New Delhi: After successfully treating Indian consumers with beverages and snacks, PepsiCo Inc has plans to introduce its merchandise range in the country.
Replicating its global model, the company has joined hands with Franchise India Holdings Ltd to identify manufacturers and retailers for selling ‘affordable’ Pepsi merchandise in India through a licensing route.
“We are currently talking to manufacturers and organized retailers for rolling out the merchandise. Products are expected to be in the markets in the next 3-6 months,” Sally Barnes, vice president, License India (a division of Franchise India) said.
According to Barnes, the company is targeting young consumers to sell items such as T-shirts, bags, key chains, caps and shoes that would carry affordable price tags.
“For instance T-shirts would be sold in the range of Rs400-1,000. The products would be for the mass market,” added Barnes.
Based on the consumer response, Pepsi also has a plan to open exclusive retail stores and shop-in-shops to sell the products.
“Currently Pepsi sells its merchandise at over 600 outlets in China. We are looking at a similar plan in India too,” said Barnes.
Pepsi’s licensing initiative was kicked off in 1990. The products carrying different PepsiCo brands such as Pepsi, 7UP, Mountain Dew are available across the globe including the US, UK, Japan, Italy, Germany and China.
“The global merchandise retail sales in 2005 were $320 million and are expected to touch $568 million in 2010,” said Barnes. “China does about $235 million and we are looking at a similar number in India as well in a couple of years,” she added.