Q&A: Rajiv Mehta, MD, Puma Sports India
'IPL will have a rub-off effect on Puma brand'
Puma Sports India, a subsidiary of German sports lifestyle retailing major Puma AG, has been the apparel sponsor for Indian Premier League (IPL) team Deccan Chargers (DC) for the last three years. In a free-wheeling interview, Puma Sports India managing director Rajiv Mehta shares with K Rajani Kanth the company’s expectations from the shorter format of the game. Edited excerpts:
How is your tie up with Deccan Chargers panning out?
It has been a good run for us to be with DC. They understand the brand. They also embody the principles that the brand walks on, which is not taking the sport very seriously and having fun while playing. DC not only has the passion and seriousness while performing, but at the same time they would like to be joyful and have fun while playing. It has been a good marriage between both the brands.
How is the company growing in India and what are your expectations, especially from the IPL merchandising?
We have been growing 40-50 per cent in India since the last five years and we continue to growth at that pace in the next few years. Though it is difficult to quantify in absolute numbers, it has been a growth of 20 per cent season-over-season in IPL merchandising. During IPL, we see a spike in the sales while compared to the other months. So, IPL will have a rub-off effect on the Puma brand. This year, it should be much greater just because India has won the World Cup. IPLis encouraging lot of women and children to watch. It is this wider audience that is helping in building our brand.
About your retail expansion plans?
We currently have 40 company-owned and 85 franchisee-run exclusive stores. We are looking at about 100 more stores in the next two years, with the typical size of each of the store being 1,500 square feet.
How big is the sportswear and gear market and what’s your share of that?
The organised sportwear and gear market in India is currently pegged at Rs 3,000 crore and it is growing at 15-20 per cent. It is to do with the fact that the consumer is becoming more health conscious and more fashionable. With social networks , TV, radio and new media telling consumers what is happening in other parts of the world in real-time, they want to have that experience very quickly.
What is the amount that you have earmarked for brand-building and what are your strategies to push your brand more aggressively?
Typically, it is 10 to 15 per cent of our overall sales, of which 50 per cent goes into IPL. The percentage would be more or less the same this year also as in absolute figures it will grow as we are growing our turnover. Puma always believes in being understated and its brand to be subtle. So, we don't do anything over the top.