Indian Football Market: Potentiality and Opportunity

In my previous writings, I discussed the problems and solution of Indian football and its development. Then I have also discussed the vision and the following path. But it’s very important to understand the market analysis of Indian football, the opportunity in India for football. Before launching any product or service it is very necessary to know the potential market of that particular product. Here in this writing I am discussing the potential market of Indian football.

India is a powerhouse for the sport football, like many other countries in the world. With the talent coming from all different corners and with the brimming opportunities, we see India as a team moving forward. The passion for the game is spread all over India but is really high in many pockets, where football is equally or more popular than cricket, such as Goa, Kolkata, Kerala, Bangalore, parts of north India  and the whole northeast of India.

Indian football is currently going through a major transformation. Efforts are being made by the sport authorities, clubs, individuals and also corporate houses to bring this game into the limelight just like cricket. All India Football Federation (AIFF) has restructured their administration and money has been poured into the game, so more windows of opportunity are opening up. The AFC have also worked hard to professionalize football in India. They now insist on particular academy structure and management structure for clubs to be recognized and allowed to play in the national league. Ten years ago, this level of professionalism was nowhere seen. FIFA is also convinced of the huge potential of India in terms of football development. In 2007, FIFA launched the $8 million "Win in India" project to build a range of 12 football grounds across the country. In 2012, AIFF started 4 regional academies and 1 elite academy in India with the guidance and support of FIFA and its technical committee.

The corporate houses of India are taking special interest to develop and also give proper shape to football. Essel Group envisioned the formation of a professional football club and Mumbai FC took shape. Pune FC was formed by the Ashok Piramal group. United Sikkim FC was formed by our very own football icon Baichung Bhutia in coordination with Fidelis world, a Dubai based company, Kolkata based Computer Company Chirag is planning to buy maximum share of Viva Kerala but finally sponsored the team and re-launched the team with the name of Chirag Keral, Dubai based NRI organization Dodsal group is starting their football club named Dodsal FC from Mumbai by this season. Even many are showing interest to hold the stakes of various Indian football clubs. UB group is already holding a 50% stake of 2 Kolkata giants, East Bengal and Mohun Bagan, an NRI firm Anglian is holding the stakes of Shillong Lajong FC.  The Pailan group owns the team Indian arrows, full with potential Indian U-23 players formed by AIFF itself. The corporate houses have not limited themselves to just owning Indian clubs but they have also reached out for international clubs, like the Queens Park Rangers is co-owned by the Mittals, Venky’s own the Blackburn Rovers. The Ambanis in collaboration with Sahara wanted to buy Liverpool FC. The Indian company Jain group was in advance stage to buy Everton FC of UK in 2011-12. Steel giants Jindal Steel Works (JSW) are going to launch a professional football club based in Bangalore by the end of this year. Venky’s are also planning to start Blackburns Rovers India with an academy, from Pune soon. Reliance-IMG bought Broadcasting rights from AIFF for marketing of Indian football for the next 15 years. Bharti group also signed an MOU with AIFF for the development at the grassroots level worth RS.100 Cr by next 5 years. Panasonic came as a title sponsor of the Indian national team worth Rs. 5 cr per year, initially for 3 years with a provision of extension, 2010 onwards.

Indian football has so much potential that they have been attracting even international clubs. In India 47% people of 1.2 billion claimed themselves as a football fan. The figure is much higher than the population of any country in Europe. So automatically, top football organizations are trying to acquire the market of India. The far eastern, middle eastern country’s opportunities are already explored, but the Southeast Asia market has not been explored yet. India and China the two most emerging countries in the world, are the next target to open the new business opportunity. As China has some political issues within the country so, India becomes the first preference for the business clubs. Let’s see the recent interest of international organization in Indian market.

