The Hindu Business Line : Reebok eyes apparel sponsorship of IPL teams

Mumbai, March 7Reebok India is eyeing the apparel sponsorship rights of some of the Indian Premier League teams, said Mr Vishnu Bhagat, Executive Director Finance & Operations, Reebok.

“We will sponsor the jerseys of all the players in the Twenty20 team from Jaipur, Rajasthan Royals. We are in talks with other teams for the same,” he told Business Line. The teams to be sponsored by Reebok will be announced shortly. Reebok will automatically become the in-stadium merchandising partner for whichever team they sign up with. All the local revenues, from gate revenues, franchisee shirt sponsorship, local sponsorship, licensing programme, uniform merchandising, hospitality and premium seating, match-day concessions, match-day promotions and franchise media platforms will accrue to the individual franchisees.

The merchandising will mainly constitute of fan gear and replica jerseys, Mr Bhagat said.

“In the West, it is a big fad to wear replica jerseys of one’s favourite player or team. In India, this will become a major trend post IPL,” he said.

Commenting on the growth of the sportswear business in India, he said, “Our business has grown six times over the last four years. Initially, people did not spend on expensive sports wear, but now the scenario has progressively changed.” The company is now innovating with products like play dry in the denim category for women for street play.

Reebok’s turnover for the fiscal year ended 2007 was at Rs 900 crore, of which 55 per cent was from footwear, he said. The operating profit margins for the company would be in the range of 14-15 per cent, he added. The company, now having business interests in games, players and movies (it recently tied up with the film Goal for in-film placement of Reebok products), spends around 10 per cent of its revenues on advertising and marketing.

The company is growing briskly at its retail end, with 150 malls and a network of 630 stores in 225 cities. It intends to be present in around 700 malls by 2010, he said.

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