The IPL 2025 mega auction has just concluded and there will be a sudden spurt of activity on the merchandising and licensing field. But the segment remains underdeveloped in India with brands focussing largely on appealing to kids, that too in fits and starts. Will the establishment of sporting leagues change the game? Can e-commerce and q-commerce hasten the process? Jiggy George, founder & CEO, Dream Theatre, takes these and other questions from Alokananda Chakraborty. Edited excerpts:
The Pro Kabaddi League season is upon us. And then there will be the IPL. Sports merchandise is said to be the biggest segment for the licensing industry but the segment is largely kid-focused. Do you see things changing anytime soon?
Sports merchandise has takers in older teens and young adults as they consume sports more passionately and are engaged fans. They are also more affording and impact larger categories like apparel, digital accessories, fashion accessories etc. Kids categories are important, yes, but we see a far larger scope in older audiences.
We see sports as a significant opportunity in licensing. We have represented the FIFA World Cup in India since FIFA World Cup Brazil 2014 and have seen the growth in viewership, social media engagement, participation (Indian fans were the second-largest number of people from a single country watching in Qatar during the group stages after Saudi Arabia) and licensed merchandise sales.
Similarly, we have seen EPL and La Liga merchandise sales growing steadily in India and this upward trajectory both from business and consumers/fans will continue. Indian Leagues across sports hold the same potential for licensed merchandise if not higher, but need to have a strong, long-term strategy and commitment for it to thrive. Now is the time for nurturing and growing leagues’ merchandise programmes to become powerhouses for them.
Despite the potential, why is the business of merchandising and licensing still a work in progress in India? What will it take for the industry to really take off?
The answer lies in retail — in last-mile connectivity to the consumer. Unlike developed economies, retail in India is still very fragmented with standalone general trade being 75-80% of the market. Licensees need to have fairly deep and developed networks to reach licensed goods to fans, which reside across the country.
There is demand and fans are willing to pay for authentic goods, but without distribution networks, licensees are not able to tap the full potential. Modern trade, departmental chains and e-commerce, which constitute 20-25% of the market therefore, see more licensed products than general trade and it is this fragmented retail that limits licensing in India.
What role can technology play to move the needle?
E-commerce and quick commerce have been a game changer. Be it horizontal and vertical platforms, D2C brands and now quick commerce, with the growth of pin codes being serviced by e-commerce, it’s easier for fans to access authentic merchandise versus being limited by licensed products being available in stores near them.
From Mario to Pokémon, Japanese media franchises continue to reign globally in terms of their all-time revenue. What can Indian brands learn from their success?
The three main lessons one can learn from the Japanese are universal appeal and storytelling, staying true to the brand and its ethos and staying relevant with the times and audience. And all of this is reflected in the merchandise strategy — how do products engage the fan, what is suitable merchandise and how does it support and grow the franchise, who is the merchandise aimed at, where will it be available and at what price points — all these are important and central to Japanese IPs.