The $12-billion retail industry would get a leg-up from the Indian Premier League (IPL). Many retail majors are planning to tie-up with the IPL franchisees. The business format of IPL is modelled on the English Premier League, which has built its properties through retail tie-ups and merchandise.
Gibson Vedamani, CEO, Retailers Association of India (RAI), said IPL franchisees are in talks with various retailers. He said, ?IPL merchandise will be a new area for retail growth in India in 2008. Globally, sports related merchandise is a big opportunity for retailers. With IPL franchisee merchandise, the Indian retail segment is poised to grow by leaps and bounds.?
The eight IPL franchisees ?Reliance Industries Limited, UB Group, Shah Rukh Khan, Preity Zinta and Ness Wadia, Emerging Media, India Cements, GMR, and The Deccan Chronicle?are entitled to 100% of the local revenues like gate revenues, franchisee title sponsorship, franchisee shirt sponsorship, local sponsorship, licensing programme, uniform merchandising, hospitality & premium seating, match-day concessions, match-day promotions, and franchise media platforms.
Saurabh Dhoot, president-retail operations, Videocon Industries Ltd, told FE, ?Since Mahendra Singh Dhoni and Shah Rukh Khan are brand ambassadors of Videocon, we will definitely look at merchandise branded after them within Videocon?s Next, Planet M and other Videocon retail stores. The merchandise will include Dhoni and Shah Rukh branded T-shirts, sunglasses, wallets and travel bags.?
Meanwhile, Reliance Retail is finalising mega IPL merchandise strategies for its various retailing formats in India. Shopper?s Stop too is planning to have IPL franchisee merchandise within their retail stores across the country. According to Govind Shrikhande, CEO, Shopper?s Stop, ?We have not finalised the options on the merchandise.? Competitor Kishore Biyani, chairman, Future Group, said his company is, at the moment, not looking at IPL merchandise, but did not rule out possible tie-ups in the future.