Delhi Daredevils encash on IPL fever

Given the action packed stadiums across India and the teams leaving no stone unturned to grab eyeballs of the avid cricket fans and enthusiasts, we decided to catch up with Hemant Dua, CEO, Inspiranti Sports & Head Marketing, Delhi Daredevils to understand more about the licensing and merchandising business and the potential presented by this exciting format of cricket.

Vrinda Oberai (VO): How have you perceived the growth of IPL over the period of time? What have been the major changes in this regard?

Hemant Dua (HD): We have witnessed growth in terms of fan base, the number of people watching and the kind of reach TV viewership has attained. The number of teams has grown to 19, that forms the basis of the growth in the overall interest level that this exciting format of cricket has generated. What sets this format of cricket apart from the rest is that one gets to see the best of players and talents under one umbrella.

VO: How do you view the contribution of IPL in setting the pace for sports licensing in India?

HD: Looking a couple of years back, there was no licensing happening as such. It was only in 2003, with The Cricket World Cup, that the very first steps in this direction were taken. Otherwise there were just movies which were contributing to licensing. CWG has been miserable too in this regard. Licensing and merchandising arising out of IPL is not very large in numbers. Though, referring to the team’s revenue (cross board), we can see things changing and showing a positive sign. It is still early days and it will take couple of years ahead.

VO: In your view, what is the potential of licensing and merchandising wrt IPL? What are the opportunities it brings with it which can be encashed upon?

HD: Giving you an international perspective, the industry is huge and poised for immense growth, adding to 16 per cent of the revenues to the bottom line of any team which is large. However, here, it is not even close to 0.5 per cent. Having said that, I would add that sky is the limit, keeping in mind that licensing can be extended across categories, using it cross board. Banking on licensing and merchandising close to the IPL season is a cheap way to associate with the teams. However, brands are learning and people are realising. 

VO: Are there any special initiatives in the pipeline to target the audience for IPL Season 5? What is in store at Delhi Daredevils’ end for the upcoming season when it comes to licensing and merchandising?

HD: We have a complete launching, an embedded e-shop - encashing on the power of e-commerce, selling merchandise across India. We see it as a way to reach out to friends throughout. We have brought out new products, keeping in mind both the fans and the teams. The target audience is kids, men, women, and we aim at keeping on adding categories of products. Offline, we are selling through shop-in-shops and also at Select City Walk, Delhi and various MBOs.

VO: Who is your target audience? What is your marketing strategy this season and how will it be different this year?

HD: This year we have focused on the ‘fan’ as the base of the whole campaign. We also have this concept of ‘super fans’ from Delhi/NCR – these are people who have excelled in various sports (even other than cricket). These ‘super fans’ shall communicate with the team. We have also added the song – ‘Munde Dilli ke’, keeping in mind the local flavour – on and off field.  

VO: What, in your opinion, are the roadblocks when it comes to leveraging on sports events like IPL in the country?

HD: The overall market is subdued, from a commercial point of view. It is to be understood that IPL is a different format of cricket – a combination of sports and entertainment. 

VO: How much, in your opinion, should be the gestation period wrt licensed merchandise and related activities being launched in the market?

HD: It must be understood that there is a difference between event based and league based licensing and related activities. The basic sustainability throughout the year has to be maintained. Merchandising is a long term effort, is cost intensive and demands patience. Licensing and merchandising requires a good effort and a super strategy. The gestation period is a minimum of five years wherein concerted effort is required. What we have done is that we have developed a whole ecosystem.

VO: What are your revenue expectations this season as compared to last year? What is the contribution being made by licensing and merchandising in this regard?

HD: Our revenue expectations are minimal. We see it more as an investment. I can put the figure as 0.05-1 per cent. The business model has got immense potential, given that the focus should be on building the affinity between fans and the teams.