IPL merchandise doing brisk sales

NEW DELHI: From T-shirts to caps, key chains to pens, lassi glasses to chewing gum, owners of teams in the DLF Indian Premier League have rolled out an array of merchandise to mark the second season of the Twenty20 tournament.

Estimates from three executives in three different IPL franchisees, indicated that the teams are looking at selling merchandise worth a combined Rs 35 to 40 crore this year. The teams’ own share of this amount is likely to be around Rs 6 to 8 crore, the rest of the money going to merchandise partners and licensees.

Chennai Super Kings has tied up in merchandising deals with retailer Future Group, chewing-gum maker Wrigley, pen-maker Camlin Ltd and Pepsi.

“This season, we expect around eight to 10 per cent of our revenues other than that from central pool to come from merchandise,” said India Cements Marketing Head Rakesh Singh. “Even our existing partners, sportswear retailer Reebok India and men’s apparel maker, Peter England are working on an affordable range of apparel.”

Mohali-based Kings XI Punjab, co-owned by Preity Zinta, is looking at selling items such as lassi (butter milk) glasses, mugs, badges and special autographed items at points of ticket sales. The team also has a tie-up for merchandise with textile manufacturer Bombay Dyeing and Manufacturing Co. Ltd.

The company that makes steel products for King’s XI Punjab is targeting sales of up to Rs 12 crore in five years. And it has an online partner as well in e-Bay. “We are delighted to partner with Hot Muggs to power the sale of these exquisite IPL merchandise to cater to the wide interests of its online shoppers. We are sure true cricket fans will be thrilled to buy and own merchandise at great prices," said e-Bay India Senior Manager Ms. Deepa Thomas.

Kolkata Knight Riders, the team co-owned by actor Shah Rukh Khan, is also expanding its portfolio of products. The big players like Reebok, adidas, BDM and Kookaburra are all in the game. "Never before have replica jerseys been so popular with the cricket crazy nation until SRK stood tall in his 12th-man jersey in the last season of the mega event," says Reebok India’s SS Prem.

Delhi Daredevils, owned by GMR Holdings Ltd, tied up with sportswear maker adidas India last year. It has also tied up with Delhi-based garment maker Genesis India. “Genesis will not only make items such as cheering signs, posters and key chains for us, but also non-branded T-shirts at lower price points,” said Delhi Daredevil marketing manager Vidur Naik. “This time, the Adidas merchandise will be available at 71 stores, up from 45 stores last year.”

One of the primary reasons for the stress on affordable prices is to check sales of fake products that are available at much cheaper prices. “Counterfeiting is a big problem here (in India). Last time, I saw a lot of fans wearing fake T-shirts. Availability of more affordable original products will help plug this hole,” said Deccan Chargers vice-president Darshan M.

Even as efforts to build the merchandise portfolio gain ground, most franchisees say it will take the segment some time to generate substantial sales. While sports merchandising contributes 30 to 35 per cent of total revenue of most sports bodies in evolved markets, it is still a nascent concept in India. The biggest chunk of revenue for the eight franchisees comes from the central pool, which includes media rights and sponsorship.