Viacom 18, Disney, Royal Enfield sizing up their youth merchandising range

The consumer products division of Viacom18 Media is sizing up its youth merchandising range launching new product categories and expanding its existing range. Recently Viacom18 added MTV deodorants, footwear and cosmetics to its portfolio while introducing new ranges of sunglasses, watches and apparel for youth between 13 and 25 years of age. Viacom18 is a content creation company that has interests in films and owns television channels such as MTV, VH1, Nickleodeon and Colors.

On the other hand, Disney India, popular for its cartoon and animated characters like Mickey Mouse, Bambi and Marvel, is eyeing adult fashion as well. The company has tied up with fashion brand Vero Moda to launch a limited collection clothing line inspired by Bambi in November. Earlier in August, Disney partnered with Only and launched a Mickey Mouse inspired apparel range.

Abhishek Maheshwari, VP and Head, consumer products at Disney India points out in the last two-three years, youth fashion has really picked up and they, as a company, are seeing strong growth in that particular sector. Disney valued its merchandise business at Rs 1,500 crores in retail sales in 2015-16 and expects to close 2016-17 with Rs 2,000 crores.

Companies such as Viacom18 are banking on the adult segment for growth in their merchandise business. Apart from owning rights to its own television properties, Viacom18 also owns third party brands like Charlie Brown. It also has the master licensing rights to sell the Spanish football club FC Barcelona merchandise in India.

Motorcycle maker Royal Enfield is developing its merchandise range as a separate revenue stream too. The company sells riding gear and apparel suited for riders (lifestyle jackets, denims etc) under its merchandise business and targets adults (above 18 years) for apparel and accessories. Company executives attribute this growth to a several factors. Number one is that online marketplaces such as Amazon, Flipkart and Myntra are helping companies reach out to consumers in smaller towns.