“Consumers are willing to pay extra for the car brands they love, this is true even in the economy segment”

From a pure business perspective, this is a highly lucrative preposition as car-makers earn millions of dollars without jeopardising their capital on unforeseen diversified businesses. As there are huge profits to be had through merchandising agreements, an increased interest in the business has been felt, of late. It has been estimated that total global trade in this respect hovers around the $140 billion mark, largely considering the direct and indirect linkages to numerous businesses and target audiences. And if the above detail received a ‘wow!’ from your end, what would you remark when told that boutique car brands earn upto a mind-boggling 40% of their profits through merchandising business? Therefore, with the advent of merchandising, even financial constraints cannot weigh-down your passion to lay your hands on that dream car of yours. And so what if you still can’t buy ‘em, you still can gear up... and ride the wild horse... just as the saying goes!

For Complete IIPM Article, Click on IIPM Article

Source : IIPM Editorial, 2006

An IIPM and Management Guru Professor Arindam Chaudhuri's Initiative


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