Reliance ADAG’s Zapak.com has won sole distribution rights to American stationery giant Crayola’s products in India. It’s one of the oldest tricks in the book for a foreign company to form a “strategic” alliance with a local partner who knows the ins and outs of doing business in India. Crayola will now use Zapak’s distribution network to sell its products.
Zapak Games will directly purchase the products from Crayola and sell them in India without paying Crayola any additional royalty. The company makes a range of creative products including crayons, markers and paints, besides an entire range of Color Wonder and Color Explosion products and their target audience are kids aged 4-10 years.
Why Distribute Kiddie Crayons?
We see this as a clever marketing ploy. Zapak wants to target kids at an early stage, as these young ones will soon be old enough to embark on a lifetime of spending time on-line, and Zapak will be the biggest brand recall among this demographic. Also note that Crayola is a premium brand, and parents who will buy their products will surely have enough spare change to indulge their kids’ devotion to purchasing online content; another brilliant example of cross-branding.
Tapping India’s Creative Generation
Andrew van Oosterwijck, Crayola’s head of Asian business development says, “We understand the important role creativity plays in the Indian culture and we are confident that children and parents will have fun and enjoy playing with Crayola products. We look forward to sharing a long partnership with Zapak and will provide the necessary support to ensure success.”
So there we have it; retail, online gaming and a quality-oriented foreign company are coming together to tap into India’s upwardly mobile population. And unless we end up discovering too much lead in Crayola’s products, Zapak can tick this one off as another successful venture.
What are your views on unconventional tie-ups? Tell us