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TOTAL LICENSING
Licensing in
Latin America
By Dalia Benbassat
If you are thinking of licensing through Panama, reaching Guatemala, Brazil poses a different challenge as
VP International
your brand out in Latin America, Belize, EL Salvador, Costa Rica, Hon- a result of its cultural independence,
Tycoon Enterprises
Mexico
Bienvenido! A good move! duras, Nicaragua and the majority of its passion for fashion and its vast
www.tycoon.com.mx
The Latin American region rep- the Caribbean islands - at times even structure of independent retailers;
resents an important percentage Venezuela and Colombia. the opposite of territories like Mexi-
of the World’s buying power and Puerto Rico, even if technically con- co, where the concentration of retail
a territory that is very responsive sidered a part of the US domestic in very few hands is the rule.
to emerging trends and entertain- market, has a Spanish speaking popu- Allowing that differences are so many
ment boosters. In addition, nearly lation that makes for a potentially in- and so varied between the countries,
one third of our 562 million inhab- teresting market for the distribution the secret to success is to have the
itants are under 14. of Spanish language products sourced right people on the ground - either
Often in the past, it was assumed from Latin America. This is an oppor- your own employee or an Agent, in
that the region was, effectively, one tunity often neglected by US licens- each of the key territories.
big country. However, to understand ees.
Latin America, it is important to live As you enter South America through
it first hand. Venezuela, Colombia, Peru, Ecuador,
The trip is worthwhile - there is noth- Chile, other influences become more
ing quite like a direct glimpse of the visible - and markets vary from coun-
marketplace and good conversation try to country.
with key local players for a first-hand Chile and Colombia have taken
understanding of its people, its retail leading positions in licensed textiles
structures, its buying culture. and paper / back to school products.
Mexico - the Northern part of Latin Strong retailers like Falabela, Paris or
America – is the territory with the La Polar can count strong DTR per-
strongest US influence – partly due formances that are often used as ex-
You want the strongest possible part-
to its geographical proximity. amples in trade fairs and have been
ner in Mexico, Brazil and Argentina,
Since most of its exports go into the awarded international prizes. Only
which together add up to 70% of the
USA, Mexico’s economy is also highly recently Chilean retailer La Polar
region’s licensing revenue.
dependant on its larger neighbor’s was awarded a “Homey of the Year”
These are followed by Chile and Co-
ups and downs. Award for best Retail program in
lombia, and then by Central America.
But Mexico alone represents 30% of 2007, by 20
th
Century Fox.
In the majority of cases it is wise to
the region’s licensing revenue, mostly Argentina is the territory with the
rely on local expertise, and on people
coming from mass retail chains and most European-influenced lifestyle,
with a existing relationships in the in-
independent wholesale merchants while at the same time the country
dustry.
that cater for the territory on a na- has the highest penetration of pay
Find cohesive allies, with whom you
tionwide basis. TV (as against a 30%
can entrust the administration of your
The smaller econo- average in the rest
business and who can provide service
mies of Central of the region) and
that meets International standards.
America and The more production of
Caribbean, tend original content.
MAIN LICENSING TRENDS.
to blend together Argentinian licens-
Like elsewhere, licensing has its sweet
to gain the critical ees usually cover
spot amongst kids 4 to 12. Latin
mass needed to Uruguay, Bolivia
American kids share the trials and
make cost efficient & Paraguay - again
tribulations of kids everywhere - plus
licensing deals. Im- in the pursuit of bet-
they face the particular challenges de-
ports find their ter scales of econo-
rived from their local economies.
way into the region mies.
The strongest entertainment influ- www.nickelodeon.tv
103
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