It is a well-known fact that the foundation of any successful licensing programme is based on the fan community. Sports teams are built by their fans or fanatics, as they are popularly referred to, because of the excessive enthusiasm and devotion for their favourite team or player. Globally, it is one of the biggest licensing categories after entertainment and has seen some hugely successful programmes on brand extensions. Sports licensing is currently valued at $24.9 billion and is expected to make $48.17 billion by 2024.
India is an untapped market when it comes to sports licensing and has traditionally been a cricket dominated country. However that hasn’t really translated into a merchandise programme, except for IPL team jerseys that are predominantly sold during matches and face severe issues with fakes. As India enters a new era in terms of consumption, technology, rising e-commerce and a large youth population, there has been a considerable shift in this segment.
Some of the top sports personalities have ventured into their own line of products. Internationally, co-branded lines between sports personalities and brands have seen a huge success — Air Jordan with Nike being the biggest one. Closer home, Virat Kohli has led the way with the launch of Wrogn and the recent addition of One8 in collaboration with Puma.
IPL has already completed a decade; some of the teams have developed a large fan base and are completely license-ready. With the right strategy, they can create a very successful and long-term consumer product programme. Teams like Royal Challengers Bangalore have already initiated steps in
this direction. Interestingly, football is becoming the preferred sport among youngsters and kids; not just in viewership but also in terms of play time. FC Barcelona is a classic example of a successful licensing programme in India and is leading the way in creating a strong consumer products programme.
The success of the merchandise programme is directly linked to the success of the league as well as consistent and competitive performances from teams. NBA too is running a very successful grassroot level programme and probably has one of the highest penetrations as a sport at a school level, outside of cricket. This strategy helps create a fan base at a young age that start consuming brands and products very early. Sports beyond cricket are becoming a big draw; the success of Pro Kabbadi League, the popularity of players like PV Sindhu, Saina Nehwal and K Srikanth is a testimony to the fact.
But product design capability is a big challenge; creating high quality and aspirational creative assets, which translate well on products, are the key ingredients of a successful licensing programme. Indian brands should look at merchandising as a revenue model and not a marketing tool. They should invest in creating the right strategy, the right culture and the right infrastructure to get maximum value.
Counterfeit products pose a massive challenge for this business and immediate measures are required to curb this menace because sports merchandising not only creates great value for the brand but also creates engagement with fans off the field.
Bhavik Vora
– The author is founder & CEO, Black White Orange Brands
