Licensing: Help To Grow Existing Product Lines
The attraction of licensing trademarks for business intentions appears to be at an all-time high, mostly in the fashion arena where consumers are buying more licensed products and brand names than ever before. For retailers, licensing opportunities provide them with a point of difference from their competitors.
Licensing is leasing a legally protected property (like trademarked or copyrighted name, logo, likeness, character, phrase or design) to another party in combination with a product, service or promotion. It is a process which lays stress on consumer management, development of brand equity in line with international imagery, providing right shopping ambience and perhaps is less about manufacturing. Licensing is a way of growing with an already established brand. It provides the brand recall benefits, which are not achievable in case one comes out with a brand new image.
There are many types of licensing business like art & design, corporate brands, events, fashion brands, food & drink, institutional, magazine brands, music, personalities, sports and television licensing to name a few.
The advantages of licensing for licensors
The main advantage for a licensor is the facility to use and develop its brand or property.
Licensing can achieve this by:
. Improving its brand existence at a retail or distribution outlet.
. Making further brand perception to support its core products or services.
. Providing and increasing its core values through various links with the licensed products/service or category.
. Coming into new markets (consumer or geographical) which were unfeasible with its own strengths.
. Making new revenue flows, often with little involvement or additional financial resources
The advantage of licensing for licensees
The main advantage for a licensee (particularly manufacturer or retailer) is the capability to considerably upsurge consumer interest in and sales of its products or services.
Licensing can achieve this by:
. Shifting the values and consumer favour towards the licensed product or service.
. Providing added value and differentiation in the competitive market.
. Offering additional marketing support or speed from the core property’s activity given by the licensor.
. Attracting new target markets who have not been paid attention in a licensee’s product or service.
. Providing credibility for shifting into new market sectors through product extension.
. Attaining additional retail space and favor.
Licensing: The increasing scenario worldwide
Reviewing the year-after-year worldwide retail sales from 2000 to 2004, the licensing business this year has shown an increase. In general, 2004 anticipated worldwide retail sales of licensed business increased 1.5 per cent to $175.3 billion against 2003 $172.7 billion, with the USA making nearly $110 billion (nearly $5.805 billion in royalties) and Europe $34 billion. In UK, the brand licensing industry is worth approximately £7billion in retail and £368million in royalties.
Recently many international textile-garment-apparel manufacturing companies are in news due to their licensing agreement with many other companies.
Everlast Worldwide Inc, which is a men’s and women’s apparel and accessories seller, recently announced signing a new four-year license agreement with Jacques Moret Inc of New York City. As of January 1, 2006, this new agreement grants Moret, a major supplier to the US apparel market, a license for Everlast men’s activewear, sportswear, outerwear and swimwear in the United States. Moret will partner with M. Hidary and Company Inc for design, development and sales of the activewear portion of the license. M. Hidary has achieved great success with its vast experience in the men’s branded activewear business. They will purchase certain men’s apparel inventory owned by Everlast and assume other transitional costs associated with the men’s business. Additionally, certain key sales, merchandising and operational personnel will join the new group.
Burnaby, B.C.-based ID Wear, a group of Pimlico Apparel, has recently received the sole license for the manufacture, design and sale of the Playboy brand of high-end denims for the North American market. https://saltsociety.shop/collections/swimwear produces denim products for its own brands, ID Wear and private labels such as Nordstrom’s and Harley-Davidson. Moreover, ID Wear is the first North American company to provide laser logoing on its garments.
Marvel Enterprises, Inc., a global character-based entertainment licensing company, recently declared that it is strengthening its important apparel licensing business with leading partners Kids Headquarters (as master apparel licensee) and Mad Engine (which will spearhead t-shirts and tops). This statement means a brand new partnership with Kids Headquarters and an expanded relationship with Mad Engine.
Juicy Couture has partnered with Sàfilo Group for a full eyewear collection that it will introduce in spring 2006. A budget-priced set of sunglasses and ophthalmic eyewear for men will also be introduced via an agreement between fashion brand Haggar Clothing Co. and The Feldman Corporation’s I-dealoptics division.
Aviation and military-inspired leather outerwear and sportswear brand Avirex signed a multi-year license agreement with Kids Headquarters for sportswear and outerwear for boys.