Editor’s note: This story is revised from the print edition.
Unremittingly expanding offshore sales and continued buoyancy in video games have NBA licensing officials forecasting a second consecutive record sales year.
Take-Two’s “NBA 2K14” was the league’s top-selling video game ever, and NBA consumer products chief Sal LaRocca expects 2K15 to top that.
 |
LeBron James’ return to Cleveland is expected to push the Cavaliers to the top among team merchandise sales. James is already tops in jersey sales.
|
Sporting goods and apparel sales continue to be robust. The expansion of online distribution has helped expand product categories that many brick-and-mortar retailers largely ignore, including licensed products for women and kids.
Online and offline, the NBA sees sizable potential in the kids market, one of the categories in which sports licensed apparel had its beginnings. Consequently, this season the NBA is mounting a marketing campaign behind licensed products for kids consisting largely of jerseys, caps and toys. Currently, NBA-licensed kids products generate about 20 percent as much sales as adult goods generate.
“There’s a big opportunity globally there, so we’re going to invest,” said LaRocca, the NBA’s president of global operations and merchandising. “More kids are playing the sport. Globally we think it [the total business] could be half adults and half kids.’’
Offshore sales have grown, along with the NBA’s increasingly diverse base of athletes. Currently, the domestic/foreign sales ratio for NBA-licensed products is 68 percent to 32 percent; LaRocca said his most optimistic projection sees it changing to 65/35 this fiscal year. China continues as the league’s No. 2 market, with Europe No. 3.
On the product side, any time a player with the appeal of LeBron James changes uniforms, jersey and apparel sales
 |
A new licensee this season on the apparel side is Peace, Love, World.
|
follow. LaRocca said early results are incomplete, “but if demand online is any indication, they [Cleveland] are going to be at the top of the [sales] list.’’ He said that adding Kevin Love and Kyrie Irving, last season’s All-Star Game MVP, will also have Cavaliers merchandise at the top of NBA sales charts.
An intriguing new licensee on the women’s fashion apparel side is Peace, Love, World, which has a line combining the peace sign with a heart and an NBA team logo. Prices for their Ts, tops, hoodies and pants range from $35 to $98.
Other intriguing new NBA-licensed offerings include the “Ugly Sweater” ($65) and women’s leggings ($59.95 to $75.95) from Team Beans/Forever Collectibles.
Licensed sales en masse are always tricky and the NBA has rejiggered there with VF the new licensee in that channel for team-identified fanwear, taking rights previously held by Knights. UNK is selling NBA-branded product into that channel, sans team logos, just the NBA “logoman.’’
At Wal-Mart, the king of mass merchandisers, the NBA is continuing its NBA Fit program, which last season saw the retailer sell bags of NBA-branded oranges. This year it’s a 4.75-ounce NBA Fit Snack Pack of apple and cheese slices, and pretzels. The program is supported by clinics at Wal-Mart stores with current and former NBA and WNBA players.
