Licensing goes sporty

The Intellectual Properties related to sports, such as logos, symbols, names of sports organisations and the team members themselves, have become increasingly marketable with the emergence of more international sports tournaments and events. The huge potential held by the booming sports sector has made licensing the next viable option for brand extension.

 

India on the threshold of sports licensing

Licensing in India is taking a new turn with sports authorities ensuring inflow of fund throughout the year, targeting the sports lovers whose sentiments run high when it comes to their favourite clubs. Lately Twenty20 layout has shown the gateway with the launch of licensed merchandise.

Ms Monica Laliwala, MD, XSIS Promotions India Pvt. Ltd says, “The hype surrounding the IPL is phenomenal and is such that it leads to a huge inflow of customers. The eight IPL teams’ merchandise being divided among Adidas, Reebok and Puma makes it easier for us to coordinate and co-relate. The supply is organised.”  XSIS promotes the store “SPORTXS” that retails sports gear including the IPL merchandise.

Also, football clubs from Europe such as Manchester United, Arsenal and Liverpool have some of their goods available via a few specialty sports stores.  National Basketball Association (NBA), based in the US, has also begun to build a grass root fan base and infrastructure in India.      

 

The IPL craze

Almost all IPL teams have partnered with various retail brands to introduce their licensed merchandise in the market. In this respect ebay, an online retail portal, has emerged as the most popular e-marketplace to sell these licensed merchandise. Ms. Deepa Thomas, Senior Manager, Corporate Communications & Pop Culture, eBay India, says, “eBay India in association with leading apparel brands Adidas, Reebok and Puma are offering avid cricket fans a chance to own official merchandise of their favourite Indian Premier League teams. eBay India is the one stop destination for merchandise from all 8 IPL teams. Customers can choose from a wide range of categories like T-shirts, jerseys, caps and shoes. One can also choose from the fan-gear and collectibles like backpacks, key chains, bottle chillers, cheering sticks, tattoos, etc. from Genesis (for Deccan Chargers, Delhi Daredevils and Kolkata Knight Riders), Oceanbed (for Chennai Super Kings), Foostor (For Chennai Super Kings), Reliance Trends and Mishka Gifts (for Mumbai Indians).”

Mr Andreas Gellner, Managing Director, Adidas India shares, “At Adidas, we are thrilled to be partners with Delhi Daredevils and are looking forward to watching the team perform at their best.”

 

Customers’ response

The customers’ response has unarguably been overwhelming when it comes to purchasing their favourite team’s products. Ms Thomas comments, “The response from the customers has been overwhelming. It is not just from the fans in India, but also from Australia, Canada, Germany, India, Kazakhstan, Saudi Arabia, Sri Lanka, UAE, UK and USA.”

However, Mr Sajid Shamim, Director - Sales and Marketing, Reebok India Company, opines, “Indian market is as of now very new in terms of licensed merchandise but we have definitely tasted success through IPL. If the property is aspirational, consumers will buy it.” It is also understood that a fan remains a fan, even when the team loses. The avid fans continue to don the t-shirts or jerseys irrespective of the status of the teams they are supporting. But Ms Laliwala explains, “The association is more regional and so is the impact.”

 

Promotional strategy

Promotional activities remain to be a crucial concern for reaching out audiences and creating enough euphoria surrounding the prospective sport. Ms Thomas comments, “IPL is a pan India and pan global phenomenon. We primarily target the online customer through Onsite Merchandising and Direct Mailers to eBay India registered users, social media, SMS Gupshup, Internet marketing on cricket and search engines.”

“All 920 retail stores of Reebok sell the IPL merchandise. We also offer the consumers the option of customising their favourite team jersey by getting their own name and number printed on it. Apart from the stores the IPL merchandise is also being sold through stadium, Reebok online store - www.shop4reebok.com, eBay, Reebok mobile store and multiplexes,” informs Mr Shamim.

 

Promising future

Today, sports licensing appears to be on the rebound where the estimated worldwide retail sales of sports licensed products was $19.9 billion in 2007. With rising popularity of these goodies India seems to follow the same track to grab the commercial success.

Stay on top – Get the daily news from Indian Retailer in your inbox