Sports goods makers set a huge goal from FIFA merchandise

Published>Tue, Jun 22 10 01:47 AM

Cashing in on the FIFA World Cup's huge popularity, sports goods makers such as Puma, Reebok, Nike and Amigo Sports are eyeing mega sales of their products during the month-long tournament.

Amigo Sports entered into an exclusive licensing agreement with Global Brands Group? the master licensee of the FIFA brand globally ? to launch the FIFA collection in India. It also plans to launch official FIFA stores across the country.

Sanjiv Mehta, chairman, Amigo Sports, said: "The company will invest around Rs 40 crore in setting up exclusive FIFA stores. This will take the store count to 100 from 49. These will be located in metros and tier-I cities. We expect revenues to the tune of Rs 100 crore in 18 months."

Mehta added TV audience estimates suggest that over 29 crore people will watch the 2010 FIFA World Cup in India.

The first of the FIFA official stores will be set up in the Palladium Mall and the Oberoi Mall, Mumbai. The stores will stock official FIFA collections, event merchandise and products from FIFA commercial affiliates.

The firm has also tied up with departmental stores like Shoppers Stop, Central and Westside to sell and promote official FIFA branded merchandise.

Puma India reckons this event to be important as the demand for such merchandise is only till the tournament continues.

"The demand for FIFA merchandise comes mainly from the age group of 15-30 years. The euphoria for the merchandise lasts till the even runs" said Rajiv Mehta, MD, Puma India.

He added that for FIFA merchandise, Puma will advertise only through its store windows.

Puma is distributing apparels and footwear with the price points on apparels in the range of Rs 800-3,000 and for footwear it starts at Rs 2,500 onwards. Mehta did not give any numbers, but hopes to make good numbers from this season.

Anand Halve, a brand expert, Chlorophyll consultants, said: "The situation is like 'you run up to the flag pole and see what happens then', which means that all sports goods makers are going to chase this event. Frankly, nobody knows what the market for a brand like FIFA is in India."

Pinakiranjan Mishra, partner and national leader, retail and consumer practice, Ernst and Young, says: "The sports products for which the retailers are betting have a substantial demand. So, I think it is a good proposition. As for the brand, it is not essential for goods makers to market the products as FIFA itself is a huge marketing platform."

Nike has a different strategy. The company understands fans' sensibility and has designed team kits keeping specific national identity in mind. The jerseys are priced at Rs 2,500 and the studs start from Rs 3,500 and go up to Rs 12,000.

Source: Web Search