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Sporting brands lack funds for marketing

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Swati Garg Kolkata
Last Updated : Jan 20 2013 | 12:57 AM IST

Find no visibility in the publicity surrounding the Commonwealth Games.

Come October, and India will host the 19th Commonwealth Games (CWG). However, what is missing from the publicity surrounding the event is a mention of homespun sporting brands such as Shiv Naresh, S S Sports, Pioneer and Stag, among others.

There could be multiple reasons for this absence. Some suggest that most Indian sports equipment manufacturers work on a small scale, running businesses based on export-focused strategies. Others believe that these companies export what they make. If they sell in India, they do so through small non-branded outlets.

There is also the curse of cricket, a deity in itself in India. Many, however acknowledge that these manufacturers, most of whom are located in and around Jalandhar, Meerut and Delhi, do not have the funds for publicity.

“We focus primarily on the wholesale business and on export for business. No marketing initiatives are taken for large-format sports branding, given the fact that these entail extra costs,” said an executive at Pioneer Sports.

A different sentiment found voice at S S Sports, which manufactures sports equipment on a large scale in all other countries where it operates, but whose Indian arm is a small unit focused only on one game.

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“We market products only for cricket, given the fact that the market for other sports is scratchy and limited. Participating through branding at the Commonwealth Games therefore makes no sense for us,” said Jatin Sareen, a member of the marketing team at S S Co.

The CWG 2010 organising committee has set a revenue target of Rs 1,600 crore from participant brands alone. Subject to its ability to strike deals with alternate media partners like YouTube, vRock and July Systems, along the lines of what IPL-II achieved, it could do business well in excess of Rs 2,000 crore.

The problem is that with high expectations, the costs of sponsorships also tend to become exorbitant. Sponsors have been categorised by the organising committee as lead partners who will get sponsorship worth Rs 100 crore each, while partners would get Rs 50 crore worth of sponsorships each.

Among the largest Indian sporting brands is Shiv Naresh, which makes an annual profit of about Rs 22 crore. Being a brand partner in the CWG therefore is near-impossible.

This has not, however, kept these companies out of contention in terms of overall participation. A senior marketing official at Reebok said, “Many sports equipment manufacturers have long-standing tie-ups with the Sports Authority of India (SAI), which ensures that they get orders during events such as CWG 2010. The problem in India with brand marketing and advertising at such events is the cost, which run into crores.”

Reebok, incidentally, has orders for the production of two lakh jerseys for the Games.

As of now, CWG 2010 has many non-sporting Indian brands as sponsors, with Hero Honda leading the pack, accompanied by others like Central Bank and the Railways. Coca-Cola is also slated to be a participant.

When Abhinav Bindra won his gold at Beijing, his jersey was inscribed with a prancing leopard — the symbol for Delhi-based Shiv Naresh Sports. The leopard has since gone into oblivion.

Will it return, or will any other Indian sporting brand make an appearance during this Commonwealth Games? One will have to wait and watch.

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First Published: Jun 29 2010 | 12:21 AM IST

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