Fifa raising stake as World Cup fever grips Indian merchandise market

With millions tuning in to the World Cup matches and passionate fans setting off a chat storm on social media, FIFA is raising the stakes in the Indian merchandise market. Stamping down its fear of fakes and not letting the past tepid sales experiences with World Cup effects dampen its enthusiasm, the federation has bet big with an expanded product portfolio and a significant jump in its marketing and distribution efforts. But the question really is whether it can convert fans of the game into collectors of original team and player memorabilia. 

According to the latest data from BARC, nearly 47 million tuned in to World Cup 2018 matches in the first four days of its telecast. If FIFA can convert even a third of these numbers into buyers of jerseys, backpacks, clothes and such other branded products, it would be a remarkable feat, say marketing professionals who also point out that India is but a blip on the global federation’s marketing map at present. 

Jiggy George, COO, Dream Theatre, whose company has the licensing rights for FIFA merchandise in the country says, “Since the last World Cup in 2014, football has grown in popularity. With the emergence of a domestic league (Indian Super League), football is gaining ground. Encouraged by this, the scale of the merchandise programme is ten times that of the 2014 edition both in terms of scale and product portfolio.”

Besides, with such a large range of products on display, FIFA may be playing the long term game in India. According to a recently released survey by Nielsen, more than 40 per cent of people, 16 or older, in major population centres around the world consider themselves interested or very interested in following football, more so than any other sport. And according to Nielsen, “as nations compete for the 2018  Cup, the popularity of football is growing in the U.S., India and China.”

Growing popularity does not always translate into merchandise sales. However, if FIFA is willing to play the waiting game say experts, it could. Also behind FIFA’s gamble on merchandise this year is an industry report that predicts India’s licensing growth at 7.4 per cent, higher than the growth in USA, Canada and UK combined. (Showbiz: The Indian Superpower Entertainment Marketing Report by ESP Properties, December 2017). The idea is to keep products that appeal to audiences and encourage them to wear their game and team affiliations on their sleeve. George says that Dream Theatre has deployed a range of products through online and physical retail channels at varying price points. 

The portfolio is classified in two broad categories, apparel and non-apparel. George explains that this bifurcation helps target fans most efficiently. In apparel, FIFA is lending its label to athleisure/active wear space. This is a fit in terms of the audience profile and also because athleisure sales have been growing in recent years, prompting traditional retailers and celebrities to jump in. HRX, one of the first celebrity owned apparel brands (owned by actor Hrithik Roshan) is among the early entrants, Virat Kohli and Tiger Shroff also have their brands here. 

The products start at Rs 399 and are available on Flipkart online on a special ‘store’ created for FIFA. In traditional retail, FIFA products can be found at Shoppers Stop, Lifestyle and Central across 40+ cities, says George. In the non-apparel segment, Dream Theatre has focussed on four products: footballs, flip-flops, backpacks and sippers. These also fall in line with a football fan’s preferred products whether for utility purposes, or for collecting memorabilia. 

“We wanted to go for the fastest moving items and so instead of having a range of footwear, we focussed on flip-flops,” George says. So far, the traction from physical retail and e-commerce has been at par he reveals. “While there is awareness about the brand, e-commerce and online retail has helped in discoverability,” he says.

But India still has a way to go before it can reach global standards. For one, the licensed merchandising industry in the country is still grappling with the challenge posed by cheap dupes found in markets. Speaking to Business Standard earlier, Bhavik Vora, founder-CEO of licensing firm Black White and Orange had said that a market like India poses multiple challenges. For one, being a price sensitive market, franchises and their retail partners are forever trying to balance quality with cost and there are few to no steps taken to curb piracy. “You see jerseys being sold outside match venues which are definitely not official licensed merchandise. Add to that the fact that the Indian fan has still not evolved to the level of a let’s say a football club (international) fan to value original products irrespective of the price, and you have a big problem to tackle,” he had said.

George points to another challenge and that is the confidence shown by retailers in the appetite for the merchandise. He gives the example of European and certain Latin American countries where no retailer would pass up an opportunity to stock and sell FIFA merchandise. In India however, the uptake is much slower, and retailers are yet to show this sort of faith, but the next World Cup could well be a different game altogether.

Netting a goal

• More products, more retailers are on the 2018  merchandise trail
• Online alliance with Flipkart helps reach a wider consumer base
• Sustained campaigns by the broadcaster and the game’s official sponsors have made this the most watched World Cup ever in India