Well known marketer Seth Godin has been famously quoted as saying, “Marketing is a contest for people’s attention.” But garnering people’s attention comes with a price, which at times is beyond the means of an entrepreneur who has just started. Trying to help Indian sports goods manufacturers overcome this hurdle is the Sports Goods Export Promotion Council. And how? By making best use of the Market Development Assistance (MDA) scheme

Purba Das | @TheDollarBiz

Indians have traditionally been known as people, who respect brain more than brawn. They take great pride is saying that theirs is a culture of knowledge seekers – something that can be seen even in 3rd and 4th generation ‘People of Indian Origin’. Let’s take the case of Indian-Americans. A thriving community, it has produced some of the best doctors, lawyers and scientists for US. The dominance of Indian-Americans in the spelling bee competitions in US is a part of folklore. However, the picture is completely different when it comes to American sports like ice hockey, basketball, etc which are very physical in nature. But with satellite TV becoming an integral part of modern life and liberalisation ensuring money flowing into sports, the mindset is changing. And changing fast. Unfortunately though, the same can’t be said about our sports goods manufacturing and exports.

Weak hands

Sports goods manufacturing in India is essentially dominated by small players – many of them in the unorganised sector based in tier II towns like Jalandhar and Meerut. So, when the seriousness with which Indians looked at sports started rising sharply, the need for high quality sports goods also rose exponentially. And Indian sports goods manufacturers were found wanting to cater to this rising demand for top quality sports goods. The result? Massive rise in imports. So, from being a net exporter of sports goods until a decade back, India now runs a huge trade deficit – over $200 million for each of the last three financial years.

Although Sports Goods Export Promotion Council (SGEPC) was founded way back in 1958, the need for it to pull up its socks was felt only recently, thanks to the rising deficit. And on its part, SGEPC has been trying to do its bit to support the sports goods manufacturing industry in India, at least in terms of them getting the attention they deserve.

All about marketing

In this endeavour, SGEPC has been trying in right earnest to push the Marketing Development Assistance (MDA) scheme of the Ministry of Commerce, which it feels will be of great help to Indian sports goods manufacturers. The aim of the scheme is to: (i) Assist exporters for export promotion activities abroad. (ii) Assist Export Promotion Councils (EPCs) to undertake export promotion activities. (iii) Assist approved organisations in undertaking exclusive non-recurring innovative activities. (iv) Assist focus export promotion programmes in specific regions like Focus (LAC), Focus (Africa), Focus (CIS) and Focus (ASEAN + 2) programmes. (v) Residual essential activities connected with marketing promotion efforts abroad.

As per the scheme, exporting companies with an FOB value of exports of up to Rs.30 crore in the preceding year are eligible for MDA assistance for participation in buyer seller meetings/fairs/exhibitions abroad to explore new markets for export of their specific product(s) and commodities from India in the initial phase. This will be subject to the condition that the exporter has completed 12 months membership with the concerned EPC and has filed whatever documents it’s supposed to file, regularly.

Coach vs. Player

India is not a country which is anywhere close to being a sporting powerhouse. So, its but natural that even though companies like the Meerut-based Bhalla International, which owns the Vinex brand; Sanspareils Greenlands, the popular cricket equipment manufacturer; and the Jalandhar-based Soccer International, a leading football equipment manufacturer, are now manufacturing world class sports goods, the fact that they are based out of India weighs against them. And trying to to reverse or remove this handicap is SGEPC.

It’s because of such grant provided under the MDA, large delegations of Indian sports goods manufacturers managed to attend three international sports goods exhibitions in FY2013 – two in Hong Kong and one in New York. Similarly, using MDA grant, a delegation of 12 Indian sports goods manufacturers are scheduled to attend buyer-seller meets in Brazil and Chile, later this year.

Thanks to participation in such fairs, Indian sports goods exports increased by 20% in FY2014. And while imports still far outweigh exports, one hopes with SGEPC as a coach, players in the sports goods industry have set their sights on the goal. Will they be able to score?