India is an Evolving Licensing Market: Vikram Sharma Warner Bros. Discovery India, Southeast Asia & Korea

With a focus on leveraging the growing trend of licensing and merchandising in India, Warner Bros. Discovery, has enhanced its approach to market expansion. India, being one of the fastest-growing markets, iconic IPs like DC, Harry Potter, Looney Tunes, Tom & Jerry, are supporting homegrown brands to develop their narratives and enter new market segments.

In an insightful conversation with IndianRetailer.com, Vikram Sharma, Head of Consumer Products, Advertising & Partnerships, Warner Bros. Discovery India, Southeast Asia & Korea, spoke in-depth about India’s growth journey in licensing and merchandising.

Growing at Steady Pace

"In recent years, India has seen exciting collaborations in licensing and merchandising. However, the licensing sector is still in its early stages, even in terms of contribution from entertainment and character licensing. Globally, entertainment and character licensing contribute around 41 percent, while in India, it is only 26 percent," he noted.

Sharma further commented, "India is an evolving licensing market where the appreciation of the benefits of character licensing is improving. Piracy and distribution challenges in India also hinder expansion compared to other Southeast Asian markets."

Exciting Collaborations

Warner Bros. Discovery has forged multiple exciting partnerships with The Souled Store, boAt, Bira, and homegrown brands such as WOW Skincare and Zebronics in India, inspired by the biggest franchises such as DC, Game of Thrones, Cartoon Network, and others.

Sharma elaborated, stating, "As industry leaders in the licensing space, we have strategically continued working with category leaders to amplify their offerings while supporting homegrown brands to build their stories and enter new market segments."

"Our strategy in India has been about being a solution provider for our licensee partners where, through our properties, we can help achieve their goals as well as continue the storytelling for our fans through great products," he added.

India Vs Southeast Asian markets

According to the 2023 Licensing International study, in 2022, the overall licensing industry grew at a healthy 8.02 percent globally, with the South Asia/PAC region growing at 12.4 percent.

Discussing consumer behavior towards licensed products, Sharma remarked, "In the last few years, India has also witnessed substantial growth in licensing and merchandising, despite the sector still being nascent, even in terms of the contribution of entertainment and character licensing to overall Licensed Merchandise and Services."

He further explained, "This slow pace of adoption has been due to several challenges, including widespread piracy and an unorganized retail sector despite the advent of e-commerce. There is a need for more awareness and understanding by partners and retailers about the benefits of character licensing."

Piracy and Distribution Challenges 

Explaining the market situation in India for Warner Bros. Discovery Global Consumer Products, Sharma stated, "India is well poised to be the fastest-growing market for us over the next five years, not only from the perspective of market expansion but also from our approach to licensing here. India is one of the priority growth markets for Warner Bros. Discovery Global Consumer Products."

Sharma emphasized, "From the market perspective, we have a proven record of being in sync with our licensee's goals – whether it's market share gain, creating buzz, improving brand strength, or entry into a new retail channel, demographic, and gender focus, etc. Additionally, due to consumer behavior specific to the market, we focus on custom-designed collaborations depending on brand size, scale, nature of business, category, and other relevant elements. We have a solid presence among kids and young adult male demographics and are expanding our presence amongst young adult females. However, the market needs to evolve simultaneously as well."

Southeast Asian markets have evolved tremendously for the licensing and merchandising segment. Globally, entertainment and character licensing contribute around 41%, while in India, it's only 26%. Comparing the Indian market situation with Southeast Asia, Sharma commented, "India is an evolving licensing market where the appreciation of the benefits of character licensing is improving. Piracy and distribution challenges in India also hinder the expansion compared to other Southeast Asian markets."

Sharma explained, "The base of partners is still small, corresponding to the size of the economy and retail growth. If we compare it to SEA or other regions, the character licensing here is predominantly fashion-led. The potential of character licensing in categories beyond fashion like personal care, home, food and beverages, consumer electronics, etc., presents a big untapped opportunity."

Another difference is the demographics; a lot of licensing in SEA is uniquely driven by young adult females (also called YAF); however, in India, most of the licensing caters to kids or young adult males. YAF is a group that's increasingly driving the licensing business, and we believe this presents a big opportunity for India, he added.