BUSINESS

New ad mantra: Catch them young!

By Meghana Biwalkar in Mumbai
September 13, 2006 04:22 IST

Barbie, Spiderman or Powerpuff girls. Urban Indians with kids have grown accustomed to having them as part of the family in some form or the other.

And marketers are more than pleased to have someone who can be animated when required to help open Papa or Mama's wallet for several other things. Such as character merchandise this could refer to anything from a notebook to a bicycle.

"The aim is to extend the characters into a large world of consumer products so as to create a lifestyle brand," says Sanjay Luthra, managing director, Mattel Toys India, which has recently licensed its Barbie collection with Kittens for developing kiddie shoes in India.

By one estimate, character merchanise already accounts for every fifth rupee spent on branded products for children -- a market placed at Rs 13,000 crore in India. And this figure is expected to grow annually at 20-25 per cent.

Businesses are taking note. Raymond, a retailer with clear brand associations of his own, has also ventured into the kids merchandise space, and is now using Superman to attract young customers. The company has an exclusive tie-up with Warner for Superman apparel and other merchandise.

Needless to add, it helps Superman expand its franchise too. "Character merchandise has great potential if used as a promotional tool for a movie or TV serial to attract children in the 2-8-year age group," says Baqar Naqvi, principal consultant, Technopak.

No wonder broadcast channels such as Cartoon Network are so gung-ho about their long-term prospects. For theirs is a business of influence: having children get enamoured of the characters and then start bonding with them closely enough to buy the merchandise.

Cartoon Network Enterprise, the global branding and merchandising arm of Cartoon Network, has licensed its Powerpuff girls, Dexter, Johnny Bravo and Beyblade to all sorts of products, and is betting on a huge increase in business.

At present, CNE forms about 10 per cent of the overall Turner India business, and it is expected to grow 50 per cent year-on-year.

"We are at the threshold, and this new retail environment helps us to build brand equity by selling exclusive merchandise under one roof in a manner that will attract the target audience," says Jiggy George of Cartoon Network, which has products available at 2,000 retailers in India, and even has Powerpuff branded corners in some stores like Lilliput.

The actual dynamics of the business, however, will be apparent only once competition intensifies for character fan followings (as in, say, cinema), and the likes of CNE and Disney find their charm challenged.

Gini & Jony, for example, wants to popularise its own characters, even as film exhibitor PVR tries to capitalise on film characters. "Exclusive merchandise helps to build an experience that remains with the child forever," says Saurabh Varma, vice-president, marketing, PVR Cinemas.

Indeed, 'experience' is exactly what Cartoon Network has in mind as it follows Disney in building theme parks (in Noida and Delhi) to reinforce the bond that children form with its characters. And the experience of the merchandise is just as important.

"Merchandise is a tricky business," cautions Naqvi, "as children outgrow of products faster than any other consumer. Thus, to keep their interest alive, marketers have to ensure that they bring out the best in styles, colours and so on."

Meghana Biwalkar in Mumbai
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