The sports ‘fever’ is back, and with the seventh edition of IPL currently underway along with the 2014 FIFA World Cup a couple of months away, sports ‘fans’ have several reasons to cheer their favourite; icon and team. And, to leverage the emerging opportunities amongst consumers in metros and smaller towns, franchise owners are increasingly introducing a range of new products and services in their merchandising strategy along with rebranding their existing repertoire.
Marketing consultants highlighted that IPL owners are paying particular attention to diversifying merchandising activities beyond the traditional repertoire of caps, mugs and autographed products, amongst others, in a bid to stay in tune with emerging trends amongst fans.
Raghu Iyer, CEO, Rajasthan Royals, said, “The emphasis is on going beyond the ‘ordinary’, and giving a memorable experience to fans.”
Revamping the merchandise offered
Franchise owners are introducing products which are closely connected with their team or a particular “style statement” related to an icon. It’s no surprise that Kings XI Punjab is featured on a Lassi Da Gilaas, and it also offers an online app which helps fans to remain ‘connected’ with their favourite team in real-time.
Similarly, Mumbai Indians offers the ‘Mumbai Indian hairdo’s’, which includes a wig that closely resembles the leading bowler Lasith Malinga. And, the strong demand for ‘warrior’ mugs in the earlier season has encouraged Chennai Super Kings to expand its repertoire of similar merchandise for this season. A majority of licensed products are priced between Rs 250 and 500.
Pankaj Sikka, VP of Wild East Group, which represents Kolkata Knight Riders’ licensing activities, said, “Franchise owners need to take the merchandise repertoire to the next ‘level’, if they want this category to be a meaningful contributor to their revenues over the long-term.”
It does end there, with Delhi Daredevils which has launched a new logo and jersey for the current season while the Sunrisers Hyderabad has a new ‘look’ for this season.
Licensing, currently constitutes barely one per cent of a team’s total revenues vis-à-vis 5 to 7 per cent in leading European football leagues, and there is considerable scope to expand this category over the next few years, highlight consultants.
Harish Bijoor, Brand Expert & CEO, Harish Bijoor Consultants, said, “Merchandise sales in the sports category are expected to grow nearly four times this summer, but on a rather small base.” The sales of sports-related merchandised products were estimated at Rs 50-60 crore in the previous season.
And, in a bid to expand their retail distribution network, KKR and other teams are expanding their licensee partners along with offering their merchandise on popular e-retail websites.
Merchandising is not just limited to cricket, but with the growing popularity of football, RIOT, FIFA’s official apparel licensee for the country, is offering T-shirts, shorts, shirts and jackets that bear the logo of this tournament.
“We are hoping to garner Rs 8 – 10 crore through the sale of FIFA-related merchandise,” said Animesh Maheshwari, Retail Head – RIOT, Suditi Industries.
‘Engaging’ with fans
Franchisees are also attempting to ‘connect’ directly with fans via events and contests at sports bars and restaurants along with ensuring availability of their merchandise at retail chains, in both India and UAE. The first leg of the IPL tournament is being played in UAE.
As a result, KKR has tied up with sports bars and restaurants which are screening matches, and also “bundled” offers for its merchandise at these venues. In addition, this franchise has partnered with Amazon, and this global icon has developed an exclusive shop-in-shop for products related to this franchise.
“We plan to share the ‘excitement’ of this season with our fans,” Sikka added.
It does not end there, and Delhi Daredevils has tie ups with e-retailers - KyaZoonga and cricketfanstore along with offering products on its website and at stalls in-stadium, both in UAE and India. Apart from that, franchisees have also partnered with Adidas, Puma and Reebok, in a bid to ensure a pan India availability of their merchandise.
Similarly, RIOT is offering FIFA-related products at its exclusive stores along with multi-brand outlets and popular online retailers. “We will shortly announce licensing partners for the range of bags, eyewear and watches related to the forthcoming world cup,” said Jiggy George, CEO, Dreamtheatre, the agency which represents the global football regulatory body in the country.
Challenges remain
Marketing experts repeatedly highlighted that merchandise sales for a team are closely linked to its performance during the tournament. And, in the event, a team is eliminated early in the competition, sales of merchandised products “quickly dry up”, and a licensee is left with a large unsold inventory.
Nevertheless, sports fever will be a key driver for the merchandising industry, this season.
Copyright © 2009 - 2024 Franchise India Holdings Ltd