If you see Sachin Tendulkar or Virender Sehwag sporting an Adidas shoe and a Nike logo too (the famous "swoosh"), don't gawk in surprise.
They are merely playing their role as brand ambassadors of Adidas, while fulfilling the terms of a separate deal with Nike. The latter has bagged the endorsement rights to display its swoosh logo on the cricketers' 'non-leading arm.'
It's a curious term, that, made all the more curious by the brand's zest for creative ideas. So what is this all about? The deal gives Nike the opportunity to put its swoosh within the eye-range of millions of people, simply through its presence on all the cricket paraphernalia that goes into the playing kit -- the zip bag that accompanies the cricketer to the game.
This means travel gear, head gear, T-shirts, caps, socks, sunglasses and wristbands. Besides, Nike will also sell replicas of the team kit in India and abroad.
The 'apparel only' brand signage exercise, officially tagged at Rs 196.99 crore (Rs 1.969 billion) by BCCI, will be the first major cricket endorsement deal for Nike, which seems to be getting aggressive all of a sudden after having all but given cricket the go by.
Is there something special in its showrooms? Sanjay Mehra, general manager, South Asia, Nike, is all excited about the Nike Air Platform -- a 20-year-old sub-brand of light shoes that has a hot new innovation on offer for an eye-popping Rs 9,900.
"We think that Indian consumers are no longer restricted by price tags," says Mehra. "And additionally, we think that premium segment prices are justified by our brand and the innovation that we put into a product."
Eighteen months back, Nike's products sold in a modest range of Rs 1,000-3,000. Today, Nike is thinking premium. Says Sanjay Gangopadhyay, marketing director of Nike, "The conversion rates of consumers from the mid and lower product segments to the premium segment is excellent. The aim is to have a product across all the price points."
This, even as Nike expands its retail presence. Says Mehra, "We are looking at newer retail formats that go well beyond supermarket or mom-n-pop stores along with geographical growth. Speciality and exclusive stores are also on the anvil." A couple of "emphatic retail formats" are expected soon.
Of course, none of this should hurt the core business. Says Gangopadhyay, "We realise that our bulk of revenue still comes from the lower priced products like entry level shoes, apparel and accessories."
Meanwhile, expect Nike's rivals to respond in their own way. It's all part of the game, says Mehra. "Competition is healthy, but we are still leaders globally and our retail partnerships are growing with us," he says, proud of Nike's $14 billion in global revenues.
For now, all eyes are on cricket, and Nike's moves in this arena. "We have bigger plans to capitalise on our deal with the Indian cricket team," says Mehra. "But it's too early to comment on the direction we would take." Rivals and fans would be watching keenly. Let the swoosh sightings begin!
