Mumbai: Film production and communications company Percept Ltd will set up India’s first chain of stores selling Bollywood merchandise along with the Future Group, whose flagship Pantaloon Retail India Ltd is India’s largest listed retailer.
The two will set up 8-10 stores in Hyderabad, Ahmedabad, Indore, Kolkata, Jaipur, Pune, New Delhi and Mumbai, which will sell caps, T-shirts, bedsheets and other merchandise created around movie themes. The stores will come up through a 50:50 joint venture called Bollywood Retail.
The market for film merchandise could grow to Rs800 crore in 2010 from Rs200 crore today, according estimates by P9 Integrated Pvt. Ltd, a Percept company.
Ajay Upadhyay, president, coporate affairs, at Percept, says that among other things, there will be gaming, cafes, merchandise and live entertainment at their “experience centres”.
The first stores will open by year-end, with some stand-alone stores and some within Future Group formats.
But analysts say merchandise sales have not been big so far. “It is a good concept but there will be huge challenges because merchandise is typically cheap and with rising rentals it is hard to earn huge revenues on small-ticket items,” said Nabankur Gupta, chief executive of Nobby Brand Architects and Strategic Marketing Consultants.