The growth of the Licensing and Merchandising (L&M) industry in India has prompted multiple brands across various sectors to launch their own merchandise. MG Motor is set to introduce its merchandise in India around Diwali. The automobile company will first enter the licensed eyewear segment and later expand its merchandise line to include apparel.
According to Business Research Insights, the global licensed merchandise market size was USD 269.93 billion in 2023 and is projected to reach USD 400.93 billion by 2032, with a compound annual growth rate (CAGR) of 4.5 percent during the forecast period.
The 2023 Licensing International study showed that the global licensing industry grew by 8.02 percent in 2022, with the South Asia/Pacific region experiencing a 12.4 percent growth.
Morris Garages entered India in 2017, establishing its first manufacturing plant in Halol, Gujarat. Sources indicate that the automobile brand plans to enter several merchandise segments, including stationery, perfumes, and sportswear.
“MG Motor will first launch its eyewear segment and then extend its merchandise line. They have finalized a deal with a leading eyewear maker in India, and the product will be launched soon,” a senior licensing industry leader told Storyboard18.
He further explained, “Automobile companies are expanding their merchandise offerings not only to generate revenue but also to cultivate fandom. Merchandise helps a brand build consumer loyalty and enhance brand love.”
MG Motor India had announced that its annual retail sales figure for the year ended Dec 31, 2023, was recorded at 56,902 units with a growth of 18 percent over the previous year which also marked the fourth consecutive year of growth for the company. In December 2023, the company’s retail sales were 4,400 units, which is a 13 percent YoY growth over the figures for December 2022.The company registered a growth rate of 18 percent in the overall Passenger Vehicle segment.
Mercedes-Benz, which launched online merchandise sales in 2020, offers items like scale models, bags, T-shirts, paperweights, car models, gloves, pens, jackets, earrings, keychains, perfume, and caps. The company generated annual revenue of Rs 50 crore from merchandise sales. Mercedes-Benz’s merchandise starts at INR 2,500 for a keychain and goes up to Rs 1,50,000 for the AMG Bag.
Similarly, in March of this year, Honda Cars India Limited (HCIL) launched its own merchandise line called the “Honda Collection.” This collection includes a wide range of products designed to complement the modern lifestyle of Honda enthusiasts, from stylish apparel like T-shirts, jackets, and caps. These items are available at Honda’s retail sales outlets.
Another licensing industry expert noted, “The demand for luxury and premium car segments has risen, and so has the demand for automobile merchandise. From trendy jackets to small keychains, automakers are expanding their offerings to appeal to a younger audience.”
The expert added, “The L&M strategy allows brands to develop connections beyond their core products, such as cars. Apparel, in particular, is an excellent way for consumers to express their love for a brand, and we’re seeing growth across various categories.”