Retailers and makers of everything from apparel to stuffed toys are hoping that the ICC Cricket World Cup, which begins this weekend, will see Indians buying World Cup merchandise, but they admit that much depends on pricing, changing consumer behaviour, and the national cricket team’s performance.
The odds on offer—in the illegal betting market—should bring merchandise vendors some cheer; India is the odds-on favourite to win. “Team India is a very hot property and a very passionate property,” said Saumitra Srivastava, director of Yog Sports, the official merchandise distributor for Indian Premier League (IPL) 2010, last year’s edition of the popular Twenty20 cricket tournament organized by the Board of Control for Cricket in India. India is currently second on the International Cricket Council ranking of teams in One-Day Internationals, behind Australia.
Big Bazaar, the hypermarket chain of the Future Group and the authorized merchandiser for ICC World Cup 2011, has launched products across a range of categories—personal care, apparel, accessories and home linen. “We expect to sell a million pieces across the various products in the eight weeks (of the tournament),” said Sanjeev Agarwal, joint chief executive officer, Big Bazaar. He didn’t put a value to the transactions.
To be sure, it isn’t easy getting Indians to buy merchandise despite their passion for the game.
Agarwal said this could be because Indians do not “buy into the idea of buying apparel that can be used for two or three months”.
“Waste is not part of our culture,” he added. And so, Big Bazaar has focused on the fashion element of apparel and, according to Agarwal, is “just using the World Cup logos” on these.
That’s the same approach being used by Nike, which makes the Team India jerseys. In addition to the jerseys, Nike has launched a cricket-inspired line of products in association with young designers that interprets India and its obsession with cricket. Nike sees an opportunity in such merchandise, according to the marketing head of its Indian operations.
“When you look at the NBA (National Basketball Association in the US) or the EPL (English Premier League in the UK), you see the coolness factor... The influence filters down to what kids are wearing on the street, from their jerseys to their shoes. But you don’t see that with cricket here,” said Sanjay Gangopadhyay, marketing director, Nike India Pvt. Ltd.
Unlike the World Cup in 2007, which saw an early India exit that resulted in racks full of unsold merchandise, the 2011 schedule ensures the team will stay in the tournament for a longer time.
The longer the team is in the World Cup, the greater the demand it will fuel, Gangopadhyay said.
Price is also critical, with items below Rs. 500 likely to move faster than those above it, said Srivastava of Yog Sports.
Simba Toys India Pvt. Ltd, which makes the World Cup mascot Stumpy, has shipped 50,000 items of merchandise featuring the little blue elephant, said Pradeep Parmar, business head.
These include soft toys, nursery bags, back packs and stationery priced at Rs. 299-2,499.
“We are a German company, which wants to connect with the Indian masses,” Parmar said. “What better way to do it than cricket?”
HyperCity Retail (India) Ltd, which sold soccer World Cup merchandise last year, is offering T-shirts and signed bats starting at Rs. 99. Interest generated by big tournaments leads to a 15-20% increase in footfalls for categories such as apparel and sportswear.
Sales usually rise 30-40% in these categories, said Ashutosh Chakradeo, head, buying, merchandising and supply chain, HyperCity. Sports, electronics, home furnishings and apparel make up 45% of the revenue at such stores.
Brands are also focusing on streams of revenue such as airports and online sales.
“Sales (of Indian team jerseys) have been rising every day with the World Cup,” said Mukesh Bansal, chief executive of Myntra.com, an online e-commerce site specializing in sports and lifestyle products. It sells Nike India team jerseys priced at Rs. 900-2,500 online.
Sales are up from 1,500-2,000 jerseys a month at other times of the year to 300 a day now, he said. “We are expecting to sell approximately 10,000 jerseys this month,” Bansal said.
Counterfeiters may be taking away as much as half the business.
“While we haven’t really gone out and surveyed the losses, it would be safe to assume that retailers and manufacturers (of World Cup merchandise) could lose as much as 50% of their revenue to counterfeit products. And that’s a fairly reasonable estimate,” said Srivastava of Yog Sports. Unlike IPL merchandise, Team India items are sold round the year, thus pushing up such losses through fakes, he said.
