Rio Olympics bet on flip-flops to hit $420 million target

Organizers of the 2016 Olympics Games in Rio de Janeiro are banking on the popularity of flip-flops and a yet-to-be-announced cuddly mascot to help meet a target of $420 million in total merchandise sales. The Rio 2016 organizing company is halfway through completing 65 licensing agreements with companies that will produce and sell Olympics merchandise. About 16 percent of the total sales will go toward raising the almost $3 billion needed to stage the event. As well as targeting companies to make products including a bracelet that will send a signal to mobile phones every time a Brazilian wins a medal, Rio 2016 is selling licenses to run 150 temporary stores. Rio 2016’s Licensing Director Sylmara Multini said choosing the right mascot for South America’s first Olympics will go a long way toward determining the success of selling Olympics gear.

We believe we can sell millions of sandals. You got the London games, zero flip-flops were sold, and here it might be our number one product.

Rio 2016’s Licensing Director Sylmara Multini

Multini said as much as 40 percent of sales will be products for children between four and eight. “I think the purchase for kids is greater in Brazil than any other country I’ve seen in Latin America and sometimes even more so than the U.S.,” she said. About 90 percent of games merchandise is aimed at the domestic market. With Rio’s oceanside location, a heavy emphasis is going toward products like sandals, beach towels and sarongs. Sales are expected to be slow until the games near with little money currently being spent toward publicizing the event that begins Aug. 5, 2016. “Historically 80 percent of the sales happen in the last year,” said Multini. “In prior games some categories decided to launch early but usually not successfully because the hype is just not there.”

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