Opening doors to exploration

Retailer: When did you venture into licensing and merchandising (L&M) activities and when was it first that you tasted success in this space? What kind of research do you undertake while adding a potential character/IP in your portfolio?

Tapaas Chakravarti (TC): L&M can be considered as the next step for moving up the value chain, both in terms of monetisation and brand visibility. We ventured into merchandising with our fully home grown property ‘The Jungle Book’. There was an instant interest in the merchandising market as the series is a well known classic, coupled with world class character design and animation style for the series. With major licensees like Osem, Hachette, Egmont, Burger Ranch, Belltex, Darpeje, Mookie toys, School Pack, etc representing the property in various territories worldwide, it speaks volumes on the success of the series in the merchandising domain.

There are a lot of key factors involved in selection of a desired IP.  We have a look at the current market trend, target group, story build up, broadcast partners, merchandising options and many more to decide on an IP. This is an important step and ample amount of time is spent on the research, as once an IP is decided upon, a lot of time, money and effort goes into making a successful series.

Retailer: Which are the intellectual properties/animated characters that you have licensed out so far? What are the plans in offing regarding expanding the port in the near future?

TC: Currently we have The Jungle Book which is doing great in terms of Broadcast and Merchandising worldwide. It has already been sold in over 160 countries for broadcast and many other regions for licensing over different categories ranging from toys, shoes, books to apparels.  We are also coming up with Peter Pan, Lassie, 5 & It, Feluda to name a few.

Retailer: How do you view the Indian market when it comes to the opportunities offered by the L&M industry in the current times?

TC: The merchandising market in India is in its nascent phase but with a lot of potential for growth. This is clearly evident from more and more players coming in to the L&M market in India.  Until recent times the concept of royalty to a brand owner was unheard of, rather the brand owner had to pay a certain sum of money to the product owners as some sort of marketing fee. That trend is changing and more players have started to realise the hidden potential of branded merchandise.

Retailer: Which are the countries where you have expanded your operations under your L&M portfolio? What remains to be your criteria for selecting potential partners in various countries?

TC: We have expanded over major parts of Europe, Asia & Middle East. Choosing the right partner is the most important factor that drives a license. We choose partners, category wise, based on their brand visibility and performance in their respective markets. We are also supported by our licensing agents in UK, Nordic & Eastern Europe, France, Germany and Israel, etc. The agents play an important role in helping us to license out the properties in their respective local region with the right partners.

Retailer: What has been your greatest reliable asset/support while taking on the L&M industry? Also, what have been the hurdles/stumbling blocks you’ve met on the pathway?

TC: Our greatest support comes from the kind of properties that we have been producing. For instance, our latest IP– “The Jungle Book”, is an iconic property which is already popular and well known world over. To supplement the same, the quality of the property and the extensive market research done before we entered the L&M industry and this had helped us to make the right decisions.

Retailer: Which are the categories you’re present across and which are new ones in the pipeline? How has been the response so far to the licensed merchandise?

TC: We are planning to cover almost every category that will help us build a successful L&M portfolio for our properties. So far we have back to school products, apparels, toys, stationery, footwear, publishing, bed linen, figurines, party goods, etc for “The Jungle Book”. We also have a lot of other product categories like wall tattoos, confectioneries, magazine publishing and music publishing, etc in the pipe line.

Retailer: Which are the countries you’re currently doing business in? What are your expansion plans?

TC: We are doing business in major parts of Europe, Asia & Middle East. In case of Jungle Book, the broadcast placement has been excellent and it has its presence in more than 160 countries. When it comes to merchandising, we have covered majority of Europe and have many deals to be finalised in Asia & MENA region.

Retailer: Who is your target audience and how do you identify a potential market before you decide to enter it? What remains to be your core marketing strategy?

TC: The target audience is largely show oriented. Each show has got its specific target audience. Our strategy is quite simple, greater the audience, larger the followers it creates. We are very well placed when it comes to the broadcasting part of the show. Equal emphasis is given to both – the pay and free TV broadcasters so that the show reaches out to maximum audience. We believe in being simple yet effective. We are also planning some promotional activities with our licensees so that the products get maximum visibility.

Retailer: How do you formulate the pricing strategy for your licensed merchandise and what is the current price range for your products?

TC: Pricing is an important criterion when it comes to merchandise hence we have planned a 360 degree licensing approach. Since we do business world wide, the price band usually varies from region to region as well as on the product range. But we are doing all to maintain a balance between quality and price of the products. The price range would be maintained such that parents would not want to deny their child’s favourite merchandise because it is overpriced.

Retailer: Which are the retail channels and retail formats that you have been using for putting up licensed merchandise?

TC: The retail channels for the merchandise are essentially decided by the concerned licensee. We choose our licensee in such a way that they have a good reach when it comes to their respective products, through the best distribution networks available. The trust factor is indeed there that the licensee will do all they can to make sure that the product reaches the consumer through the best medium possible.

Retailer: In your opinion, what is the future of licensing in India and how do you perceive this industry to grow in the next five years? How ripe is the market abroad and what is that you think is lacking in the Indian market?

TC: We believe the future in India for licensing is very healthy. There has been a steady increase in the buying power in India over the last decade. This will definitely push the licensing market and open doors to a huge potential for monetising branded properties. This phenomenon is clearly visible since well known global brands have started their operations in India. The markets abroad have already recognised this potential and have been exploiting them optimally for quite a some time. The Indian market is still in its nascent stage and highly concentrated in the metro and tier I cities. Until this spills over to the other cities in India, 360 degree monetisation is difficult but not impossible.