Still, more than anything else, being associated with the game helps build a bond with buyers.
“It’s a brand connect with the Indian consumer,” said Nike’s Gangopadhyay. “Our biggest investment in India has been and will continue to be in cricket.”
Showing posts with label cricket merchandise. Show all posts
Showing posts with label cricket merchandise. Show all posts
Team India colours, a hot-selling Cricket World Cup Merchandise
With the Indian cricket team's chances at the World Cup looking bright, the demand for ‘Team India' jerseys is quickly soaring, especially among young, jingoistic India.
Says Mr Mukesh Bansal, CEO of myntra.com, which sells customised India jerseys from Nike: “We are overwhelmed with the consumer response – the demand has been more than expected and we are trying to buy inventory wherever it is available so that we are not sold out. Since January 15, we have sold over 8,000 jerseys – that is almost 300 per day. On a normal match day when India plays, we sell about 50 shirts, while on a non-match day it is 20. There is a general euphoria around the Indian team this year and with the World Cup happening in our backyard after 15 years, the excitement is greater. As the World Cup progresses, we hope to double sales.”
Unprecedented demand
The jersey is a clear draw among the younger audiences and the demand is equally strong across big and small cities, says Mr Sanjay Gangopadhyay, Marketing Director, Nike India, which is the official apparel sponsor of the Indian team. “The demand for the team jersey has been unprecedented, especially with the team's chances at the event looking so good. About 50 per cent of Nike's cricket merchandise sales currently come from the India jersey. We have ramped up accessibility of the jersey across 1,000 Nike outlets, MBOs and other retail channels in the country.”
And it is not just the Indians who are rooting for the Indian team. According to Ms Monica Laliwala, who owns SportXS, a sports gear destination store, there is demand for the team jersey even among foreigners living in the country – a clear indication of the popularity of Dhoni and his men.
“As long as the Indian team is in the Cup, the interest levels among consumers will be high,” says M. Venkateshwar Kumar, Business Head – South, Big Bazaar.
Variety and more
With the pitch fever on the rise, a few retailers are dishing out offers on the various types of the team jersey whose prices range from Rs 800 to Rs 2,500. While Myntra.com is undertaking bulk orders for corporates and offering free personalisation – customers can have their name and number of choice on the tee – SportXS is looking to offer gift vouchers and combo deals with the India cap. Nike began its ‘Bleed Blue' marketing campaign way back in September, much before the season's fervour had even caught on. The sports brand is also releasing limited edition replicas of the actual jersey the Indian team will be wearing at the World Cup. Priced at Rs 3,499, they are made from recycled plastic bottles.
Style statement?
While one can surely spot the Indian team jersey at the stadia, can the influence trickle down to non-match days too when the team jerseys are worn as casualwear? Unlike Europe and the US where games such as football and basketball have influenced people's daily lives in what they wear and do, in India – though cricket is religion – brands have not really tapped into the game's true potential outside the playing arena, says Mr Gangopadhyay of Nike. “It is not uncommon to see people in Manhattan walking on the streets with a swagger, wearing basketball-inspired clothes. In India, how many people can you see like that on the streets, outside the stadium? Not many.”
Says Mr Mukesh Bansal, CEO of myntra.com, which sells customised India jerseys from Nike: “We are overwhelmed with the consumer response – the demand has been more than expected and we are trying to buy inventory wherever it is available so that we are not sold out. Since January 15, we have sold over 8,000 jerseys – that is almost 300 per day. On a normal match day when India plays, we sell about 50 shirts, while on a non-match day it is 20. There is a general euphoria around the Indian team this year and with the World Cup happening in our backyard after 15 years, the excitement is greater. As the World Cup progresses, we hope to double sales.”
Unprecedented demand
The jersey is a clear draw among the younger audiences and the demand is equally strong across big and small cities, says Mr Sanjay Gangopadhyay, Marketing Director, Nike India, which is the official apparel sponsor of the Indian team. “The demand for the team jersey has been unprecedented, especially with the team's chances at the event looking so good. About 50 per cent of Nike's cricket merchandise sales currently come from the India jersey. We have ramped up accessibility of the jersey across 1,000 Nike outlets, MBOs and other retail channels in the country.”
