While time will tell whether viewer interest in the Indian Premier League (IPL) has waned or not, manufacturers and marketers are worried that consumer interest has already wilted when it comes to IPL merchandise.
Having burnt their fingers in previous editions, manufacturers and retailers of IPL merchandise appear to be going slow this season.
The sixth edition of the cricketing extravaganza will commence on April 3. However, unlike previous years, fewer stock keeping units – or items of merchandise for sale -- are on display both offline and online.
Players such as Future Group and eBay have opted to stay completely out of the IPL merchandise business. Even some sponsors are cutting back. Apparel and sports footwear maker Puma, for instance, which had sponsored two teams last year, too has reduced its sponsorship to one team, Sunrisers Hyderabad, for the current season.
Industry sources point out that slow off take and lack of engagement from leagues during off-season could have resulted in disengagement. This in turn has resulted in thinner orders.
Manufacturers say despite tall claims by companies, orders are down by nearly 25 per cent compared to previous seasons.
A Sakhtivel, President Tirupur Exporters Association, also said that the demand for apparel is slow this year. This can be attributed to high raw material prices. IPL merchandise typically includes knitted jerseys, caps, bands and toys, among others. This year, newer products, including collectible figurines, are also on offer.
Ankur Bisen, VP, Fashion and Textile, Technopak Advisors notes that high player churn rate in IPL has led to dip in consumer interest. “Unlike in the West, where fan-traction drives the merchandise business, the IPL lacks stability. Fans usually follow players and in IPL players move on from one team to the other fast.”
Bisen says that transaction spikes may happen during match periods, but wane later, as the teams hardly have any off-season engagement with fans unlike in the West where it is a continuous activity.
“Leagues have to invest and think strategically to attract consumers. Retailers and e-commerce players may have discontinued their association or kept it at a bare minimum as it is a reflection of consumer interest,” he adds.
Online market places such as Tradus, however, add that sales may peak once the season starts. The company saw sales pick up a fortnight after the season started last year.
“There is more publicity this year and we believe that the lag time will be much less this season,” Mudit Khosla, CEO, Tradus.com, said adding that the company is looking at a 35 per cent rise in IPL merchandise sales from its platform.
However, not all are here for revenue. UK-based Figuractive Ltd has partnered with Reliance Home to sells IPL collectives. Rikesh Raja, Director said that the idea is to create consumer engagement. “We hope to sell five lakh units of collectibles. These collectibles will be available both online and in large departmental stores in India, Africa and England as large number of players is from such nations.”