Rs 1595 crore Indian animation industry

Nov. 25, 2008 - PRLog -- “We are looking at the Indian character licensing industry in a big way and have aggressive plans to expand into India, to harness the potential that India beholds for non-core licensing”, says Sarah Cole, Head of Marketing, Linguaphone Group, UK, who is coming to India for the Brand Licensing conference being held in Delhi on Nov 29th & 30th. Linguaphone Group, the world’s leading provider of assisted learning & distance learning language training solutions, has successfully used the Pingu character for educational course materials, which beautifully demonstrates the potential & impact of non-core licensing.

Animation & Character Licensing industry in India has a bright prospect due its large population that accounts for a major chunk of the world's population, and the vast majority of India’s $75-$100 million in retail sales, that is from licensed merchandise in children’s properties.

Sarah Cole said, “The Brand Licensing conference happening in India will be a great platform for us to understand the business environment in India, and will be helpful in planning our strategy to enter India. The franchise exhibition will also bring us face-to-face with the franchises interested in our concept.”

The global animation market (demand perspective) was estimated at US $59 billion in 2006 and is expected to reach US $80 billion by 2010, while in India, the animation industry value is pegged at Rs.1,595 crore in the FY 07, registering a growth of 24% over the previous fiscal year, with the entertainment segment contributing nearly 68% of the total market in India. Exports, mostly to US and Europe, accounted for more than 70% of the revenues in 2006. Over the last three years, merchandise-licensing business in India has been growing at more than 50 per cent, and total character licensing sales in India are estimated at Rs.500 crore.

Mr Gaurav Marya, President, Franchise India Holdings Ltd. elaborates, “The Indian animation industry is growing rapidly with about 300 animation companies employing 12,000 people and 3,000 freelancers in India. There has also been a steep increase in the no. of ways to consume animation content than ever before with more TV channels, increasing accessibility to Internet, proliferation of mobile devices and increasing popularity of mobile, video & computer games, offering humongous potential for the Animation & Character Licensing in India.”

Particularly in animation and gaming sector, India has a lot to offer for its rich heritage of mythology that can always serve as interesting content, says Mr Marya.

Lately, a slew of players have entered the Indian markets for licensing merchandise and character franchise. Disney Consumer Products occupies the foremost position, with the characters of Mickey and Minnie alone generating 43% of its revenue. King Features Syndicate, a merchandise licensing firm of US-based Hearst Corporation, that owns the characters like Flash Gordon, Popeye and Betty Poop has entered India and is in talks with Indian corporates for licensing deals in food and beverages, kids apparel and footwear, stationery and toys, home décor and furnishings, and the wireless/mobile sectors. Dubai-based SpaceToon Media's Kids Media India has launched licensing and merchandising business in India and SAARC countries.