And it is not just the Indians who are rooting for the Indian team. According to Ms Monica Laliwala, who owns SportXS, a sports gear destination store, there is demand for the team jersey even among foreigners living in the country – a clear indication of the popularity of Dhoni and his men.
“As long as the Indian team is in the Cup, the interest levels among consumers will be high,” says M. Venkateshwar Kumar, Business Head – South, Big Bazaar.
Variety and more
With the pitch fever on the rise, a few retailers are dishing out offers on the various types of the team jersey whose prices range from Rs 800 to Rs 2,500. While Myntra.com is undertaking bulk orders for corporates and offering free personalisation – customers can have their name and number of choice on the tee – SportXS is looking to offer gift vouchers and combo deals with the India cap. Nike began its ‘Bleed Blue' marketing campaign way back in September, much before the season's fervour had even caught on. The sports brand is also releasing limited edition replicas of the actual jersey the Indian team will be wearing at the World Cup. Priced at Rs 3,499, they are made from recycled plastic bottles.
Style statement?
While one can surely spot the Indian team jersey at the stadia, can the influence trickle down to non-match days too when the team jerseys are worn as casualwear? Unlike Europe and the US where games such as football and basketball have influenced people's daily lives in what they wear and do, in India – though cricket is religion – brands have not really tapped into the game's true potential outside the playing arena, says Mr Gangopadhyay of Nike. “It is not uncommon to see people in Manhattan walking on the streets with a swagger, wearing basketball-inspired clothes. In India, how many people can you see like that on the streets, outside the stadium? Not many.”
Sales of World Cup merchandise may cross $ 1 mn
NEW DELHI: The upcoming cricket World Cup being organised by the ICC in the Indian subcontinent is expected to rake in over $ 1 million (over Rs 4.5 crore) from the sale of merchandise, both online and at match venues. UK's IVS Group, the International Cricket Council's (ICC) venue concessionaire and webstore licensee, is focusing on local production of merchandise like jerseys , T-shirts , caps, headgear and souvenirs.
"We anticipate sales will be in excess of $ 1 million. Our early forecast is for high sales at the event and we have ensured our product mix caters to all cricket fans, both in the subcontinent and globally," IVS Group Project Manager Matt Hassall told PTI. IVS will sell merchandise over the Internet as well as at the match venues and hotels and airports in India, Bangladesh and Sri Lanka, he said. "By using local production for our large volume items, we have quick turnaround capacity," Hassall said, adding that the company will ensure that it has sufficient products available to cater to all tastes. He said the headwear range is already seeing brisk sales. "Both caps and sunhats are selling well online," he added. The ICC's official portal is selling apparel and caps in the range of $ 20 to $ 50 and small items such as keyrings and pins are priced at around $ 5.
IVS has also partnered with KyaZoonga, which is the official ticket partner of the ICC, to offer products to ticket buyers. "We have not even created much noise about it (the merchandise range) yet, but are already seeing people buying products along with tickets. There is a lot of demand," KyaZoonga Chairman and CEO Neetu Bhatia said. It is, however, estimated that overall revenue from official World Cup merchandise sales will be much more than $ 1 million, with India's Future Group -- another official merchandise partner -- revving up campaigns ahead of the mega cricketing event being held from February 19 to April 2.
The Kishore Biyani-promoted group will be selling a wide range of merchandise at its Central, Planet Sports and Big Bazaar outlets, aggregating to over 150 retail points. "We have launched a wide range of merchandise in the past, right from cricket to Bollywood, but expectation from the latest range is much more, as cricket is in the heart of every Indian and the tournament is happening in the Indian subcontinent," Big Bazaar Business Head (North) Vineet Jain said. He, however, did not divulge the revenue expectations from the latest offering. Big Bazaar is offering cricket merchandise such as T-shirts, track pants, shorts, sweatshirts, caps, head bands, bed and bath linen products at prices upward of Rs 199.
That's not all, the retailer has also co-created 'The Sach' brand of toothpaste and bathing bars with legendary cricketer Sachin Tendulkar .
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