They are not only showing interest in the Indian football scenario, but are also contrbuting to promote it to the masses. Manchester United and their telecom partner of South East Asia "Bharti group" to produce a reality show called "Airtel-Rising Star" in India, Bangladesh, and Sri Lanka. The 3winners will get the chance to get a training in Manchester United Soccer School in UK absolutely free.(Initially the same concept was planned by Chelsea FC, they tied up with ESPN to produce a reality show called "Football Star" and wanted to take the winner of this show to their main academy in UK for training). Manchester United has a shop (merchandising) in the Mumbai- Pune highway, Bangalore and Kolkata. Bayern Munich wanted to set up an academy and their merchandising store near Kolkata, which however did not meterialized due to problems. But every year FC Bayern select 5/7 young players from India for few week camps in their international academy in Germany through different events.  Oliver Khan's last international match was played in Kolkata. Maradona, Rudd Gulit, and many international famous stars also came to India for the promotion of a various football events. In 2009, Britain's Liverpool FC joined forces with Indian educational institution Bharati Vidyapeeth and the English FA to launch the Abhijit Kadam Football Development Centre (AKFDC) in Pune. Liverpool FC has also started a football school (academy) in association with former Liverpool midfielder Steve McMahon at Delhi in 2011. Now Liverpool FC is planning to start their promotional store near Delhi. Premier League giants Arsenal, Manchester United, Tottenham Hotspur, Scottish champion team Celtic FC all have targeted talented Indian youths for training in their respective academies in UK or Scotland, while Chelsea has expressed interest in establishing a football academy in India. Italian football giant Inter Milan and Arsenal joined hands with Tata Tea and every year they select 11-15 young boys from India through various selection process, called ‘Tata tea Jago re’ contest for a camp of 2/3 weeks in their main academy. Even European champion club Barcelona FC’s COO had visited India to start an academy here and wanted to explore the hidden opportunity of the potential Indian market. They have even initially started their football school with the association of ‘Conscient football’ group near Delhi. All those international club’s football school fees varies between INR 2500 to 12,500 for each and every different kind of training, camps and programs, but all are very much successful and demanded in their corresponding markets. More than 300 kids between the ages 5-14, get training from each school, every year. Not only that recently, FIFA accredited internationally friendly match between Argentina and Venezuela, with all their international stars like Messi, Higuian, Di Maria, Aguero and all others played in Kolkata.

The viewership of the game is very high in India. This in turn attracts the advertisers who are also acknowledging the potentials of the game. According to the India-based TV ratings agency TAM Media Research, football in India today boasts of 121 million television viewers. Furthermore, a data study conducted by TAM Media Research between 2005 and 2009 found that India's football audience has increased by 60% within this five-year period. This trend was reinforced by a Nielsen survey in 2010 which found that 47% of India's 1.2 billion (2009 World Bank figures) population would describe themselves as football fans. In India EPL has around 90 million potential TV viewers. According to TAM research Football mostly watched by the male (around 83%), aged group between 15 to 35+ (around 93%), and section A and B (economically strong) (around 80%) group people. Even by looking at the market opportunity, advertisers started to look beyond cricket in India. In a recent data analysis, it has shown that advertising volumes has increased rapidly and now Soccer has become one of the primary sport to advertise for the brands. In India, only 17% aired programs of all sports programs are on the base of domestic football, which attracts around 55% of total viewership of sports and 12% of the ad revenue. Football has 76% of PR coverage in India, whereas cricket has around 24%. According to TAM report Telecom, services and auto industry is the top 3 industry which comprise of around 36% of the total ad volume during the football program in India. Hero, Bhart Airtel, and Emami are the top 3 private corporate who are showing interest in domestic football ad investment, where as for international football in this category top companies are Nokia, Tata Teleservices and HP India. Bharti ranks 5 among top 10 in this category. This 29% of investment in the advertisement gives 41% of ROI to these companies for investment in Indian football.

Not only that, even ‘On the ground’ the number of spectators is also increasing in India. There is  always around 100,000 fans present in the stadium in Kolkata for East Bengal Mohun Bagan match. Even the Olver Kahn retirement match consisted of 120,000 fans present within the ground. Even Argentina-Venezuela match played in Kolkata, was in front of nearly 100,000 fans. Baichung Bhutia farewell match against Bayern was played in front of 50,000 supporters in Delhi. In Guwahati for a friendly against Malaysia the ground was fully packed with 30,000 Indian supporters. Same happened in Delhi when India played against UAE in the world cup qualifier match.

Football is gaining momentum in India day by day due to the potential that is has within itself but much is still left to be explored. All foreign organizations are trying to explore the present opportunity of the Indian football market. But domestic organizations or clubs are lacking to do so. But an effort to give momentum to the game is sure to pay off not only in terms of financial gains but also with a name etched in history for joining hands in the revolution called "Football in India".