TV merchandise may be the next big thing on retail shelves

Television channels, which were targeting kids to grow their merchandise business, are now also eyeing teenagers and adults.

Companies in the business say besides retail growth, e-commerce has been the key to their expansion. Channels are giving brand merchandise rights to firms to create sub-brands which, in turn, promote the channels.

Recently, Balaji Telefilms launched its own label to tap the merchandising opportunities, while others like Viacom18, Fox Consumer Products and Disney India are expanding their merchandise business to target both kids and adults.

Brand ‘EK’, for example, has been licensed to Balaji Telefilms by Ekta Kapoor. Initially, ethnic wear, mainly saris and jewellery, will be launched, followed by Indo-western trends and accessories.

The label will be available on Best Deal TV, Balaji Telefilms’s television partner. Balaji Telefilms is also in the process of finding an online partner.

“Celebrities play an influential role in modern culture and consumption patterns, serving as arbiters of taste, style and public opinion the world over. Also, when we own IP of a brand, it helps us in better revenue realisations,” Sameer Nair, Group CEO, Balaji Telefilms, had said earlier.

Viacom18 Consumer Products has entered into a deal with FC Barcelona and Winx Club, while Disney India inked an agreement with Satya Paul to launch Disney-themed saris.

“Disney is a multi-generation brand with characters that continue to inspire fashion designers globally,” Abhishek Maheshwari, VP and Head, Consumer Products, Disney India, said in a statement.

According to industry experts, the merchandise business stands at ₹4,000 crore, growing at 15-20 per cent. Besides kids merchandise, which continues to be most popular, sports and movie properties are also fashionable in the e-commerce space.

Entertainment network Viacom18 said it sees huge incremental revenue from its merchandise portfolio. Viacome18 has licensed brands from its popular television channels Nickelodeon, Colors, MTV and VH1. It has tie-ups with 50 licensees for a range of consumer products.

“We are developing a portfolio of merchandise from our popular range to strengthen our consumer products vertical. These products will be sold through online market places and even brick-and-mortar retail chains. We expect this to become a huge business in coming years,” said Sudhanshu Vats, Group CEO.

Vats said currently merchandise generates only 2-3 per cent of the total revenues.

“Our ancillary revenue should hit 10 per cent of the total revenue in a couple of years with the merchandise in place,” he added.