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Brand Pepsi eyes non-core categories

09-October-2004
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Brand Pepsi eyes non-core categories

Move over Nike. Brand Pepsi is stepping in. For the first time in India, soft drink brand Pepsi will be licensed to non-core categories like footwear, apparel, kidswear and accessories like bags, keychains, and what-have-you.

The US soft drink major has given the mandate to Interasia & Associates, the exclusive licensing agent for PepsiCo Beverages International in HongKong, Taiwan, Malaysia, Korea to appoint Pepsi licenses who will manufacture and distribute a variety of products in ‘non-conflicting’ categories under the brand Pepsi in India.

“Pepsi is bullish about the Indian market. They, obviously see it as a huge market and are keen to tap it,” Interasia & Associates India director Gaurav Marya told FE.

Interasia has recently opened its office in the country by entering into a joint venture with Franchise India Holdings Ltd (FIHL), also headed by Mr Marya. “Strategic licensing agreements is the next big thing that will happen in the retail scenario in India,” Mr Marya said.

According to Mr Marya, the Pepsi products will be distributed in the country through exclusive ‘Pepsi image stores’ which will be set up throughout major cities in the country. The products will be priced competitively and will be positioned at the lower end of the market.

Inspired by the China model used by Pepsi for its licensing programme, Interasia hopes to emulate the same in India as well. “In China, Pepsi shoes sell much more than Nike,” FHIL director Tony White said and added that India being a similar marketplace, the programme is likely to be successful here.

In China, Pepsi products have spanned product categories like bedding, linen, bathroom textiles, floormats and others, and are sold through free standing Pepsi stores or shop-in-shop concepts throughout major cities.

According to Mr Marya, in India, Pepsi has initially decided to enter product categories like apparel, footwear, kidswear and bags but would be open to expanding base in order to offer an extensive selection of lifestyle merchandise.

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