Simba's stint with sports

Having entered the Indian market in 2009, Simba formed Simba Toys India, a toy manufacturing company which has been scouting for avenues to increase their market presence. In a candid conversation with Pradeep Parmar, Business Head-India, Simba Toys India, we learnt about the company’s plans and views about licensing in the times to come…

 

Retailer: How do you view sports licensing in India? What is the duration of the deal that you signed for the Cricket World Cup merchandise?

Pradeep Parmar (PP): Sports licensing in India is in its early days. In the Indian context, the ‘sports star’ is bigger than the team as of now. Team loyalty and branding are also in early days and are expected to build in the next couple of years. The ICC licensing contract is for two years – 2010 and 2011.

 

Retailer: You are the global license holder to merchandise the Cricket World Cup mascot in India, Bangladesh and Sri Lanka. How did you come up with this decision?

PP: The venue for the World Cup was Bangladesh, India and Sri Lanka. Semi finals  and final matches were held in India. Hence, India was the key target market. Being new in the Indian market, we wanted to establish our presence with kids in India. Hence, we decided on this important sporting event for licensing in India.

 

Retailer: How was your experience? Is this your first venture with regards to licensing?

PP: As mentioned earlier, sports licensing is relatively new in India and in this context we did well in presenting the mascot range pan India with all key retailers. We do have other licensing arrangements with Disney in India.

 

Retailer: How do you perceive this market’s growth over a period of time? Where do you see the market by the time the next Cricket World Cup is round the corner?

PP: In India, sports merchandising business will grow slowly. Currently, it is focused only on cricket with IPL promoting the same. Indian consumers will definitely connect with cricket merchandise if the sport or event is happening in India.

 

Retailer: What do you think are the basic checkpoints that we need to follow to take this industry to the next level in India?

PP: Sport licensing in other developed countries has a history of 40 to 50 years. In this comparison, we are very new. Also, in India, it falls in the lifestyle category as it depends upon the disposable income available to spend on such sport related merchandise.

 

Retailer: Simba Toys has entered an alliance with Disney Pixar’s latest movie, Cars2, as a merchandising partner. Please elaborate on the kind of rights that you have attained as per the terms of this deal.

PP: We have recently launched a complete range of CARS 2 merchandise under license from Disney India. It has had a tremendous market response from all key retail and distribution partners. We are offering products in the price range of Rs 99 to Rs 5999.

 

Retailer: Why this idea of coming up with the back to school range? What is the price range and target audience for the same?

PP: Being a toy company, we focus on requirements of kids and in this regard back to school items is a very important category. The back to school range is a very established category in mature consumer markets. We have expertise of this business in Middle East. Hence, it was interesting for us to evaluate and execute this business opportunity in India. Items launched include pencil cases, lunch bags and school bags from Rs 99 to 999.

The back to school range is divided in three categories of target audience: pre-school (3 to 5 years), school (6 to 13 years), and teens and youth category. School going children are our major focus, considering that children in this age have a huge choice. We also focus on parents as they are our end buyers. 

 

Retailer: Which is the best category, according to you, sells best in back to school?

PP: The best category is the school category. The most common selling product is the back pack school bags. Since kids like to experiment with their accessories and always want to have their stuff special, thus it’s a fast selling product.

 

Retailer: What are your future plans with regards to licensing and merchandising in India? What are your expansion plans?

PP: We have had successful contracts with Disney, Nick and ICC. We look forward to build on the same in coming years. For first time in India, Simba has cooperated with Nick to produce a range of products for its very popular show “Pick A Trick”. We look forward to expand on similar ventures with other media partners.

 

Retailer: How are you framing the strategies to establish licensing business in India?

PP: Licensing business is in very critical and growing phase of toys and back to school range in India. As most of the characters are established in India through TV and movies, their demand grows exponentially in the consumer market. There are world leaders like Disney and Marvel that are popular everywhere and form the very base of the licensing business. But, in a country like India there is great opportunity to develop license business based on Bollywood (Krish) or Indian animated characters like Chhota Bheem, Hanuman, etc. At Simba, we look at established brands and are also open to new opportunities. Being in India, it is important to evaluate Indian properties in order to connect the best way possible with Indian kids.

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