TOTAL LICENSING
THE RETAIL LANDSCAPE More limited activity happens in high- TV trade shows.
Latin America is also experiencing a end and specialty retail, where the With few available hours during the
contraction in the number of retailers. “brand filter” is tighter and often day, any licensor of a TV-driven prop-
This means fewer players that grow driven by the success of the toy or erty must today join the struggle to
in terms of number of stores but not apparel line. reach air status, the struggle to remain
necessarily in shelf space In turn, this A very important channel, often ne- on air long enough for the licensed
means there is no incremental space glected as a result of its autonomous program to actually take shape and
for new brands. nature and the difficulty of exercising come out... and for retailers to show-
The result of this is fierce competition true controls, is the wholesale market case product and consumers to ac-
among brands that wish to attain this which caters for independent retail- quire it.
shelf space, and extremely harsh con- ers throughout each territory, to- Erratic scheduling lessens the sense
ditions applied by retailers with heavy gether with the very popular of security, as premature with-
return policies flea markets drawal from air
and heavy dis- and street can damage the
counting. vendors. brand perma-
The best strat- Due to the nently.
egy to combat high level of For protection,
this condition is informality, licensees must
to partner with the lack of reporting and difficulty learn to identify whether the TV
retailers on an- of tracking, this is a natural breeding show has other components that can
nual programs. ground for piracy. guarantee exposure aside from TV:
Work with re- It is also teenager territory. And the live show, videogames or card games,
tailers on how place where early trends often see on line activity, widespread publishing,
to strategically their first steps into the territory. etc. This reduces the dependence on
use their floor and alternate promo- This is one market segment that the small screen.
tional programs with exclusive offers, ought to be covered by good licens- Other strategies include engaging the
bearing in mind their ultimate goal: ees rather than be left to scavengers. broadcaster with financial participa-
square foot profitability. tion in the L&M revenues or back
DTR was a dormant initiative until TRADEMARKS. end.
very recently. Trademark registration is costly but But these tactics are often deceiving
Local retailers showed hesitation at a necessary condition to establish as the true incentive for local pro-
the seemingly complex licensing pro- a reputable L&M business in Latin gramming is, and will continue to be,
cedures, and focused their efforts on America. audience levels and ad sales.
obtaining the best price, often at the Each licensed brand must warrant But trends are bound to change as
sake of design or quality. its licensees that it is covered by the market evolves and as new media
Today, the focus is on added value, so trademark registrations and not only technologies, still in their infancy in
retailers are reassessing the acquisi- copyright, and not subject to law suits Latin America and limited to a small
tion of licensed brands as a powerful from third parties that may claim pre- segment of society, progresses.
tool for differentiated marketing and vious ownership. Hence the belief that it is critical to
product variables they can control. This condition can be challenging for approach this region with the help of
Last July, Sears Mexico launched the a brand that due to its nature may a good partner that knows the mar-
first licensed line of fashion apparel take a long time to develop and grow ketplace and who can give you a reli-
inspired by local wrestling legend El and thus generate the very resources able introduction and guide you past
Hijo del Santo, opening 40 shops- that will pay for this expense. the initial challenges and shortcom-
in-shops and igniting an array of PR A piece of good advice is to iden- ings to where real opportunities lie.
events. More recently, this line be- tify proprietary territories, prior- And why not? That brings a good dos-
came one of three nominees to win ity product categories, or categories age of passion to the table. You are in
Best Character Brand Program of the with more incidents, and produce a Latin America after all!
Year by LIMA - their top award. roll-out plan that balances the initial
In addition, they view DTR deals as a expense against the foreseeable re-
direct stream of revenue coming from turns.
Tycoon Enterprises is one of the lead-
their various destination categories:
ing L&M Agencies in Latin America.
Together with Redibra International
apparel, food of different kinds, from TELEVISION
Solutions (Brazil) and International
canned vegetables to desserts, to fro- The limited number of terrestrial
Merchandising Consultants (Argen-
zen goods, water, infant care to dis- broadcasters in the region creates a
tina), offers full Latin American cover-
posable paper products and diapers. bottle neck for the high amount of
age through shared intelligence and
Licensing activity takes place mostly content that is being presented to
local expertise.
at mass retail. them each year at the international Visit us at
www.tycoon.com.mx
www.nickelodeon.tv
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