebok-Russia’s cofounder and chairman of the board, Maxim Ignatiyev, has been pushing for enlarging the sale of sports gear and fitness mindedness in Russia. He is also general director of R-Fitness, a company constructing a series of fitness clubs in Moscow that will open in one month.

How did Reebok come into your life?
It seems history chooses our paths in life. That was a period of great changes in Russia. At the end of the ’80s and the beginning of the ’90s, I worked with the firm Giprokauchuk, which dealt with synthetic rubber production. There was the idea of making sport shoes out of it. Using my American contacts, we found Reebok was very interested. However, we soon decided against producing footwear, because we had to purchase everything abroad or set up production from a zero level.

My ambitions didn’t permit me to give up. I thought if I couldn't produce, then I could engage in trading. I created business plans for selling Reebok products in Russia. At that time, the company was looking for new markets in Eastern Europe. I became Reebok’s consultant on the Russian market.


When did Reebok officially appear in Russia?
In 1991 the idea of a joint-stock company was worked out using 100 percent Reebok capital. In the early the 1990s the main task was to create a quality retail trade because its level of development was so poor. Reebok’s strategy was to register the two companies: one company deals with traditional wholesale, as in the West, and the other with retail. Only the retail side survived and became effective.

We applied to the best department stores Sanko Arcadia, The Irish House and duty free shops. We also were looking for premises for our own shops though it's not typical for Reebok on the West. There were three specialty stores in the United States. We opened the fourth one -- the first one in Europe, at Novinsky Boulevard in 1993, near the American Embassy. It was popular from the very beginning. After that we opened more stores in Moscow, St. Petersburg and other cities. Our own retail net became a real engine of our activity.

Do foreigners work for you?

In 1993 and 1994 there were five foreigners, top managers, working in Moscow. They introduced the corporate style and technologies. In 1997, we replaced the last foreign specialist and now the staff consists entirely of Russian professionals.

How did the August crisis of 1998 affect your business?
The 1998 crisis was a very unpleasant period because we usually introduce new collections in August. The regional net suffered most of all. The import circulation was reduced and the market perspective was quite unclear. At the same time, Reebok International was experiencing difficulties; it was static and was not as aggressive as Nike, the main competitor. I had to cut staff; 200 specialists had to find a job with our competitors. It was very painful for me.

Now we work more effectively. We reduced our expenses on rent and wages.

Reebok International offered me the job of general director of their Scandinavian branch. At the same time, I retained my position as curator for the Russian branch.

I moved to Vastervik, 300 kilometers from Stockholm. It was interesting. There was a plan to integrate Scandinavian business into the European Reebok structure with a common European warehouse, computer net and information flows. Unfortunately due to economic and financial difficulties within the company, this project was limited. Again I had to economize and cut staff and expenses.

I came back to Russia in 1999, when Reebok International decided to reorganize its branch establishments into independent companies, distributors in Russian, South African and Swiss markets to avoid risks in those areas. At the beginning of 2000, the joint-stock company Reebok-Russia was established.

One of my main conditions was the right to have our production in Russia. We have been manufacturing sports clothing for the Russian market since last year. It's 20 percent to 25 percent of our product. It's not easy to find a good producer but there are some here. We just provide them a model. It gives us an opportunity to save money on transportation and taxes. It's great for our further growth.


What are your main responsibilities as founder and chairman of the board?
I determine the company’s strategic development, manage the implementation of the programs and provide necessary financing and resources.


What are the main trends in your business’ development?
To expand the customer net in Russia and the C.I.S., to improve the quality, to open new stores, to encourage our own production and to create a net of fitness clubs under the Reebok label.

Why did you begin R-Fitness?
The Reebok system improves some muscle groups and the body in general.

The company made its first sports shoes for aerobic classes out of thin leather at the end of 70s. It was a real sensation in aerobics and the fitness industry. Now Reebok produces quality clothes, special shoes and equipment for fitness at home and in clubs. Reebok was a pioneer in creating such programs as Step, Slide, Cycle, Core and others.

In the mid-‘90s, Reebok began running worldwide clubs in New York, Bologna, Madrid and Sau Paolo, among other places. There are 38 clubs just in Germany.

I hope to strengthen the position of the brand on the Russian market with these clubs. The first one (2,700 square meters) will open this fall in Khoroshevo-Mnevniki and the second (3,300 square meters) in January next year in Maryina Roscha. Our services will be competitive. We are oriented toward the middle class, with yearlong cards costing $800-$1,500, an average price for Moscow. Our potential customers already buy the Reebok product. These are young people from 25 to 40 years old. We also plan to target youth and children.

How do you evaluate the status of the fitness business in Russia?
It is experiencing stormy growth at present. In Moscow, it seems sometimes that there are enough clubs, but actually it depends on the economic situation. Demand and supply do not match at the moment; prices are very often set too high and do not conform to the quality of services. The market will grow and competition will be strong. This is all good for the business.